www.imf.org - Press Release No.12/208 - June 8, 2012
An International Monetary Fund (IMF) mission, headed by Ernesto
Ramirez Rigo, visited Istanbul and Ankara on May 31–June 6, 2012 to
discuss recent economic developments and preparations for the 2012
Article IV consultation discussions. The team met with senior officials
and staff at the Treasury, Ministry of Finance, Central Bank, and
Banking Regulation and Supervision Agency, as well as representatives of
the business community. (source)
The Turkish economy has been resilient to heightened stress in the
Euro area and a weak recovery in most advanced economies and, although
reduced, vulnerabilities remain. The tightening of macroeconomic
policies since the second half of 2011 was appropriate and has
contributed to slowing domestic demand. Encouragingly, the economy is
decelerating toward a soft landing, thus helping redress the imbalances
built over the last two years. It will be important to maintain current
budget targets for 2012 and tight monetary policy to guard against
external shocks and to strengthen existing policy buffers. However,
global economic developments pose downside risks. Should these risks
materialize, the public sector's strong balance sheet gives the
authorities room for countercyclical policies.
The mission thanks the participants of the meetings for their time
and candid expression of their views. It is expected that the team will
return to Turkey in September for its regular Article IV consultation
discussions, which the IMF conducts with its member countries on an
annual basis.
