Erdogan announced a package of economic reforms: “We will work day and night”


Turkish President Recep Tayyip Erdogan today, March 12, announced a number of measures aimed at supporting the country’s economy in the context of the ongoing global pandemic. Among other measures to stimulate local economic activity, the Turkish leader announced that small businesses will be able to take out loans at a low interest rate. In addition, about 850 thousand small businesses will be exempt from income tax, according to TOPNEWS.

According to commentators, special attention to small business on the part of the authorities is due not least to domestic political considerations: in 2023, general elections will be held in Turkey – both presidential and parliamentary.

Recep Tayyip Erdogan in his speech highlighted the forthcoming cuts in government spending. The President stressed that Turkey’s first goal is to create a stronger public finance structure to protect against risks, with fiscal discipline as a top priority.

“The (reform) package is aimed at the growth of the Turkish economy based on investment, production, jobs, and exports,” Erdogan said, speaking in Istanbul.
Turkey will achieve significant economic growth by increasing production efficiency, which is provided for by the prepared package of reforms, the head of state said.

“We strive to develop a national economy that will break export records with fewer imported resources and an increase in the production of high value-added goods,” Erdogan added.
Turkey weathered the 2009 global economic crisis and the post-2013 crises – both in politics and economics – in order to maintain its targets for 2023 when the Republic of Turkey will celebrate its centenary, he said.

“We will achieve our goals by working day and night to make Turkey one of the top 10 economies in the world,” he said.
Turkey places particular emphasis on public finance, inflation control, the financial sector, current account deficits and employment as part of macroeconomic stability. Encouraging investment, facilitating domestic trade, competition policy, and market surveillance and control are all part of the reform package as part of structural policies, the president said.

ALSO READ:  Bloomberg: Biden's team evaluates the impact of sanctions on the Russian economy

A digital tax office will be created that will operate 24 hours a day, seven days a week so that people can conduct their transactions in a digital environment without personally visiting the relevant government departments.

However, the head of state did not specify when exactly the economic innovations designed to lead Turkey out of the “pandemic crisis” will be launched.

As TOPNEWS reported, the relative rise in oil and fertilizer prices, as well as the dry weather in the country, the consequences of which forced Turkish President Erdogan to appeal earlier to citizens to consume fresh water sparingly, were among the reasons for the rise in food inflation in the country by more than 20%. for the last year. Economists also point to government policy decisions that sent the national currency down to a record low last year, driving up food import spending by about $ 9 billion. Erdogan reluctantly agreed last year to a sharp hike in interest rates that will slow economic recovery just as the country begins a campaign to vaccinate the population against the Covid-19 coronavirus infection. Turkish experts expect further inflation growth throughout 2021.

Turkey will undertake structural reforms to break the “triangle of evil” in interest rates, inflation and exchange rates, President Erdogan said on December 26, adding that Ankara is determined to create an economic system based on production and employment.