ECONOMY WORLD

Turkey’s DevMin Elvan in Bucharest: Macroeconomic situation, stable, investment continues

Turkey’s macroeconomic situation is stable, with a positive balance of foreign investment, while Turkey having been downgraded by the credit rating agency Standard & Poor’s is without economic grounds, Turkey’s Development Minister Lutfi Elvan told a news conference on Wednesday in Bucharest.

“Turkey’s macroeconomic indicators are stable, investment continues and so does jobs creation. There are currently no economic problems in Turkey, as the economic situation is stable,” said Elvan.

At the news conference, he briefed the journalists on the failed coup d’etat of July 15, the event’s national and international implications as well as the current state of affairs.

He mentioned having met Romania’s Deputy Prime Minister Costin Borc, on which occasion he extended thanks to Romania’s state officials for their position in supporting democracy in Turkey and the Turkish state as far back as when the attempted coup d’etat occurred.

Elvan added that the people is not divided, that they support democracy and they are not affected by the three-month state of emergency needed to fully eliminate those who attempted the coup.

He said the Turkish economy was not harmed by the coup, which is proved by the macroeconomic indicators.

The Turkish minister said foreign investment in Turkey recorded a positive balance of 116 million US dollars in the aftermath of the failed coup, while the Turkish lira declined only 2 percent, compared with 10 percent, as it slid in September 2015 following an increase in the local interest rates.

Moreover, the budget deficit is little over 1 percent of the GPD, down from 4.5 percent in 2015, which compares favourably with the 3-percent-of-the-GDP cap imposed under the Maastricht Treaty, said Elvan.

The number of newly created jobs exceeded one million over the last year, while the Turkish economy is projected to increase by more than 4 percent this year.

The Turkish minister also said he received information from the head of the Turkish stock exchange revealing that in the first two weeks of August stock trade amounted to 57 million US dollars, 62.8 percent of which was foreign investments.

That is why Elvan believes Turkey’s downgrade by S&P has no economic grounds, just political ones.

“One of the monist important credit rating agencies, S&P, downgraded Turkey after the coup. I have read their statement, but, unfortunately, I have not found any economic grounds. They have only brought up political arguments. In their statement, they argued Turkey is not in a unitary state, that the population is polarised, which seriously affects the country’s credibility. But other credit rating agencies believe Turkey is a viable destination for investment and they can see no risk,” said Elvan.

About the economic ties between Romania and Turkey, the Turkish official mentioned there are currently 14,000 Turkish companies operating in Romania, on an aggregate business turnover of six billion euros, which signals Turkish business people believe in Romania and will continue to invest in Romania.

“And vice versa! Romanian officials trust the Turkish state and Turkish companies,” concluded the Turkish development minister.

Turkey is the world’s 18th largest economy and Europe’s 7th, with a Gross Domestic Product of 720 billion US dollars. Commercial exchanges between Turkey and Romania exceeded six billion US dollars in 2014, with both countries aiming for their trade to reach 10 billion US dollars, according to information released by the Turkish Embassy in Bucharest.

H1 2016 data indicate Turkish exports to Romania advanced 3.8 percent y-o-y, to 1.3 billion US dollars, while Romania’s exports to Turkey declined 20.2 percent, to 1.1 billion US dollars. There are currently 13,497 Turkish companies operating in Romania, which puts Turkey third among the countries starting up businesses in Romania.

 

Failed coup d’etat highlights economic resistance to crises

 

Turkey’s Development Minister Lutfi Elvan visited Romania on Wednesday, accompanied by a retinue made up of executives of big Turkish companies, and met Romania’s Economy Minister Costin Grigore Borc to discuss the latest developments in Turkey’s economy as well as commercial exchanges and trade between the two countries.

“The attempted coup d’etat of July 15 and the ensuing events have proved once again the resistance of Turkey’s economy to regional and global crises. Fiscal discipline and a solid banking system made it possible for Turkey to overcome this treason unharmed,” said Elvan. According to him, in the period immediately ahead, Turkey will continue to implement reforms and speed up development projects in a free market economy. “Structural reforms will be implemented uninterruptedly as a result of the emergency state declared on July 20,” said Elvan.

Turkey is the world’s 18th largest economy and Europe’s 7th, with a Gross Domestic Product of 720 billion US dollars. Commercial exchanges between Turkey and Romania exceeded six billion US dollars in 2014, with both countries aiming for their trade to reach 10 billion US dollars. H1 2016 data indicate Turkish exports to Romania advanced 3.8 percent y-o-y, to 1.3 billion US dollars, while Romania’s exports to Turkey declined 20.2 percent, to 1.1 billion US dollars. There are currently 13,497 Turkish companies operating in Romania, which puts Turkey third among the countries starting up businesses in Romania.

 

No problems between Romania’s, Turkey’s Gov’ts with EU visa liberalisation for Turkey

 

Turkey has been supported by Romania in its actions to enter the European Union and implicitly to have visa requirements lifted for Turkish nationals traveling to the European Union, Turkey’s Development Minister Lutfi Elvan told a news conference on Wednesday in Bucharest, part of an official visit to Romania.

“As far as EU visa liberalisation for Turkey is concerned, there are no problems between the Romanian and Turkish national governments. The Romanian Government has firmly supported Turkey’s accession to the European Union, with [Romania’s Deputy Prime Minister] Borc having underscored the same message at our meeting this morning,” Elvan told journalists.

Moreover, he said there is an agreement between Turkey and the EU over the lifting of visa requirements, voicing hope that it will materialise as soon as possible.

“We have an agreement with the EU to that end and we hope the EU will do its duty and solve the visa liberalisation issue as soon as possible, given that we are a country that has tried to join the EU for a long time and most of the relevant subjects, including the customs union, have already been settled. There is a customs union between Turkey and the EU that ensures free movement of persons and goods while offering a proper framework to business people operating in Romania,” said Elvan.

 

 

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