Turkey Plans Continued Economic Surge

A draft for Turkey‘s 10th 5-year economic development plan has been sent to Parliament. According to the plan Turkey will reach an annual growth rate of 5.5%, have a 4.5% inflation rate, and a 7.2% unemployment rate by the end of 2018.

The Ministry of Development plans to meet the economic growth by “upgrading the economy’s potential growth”, including increasing GDP to $1.3 trillion and income per capita to $16,000.

Imports and exports are also to increase under the plan to $404.3 billion from $236.5 billion and to $277.2 from $152.5 respectively. The plan is to reduce the current account deficit to $67.1 billion by the end of 2018 and the ratio to 5.2% of GDP from 6% last year. But this could be called over-ambitious, especially given the fact that the aforementioned targets for import and export growth only bring the deficit down to $127 billion, 10% of GDP.

To meet the unemployment target the plan foresees the creation of 4 million new jobs, and increasing labor force participation from 50% last year to 53.8% by the end of 2018.

“The 10th development plan will lead the country to approach the 2023 targets that aim to reach a $2 trillion GDP, $25,000 income per capita, $500 billion exports and a 5 percent unemployment rate,” the ministry said in a statement. The draft of the plan was presented to Parliament on June 14.