Growth could beat expectations next year

The Turkish economy could grow by more than the predicted rate of 3.5% next year, Industry and Trade Minister Nihat Ergun said yesterday, adding that as tax revenues are expected to rise in line with economic growth, a tax hike is unlikely to be imposed for the coming year. Speaking to reporters, Ergun said that growth next year could reach about 4%. Ergun stressed that the government isn't planning to increase tax rates or introduce new taxes for the coming year. Asked whether there's a backup plan if the crisis continues, Ergun stated that Turkey's economy started to recover as of March, as seen in a rise in the capacity utilization rate and exports along with a decline in unemployment. The recovery process is still continuing, he said, adding that there are no expectations that the crisis will reignite next year. Work on a free trade zone with Iran is still underway, he said, adding that Armenia could also take part in the project.