ANKARA - "Hike in energy prices has a great impact on current account deficit," Turkish State Minister Ali Babacan has indicated.
Appearing in a tv program on private NTV channel on Thursday, Babacan said, "Turkey`s energy imports will probably be 28-29 billion USD by the end of 2006. Turkey, as a country importing energy sources, is negatively affected by hike in energy prices. However, if energy prices drop or even if they remain at fixed level, it has a positive impact on both current account deficit and also inflation figures."
"If energy prices had not changed since 2002, the ratio of current deficit to gross national product would have been 3.9 percent and current deficit would be 4 percent this year," Babacan said.
In regard to Turkey`s foreign trade volume, Babacan noted, "while our exports were 36 billion USD in 2002, it would probably exceed 80 billion USD by the end of 2006."
Replying to a question on inflation figures, he indicated, "inflation figures can be high in October as well, but I expect that the figures would be lower than 10 percent at the end of 2006."
In regard to Turkey-EU relations, Babacan stressed that Turkey`s economic achievements strengthened its position in EU accession process. "The whole screening process will be completed next week," he added.