Turkey targets over 5% growth in coming years: President

ISTANBUL

Turkey targets a growth rate over 5% or more in coming years, President Recep Tayyip Erdogan said on Saturday.

The country also aims to fall the inflation rate below 5% and to lower the unemployment rate under 10% at the end of New Economic Program for 2020-2022, Erdogan told his party members during the ruling Justice and Development (AK) Party's 29th Consultation and Assessment meeting in Kizilcahamam, a retreat town of capital Ankara.

Revealed by Treasury and Finance Minister Berat Albayrak at the end of September, the new program unveiled Turkey’s targets for inflation, growth, unemployment, budget deficit, current account, and financial stability.

The program targeted the inflation rate of 4.9%, the unemployment rate of 9.8% and the growth rate of 5% for 2022.

The inflation rate, which saw the over 25% level in 2018, dropped to 9.26% in September.

"Interest rates dropped to a reasonable level with appropriate interventions of the Central Bank, I believe that they will drop more," he said.

Turkish Central Bank's policy rate -- ranged between 8% and 24% last year -- fell to 16.50% in early September. The next monetary policy meeting for determining interest rates on Oct., 24.

"We will follow our economic road map in the next four-year period without an election and reach our 2023 targets," he underlined.

He noted that Turkey is determined to use sources and saving based budget management efficiently.

"Turkey will keep the budget-deficit-to-GDP ratio under 3%," he added.

The New Economic Program also targeted to keep the budget-deficit-to-GDP ratio at 2.6% in 2022.

The current deficit problem ended permanently in the country with the support of structural reforms, Erdogan added.

The president stressed: "Turkey will promote value-added production and support SMEs strongly in every field from accessing markets to financing."

He also added that the country will start to produce boron carbide, which is used in tactical and armored vehicles, helicopters, aircraft, and personnel protective vests.