Trkiye will surpass $1 trillion national income this year: trade chief

Trade Minister Trkiyes Mer Bolat said national income will cross the one-trillion-dollar mark this year, assuring that the country is on track to join the world’s 10 largest economies in the coming years.

Speaking at a meeting with entrepreneurs in Istanbul on Saturday, Bolat emphasized that this year’s momentum will ensure that Trkiye ends with an increase in gross domestic product (GDP) of more than 4%.

GDP grew by a better-than-expected 3.8% in the second quarter, extending the streak despite global setbacks following the Covid-19 outbreak and Russia’s invasion of Ukraine.

This followed a 3.9% rise in the first three months, reflecting powerful earthquakes that devastated the country’s southeast in February, killing more than 50,000 people. Reconstruction is expected to cost over $100 billion.

Recalling the government’s vision for 2053, Bolat emphasized the determination to support competitiveness and innovation by implementing structural transformations that will ensure the economy’s position among the highest income groups in the world.

“Our goal is for Trkiye to be among the top ten economies in the world and among the top five in terms of purchasing power parity by 2053,” the minister said on Sunday at a separate event.

He further said that their goal is to support branding, aspiring to have at least five brands included in the list of the 100 most valuable in the world.

“On the other hand, our goal is for our share in the global economy to exceed 2% in 2053, and this percentage will increase further if we include trade in services in the calculations,” Bolat said.

Bolat said exports were down globally, but Trkiye managed to maintain positive flow despite February’s earthquakes.

“We are taking proactive measures regarding imports. “We have an active policy against informal imports that harm domestic and domestic industrial production, employment and our foreign exchange reserves,” he said.

Bolat highlighted periods of increased demand due to extremely low-interest loans, stressing that it is necessary to revive the economy to avoid the effects of the coronavirus pandemic.

“The move was aimed at stimulating businesses, enabling them to increase sales and production. These measures have been successfully implemented.”

President Recep Tayyip Erdoan’s new economic team, named after May’s elections, reversed a years-long cycle of monetary easing and aggressively raised interest rates to beat stubbornly high inflation, rebuild foreign exchange reserves and reduce the chronic current account deficit.

The country’s central bank has raised its key interest rate by a total of 2,150 basis points since June to contain inflation, which rose 61.5% in the 12 months ending in September.

Bolat said the government’s top priority now is fighting high inflation and rebuilding efforts in earthquake-hit regions.

“As promised, by the end of this year, thousands of houses will be returned to our fellow citizens affected by the earthquakes,” he noted.

On the international front, Bolat highlighted positive developments in the European Union, pointing to a constructive dialogue aimed at resolving economic and trade issues.

“We show the same will. We are trying to solve some of the problems in the customs union through discussions,” he said.

He said relations with Islamic countries “are at an excellent level.”

“Gulf countries are making very serious efforts to invest in Trkiye and trade. We are making the same efforts.”

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