Drop in oil prices big advantage for Turkey: minister

Declining oil prices will have significant positive effects on Turkey’s current account deficit and inflation next year, economy minister says.

Drop in oil prices big advantage for Turkey: minister
World Bulletin/News Desk
 
Declining oil prices will have significant positive effects on Turkey’s current account deficit and inflation next year, Economy Minister Nihat Zeybekci said Tuesday.

Addressing a press conference at the “Exports Oriented Production Strategies” forum, Zeybekci said the positive effects of the steep decline in oil prices would be observed in the current account deficit figures, starting from December.

The minister said Turkey had managed to reduce its current account deficit by 37 percent during the Jan.-Oct. period year-on-year without the support of drop in oil prices. He added that the new prices would help further reduce the deficit and curb inflation.

“The drop in oil prices will have very positive effects on our current account deficit if the average oil prices stay near $75 per barrel,” Zeybekci said. “This will minimize current account deficit $12 billion.”

He also predicted that declining oil prices would help Turkey reduce consumer prices inflation by 1.5 points next year.

The consumer prices inflation in Turkey was 9.15 percent in November year-on-year, according to the Turkish Statistical Institute, a figure well above the Central Bank of Turkey’s five percent medium-term target.

Last Mod: 16 Aralık 2014, 12:04
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