Economic crisis pscyhological in Turkey, should be rejected, PM says

"Certainly we, as Turkey, would continue to walk towards our targets in this period of crisis. Because the thing in Turkey is pschological. And there are some people who work hard to intensify this crisis psychologically. First of all we have to reject this. We have to destroy this psychological atmosphere all together," Tayyip Erdogan said in his speech at the Higher Board of Science and Technology meeting in Ankara.

Recent economic data has shown that the Turkish economy has slowed sharply and that production is on the decline, a strong signal that the economy has been hurt more than previously expected.  Unemployment has also risen as companies continue to layoff employees or suspend production.

Erdogan also echoed his previous comments on the financial sector's approach to manufacturers, adding that financial institutions should continue its relations with the real sector.

The Turkish government has been criticizing the financial sector for recalling debts amid the growing global credit crisis. The Turkish banks have said they are planning a framework to restructure the debts of the country’s struggling manufacturers.