Turkish gov't revises growth forecast, pledges reforms to cut inflation rate

Turkey's government has revised its economic growth forecast upward and vowed reforms to cut stubbornly high inflation, which has been defined as "one of the most challenging problems in the economy now," and to raise productivity. 

The country has raised its 2015 gross domestic product forecast to 4 percent, from the previous forecast of 3 percent, Turkish Deputy Prime Minister Mehmet ?im?ek said at a press conference, unveiling the government's updated medium-term economic program.

?im?ek said the latest medium-term program aimed to boost stable and comprehensive growth.

The government raised the GDP forecast for 2016 to 4.5 percent from 4 percent, adding that annual GDP expansion will reach 5 percent in both 2017 and 2018. 

"The growth rate may increase up to 4.5 percent mainly upon the rise in domestic demand and partly upon the rise in foreign demand as well as the reestablishment of political stability," he said. 

The government has however revised its inflation rate expectations, citing measures to decrease the inflation rate. 

The inflation forecast has been increased by 1 point to 7.5 percent for 2016 compared to the previous forecast. The forecast for 2017 has also been revised up from 5.5 to 6 percent, although the 2018 forecast has been kept the same at 5 percent, which is equal to the target. 

The inflation rate increased to 8.81 percent in 2015 amid a persistent rise in food prices and a significant loss in the Turkish Lira's value against the dollar at over 20 percent. 

"We'll focus on a number of structural measures that will slash the inflation rate, while raising the productivity rate," ?im?ek added, noting the government had made a considerable effort to decrease the inflation...