IMF deputy director: "Turkey will regain rapid growth"

In the year ahead Turkey will start growing again thanks to its dynamic economy, International Monetary Fund First Deputy Managing Director John Lipsky said yesterday. Speaking to reporters, Lipsky said that like other developing countries, Turkey was also hurt by the global financial crisis. The Turkish economy shrank and its exports contracted due to a decline in foreign demand, he stated, adding that the crisis' impact would continue through this year. In line with the recovery from the crisis being seen worldwide, Lipsky said Turkey will also enter a phase of recovery from the crisis and will subsequently start to grow rapidly again in the year ahead thanks to its dynamic economy. Lipsky said that like all other developing countries, Turkey will also have to deal with unemployment, stressing the importance of short- and long-term economic measures to do so. Turkey should first ensure its economic growth in order to bring down unemployment, Lipsky underlined. Lipsky said economic growth in Turkey could be achieved in the short run with the help of an effective financial sector, sound economic policies, low levels of inflation and sustainable public finance. In the long run, he added, an educated workforce which will ensure competitiveness in the international arena is a must for economic growth. In related news, small- and medium-sized enterprises (SMEs) suffering due to the global crisis will get help from the Treasury. A protocol between the Treasury and the Loan Insurance Fund (KGF) governing the transfer of TL 1 billion was signed yesterday at the Turkish Union of Chambers and Commodity Exchanges (TOBB) University of Economics and Technology, at a ceremony with Deputy Prime Minister for the Economy Minister Ali Babacan and TOBB head Rifat Hisarciklioglu. It gives SMEs the opportunity to more easily emerge from the crisis following a period of narrowed bank loan capacities and difficulty getting financing.