Simsek: "Turkey's econmy is likely to grow below trend 2008 and 2009"

Turkey's economy is likely to grow below trend this year and next mostly as a result of the global financial crisis, State Minister Mehmet Simsek told Reuters on Wednesday. Stating that the impact of the financial crisis on the economy had been diminished by a combination of economic reforms and fiscal discipline, he added, "But it will not escape unscathed. Quite clearly for this year, like last year and possibly next year we may have somewhat sub-trend growth. It is not the end of the world." Simsek defined trend economic growth as being around six percent over the medium to long-term. "In the first half of 2008, the economy grew 4.2 percent, he said. In the second half of the year, he believes growth will be around 4 percent," he added.