Türkiye's government has sharply increased its current account deficit target for 2004, lifting the figure to $10.8 billion from an earlier projection of $7.6 billion. Vice Prime Minister Abdullatif Sener announced the revision at a news conference on 12 August 2004.
The announcement followed a caution issued by the International Monetary Fund in its annual review of the Turkish economy. While the IMF praised Türkiye for bringing inflation below 10 percent and reducing budget deficits, and forecast economic growth of at least five percent in 2004, it urged close monitoring of the widening current account gap.
Türkiye has been working through a major economic restructuring program with IMF support following a financial crisis in 2002. The current $19 billion IMF package, signed in February 2002, is set to expire in February 2005.
Sener indicated that Türkiye expects to begin negotiations with the IMF in September on a new three-year assistance arrangement. Turkish business associations have backed renewing the agreement, concerned that fiscal discipline could weaken without international oversight. Sener also noted that a new program would help align Türkiye's economy with European Union standards as the country pursues EU membership.
Historical summary. TurkishPress restated this AFP wire report, first published in August 2004, in its own words.