Treasury and Finance Minister Berat Albayrak announced the New Economic Program - 2019-2021 (NEP) on September 20, in Istanbul. The Program centers on the three pillars of balance, discipline, and transformation and outlines the government’s three-year plan to fight inflation, ensure sustainable and healthy growth, and reduce the current account deficit while emphasizing achievable and realistic macroeconomic targets. Albayrak stressed that the new program will reinforce the confidence of global markets and investors in Turkey. “The program includes a realistic plan that appropriately identifies current problems and includes correct action plans. It also highlights realistic macroeconomic goals, and we will also take steps to achieve those goals,“ said Albayrak.
NEP projects moderate growth rates for 2018 and 2019, but a more prudent fiscal policy with the budget deficit gradually declining to 1.7 percent of GDP in 2021, helping the already tight monetary policy and the rebalancing in the economy. The rise in projected unemployment rates is consistent with moderate growth rates and shows that NEP has a more realistic and coherent policy mix.
NEP also unveiled new mechanisms such as the “Financial Stability and Development Committee”, which will maintain financial security and stability, and the “Public Finance Transformation Office”, Which will identify saving and revenue improvement potential.