Turkish govt in talks to boost industry sectors

 15 Sep 2017 - 23:46

Turkish govt in talks to boost industry sectors
Men sitting outside a discount clothing retail store in Istanbul, July 13, 2016 (Reuters / Murad Sezer)

Reuters

Ankara:  The Turkish government is in talks with business leaders about boosting industry, an adviser to President Tayyip Erdogan said, as it prioritises the economy after the April referendum that gave Erdogan sweeping new powers.
Hatice Karahan also told Reuters in an interview that the talks, which would be completed in two months, would focus on how the education and financial sectors could support Turkish businesses and attempt to bolster growth.
“The economy is a priority after the referendum process,” she said. “The presidency wants to focus on the basic problems of the economy so we can integrate the outcomes we get from the business world with the action plans of the government.” She said she saw economic growth at around 5-6 percent this year and around 4 percent in 2018.
Erdogan owes much of his popularity at home for his stewardship of the economy. Under his rule, Turkey has seen years of stellar growth - as well as new hospitals, roads and airports to ensure jobs for millions of voters.
Last year, the economy grew by a revised 3.2 percent. The government later rolled out a series of measures to bolster growth, including temporary tax cuts and the expansion of a programme to guarantee loans to smaller businesses.
While the measures have helped the economy, economists have voiced some concern about rising prices. The central bank left interest rates unchanged on Thursday after inflation rose, last month, keeping monetary policy tight in the face of a drive for cheap credit by Erdogan.
Karahan said she believed the central bank should stick to its hawkish stance for the time being. “I think the central bank’s tight monetary policy will continue for some time more,” she said. “I’m of the view that it will maintain this policy at least until there is a reduction in the risks to the Turkish economy in terms of price and financial stability.”