Turkey to target 6 percent economic growth next year after 2020 expansion

Turkey’s government has set a goal of 6 percent economic growth for next year in a three-year economic programme due to be announced this week, Dünya newspaper reported.

The government has revised up its growth forecast from a previous estimate of 5 percent, taking into account the favourable base effects from this year, Dünya said on Wednesday citing unidentified sources.

Turkey will also aim for growth in gross domestic product of 1 percent this year, or close to that figure, increasing its estimate from between a contraction of 0.5 percent to an expansion of 1 percent, Dünya said.

The government has delayed the announcement of the three-year programme, which was due to be published in the first week of September. Its release will precede the draft 2021 budget, which the government is required to present to parliament by Oct. 17, it said.

The programme also includes budget goals. The target for budget spending next year has been set at 1.196 trillion liras ($156 billion), it said. That would be an increase of 9.2 percent from a goal of 1.095 billion liras for 2020.

The target for the budget does not include provisions for extraordinary circumstances such as an extension of economic travails caused by the COVID-19 pandemic.