Turkey - Country Economic Memorandum : Structural Reforms for Sustainable Growth, Volume 2. Statistical Annex
This country economic memorandum shows that fiscal imbalances are key to understanding Turkey's inflation problem, and its volatile growth. Its findings suggest that the country's inability to sustain high growth can be closely linked, am...
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| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2000/09/692905/turkey-country-economic-memorandum-structural-reforms-sustainable-growth-vol-2-2-statistical-annex http://hdl.handle.net/10986/14995 |
| Summary: | This country economic memorandum shows
that fiscal imbalances are key to understanding
Turkey's inflation problem, and its volatile growth.
Its findings suggest that the country's inability to
sustain high growth can be closely linked, among many
factors, to the lack of macroeconomic stability.
Unsustainable fiscal policy, has put repeated pressure on
its currency, and led to chronic, and high inflation. Thus,
when facing crises, fiscal policy has been unable to
withstand, or influence on the business cycle; instead
contractionary policies have been implemented to achieve
monetary stability, actually worsening the real impact of
shocks. It is also suggested that previous attempts at
stabilization, failed precisely because they did not address
the structural sources of fiscal deficit. Following an
analysis on Turkey's macroeconomic framework, the
report reviews the reform agenda on the infrastructure,
agriculture, and banking sectors, and the country's
medium-term prospects, but emphasizes the influence of the
policy environment on total factor productivity growth, as a
key explanatory factor, recommending structural policies to
generate at least a primary surplus of three percent of GNP,
prioritize social security, and social assistance, and avoid
unsustainable contingent liabilities, by deregulating energy
and telecommunications sectors, and, pursue financial sector reform. |
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