W.Bank official says Turkey's current account deficit 'manageable'

Zachau has said Turkey's current account deficit looked manageable as Turkey built up the required reserves.

W.Bank official says Turkey's current account deficit 'manageable'

World Bank Turkey Director Ulrich Zachau has said Turkey's current account deficit looked manageable as Turkey built up the required reserves.

Zachau who spoke at the 8th International Finance Summit in Istanbul on Thursday, said Turkey's current account deficit was growing temporarily and Central Bank had substantial instruments to manage it.

He said Turkey made a quick recovery from the financial crisis thanks to good macro economic policies. Zachau said Turkey's economic growth next year would be smaller than this year's growth adding nevertheless that Turkey would record a higher growth than many European countries.

Zachau said Turkey's credit ratings would improve if Turkey continued to implement sound macro-economic policies. Ulrich Zachau said Turkey needed to introduce a more effective and just tax system.

He said unemployment remained 1.5% higher than pre-crisis levels despite an 8% economic growth, which was alarming for the economy.

Zachau said the government's efforts to create new jobs were not enough. He said Turkey's demographics was important.

"The issue is not about people's losing their jobs. There are young people. We (Turkey) need to create more jobs to employ more people. We fail to create enough jobs. It looks like demographics would continue to be an issue for Turkey," said Zachau.

Zachau who warned that Turkey might enter a bottleneck in energy supply between 2013 and 2017, said privatization in electric generation could bring private sector investments to Turkey's electric supply capacity.


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Last Mod: 09 Aralık 2010, 14:47
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