Turkish Parliament has started discussing the resolution that proposes amendments to certain tax laws. With the General Assembly working intensively, the 129-article resolution will become effective without delay. The said changes, once made, will contribute to the budget and especially to Turkey’s security expenditure. The new regulation will relieve the employee and employer, it will minimize black economy and revive the economy. The regulation has also been prevented from heavily burdening citizens.
Following this important regulation, Parliament will start discussing the 2018 budget.
Global economy is expected to grow 2.7 percent in 2017 – it is already obvious that Turkey’s economy will grow more than 5 percent. Turkey is the fastest growing country among G20 countries following China and India. Turkey’s anticipated growth in 2018 is 5.5 percent.
In 2016, with the impact of the coup attempt, production, investment and trade had shrunk and, in connection to these, the employment rate had also dropped. In addition to progress in other areas in 2017, Turkey has displayed serious progress in these four areas as well.
In 2018, income per capita is expected to exceed $11,000 and export to exceed $169 billion, while employment is expected to increase by more than 1 million people.
The 2018 budget, which is the 16th budget drawn up by the Justice and Development Party (AK Party) government, was prepared with a perspective that is in sync with reaching these goals. The 2018 budget will support the economic growth goal of 5.5 percent. Similar to the previous 15 budgets, social policies will again be at the center of budget in the 2018 budget.
The budget for 2018 is expected to be TL 763 billion.
Turkey’s economy will grow in 2018 and the following years and, without a doubt, this growth is going to be experienced in every segment of society. However, there are three risks standing in front of these great and promising goals.
The first of these risks is the external attacks on economy. Attacks on its economy is nothing new for Turkey and to date, it has successfully overcome them all. The economy is no longer as fragile as it used to be and, regardless of the level of the risk, it will be overcome.
The second risk is the attacks that will be carried out internally. Black propaganda aimed to cause despair and hence, affect consumption and investment, has already started. Similarly, this is not the first time Turkey is facing attacks of this kind. Determination and calmness will stave off these attacks as well.
The greatest risk that will make it more difficult to achieve the goals in Turkish economy is the election risk.
President and AK Party Chairman Recep Tayyip Erdoğan made it very clear that an election before the set dates – March 2019 and November 2029 – is out of the question.
The AK Party has always been extremely sensitive from the very beginning in relation to election dates. In 2007, the elections were held four months early only because the president could not be elected. Apart from this, local and general elections have always been held on schedule.
Election rumors are as burdening on the economy as the election itself. Election rumors pause consumption and investments. Markets put their transactions on hold. Unless the rumors cease and the election is over, the economy will come to a halt – and as a matter of fact, it will regress.
Election rumors have adverse effects not only on the economy but also on bureaucracy. Very much like the economy, bureaucracy will also come to a halt. The functioning of the state will be disturbed.
While the new state that has formed as a result of the July 15 coup attempt last year and the clashes ongoing around us effect the economy, adding election rumors to this will not be to the advantage of Turkey.
The election rumors that are being spread to cause despair and slow down the economy and bureaucracy have been denied by the AK Party from the highest level. There will be no elections in 2018; the government and bureaucracy will strive with all their might to achieve the goals in economy.
Turkey cannot surrender its energy and hopes to rumors and hearsays. The measures taken and a disciplined fiscal policy will render 2018 another bright year in terms of Turkey’s economy.
Seeing the cup half full is good; optimism is what will primarily help the economy grow. Believing in the economy’s record goals for 2018 means those goals will be achieved. Looking at everything we have already achieved, there is no reason why we should not achieve the goals set for 2018.
