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Turkey - Country Economic Memorandum : sustaining high growth : selected issues (Vol. 2) : Expanded report (English)

This Country Economic Memorandum (CEM), prepared in collaboration with the Turkish authorities, summarizes recent accomplishments in achieving high growth and analyzes remaining public policy challenges and options available to the authorities to meet these challenges. The country seeks to double the nominal per capita income of its population by 2013. It wants this rapid growth to be inclusive of all segments of society, regions, and economic sectors-especially through improved labor market performance leading to more and better jobs in the economy. At the same time, the authorities want to improve the quality of public services which they see as an important complement to economic growth in improving quality of life. They also believe that the potentially negative environmental consequences of the period of rapid growth ahead need to be managed so that the positive welfare gains from higher per capita income levels do not become eroded by environmental nuisances. Turkey has succeeded in restoring macroeconomic stability and rapid growth, it has been recovering from crisis in 2001 and grew at 7.5 percent per year on average during 2002-2006. In addition, certain dimensions of public sector governance are instrumental in improving quality of life and promoting competitiveness in Turkey including, for example, food safety and environmental protection. Further strengthening of the legal framework and institutions fighting corruption could improve the investment climate, the efficiency of the public sector, and popular support to further reforms, and continuous macroeconomic stability is a necessary (but not sufficient) condition for sustainable growth. Strong fiscal discipline and monetary policy have reduced chronic inflation to below 10 percent in 2005. Public debt has also been reduced and its sustainability has improved. Accordingly, the resilience of the Turkish economy to shocks has improved as demonstrated by the rapid recovery from turmoil in international markets in the summer of 2006 and, more recently, in the summer-autumn of 2007.


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    Country Economic Memorandum

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  • Region

    Europe and Central Asia,

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  • Doc Name

    Expanded report

  • Keywords

    econometric estimate;Program for International Student;emissions from land use change;Life in Transition Survey;unit labor costs;current account deficit;youth labor;labor force participation rate;real effective exchange rate;regional development agency;annual average growth rate;incentives for energy efficiency;Turkish Court of Accounts;manufacturing sector;tight monetary policy;industrial pollution control;Civil Service Reform;labor productivity growth;real exchange rate;efficiency of expenditure;balance of payment;food safety policy;reduction in inflation;regional income disparity;high growth rate;capital goods import;social security deficit;availability of capital;government wage bill;public expenditure reform;tax reform effort;market interest rate;foreign exchange intervention;savings and investment;external debt indicator;stock market index;source of funding;export growth rate;foreign trade elasticity;gdp growth rate;domestic credit growth;machinery and equipment;domestic demand growth;inflation targeting regime;flow of import;purchasing power parity;gas distribution system;improving energy efficiency;current account balance;primary energy supply;errors and omission;high oil price;global financial market;regional development program;greenhouse gas emission;efficiency of investment;share of investment;Oil & Gas;electricity and gas;foreign direct investment;Oil and Gas;share of work;loss of competitiveness;high energy intensity;Solid Waste Management;solid waste program;population growth rate;payment for service;total factor productivity;regional development policy;decline in agriculture;financial market volatility;determinants of migration;central government budget;fast economic growth;primary surplus;



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Turkey - Country Economic Memorandum : sustaining high growth : selected issues (Vol. 2) : Expanded report (English). Washington, DC: World Bank