BY ABDURRAHMAN YILDIRIM
SABAH- We have finally surpassed China in successive growth rates, thus becoming the fastest-growing economy in the world for 2004. This is also the highest rate we’ve achieved since 1966.
One reason for this progress is that Turkey has at last been able to secure economic and political stability. Rising foreign capital inflow, depreciating exchange rates and cheaper import costs all helped our economic growth.
The expectation that Turkey will eventually get a date for EU membership talks also had a positive effect on all aspects of our economy, including the financial markets and real estate.
Another reason is that a large number of investments which had to be delayed during the 2001 economic crisis finally went through last year.
Turkey also achieved the largest amount of investment last year, with $54 billion. Our employment rate also rose significantly with 644,000 new employees. However, unofficial employment also increased by 616,000, which means the majority of the newly employed are working for less than the official minimum wage.
What makes last year unique is that although we surpassed every other nation in the world in economic growth, our inflation rate was the lowest for the last 35 years. But there has to be a cost for this paradox. Perhaps the price we have had to pay is the over-depreciation of exchange rates, the sudden rise in our current accounts deficit, and low employment. Anyway, as Dwight Eisenhower said long ago: ‘There are no victories at discount prices!’