Turkey to follow China’s economic growth strategy: Erdoğan

beijingwalker

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Turkey to follow China’s economic growth strategy: Erdoğan

Gizem Karakış-ANKARA

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Turkey can produce goods cheaper and sell those products to other countries and raise revenues in U.S. dollars like China has done, but Turkey has more advantages in terms of luring foreign investments, President Recep Tayyip Erdoğan has said.

In a meeting with senior officials from the ruling Justice and Development Party (AKP) earlier this week, Erdoğan discussed and explained the new road map for the economywhich the government is now pursuing, noting that the economic outlook will improve in four to five months and the new economic model will start to yield results in six months.

“We have chosen the difficult path, but the citizens will start to feel the positive effects,” Erdoğan said.

“We have started a new era to break the grip of interest rates and achieve economic growthbased on production. We will lure foreign investors. This is how the Chinese economy has grown with its young population, industry and production…Turkey has more advantages compared with China, we are closer to the market,” the president said.

He noted that countries like China and Germany have been pursuing low interest rate policies for years and stressed that the Turkish economy should also grow by focusing on production and its young population “not with interest rates.”

Over the past 19 years, the government has carried out large-scale investment, such as roads and bridges, Erdoğan said, stressing the determination to lower interest rates and in six months the decisions taken within this new economic model will yield results.

“People will prosper, and their purchasing power will increase. The current account deficit will decline. We will become a nation where the interest rates are low and is focused on industry,” the president said.

 

Indos

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Turkey current interest rate is still very high, Indonesia Central Bank interest rate is only 3.5 % ( inflation is 1.5 %). I dont know why Turkey economy can have very high inflation, most probably they are printing money. Indonesia also has high inflation during Asian Financial Crisis, the inflation is not only due to the fall of Rupiah, but also because our central bank printing money because our banking system lack of liquidity while people were taking their money.

The interest rate is very high at that time in order to curb people desire in buying USD and also to make people store their money on the bank to increase bank liquidity. As time goes by, our inflation is going down and interest rate is following.
 

Lool

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Turkey current interest rate is still very high, Indonesia Central Bank interest rate is only 3.5 % ( inflation is 1.5 %). I dont know why Turkey economy can have very high inflation, most probably they are printing money. Indonesia also has high inflation during Asian Financial Crisis, the inflation is not only due to the fall of Rupiah, but also because our central bank printing money because our banking system lack of liquidity while people were taking their money.

The interest rate is very high at that time in order to curb people desire in buying USD and also to make people store their money on the bank to increase bank liquidity. As time goes by, our inflation is going down and interest rate is following.
According to rumors, TCMB already informed other banks to expect a single digit interest rate environment. Erdo seems hell bent on decreasing the interest rates

And another reason in the current rise in inflation worldwide is the rise in fuel prices along with supply chain bottle necks
 

Indos

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According to rumors, TCMB already informed other banks to expect a single digit interest rate environment. Erdo seems hell bent on decreasing the interest rates

And another reason in the current rise in inflation worldwide is the rise in fuel prices along with supply chain bottle necks

Before the energy crisis and supply chain bottle necks ( along with very high container rate ), Turkey has already suffered with high inflation, Iran as well
 

Huelague

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I don’t understand that inflation thing. Printing money can be one factor, but not as the only one. If I can produce a product in a high number with cheap industrial cost, why should the price of the product rise, even the CB produce to much money.
 
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