ANKARA: Deputy prime minister in charge of the economy, Mehmet Şimşek, announced the New Medium-Term Program covering 2018 to 2020 Wednesday at a press conference at the Development Ministry with Finance Minister Naci Ağbal and Development Minister Lütfi Elvan with high-level executives of public institutions in attendance. Explaining that this year’s indicators point out that an annual growth rate of 5.5 percent can be achieved throughout the year, Şimşek said that with the reforms to be implemented during the new program, the aim is to achieve a more balanced, sustainable and inclusive growth of 5.5 percent. Şimşek also said that the main target of the new program will be pursuing macroeconomic stability, increasing human capital and labor quality, further improving the business and investment environment, promoting high added-value production, accelerating growth by increasing institutional capacity in the public sector, increasing employment and improving income distribution.Şimşek said that inflation is foreseen to be 9.5 percent at the end of the year, and stressed that a tight stance in monetary policy is expected to be maintained until inflation reaches the target in the near future.
Explaining that they aim for inflation to gradually improve, with a goal for it to fall to 5 percent during the program period, Şimşek said the unemployment rate is predicted to drop to single digits by 2019, and be 9.6 percent in 2020, which will be achieved despite strong labor force participation and an increase in the working-age population. “At the end of the Medium-Term Program covering 2018 to 2020, we estimate that per capita income will exceed $13,000,” Şimşek said. “This level is above the threshold value set for reaching the upper income group as of today, according to the World Bank.” Evaluating developments in macroeconomic indicators related to Turkey, Şimşek said that growth performance has increased significantly in the last 15 years. Pointing out that the average growth rate of 4.7 percent from the foundation of the Republic to 2002 increased by one point to 5.6 percent during the period of their government, Şimşek said: “Do not underestimate one point: It makes a huge difference with a 100-year perspective.”
