BRUSSELS - "GDP at constant prices" in Turkey will grow by 4.9 percent in 2007 and 5.9 percent in 2008, according to the "Economic Forecast Spring 2007" report, recently released by the European Commission.
Describing Turkey`s overall picture for the forecasting period "favourable", the report stressed, "Turkey should be able to increase export growth - in particular in tourism - while the tight monetary and fiscal policy mix will support the disinflation process".
The report also stated that "a gradual decline in inflationary pressures would allow a fall in interest rates and improve the investment climate".
"Fixed investment will continue to benefit from reduced macroeconomic and political uncertainty - in particular after the 2007 elections - and declining real interest rates," the report underscored, pointing to the parliamentary and presidential elections to be held in Turkey in 2007.
On the other hand, the report forecasted that exports in the country would grow faster than imports during the next 2 years.
While the report envisaged a 6.7 percent growth in exports in 2007 and a 6.4 percent increase in 2008, imports are expected to rise 6 percent in 2007 and 5.5 percent in 2008.
Moreover, the employment rate is envisaged to increase 1.3 percent this year and 1.5 percent in 2008.