Jul 06 2018

Turkey entering new fast-growth period – Erdogan adviser

Turkey is entering a new period of fast economic growth after the introduction of the new presidential system of government, said Yigit Bulut, chief economic adviser to President Recep Tayyip Erdogan.

The country’s economy has grown three-fold over the past 15 years and it is now entering another such period, Bulut said in his regular column for the Star newspaper.

The presidential system will make it all the more easy for the country to grow three-fold again, he said.

“We are entering a new growth canal and the journey along this canal will be much easier and faster thanks to the presidential government system,” said Bulut, a former TV anchorman and journalist.

Turkey's economic growth has averaged more than 8 percent iannually in the three quarters to March. Government stimulus and a pledge by Erdogan to lower interest rates has roiled financial markets, prompting the central bank to raise interest rates by 425 basis points in May and June to stem a slump in the lira. Economists are calling for more rate hikes after inflation accelerated to 15.4 percent last month.

Bulut slammed financial market participants for focusing on the lira, bond yields and the capital markets and for ignoring the “real sector” and how cheap Turkish firms have become in dollar terms. He urged his readers to ignore their advice, which focuses on pushing for higher interest rates.

“These same characters frequently use this sentence: “Turkey must pay a higher risk premium”…Why? Nobody understands it! Some credit agencies want that! What country in the world has the sort of stability Turkey has! There’s no other example!”