ANKARA - State Minister Ali Babacan said on Friday that inflation had decreased below zero for the first time in last eighteen years, adding, ''it is absolutely not a dream to reach annual inflation target of twenty percent.''
Speaking at Second Foreign Capital Arena organized by the Strategic Technical Economic Studies Center (STEAM) at the Hilton Hotel in Ankara, Babacan said that everybody knew that Turkey could not take enough share from foreign investments at the amount of its potential.
''Political and economic instability which were the basic problems for years in our country has prevented flow of foreign capital in Turkey,'' he said.
Noting that important progress had been recorded in political and economic stability after the Justice and Development Party (AK Party) had come to the power, Babacan said that the economic program of the government had started to bring positive results that had been expected for a long time.
''For the first time in last eighteen years, inflation has decreased below zero. It is absolutely not a dream to reach annual inflation target of twenty percent. The macro figures affirm that the growth target of five percent in 2003 can be achieved. The decreasing trend in interest rates, momentum in real sector activities and increase in central bank real sector confidence index are other indicators of recovery in our economy,'' he said.
''About the public finance, our government is determined to maintain strict finance policy. Besides, the strict discipline over expenditures will continue for some time to decrease public debts,'' he said.
Stating that results of budget policies proved that they were on the right path, Babacan added that they expected interest rates to decrease more in a way of relieving all sectors in the economy as a result of the government's determined implementations in public finance.
(MS-AÖ) 04.07.2003