Jan 16 2018

2017 will be seen as historical moment for Turkey’s economy – adviser

2017 will go down in history as a turning point for Turkey, the moment when the government shifted to production-based policies and away from Western-backed measures that stifled the economy, according to Cemil Ertem, President Recep Tayyip Erdoğan's senior economic adviser.

The country will reap the rewards in the first months of 2018 in terms of production and employment, Ertem said in a column for the Milliyet newspaper on Tuesday. Turkey is already outperforming expectations according to key economic indicators such as October employment data, he said.

The government’s approach toward inflation is also correct, and warnings that its credit guarantee fund for industry would spur price increases have proven to be lies, Ertem said.

ertem graphic

Publishing a graphic of inflation showing the moment the credit guarantee fund was introduced (marked with a red dotted line), Ertem said the measure was not inflationary at all, rather helped reverse an acceleration in price increases. This proved that the government was correct in maintaining that supply-side factors were pushing inflation higher, he said.