Turkey's current deficit to drop to %7.5 : IMF

IMF released a concluding statement of the IMF mission for the 2012 Article IV consultation for Turkey.

Turkey's current deficit to drop to %7.5 : IMF

World Bulletin / News Desk 

The International Monetary Fund (IMF) said on Monday that Turkey's current account deficit was likely to decline to 7.5 percent of GDP in 2012.

IMF released a concluding statement of the IMF mission for the 2012 Article IV consultation for Turkey.

"The moderate pace of growth is helping unwind imbalances. Macroeconomic policies have started to deliver disinflation and a reduction in the current account deficit. Inflation-headline and core-is decelerating but is expected to end the year above the top of the central bank-s inflation target band. The current account deficit is likely to decline to 7½ percent of GDP in 2012. Additional modest improvements in both inflation and the external deficit are in prospect for 2013," it said.

It was important that the medium-term fiscal plan for 2013-15, currently under preparation, set strengthening the budget structure as a key objective, the statement said.

"The authorities will need to follow a narrow policy path. Macroeconomic policies should remain supportive of economic growth as long as it is consistent with disinflation and a further reduction in the external deficit. Thus, in the near term, growth below potential would be warranted to continue reducing imbalances. Were growth to accelerate, undermining the inflation and current account objectives, the authorities should stand ready to tighten the macroeconomic stance," it said.

IMF said, "There has been progress in supervision and regulation to strengthen financial stability. The banking supervisor (BRSA) has already started to close some of the gaps in the regulatory and supervisory framework, such as expanding the coverage of consolidated supervision and tightening the rules on asset classification and provisioning requirements."

Güncelleme Tarihi: 09 Ekim 2012, 11:22
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