Turkish Economy to Grow More than Previously Expected Says World Bank

Posted on 03 February 2010

The World Bank country director for Turkey, Ulrich Zachau has said that the organisation “expects” Turkey‘s economy to grow by 4-4.5% this year, which is higher than the World Bank’s running forecast of 3.5%.

On the other hand, he said that high unemployment would continue to be a problem in the foreseeable future.

Addressing the Global Economic Expectations 2010 – Crisis, Finance and Growth conference on Monday, Zachau said: “Turkey ended last year in a much better place than many people expected. There is a “big possibility” that 2010 will be a much better year than 2009 was for Turkey,”

Zachau stressed that that official World Bank forecast is still for a growth of 3.5% but their expectations for the country’s growth over the year have been raised to around 4 to 4.5 percent.

During a meeting organized by the Economic Policy Research Foundation of Turkey, or TEPAV, an independent, nongovernmental think tank, Zachau then highlighted the importance of the realistic objective of the Turkish government’s middle-term program, as well as its middle-term fiscal plan, and said that while Turkey had suffered damage to its real economy, it benefits from a stronger financial sector than most countries which did.

Elaborating on that point, Zachau said that Turkey had felt the heaviest blows in employment opportunities and industrial production, but that measures enacted after Turkey’s financial crisis of 2001 meant that the financial sector was robust against the crisis. This is what analysts were predicting at the beginning of last year, when it seemed all countries would succumb to the collapsing global financial infrastructure.

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