Turkey to announce new economic policy on Friday

Source: Xinhua | 2018-08-10

Turkish Treasury and Finance Ministry said on Thursday that a "new economic model" will be announced on Friday as Turkish currency lira dropped to a new record low.

The new set of economic steps aim at securing an economic growth of 3-4 percent in 2019, and decreasing the inflation rate to single-digit, the ministry said in a press release.

"It is expected that account deficit would be balanced around 4 percent," the ministry said, adding that it will continue to take steps to cut budget deficit to around 1.5 percent of the country's GDP.

The ministry denies that Turkey's banks and companies are facing foreign exchange risks. "The Turkish banking system has capability to manage financial fluctuations, as it has in the past, with its strong capital structure and balance sheet," said the ministry.

Lira's plunge on Thursday came with reports that a meeting between Turkish and American delegations failed to show progress over the ongoing detention of a U.S. pastor in Turkey who was accused of espionage and terrorism.

The United States has imposed unprecedented sanctions on two Turkish ministers, to which Ankara retaliated in kind.