(MENAFN- Gulf Times) Turkey's economic growth is expected to accelerate this year and next as it increases investments and productivity, but inflation will not fall to a 5% target until at least 2018, Deputy Prime Minister Mehmet Simsek (pictured) has said.
Turkey's economic growth has slowed in recent years, with the outlook clouded by political uncertainty generated by a cycle of elections, instability in the Middle East, a weakening lira and persistent concern about the central bank's independence.
However, output grew by a surprisingly strong 4% year-on-year in the third quarter and Simsek, appointed economy czar after a November election, forecast that structural reforms would help sustain the momentum in the years ahead.
"The goal is to achieve strong and sustainable growth and prosperity, improving the investment environment and promoting technology production," he told a news conference to announce the government's medium-term economic programme on Monday.
The three-year policy roadmap, revised each year, showed growth was expected to reach 4.5% this year and 5% in 2017 and 2018, up from an expected 4% in 2015.
Simsek, a former finance minister, forecast that geopolitical risks in the region would lessen, along with a recovery in its main trading partner, the European Union, while he expected financial market volatility to ease this year.
"Fiscal discipline, increasing growth potential, reducing inflation and the current account deficit are in the forefront of the medium-term programme," he said.
High inflation has become a growing concern for the Turkish economy, with annual consumer prices up 8.81% in December, sharply above the government's target of 5%
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