Ergün: Turkey able to surpass mid-term economic goals

13.01.2012

Economic targets stipulated in the mid-term economic program (OVP), which the government announced in October, including expectations that Turkey’s economic growth becomes sustainable at 5 percent after 2012, may possibly be surpassed, Science, Industry and Technology Minister Nihat Ergün told reporters on Saturday in the western province of Kocaeli.

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Measures introduced by the government in the OVP include increasing savings and minimizing Turkey’s dependency on foreign energy resources. The OVP anticipates a decline in public debt and a lower current account deficit (CAD) leading up to the year 2015.

The government expects Turkey’s economic growth to become sustainable at 5 percent following an anticipated 4 percent growth this year. Turkey registered 9.6 percent growth in its gross domestic product (GDP) in the first nine months of 2011. Some economists said they found the goals put in the OVP “too assertive.” The government target for growth in 2012 -- 4 percent -- is 2 percent higher than the figure the International Monetary Fund (IMF) earlier estimated for Turkey. Other observers, however, argue high domestic demand and recovering investor sentiment will help Turkey maintain its economic success in the years to follow -- albeit at a slower pace.

Addressing a panel on Turkey’s first national car brand, which was organized by the Independent Industrialists and Businessmen’s Association (MÜSİAD) in Kocaeli, Ergün also referred to ongoing developments in markets. “I have faith Turkey has enough capacity to realize the targets stipulated in the OVP and achieve even greater success.” Underlining that a dynamic non-financial sector and increasing domestic production were the major engines of fast economic growth in Turkey, he said this was also reflected in employment, new investments and exports in 2011. Turkey reached its highest export level in history at $134.6 billion last year. The country’s unemployment rate dropped to 8.8 percent in September 2011 from 11.3 percent in the same month of the preceding year, hitting the lowest level since a 2001 domestic financial crisis.

The country aspires to increase its exports to $500 billion by 2023, the centennial of the foundation of the modern republic. As regards this goal, the minister said the government placed great importance on minimizing an imbalance in Turkey’s foreign trade. “Turkey’s foreign trade deficit is still high, and we must work to reverse this and export more than we import. … $500 billion of exports will have little meaning if your imports hit, let’s say, $1 trillion at the same time.” Turkey, however, has a long way to go before the minister’s “wishes” can come true with regard to foreign trade since the country has to spend billions on energy imports, observers argue. Turkey spent $49 billion on energy -- basically, natural gas and oil -- imports in the first 11 months of 2011, more than half of the $97 billion of foreign trade deficit in the same period. Ergün said critical sectors that have relatively higher added value, such as automotive, should be focused on. An earlier released automotive strategy program envisages creating a global (domestically produced) passenger car brand, and the government has called on Turkish industrialists to share projects to this end. “We need to concentrate on upgrading our research and development [R&D] infrastructure to a higher level than we have currently. … Increased foreign investments in the auto sector will also give momentum to new projects,” Ergün opined. Mentioning studies for the local car brand, the minister said the government is ready to introduce a new, comprehensive incentive package -- for different sectors -- and that the automotive industry will also benefit from these. “We have accelerated research to build a modern test center where engineers will find an opportunity to carry out R&D studies for the local car. … It is also going to be technically and legally possible for any company to transform conventional cars -- gas-driven -- to hybrid in Turkey,” the minister noted. Ergün signaled the government was also considering an electric car model among potential candidates for the planned national car brand. The minister reiterated its call on Turkish firms to “make haste to be a part of the local car project before it is too late.”

Source : todayszaman.com
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