Minister of Treasury and Finance Berat Albayrak unveiled Turkey’s New Economy Program covering the 2020-2022 period with a detailed presentation under the theme of “Transformation Begins”.
On the notable accomplishments of the New Economy Program, Minister Albayrak said, “We have achieved significant progress on the inflation front in just a year, bringing down inflation by 10 percent from 25 percent in October 2018 to 15 percent in August 2019.” Albayrak announced the new program for the three-year period starting from 2020, while pointing out that Turkey would end 2019 with a revised inflation forecast of 12 percent, down from 15 percent. “Under these targets, priority will continue to be given to the coordination of money and fiscal policies,” said Minister Albayrak. He added that the new program targets 5 percent annual growth rate for the next three years, with 2019 year-end economic growth expected to be 0.5 percent.
The New Economy Program proposes that fiscal discipline will be maintained in Turkey and that structural changes will be implemented to ensure efficient use of resources and savings in designated areas. During the 2020-2022 period, the budget deficit to GDP ratio is expected to remain below 3 percent. The program reveals considerable improvement in the current account balance through rising export volumes of high value-added products, rising tourism revenues, and a reduction in import dependency thanks to localization, particularly the energy sector.