Hurriyet DN Online with wires
Oluşturulma Tarihi: Şubat 26, 2009 14:46
Turkey's growth will slow down, unemployment will increase and the country will go through an economic crisis worse than that of 2001, World Bank Turkey Director Ulrich Zachau said on Thursday. (UPDATED)
"Turkey's labor force will continue to grow. Turkey will experience slow economic growth and there will be high unemployment. An economic crisis worse than that of 2001 will be experienced in Turkey," Zachau said at a summit on Risk Management in Istanbul, the Anatolian Agency reported.
The Turkish economy, which increasingly feels the impact of the global financial crisis, recorded only 0.5 percent growth in the third quarter of 2008, the lowest since Turkey emerged from a financial crisis in 2001. The growth rate is expected to be flat in 2008, while an economic contraction is forecast for 2009.
However, this period is also good to implement reforms, furthermore policies for long term growth plans are crucial, he also said.
"How will we overcome the risk? The implementation of macro economic policies and the continuation of such policies are important to minimize risks," Zachau said.
What Turkey needs to do in the short run is to provide flexible, part-time jobs so that women and the young population find employment, he added.
Turkey’s jobless rate rose to 12.3 percent in November 2008, its highest level in at least four years. The global economic slowdown is pushing the economy into recession in Turkey, where growth is critical for absorbing the almost 1 million young people who enter the workforce every year.
"Turkey's financial sector continues to preserve its strength when compared to many other countries. The economic risk in 2009 is based on the impact of the global crisis on structural and real economy," he also said.
