OECD predicts Turkish GDP growth of 6.5 pct this year

In a report released yesterday, the Organization for Economic Co-operation and Development (OECD) lent its support to Ankara's plans to introduce regional minimum wages as a way to achieve more balanced growth. "Authorities should closely watch if the new policy of raising bank reserve requirements without increasing policy interest rates delivers the intended slowdown in credit and economic activity, and be ready to turn to other measures if needed," the OECD said in its annual economic outlook. "Fiscal policy should remain tight, possibly with the help of an explicit spending path. Structural reforms, such as introducing regional minimum wages, continue to be necessary for better balanced growth." Turkey's gross domestic product growth will total 6.5 percent this year and current account deficit is projected to rise further, to 8.9 percent of GDP by 2012, according to OECD estimates.