Economy’s Future for 3 Years Announced

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Vice Prime Minister, Mehmet Şimşek has declared Medium-Term Program (OVP) in economy.

Şimşek said reform agenda has three aspects, which are sectoral transformation, course of action announced, and process of entering the European Union.

Targets in OVP are with the main lines as follows:

Growth

“There will be recovery in domestic demand via income policy. We expect progress in EU process. Domestic savings are in increase trend; we expect this to continue.

“Investments and productivity growth will help us reach 5% growth.

“We foresee that interest rate hike of Fed will have limited impacts on us”.

Current deficit

It has been foreseen that rate of current deficit to Gross Domestic Product (GSYH) will be 4.4% in 2015, 3.9% in 2016, 3.7% in 2017, and 3.5% in 2018.

Unemployment

It has been foreseen that the unemployment rate which was 10.2% in 2015 will fall to 9.6% in 2018.

Inflation

Inflation estimations foresee 7.5% in 2016; 6% in 2017; 5% in 2018.

“The rise in food prices has been analyzed and necessary precaution will be taken within this year”.

Budget deficit

It has been estimated that rate of budget deficit to GSYH will be 1.3% in 2016.

The same ratio is estimated 1% in 2017, 0.8% in 2018.

Foreign trade deficit

It has been foreseen that foreign trade deficit will be $55.2 billion in 2016, $67.2 in 2017, and $71.8 in 2018. (YY/TK)