OECD commends Turkey to maintain strict monetary policy

OECD commends Turkey to maintain strict monetary policy

Based on the related section of semi-annual Economic Outlook report of the Organization for Economic Cooperation and Development, Turkey's GDP (Gross Domestic Product) growth, driven by buoyant private business investments and household consumption, reached nearly 12% annually in the first half of 2004 and is expected to approach 10% for the overall year. Economic growth is likely to slow to a more sustainable rate of around 6% in 2005 and in 2006, with exports and domestic demand remaining robust. In addition, OECD pointed out that the strict monetary and fiscal policies should be maintained and structural reform agenda should be fully implemented to continue to improve domestic and international confidence. Furthermore, fiscal gains obtained from strong growth should be devoted to public debt reduction in order to improve fiscal sustainability and rein the growing current account deficit, OECD said in its report.