İSO: Turkey's Growth Hindered By Major Obstacles

İstanbul Chamber of Industry (İSO) board chairman Erdal Bahçıvan warned that Turkey's economy is facing major obstacles to its growth while speaking at a meeting held by the İSO on Thursday.

Bahçıvan said Turkey's economy performed well in the beginning of 2014 but sustained slower than expected growth in the second quarter. “Slowed growth caused created a delayed effect that is starting to be reflected in the unemployment rate. The increases in seasonally adjusted rates are particularly worthy of note, he said, adding that inflation had also turned out to be significantly higher than expected.

Pointing out that Turkey's present current account deficit (CAD) was $30 billion and was expected to reach $45 billion by year's end, he said structural reforms are urgently required for Turkey's industrial productivity to be revitalized, a factor necessary for Turkey's economic growth. He added, however, that it is difficult to focus on reforms in the midst of the country's tense political climate.

Last month Deputy Prime Minister Ali Babacan said Turkey should focus on developing its industrial sectors rather than continuing to focus on construction, which has boomed over the last decade.

(Cihan/Today's Zaman)