7/27/2017
Noteworthy Statements by Deputy Prime Minister Mehmet Şimşek
"Borrowing requirement may not be kept within the limit for the first time since 2009. Under the impact of measures taken this year, borrowing will be higher than foreseen. In general term, end-year growth seems to be close to 5%. If we do not suffer a shock or difficulties we faced with countries like Germany do not effect economy significantly, recovery in tourism, in EU is of foreign demand supportive nature. There is a relative acceleration in domestic demand as well."
Deputy Prime Minister Mehmet Şimşek has commented on current economic status of Turkey. Noting Treasury's borrowing limit can be increased, Şimşek said, "Borrowing requirement may not be kept within the limit for the first time since 2009. Under the impact of measures taken this year, borrowing will be higher than foreseen". "End-year growth seems to be close to 5%" Şimşek said, "In the first quarter, growth has been a little over the market and also over our expectations. Our data available indicates that second quarter will be stronger as well. Third quarter will most probably be higher again on the basis of base effect" and went on to say, "In general term, end-year growth seems to be close to 5%. If we do not suffer a shock or difficulties we faced with countries like Germany do not effect economy significantly, recovery in tourism, in EU is of foreign demand supportive nature. There is a relative acceleration in domestic demand as well". "We need additional reforms" Dwelling upon reforms in Turkey, Şimşek said, "Turkey may be placed on 5-6% route within next 10 years. We are in need of additional reforms to enhance the investment environment and competition capacity, to reinforce the trust on legal system. For Turkey to be among high income groups countries, on one hand we have to reinforce law state principle and also to improve the investment environment". "More savings needed for reducing the interests" Speaking on interest decision to be announced tomorrow by Central Bank, Şimşek said, "I cannot comment on what Central Bank has to do, if you ask me whether the interest rate is high in Turkey, I say yes. We cannot draw interest rate down permanently through the arguments on the Central Bank". Şimşek went on to say, "Our fund demand is high, however, fund supply and side savings ratio is relatively lower. More savings needed for reducing the interests and we have to direct them to right direction". "Food impact on inflation to be maintained at reasonable level" Communicating the effects of Works of Food Committee started to be felt, Şimşek said, "Food Committee does not only deal with short term elements, most important of all, we started to work particularly on supply chain in medium-long term. The impact of food on inflation will be at reasonable level". "No investigation on any German companies" Underlining Germany is an important trade partner of Turkey, Şimşek said, "We endevour to minimize the impacts of political tensions -although we are right- experienced in international arena. We have suffered a communication accident with Germany, there is a list, totally wrong, we withdrawn this". Şimşek has noted that no investigation involved on any German companies, "This may be a correspondence far above the intentions".
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