In an interview with the Anatolia news agency, Şimşek noted that Turkey’s growing CAD should not be matter of concern because it will be financed in the mid-term. He said developing domestic energy production will help reduce the difference between the country’s imports and exports. According to the most recent data released by the Turkish Statistics Institute (TurkStat), the country’s CAD grew by 89.4 percent in the first seven months of this year over the same period of 2009, despite a significant 13.4 percent rise in exports. “In the mid-term, we are in an effort of fixing Turkey’s CAD. Differentiating energy resources, focusing on domestic energy production and providing extra incentives in the fields where the foreign trade deficit is high will be instrumental. Turkey will be able to take control of its CAD in three to five years, as is the case with the budget deficit,” he said.
Şimşek also said they aimed to increase competitive power, decrease dependency on foreign sources and direct industry towards areas such as training and research and development. Noting that the tax revenue Turkey collected had increased by 24.7 percent in the first half of 2010, he said the revitalization of the economy and the performance of the Revenues Administration (GİB) are responsible for that rise. He added that tax revenues will continue to grow and thus reduce the country’s budget deficit. “We believe that we can reach all our year-end targets, including tax revenue, with the performance we will demonstrate,” he stated.
Şimşek commented on how the result of the approaching referendum on Sept. 12 will affect the country’s economic reputation in the world. He said if the people will approve the proposed changes in just over a week, credit rating agencies would further elevate Turkey’s position and present it to the world as an investable country.
