New Economic Programme of Turkey Claims Rapid Economic Revival

The new economic programme targets a 10.5 percent inflation rate for 2020 and aims to increase savings through strategic reforms in financial markets.

Successful Economic policies of Turkey during Covid-19 helped Turkey to enter into economic stabilisation phase claimed by finance minister Berat Albarak at the launch of three-year New Economic Programme 2021-2023.

He added that as compared with the March-April period Turkey’s exports observed a hike of 27 percent in the June-August period. Though in recent past $63 billion in aid was given by the government, still the economic graph is inclining the finance minister said.

Sustainable growth, the decline in the budget deficit and reducing unemployment rate are the targets Turkish Finance ministry aimed to achieve until 2023.

“We determined the main themes of the New Economic Programme as ‘new balancing,’ ‘new normal’ and ‘new economy,'” said Albayrak.

Albayrak said the new economic road map will assist Turkey to adapt to the new normal. Further, it will be efficiently helpful for Turkey to cover up the financial imbalances caused by the pandemic.

The new economic programme targets a 10.5 percent inflation rate for 2020 and aims to increase savings through strategic reforms in financial markets.

The labour market, households and business

Albayrak said economic measures took by Turkey during pandemic allowed the country to achieve the target of rapid economic growth and economic stabilisation.

He said the country targeted three areas during the fight against COVID-19 pandemic — to keep the labour market alive, to provide aid and liquidity to households and businesses affected by the pandemic and to keep supply chains alive by ensuring basic sectors continued working.

This intelligent economic handling allowed the country to maintain the economic position as compared with many other countries grappling with the pandemic.

Financial support for citizens

The finance minister shared amount of $62.9 billion in aid was given by the Turkish government for the nation during the pandemic.

Additionally, Turkish government provided $34.24 billion of loan financing and $6.08 billion in aid to 9 million citizens.

Albayrak emphasised financing was provided at a very low cost to all stakeholders, from households and tradesmen to industrialists and exporters.

Exports up by 27 percent

Albayrak drew attention to Turkey’s exports which increased by up to 27 percent in the June-August period of 2020 compared to the March-April period.

Optimistically, Turkey will significantly cut down the dependence on energy import because the country found massive gas resources in the Black Sea last month. Once the commercial extraction of the gas starts it will further reduce the size of imports.

The estimated reserve stands at 320 billion cubic metres of natural gas.

Declining budget deficit 

The new road map points out a gradual decline in a budget deficit. A deficit of 3.5 percent of the GDP by end of 2023 is expected.

“We expect the budget deficit to national income ratio to gradually decline over the period; from 4.9 percent this year, 4.3 percent in 2021, 3.9 percent in 2022 and eventually dropping to 3.5 percent in 2023,” Albayrak noted.

A gradual decline in the unemployment rate in Turkey is also expected. This year unemployment rate will decrease to 13.8 percent which will further decline to 12.9 percent next year, and by 2023 it will decrease to 10.9 percent.

“We expect growth to be positive throughout the year,” said Albayrak.

Earlier on Tuesday, Turkish Statistical Institute, TurkStat, said Turkey’s economic confidence index rose 3.1 percent to 88.5 in September.