Vowing to fight adverse effects, minister expects robust growth

The Turkish government is determined to fight against the adverse effects of stimulus policies adopted during the pandemic, such as high inflation, exchange rate volatility and risk premium increase, Treasury and Finance Minister Lütfi Elvan said on Aug. 20.

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Turkey's economy is expected to post a gross domestic product (GDP) growth of over 8 percent this year, he also said during a meeting with businesspeople in the northwestern industrial province of Kocaeli.

"We have implemented inclusive and coordinated economic policies during the pandemic. In this regard, we have taken measures to support every social segment. With the help of those measures, Turkey's economy has managed to protect its production capacity and has continued to grow," said Elvan.

"Industrial production, with support from robust exports, has jumped significantly and became the engine of growth. Another gratifying development is the upward trend in investments, particularly in the machine and equipment sector," he added.

The economy expanded 7 percent year on year in the first quarter of 2021 amid economic fallout from the coronavirus pandemic, according to the Turkish Statistical Institute (TÜİK).
Last year, Turkey was one of the rare countries that posted positive growth as its economy grew by 1.8 percent and the GDP hit $717 billion.

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In the second quarter of this year, the Turkish economy is expected to grow more than 20 percent with low base effect and a strong recovery in manufacturing, exports and services.
Leading economic indicators, a rising COVID-19 vaccination rate and increasing tourism revenues altogether raise hopes for the economy, said the minister.

"Unless an external pandemic shock emerges, we expect a...