ISTANBUL - Turkey's growth rate was expected to be around five percent and inflation was forecast to drop to one-digit figure in 2005, State Minister Ali Babacan stressed on Monday.
Babacan made a presentation on Turkish economy during his meeting with CEOs of international companies which attended the meeting of Investment Advisory Council in Istanbul.
State Minister Babacan said that reforms would continue in three main axis in and after 2004 and summarized them as completing reforms in financial sector, supporting development of a more dynamic private sector, and strengthening a smaller but more efficient public sector.
Babacan noted that private banks should be efficiently regulated, and all state banks should be privatized, and a more efficient institutional capacity should be provided.
Babacan pointed out that enhancing transparency, establishing good governance, enhancing administrative capacity, and increasing efficiency were the targeted public sector reforms.
In his presentation, Babacan said that the government was determined to better investment conditions and to that end, it passed a new foreign investors law.
Babacan noted that the new law aimed at eliminating all differences between Turkish and foreign companies and reduced taxes.
Also, the government put into practice a new incentive package including subsidies, Babacan stated.
Babacan said that Turkey could reach year-end growth rate of five percent thanks to leading indicators like industry, production and capacity use.
In the presentation, Babacan recalled that the inflation rate was 18.4 percent in 2003.
Babacan said that 12 percent of inflation rate target for 2004 seemed possible in line with indicators.
The current inflation rate was the lowest rate recorded in the last 30 years, Babacan reiterated.
Babacan said that Turkey expected to record a foreign trade volume of 135.5 billion U.S. dollars in 2004.
Noting that Turkey foresaw a primary surplus of 6.5 percent, Babacan said that this indicated that public sector net borrowing stock could drop to 58 percent in 2006.
(BRC-AÖ) 15.03.2004