Turkey's growth rate 6 percent in 2008: OECD

Organization for Economic Cooperation & Development (OECD) predicted growth rate would be 6 percent in Turkey, in 2008.

Turkey's growth rate 6 percent in 2008: OECD
According to an "Economic Outlook" of the Paris-based organization, economy had slowed down in Turkey earlier in the year as a result of interest rate hikes in 2006 and political uncertainties in early 2007, but gained momentum after the parliamentary election in July.

"In the absence of shocks, growth should settle at around 6 percent in 2008 (5.8 percent in 2008) and 2009 (6.3 percent in 2009 )," the report said.

The report indicated appreciation of the Turkish currency undermined Turkey's competitiveness and noted that weaker competitiveness has caused job losses.

"In this context the government is encouraged to restore fiscal restraint, which would help the Central Bank to continue reducing interest rates, and to increase the flexibility of product and labour markets to help the economy to cope with strong appreciation," the report said.

"Turkey's current account deficit, a weak spot of the country's economy, is expected to remain above 7 percent and unemployment rate above 9 percent," the report noted.

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Güncelleme Tarihi: 06 Aralık 2007, 14:55
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