Turkey’s economic growth to exceed target
Turkish State Minister and Deputy Prime Minister Abdullatif Sener stated that the country's economic growth will be achieved as 5.2 percent at the end of the year and surpass the year-end target of 5 percent. Minister Sener also added that gross domestic product (GDP) is expected to grow 4.1 percent in the final quarter of 2005 and gross national product (GNP) is projected to grow 3.8 percent. Accordingly, both GDP and GNP are expected to grow 5.2 percent in 2005. Sener said that the economic stability, sustainable high growth trend, low inflation and fiscal tightening are the government's economic policies. Sener also added that to reduce current account deficit and the inflation are the government's priority targets. Turkey's current account deficit rose 58.4 percent year on year to $17.1 billion in the first ten months of the year. Current account deficit is expected to reach $21.3 billion at the end of the year. Sener said that the financing of current account deficit, which is under import pressure, is provided by foreign direct investments and portfolio investments. He also stated that there is no problem in current deficit financing and underlined that the government incidents to economic program and fiscal tightening. Sener stated that the appreciation of Turkish currency raises the current account deficit. However, he said that they will not interpose the central bank as its independence is so important. Meanwhile, Turkish Statistics Institute (TUIK) disclosed that the country's unemployment rate rose to 9.7 percent in the third quarter of 2005.