Turkey's growth could slow down in Q2: Minister

Turkish State Minister for economy Simsek said uncertainty in domestic politics affected Turkish economy much more than global developments.

Turkey's growth could slow down in Q2: Minister
Turkish State Minister for economy Mehmet Simsek said on Monday that Turkey's growth could slow down in the second quarter of the year due to political uncertainty which he said was "bringing an additional burden of 20 billion YTL for the Treasury."

Simsek said uncertainty in domestic politics affected Turkish economy much more than global developments.

"What we and all national and foreign experts think that if there had been no political uncertainty in Turkey, it would have been among the countries which were less affected by the global crisis. Because our economy was in normalization period," Simsek told the A.A.

He said the government continued to make structural reforms to achieve a sustainable growth rate in the medium and long term despite all developments in domestic politics.

Simsek said interest rates rose 5.5 points to 22.5 percent since the closure case filed against ruling Justice & Development (AK) Party in March, which he said was a sharp rise.

"So, political uncertainty, together with upsurge in risk premium and interest rates, bring 20 billion YTL of additional burden for the Treasury," he stated. "Turkey does not deserve this crisis with this budget performance."

Simsek also said that value of companies quoted at the Istanbul Stock Exchange fell 80 billion USD and that there was a serious outflow of foreign capital in bond market because of political uncertainty that also caused slowdown in construction business, investments and consumption.

AA
Last Mod: 07 Temmuz 2008, 17:30
Add Comment