ANKARA, Oct 24 (Reuters) - Turkey's economy minister, Ali Babacan, said he expects a 3-4 percent contraction in the economy in the third quarter, but added it is likely the economy will return to positive growth in the final quarter.
Turkey was hit hard by the global crisis and its economy shrank by 10.5 percent in the first six months, after growing on average 6 percent in recent years.
'Perhaps we will see minus 3-4 percent in the third quarter. The probability that we return to positive growth in the fourth quarter looks very big,' Ali Babacan said.
Babacan told NTV broadcaster late on Friday that technical negotiations continued with the International Monetary Fund on a loan deal.
Turkey has been locked in stand-by negotiations with the IMF, but its lessening current account deficit and disagreements over the status of the tax administration and the extent of stimulus measures have obstructed a deal.
'The negotiations continue on a technical basis. What matters is our own programme and we are actually implementing it,' Babacan said.
'We think that an agreement (with the IMF) will be good for Turkey if this will help us and support our efforts, but it is not essential,' Babacan said.
(Writing by Selcuk Gokoluk; Editing by Sugita Katyal) Keywords: TURKEY GROWTH/ (selcuk.gokoluk@reuters.com; +90 312 292 7012; Reuters messaging: selcuk.gokoluk.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Turkey was hit hard by the global crisis and its economy shrank by 10.5 percent in the first six months, after growing on average 6 percent in recent years.
'Perhaps we will see minus 3-4 percent in the third quarter. The probability that we return to positive growth in the fourth quarter looks very big,' Ali Babacan said.
Babacan told NTV broadcaster late on Friday that technical negotiations continued with the International Monetary Fund on a loan deal.
Turkey has been locked in stand-by negotiations with the IMF, but its lessening current account deficit and disagreements over the status of the tax administration and the extent of stimulus measures have obstructed a deal.
'The negotiations continue on a technical basis. What matters is our own programme and we are actually implementing it,' Babacan said.
'We think that an agreement (with the IMF) will be good for Turkey if this will help us and support our efforts, but it is not essential,' Babacan said.
(Writing by Selcuk Gokoluk; Editing by Sugita Katyal) Keywords: TURKEY GROWTH/ (selcuk.gokoluk@reuters.com; +90 312 292 7012; Reuters messaging: selcuk.gokoluk.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
