In the IMF statement, the pioneering audit findings were shared in the framework of the Article 4 consultations on Turkey’s economy.
The statement, in Turkey, as in all other countries, the Covidien-19 epidemic transferred to health and economic effects.
In the statement, which noted that policy intervention focused on monetary and credit expansion gave a strong boost to economic growth, it was also noted that it made the economy more sensitive to internal and external risks by increasing pre-existing vulnerabilities. The statement recorded:
“Recent policy moves away from rapid money and credit growth. If this transformation continues and if the temporary additional support focused on the epidemic is combined with a reliable plan for fiscal consolidation in the medium term, as well as the financial sector and the structural reforms, buffers can be rebuilt more quickly. Structural reforms. “should focus on mitigating the risks posed by the long-term negative effects of the pandemic and include specific measures to support the most vulnerable, foster labor market flexibility and facilitate corporate debt reduction. ”
A SHARP RECOVERY
The statement, which recalls that Turkey enters 2020 with pre-existing vulnerabilities, was emphasized on the policy interventions applied against the first outbreak that led to a strong recovery of the economy.
In the IMF statement, it was stated that since the end of 2020, the tightening of monetary policy, the relaxation of temporary regulatory measures and the marked slowdown in state-owned bank loans have contributed to limiting pressure on the Turkish lira and rebuild trust. .
In a statement that also assessed Turkey’s economic outlook, “the economy is expected to continue positive growth in 2021.” expression was used. In a statement, Turkey’s economy is expected to grow nearly 6 percent in 2021.
The statement said that the rebalancing of the policies applied over time will constitute the basis for a more durable medium-term growth, and it was stated that the fiscal structural reforms will support the consolidation and reduce the fiscal risks.