International Monetary Fund (IMF) said that fiscal rule draft law should be passed without further delay.
IMF released a report on Article IV consultations with Turkey on Wednesday.
The report said, "in a significant policy shift, the government recently announced it has no specific schedule for bringing the fiscal rule legislation before parliament, and intends instead to continue to follow the September 2009 MTP (medium term plan)."
"Staff considers that the fiscal rule is considerably superior to the 2009 MTP and urges passage of the draft rule without further delay," it said.
The report said, "if passed in its current form, the rule would introduce needed enhancements to transparency and public financial management procedures. Finally, although markets have so far taken the postponement in stride, failure to pass the rule quickly may forfeit the window of opportunity that could close ahead of the approaching election cycle, and risk weakening the credibility of the authorities' commitment to fiscal discipline."
IMF's report said, "external debt is expected to rise to 52.4 percent of GDP by 2015 on account of a moderate widening of the current account deficit, somewhat slower average GDP growth than prior to the crisis, and a gradual increase in debt-creating inflows, although partly offset by increasing FDI and equity inflows."
"The unemployment rate remained stuck around 10 percent, with a high share of unofficial or semi-official employment," it said.
The report said, "the current account deficit slumped during the crisis on weak demand, but has recently picked up sharply."
It said, "there was agreement that growth would be strong in the near term, with a wider current account deficit and above target inflation. For 2010, strong carryover from a depressed base and robust within-year momentum were expected to propel GDP growth to 6-7 percent."
The report also said that real GDP growth rate is expected to be 6.1 percent at the end of 2010 and 3.6 percent in 2011.
IMF projected CPI inflation as 7.6 percent this year and it will drop to 6.2 percent in 2011.
(EÖ)