Şimşek: Rough Period in Economy Approaching

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Vice Prime Minister in Charge of Economy, Mehmet Şimşek, said he believes U.S. Central Bank, FED, will hike interest rate which signals a rough time in economy.

“In the worst case scenario, if relation with Russia is totally suspended, its impact on economy will be of 9 billion dollars”, said Şimşek.

“Direction of money flow may change”

Şimşek answering question concerning the agenda on NTV live broadcast expressed that interest rate hike in the U.S. will start normalization period, which may slow down money flow towards developing countries, and may even reverse the flow.

“Impact of tension on gross domestic product will be around 0.3”

Şimşek expressing 80% of the agricultural products returned from Russia have been directed towards other markets, said pressure of unprocessed on inflation is very strong and that they are at a stage in which they plan to take structural measures against that.

Şimşek noting delivering the food products rejected to be received by Russia to internal market may have a temporary effect, expressed that steps to reduce the inflation to digit and to increase production have to be taken.

“In the worst case scenario, if relation with Russia is totally suspended, its impact on economy will be of 9 billion dollars. We don’t want to escalate tension with Russia, impact of this tension on gross domestic product will be around 0.3-0.4”.  (EKN/TK)