Year-end expectation to be outpaced

Following this remarkable development, Deputy Prime Minister and Economy Minister Ali Babacan lauded the country's economic performance in a written statement issued Tuesday and said the Medium-term Economic Program (OVP) they announced last year was influential in achieving that. From the government side, Industry and Trade Minister Nihat Ergün also commented on TurkStat's April-June GDP growth data and said Turkey had rapidly recovered from the global financial crisis. This is an indication of how strong the country's dynamics are, he said during a television interview yesterday. Ergün also suggested it was possible for Turkey to grow by a further 7 percent this year. Earlier expectations were 6 percent. On the other hand, the government planned to achieve a growth rate of 3.5 percent for 2010 in the OVP. "Another virtue here is that this growth emerged as a result of consumption and investment expenditures. We see that a huge economic revitalization is present in Turkey," Ergün continued. Following his meeting with Canadian Minister of Agriculture and Agri-Food Garry Ritz yesterday, Foreign Trade Minister Zafer Çağlayan said the April-June figure is an "obvious" indication of how powerful the Turkish economy is.

President of the Turkish Confederation of Businessmen and Industrialists (TUSKON) Rızanur Meral linked the remarkable growth achieved in the April-June period to Turkey's overtures to new markets and also to the incentives provided to private companies. "Turkey is opening itself to the outside world. That it has established new markets has significantly contributed to the double-digit growth rates. The incentives the government has provided for small companies were also proper and timely. They have influenced this growth, too," he stated.

Ankara Clothing Manufacturers' Association (AGSD) Chairman Canip Karakuş was even more positive in his assessment of Turkey's growth. In a written statement he said Turkey had fully recovered from the global financial crisis and that "it will break a record with this year's growth." Karakuş reiterated that the country's increasing export volume and industrial production have already provided a sign of that growth. Turkey's exports rose by 13.4 percent to $64.4 billion in the first seven months of this year over the same period last year. Its industrial production, on the other hand, has shown an average monthly expansion of 15 percent in the January-July period of this year. Karakuş also added that the next general elections, expected to take place in July 2011, will not have an adverse impact on the economy. His comments are shared by many experts these days, after the governing Justice and Development Party (AK Party) managed to garner overwhelming support for a package of constitutional amendments on Sunday, with 58 percent majority.

10.3 percent growth no surprise

Commenting on the growth rate achieved in the second quarter of this year, Turkish Exporters' Assembly (TİM) President Mehmet Büyükekşi said it did not come as a surprise given the remarkable rate of expansion in the country's exports. He noted that the double-digit rise in exports yielded the double-digit GDP growth.

İstanbul Chamber of Commerce (İTO) President Murat Yalçıntal is also of the view that the impact of the global financial crisis has completely faded away in Turkey. He said there were two important features that made him particularly pleased. "The main engine of this growth is the private sector, its consumption and investment. This is the first point," he said, adding that the latter is that two of the fastest growing sectors in Turkey, the construction and manufacturing industries with 21.9 percent and 15.4 percent growth, respectively, have a high "multiplier effect," which means that they will lead to growth in other industries over the following months. He also noted that it would be easy for Turkey to reach the year-end expectation of 6 percent growth. "In the worst case scenario, let's assume that we grew by only 2 percent in the second half of the year, we will have ended 2010 with 6 percent growth," he explained.

Ankara Chamber of Trade (ATO) President Sinan Aygün drew attention to the significance of 10.3 percent growth Turkey secured at a time when analysts forecast further contractions in the global economy. He linked the rapid rate of growth to improving democracy in Turkey. "As its democracy advances, Turkey's economy will also achieve more sustainable and stable growth rates," he noted. Sunday's referendum result in favor of an EU-backed reform is seen as a milestone that is solidifying democracy in Turkey. Observers agree that after the Sept. 12 referendum, the era of military takeovers has ended in Turkey -- because people peacefully seized power at ballot box.