IMF warns Turkey about current account deficit

IMF warns Turkey about current account deficit

In its World Economic Outlook report, the International Monetary Fund (IMF) suggests that Turkey focus on lowering the country's current account deficit and protecting market confidence. The report emphasizes that despite strong economic growth in 2004 and single-digit inflation for the first time in 34 years, Turkey's current account deficit continues to increase. In order to control the current account deficit and increase market confidence, the primary surplus target should be met and public deficit should be reduced, advises the IMF report. The IMF expects Turkey's economy to grow 5% in both 2005 and 2006. In addition, the consumer price index (CPI) is projected to decline to 9% in 2005 and 6.1% in 2006.