Babacan: "In terms of GDP, Turkey is rapidly catching up with EU member countries"

Turkey is quickly catching up with European Union member countries in terms of gross domestic product (GDP), Deputy Prime Minister for the Economy Ali Babacan said yesterday. Attending a dinner in his honor hosted by Spanish Ambassador to Ankara Joan Clos Metheu, whose country currently holds the EU's rotating term presidency, Babacan said significant progress has been made in Turkey's purchasing power parity and GDP figures. "Turkey, on the one hand, is remarkably improving its economy, and on the other hand is dealing successfully with poverty thanks to the social policies it has been implementing in recent years," Babacan said, adding that Turkey is in a better position than some EU countries in terms of income distribution and dealing with poverty. Touting new social security measures, Babacan said government health insurance now covers everybody under age 18 and that jobless people over 18 have access to the health system through a green card. Stressing that the government places great importance on its democratic initiative, Babacan said 17 percent of Turkey's investment budget for 2010 has been allocated to the Southeastern Anatolia (GAP) project, adding that the government plans to finish the major development project by 2013. "Turkey's eastern and southeastern Anatolia regions will see an investment boom in the months and years to come," he predicted. "Along with the democratic initiative and better security conditions thanks to it, this will eventually make these regions richer." On the global economic crisis, Babacan said its impact was still being felt, but pointed to closer cooperation among countries to solve these problems. "The G-20 is a good platform for solving global problems," he added. "Turkey, as a member of G-20, has worked to solve these problems." Babacan also reiterated Turkey's determination to pursue its full EU membership bid whatever the obstacles. On Turkey's economy and its initial signs of a quick recovery from the crisis, Babacan said cautious policies taking into account all risks are being implemented. He said that after years of high budget deficits, in 2008 the deficit dropped 1.8 percent. "Thanks to the reforms in recent years, the Turkish banking system has built up a strong structure and so remained undamaged by the crisis," he added. Babacan said that according to International Monetary Fund and Organization for Economic Cooperation and Development (OECD) projections, this year Turkey is expected to be the most rapidly growing country among EU member countries. Due to Turkey's young demographic structure, approximately 500,000 people join the labor market every year and, positive developments have been seen in employment, he said. The dinner was also attended by ambassadors of other EU member countries in Ankara.