Mar 24 2018

Turkey to take precautions against coming economic crisis - Şimşek

Turkey should “repair its roof” to protect against a coming global economic crises warned Mehmet Şimşek, a Turkish deputy prime minister with responsibility for the economy, according to Turkish news website Sendika.

Şimşek made his comments speaking at economic conference in Turkey’s Bursa province on Friday. Explaining that the Turkish economy’s biggest problems were high inflation and the continuing depreciation of the Turkish Lira ― which broke records last week over concerns about the political interference in economic decision making and the failure of Turkey’s central bank to hike interest rates ― Şimşek vowed to “take the necessary measures”.

Saying that the share of investment in construction was too high, Şimşek continued, “We want investors who may have invested in the construction sector up to now to invest in R&D and technology. They should invest the money they have earned through construction in manufacturing.”

He also outlined a range of measures that could be taken to prop up Turkey’s economy, which many suspect is overheating. Amongst these were the suggestion that banks establish investment banks to support startups instead of relying on deposits and that measures be taken to limit the foreign currency borrowing of companies in the real sectors of the economy.

Şimşek also said that Turkey was and should be should be a part of Europe, noting that the 11 million population of Thrace, the European region of Turkey, was larger than many European countries.  “Europe needs Turkey, Turkey needs Europe,” he said, “to improve the quality of our democracy and our legal system.”