Turkey will have faced Slack and multiple related problems in In addition to inflation, were it not for its implementation new Economic model and the country’s treasury and financing minister He said on Thursday.
under economic programdubbed the Turkish economic model, and government It prioritizes low interest rates to boost exports, production and investment, with the aim of lowering inflation and reversing the country’s chronic situation current Account deficit into a surplus.
“If we do not new economic modelmost likely we will have faced stagnation and many related things problems Along with inflation problem Today, Nabati told the summit of economic transformation and new models in Istanbul.
Nabati said main Goal of The modeladvocated by President Recep Tayyip Erdogan, is to empower economy to enter in growth path and for avoid The so-called “middle income trap”, in which economies experience a recession without income reaching levels of advanced countries.
in layout with The modelcentral Turkey bank cut it policy rate 200 basis points to 12% in The last Two months, surprise markets after inflation rose to 24-year high in August.
The bank embarked on a rate-cutting Course more from U.S year Since I lowered him one- repo week rate by 500 basis points to 14%, where it was left It’s fixed in The first seven months of this is year.
Annual inflation rate exceeded 80% last month, driven mainly by skyrocketing food and energy prices, which jumped after Russian prices invasion of Ukraine. However, the increase turned out to be smaller than in Previous months, indicating that price The pressure may slow down.
“that it clear This financial policy Alone will not be enough for The success of The model and cash policy should also “Be supportive,” Nabati said.
although model Nabati said he received biased criticism, and it started attract Attention of international Economic circles.
“There can be no general set of Policies to apply to everyone countries. Turkey does not have to act with understanding that someone imposes” minister He said.
“The claims we made forward synchronization with The reality of Turkey. Turkish model would be an example. “
Nabati stressed that government It aims to overcome the middle income trap by prioritizing local production, supporting Strategic sectors and increase exports.
“This is it one of Our priorities. We intend to take this step he is in Line with strategic needs of our country.”
‘Turkish’ century”
Separately, Erdogan on Wednesday said model Will be ensure continuous growth in Turkish though all challenges that global economy he is facing.
he said thiscentury will be the century of Turkey,” referring to the ruling Justice and Development Party’s slogan for The upcoming 2023 elections.
“You can see what the situation is in The world, but Turkey has not tested this problems. worldwide growth Forecasting for 2022 is reviewed down around the world, he said in a TV interview with private CNN anchor Turk.
Despite this, our Turkish economy model will prove Continuation of growthno one I doubt this,” he pointed out. “In this context, I expect it growth will occur On the level of 5% in 2022. Can turn out To be better, but not worse.”
Turkish economy Expanded 7.6% better than expected year-over-year in The second quarter on strong local demand and exports. The rate made Turkey second- Fastest growth economy in The G-20.
The country’s GDP expanded by 7.5% on on an annual basis in The second quarter. else yearThe economy recoil back strongly from the COVID-19 pandemic and grew by 11.4% highest rate in a decade.