LONDON/ANKARA - International investment bank Morgan Stanley has indicated that economy is getting back to normal in Turkey.
In its report about Turkish economy, the bank noted that latest macroeconomic figures and economic policies confirmed that economy was getting back to normal in Turkey after the fluctuations in the spring. According to the report, Turkish Central Bank`s decision to keep interest rates intact was the most tangible sign of economic normalization.
The report also praised the strict financial discipline in effect in Turkey.
It pointed out that public sector-borrowing rate over the gross domestic product (GDP) decreased to 0.8 percent in 2005, from 17.5 percent in 2001. The report indicated that Turkey became net debt payer for the first time.
``If Turkey maintains its strict financial discipline, it could reach the macroeconomic stability it longed for``, the report said.
It indicated that gradual decrease in inflation would continue as a result of firm political policies of the Central Bank.
On the other hand, Morgan Stanley estimated the year-end inflation rate as 9.2 percent.