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PM Halts Official Gift Giving In Bid To Boost Economy

18.12.2014 18:18

Prime Minister Ahmet Davutoğlu said on Thursday his government has dropped a traditional practice of giving gifts such as lavish plates at official events as part of plans to boost the economy and national savings.“We are suffering serious waste in government spending due to gift giving, and local authorities.

Prime Minister Ahmet Davutoğlu said on Thursday his government has dropped a traditional practice of giving gifts such as lavish plates at official events as part of plans to boost the economy and national savings.

“We are suffering serious waste in government spending due to gift giving, and local authorities should drop it from this day forward,” Davutoğlu told a press conference on Thursday in Ankara. He said the government wants to rebalance the economy away from consumption-led growth. The measure announced by Davutoğlu comes among a series of others that the government announced as part of an eight-step reform package to maintain sustainable growth.

Davutoğlu told reporters on Thursday that new measures would raise Turkish gross domestic product (GDP) to $2 trillion by the year 2023. The package of programs announced on Thursday are aimed at increasing domestic savings to 19 percent of GDP in 2019 from 13.4 percent in 2013, in turn boosting investment in industry, the prime minister said. The package also involves tackling unregistered economy, boosting higher quality production and turning İstanbul into a global finance center.


Davutoğlu also said on Thursday that he sees no risk in the manufacturing sector's foreign debt in the near term after a recent steep decline in the lira's value. The government sees the economy as sturdy and crisis-resistant and sees no need for additional measures, Davutoğlu added. The government will employ measures to discourage luxury consumption, Economy Minister Nihat Zeybekçi told the same press conference. The measures will be mainly in the form of import tax hikes, especially on consumer electronics, Zeybekçi added.

ARABAŞLIK: Lira gains on US Fed reassurances

Turkey's lira gained on Thursday after the US Federal Reserve said it would be patient in raising rates. Fed Chair Janet Yellen told a news conference "patient" meant the policy-setting Federal Open Market Committee was unlikely to hike rates for "at least a couple of meetings," meaning April of next year at the earliest.

Turkey is especially vulnerable to a US rate hike because it would make Turkey's current account deficit more expensive to finance. Yield-seeking funds tend to flow out of risky emerging markets. The lira firmed to 2.313 against the dollar on Thursday, rising from 2.3690 on Wednesday after assurance from Turkey's central bank governor, Erdem Başçı on Wednesday that the bank would keep its monetary policy tight until there was a clear improvement in the inflation outlook.

The lira reached 2.4140 on Tuesday, its weakest ever figure, in an emerging-market slide spurred by a collapsing Russian rouble. Domestic political tensions amplified the effect on the lira. Turkey's main stock index was up 2.8 percent at 83,157 points, outperforming the emerging market index which was up 1.6 percent on Thursday.

SHOTLIST
TURKEY, ANKARA, 18 DEC 2014

Davutoğlu comes to the conference room
VAR of press members
VAR of Davutoğlu's remarks

DURATION: 04:53



 
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