"We will raise qualified labor force, improve employment opportunities, lower unemployment and make labor force market more effective," Unakitan told MPs after he submitted the draft budget of 2008 to the parliament.

Unakitan said former budgets of Turkey were not prepared and managed well, and this causes crises and heavy interest rates.

According to Unakitan, the rate of budget deficit to the Gross National Product (GNP) was 0.8 percent last year. It was 14.6 percent in 2002.

"We forecast we will achieve a figure below the forecasts this year, and this means that we have achieved a great success in adjusting to Maastricht criteria," Unakitan told MPs.

Unakitan said the budget of 2008 aims to raise income of Turkish people.

On the other hand, Unakitan said the world economy is undergoing a period of uncertainties and countries like Turkey should follow these developments closely.

"What we should do against such market fluctuations is to go on with structural reforms, financial discipline and privatization," he told parliamentarians.

Economic developments in Turkey

Unakitan said atmosphere of stability and confidence has been ensured in Turkey for the last five years.

"Turkey grew around 7.3 percent p.a. between 2003 and 2006 and thus become the 17th biggest economy in the world," he told.

Unakitan said the GNP will reach 520 billion USD in 2008 after he recalled that it was 181 billion USD.

According to Unakitan, the national income per capita will be up to 7,000 USD in 2008.

Unakitan said Turkey will counter inflation until it is totally overcome. "However, it will not be an easy fight when we take into consideration the hike in energy and food prices in the world."

Meanwhile, Unakitan forecast the year-end foreign trade volume over 270 billion USD and said Turkey drew 20 billion USD of direct foreign capital in 2006.

"Our country became the sixth country that drew the highest net direct foreign capital among other OECD countries in the last ten years," he also said.

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Güncelleme Tarihi: 04 Aralık 2007, 18:18