Posted on 22 October 2011
According to a top World Bank executive a new proposed Country Partnership Strategy will generate a considerable amount of investment for Turkey.
“The Turkish government and World Bank have had talks in participating in CPS,” Ulrich Zachau, the World Bank Turkey director, told Reuters in Ankara.
The strategy is to focus on investments in emerging fields such as alternative energy, but also on more traditional areas like urban development, health, education, and of course, employment, Ulrich said.
Ulrich also applauded the Turkish Central Bank, for doing “a successful job in making excellent adjustments,” which he said would lead to the economy having a soft-landing after its runaway growth period of the last two years.
“The loss of value in the Turkish Lira will make imports more expensive in general for Turkey,” he said, adding that this would eventually slow down economic growth in Turkey.
“We are expecting a serious slowdown in Turkish economy,” said Zachau, estimating that the country’s growth would be around 7 percent by the end of the year.
Do not read these predictions as negative, the Turkish economy is currently the fastest growing in the world and credit growth is soaring. We have all seen the damage that unchecked growth can do, and this is something that the Turkish Central Bank knows better than most. If Turkey can now stabilise at 4% – 7% GDP growth for the next 10 years it will be a very very positive period indeed.