Following a soft landing in 2012 – a first in the country’s recent economic history -- accelerated structural reforms are key to increase potential growth.
Ankara, January 15, 2013 – Economic growth in 2013 is forecast to accelerate to 4 percent according to the World Bank’s latest Turkey Regular Economic Brief issued today in Ankara, but prospects for sustained growth over the medium-term depend on accelerating structural reforms the international lender cautions.
The brief analyzes Turkey’s recent economic developments, prospects, and risks. Highlighting the significant improvement in external imbalances, the brief points out that the current account deficit remains high and Turkey remains dependent on short-term financing.
Against this background, World Bank support in 2013 will focus on enhancing Turkey’s competitiveness and domestic savings through a proposed Development Policy Loan; improving energy efficiency in small and medium enterprises through a proposed Credit Line; proposed additional financing to BOTAŞ for the completion of the Tuz Gölü Gas Storage Facility; and further financial support for Turkish SMEs.
The World Bank’s work in Turkey is based on a joint Country Partnership Strategy (CPS) for the period of 2012-2015. The CPS aims to support Turkey’s transition to high income with financing of up to US$ 4.45 billion during the four year period, as well as policy analysis and technical advice. Key objectives include enhanced competitiveness and employment, improved equity and public services and deepened sustainable development.Turkey’s successful economic and social reforms have attracted increasing attention in the region and globally. Hence the World Bank’s partnership with Turkey is evolving to include the sharing of knowledge and experience with a wider international audience.