TURKISH ECONOMY NO LONGER IN RECESSION, BABACAN SAYS

National income data announced on March 31 reveal that Turkey’s economy has exited from recession, according to State Minister and Deputy Prime Minister Ali Babacan.

The Central Bank displayed a very successful performance amid the global turmoil climate and took necessary measures on time, Babacan said Friday in an interview with the NTV television channel in Ankara. 

“The Central Bank’s main priority is price stability. On the condition of not contradicting this priority, our Central Bank also guards employment and growth,” Babacan added.

The International Monetary Fund will send a committee to evaluate Turkey’s economy on May 12-13, Babacan said. The visit is part of a regular Article Four consultation, Babacan said, adding that there is no further plan on the agenda.

Possible double-digit growth

The Medium-Term Program envisaged economic contraction for last year at 6 percent, but a better-than-expected rally took place in October, November and December, keeping the contraction at 4.7 percent, the state minister said. 

Upon a question regarding statements that growth movements are based on stocks, Babacan said, “Stock issue is of course important. But if our industrialists and exporters have started to make production for stocks, this is directly related with amelioration in future expectations.” 

Also commenting on the producer confidence index, which rose to 110 as of the end of March, Babacan said, “All signals we have received so far imply the continuation of the rally in the upcoming period.”

When asked whether he expects double-digit growth figure for the first quarter of the year, Babacan said it would not be surprising considering the impact of last year’s first quarter contraction at 14.5 percent.

Babacan said the government would release June 15 a single document merging the Middle-Term Program and the Middle-Term Fiscal Plan, and if necessary, announce revised growth figures concerning this year.

Babacan also commented on the possible impacts of Europe’s economic problems on Turkey’s exports. It will not be possible for the country to grab 2008 export figures this year, Babacan said.

HURRIYETDAILYNEWS