Turkish economy expected to grow %3 in 2012, IMF says

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

Turkish economy expected to grow %3 in 2012, IMF says

World Bulletin / News Desk 

The International Monetary Fund (IMF) said on Monday that the Turkish economy was expected to grow at a more measured pace of 3 percent in 2012, despite weak growth in the EU.

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

"After two years of rapid growth well above trend, the economy has slowed significantly, helping to unwind imbalances. Encouragingly, Turkey-s growth is expected to remain positive and become more balanced this year, despite weak activity in major trading partners," it said.

"Macroeconomic policies have been supportive of the soft landing of the economy, but the authorities must stand ready to adjust policies if the trend in disinflation and the external deficit reduction starts to unwind. In the medium term, better macroeconomic coordination is needed to improve the policy mix and reduce volatility," the statement said.

IMF said, "the economy is expected to grow at a more measured pace of 3 percent in 2012, despite weak growth in the EU. The marked slowdown in domestic demand in the first half of the year was partly compensated by the pick-up in net exports. Although weak imports have played a major role in this rebalancing, export growth has proved resilient thanks to the successful diversification of trade, particularly towards the Middle East and North Africa. The conditions for resumption in domestic demand growth are in place, with unemployment at a ten year low, relatively healthy private sector balance sheets, and more supportive macroeconomic policies. Beyond 2012, the economy is in a good position to return to its long-term trend growth rate of around 4 percent."

Earlier Turkish prime minister has said Turkey will clear its remaining debt to the International Monetary Fund by April 2013.

"At the present we owe a total of $1.3 billion to IMF. And we will cut it to zero by next April," Recep Tayyip Erdogan said.

 

 

Güncelleme Tarihi: 08 Ekim 2012, 17:40
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