Oil price slump won't ease Turkey's budget discipline

Oil price slump won't ease Turkey's budget discipline

Turkey will not deviate from fiscal discipline despite a recovery in its current account deficit, the country's deputy prime minister in charge of economic policy said Thursday Anadolu Agency reported

"Complacency is not an option in the face of declining oil prices. We will maintain the budget discipline, our efforts to improve savings rates and our will for reform like these prices never fell," Ali Babacan told The Anadolu Agency in New York, where he arrived Thursday to hold talks with investors, fund managers and market analysts.

Brent crude oil prices have declined for five months as weaker demand coupled with abundant supply push prices lower.

Prices fell to their lowest in five years Monday, hitting $68.54 a barrel. For almost four years crude prices had ranged between $90 and $110 until this summer when they began to slide.

Turkey depends on imports for most of its energy needs and has benefitted from lower crude prices. Its 12-month current account deficit dropped by more than a third in September compared to a year earlier to $2.22 billion, the lowest since 2011.

Babacan said Turkey's current account deficit and inflation narrow by 0.5 percentage points with every $10 drop in oil prices.

"We set our medium-term economic program assuming that the prices will be $102 per barrel. So, if they hit $72, this will yield a current account deficit and an inflation rate 1.5 percentage points lower than the estimations," he said.

Turkey's recently announced medium-term program envisages a narrowing current account deficit as a percentage of GDP and increased gross domestic product growth.

Despite these turn of events in its favor created by plummeting crude prices, Babacan reaffirmed Turkey's commitment to budget discipline, stressing that crude prices are subject to change.

"In combatting current account deficit, our structural reforms in the coming future will be very important. These reforms will reduce our dependence on energy imports and improve the savings rates of our country," he said. "We need to be cautious and never loosen our will for reform."

Babacan also weighed in on a planned free trade deal between the U.S. and the European Union.

"Exclusion of Turkey from such a huge trading structure is something unimaginable. We will put in every kind of effort to be a part of it," he said referring to the Transatlantic Trade and Investment Partnership agreement currently being negotiated between the U.S. and the 28-member EU.

He said there are deliberations on several options to ensure Turkey's inclusion in the deal. Turkey is not an EU member but in a Customs Union since 1995.

"One of these options is to create a separate free trade agreement between the U.S. and Turkey," he said. "Another option is the addition of Turkey to the 28-member European block as a 29th party."

One of the first countries to seek close cooperation with the European Economic Community, Turkey began full accession talks with the EU in 2005.

The EU and Turkey established a Customs Union in 1995, which is considered a stepping stone toward becoming a full EU member. The customs agreement removed some of the trade restrictions between Turkey and EU members.

The accession negotiations entered into a stalemate in 2007 because of the Cyprus issue and the opposition of the German and French governments.

Since 1974, the Cyprus island has been divided into a Greek south and Turkish noth zones. Turkey's European Union ambitions are entwined in a solution to the dispute over the future of island.

Babacan said Norway and Switzerland, which are not EU members, should also be included in the Transatlantic deal.

Turkish officials argue that future Free Trade Agreements signed by the EU with other countries, such as the U.S., would effectively open Turkey's market to exports from these states because Ankara is a signatory to the Customs Union agreement.

But, at the same time, it would also effectively block Turkish exports from benefiting from tax advantages in those same states, should Ankara not be a party to the free trade deals negotiated by the EU.

Greece decreases petroleum oil exports from Kazakhstan
Greece decreases petroleum oil exports from Kazakhstan
Japanese TEPSCO to join creating green energy zone in Azerbaijan's liberated territories
Japanese TEPSCO to join creating green energy zone in Azerbaijan's liberated territories
Nominations for gas flows at TAP’s interconnections
Nominations for gas flows at TAP’s interconnections
Loading Bars
Azerbaijani national team holds podium training for upcoming Rhythmic Gymnastics World Cup in Baku (VIDEO)
International Bank of Azerbaijan opens tender to buy Cisco network switches
Kazakhstan, Russia lift mutual restrictions on import, transit of livestock products
World auto concerns’ production volume to decrease during 6M2021
OSCE Chairperson-in-Office welcomes release of Armenian detainees by Azerbaijan
Greece decreases petroleum oil exports from Kazakhstan
Sputnik Light vaccine can be used for people aged 18-60
Moderna booster increases antibodies against COVID-19 variants, early data shows
Azerbaijan names amount of subsidies paid out for cropping
Yerevan ready to exert all efforts to fulfill trilateral agreements on Karabakh - acting PM of Armenia
Lebanon could gradually go dark as cash for electricity runs out
New greenhouse to be built in Turkmenistan’s Mary region
Several digitalization projects implemented in Kazakh oil & gas sector
Kazakhstan's president decides to provide humanitarian aid to Kyrgyzstan
Real estate purchases soar in Kazakhstan
Saudi Arabia eyes importing finished meat products from Uzbekistan
Azerbaijan's non-oil exports show positive trend despite impact of COVID-19 - minister
Kazakh Kazgeology eyes working on promising areas of natural resources
Main part of Iran's trade carried out by sea - analyst
Israel and Korea to sign free trade agreement next week
EU continues to support Georgia SMEs
Azerbaijan launches system for predicting impact of tax benefits on state revenues
Azerbaijan's AzFina, CBA developing bill on regulation of payment systems
Georgia's minister claims inflation in country to decrease in coming months
Kazakhstan reports increase in oil, natural gas prices
Azerbaijan may change procedure for navigation on inland waters for fishing vessels
Azerbaijan shares data on number of vaccinated citizens for May 6
Construction of Ahmadbayli-Fuzuli-Shusha highway in Azerbaijan continues (VIDEO)
Azerbaijan confirms 844 more COVID-19 cases, 2,057 recoveries
Uzbek-Korean JV to buy power cables via tender
Kazakh-Georgian Economic Union to focus on int'l trade and dev't of transport services - Honorary Consul
First section of Georgian Rikoti Highway to open soon
Kazakh IT company involved in creation of "smart" settlements in Azerbaijan
Japanese TEPSCO to join creating green energy zone in Azerbaijan's liberated territories
Azerbaijan's Mine Action Agency eyes to purchase new mine clearance equipment
Uzbek-Korean JV opens tender for construction of security facility for gas treatment
Turkmen Ministry of Construction extends tender for design of buildings
Georgia to host annual meeting of ADB board of governors
Spain tourist arrivals slump 76% in March, recovery still far off
Azerbaijan's construction sector output to grow till 2026 - expert
Trade ministry discloses volume of cereals imported by Austria from Turkey
Share of mining sector in Baku's industrial production disclosed
Amazing opportunities created for athletes in Baku’s National Gymnastics Arena - Ukrainian Gymnastics Federation
Turkmengas opens tender for purchase of chemicals
Kazakhstan's National Bank unveils preliminary balance of payments data
Statistics on trade turnover between Spain, Turkmenistan revealed
Uzbekistan receives permission to export pomegranates to China
Moderna raises 2021 sales forecast for COVID-19 vaccine to $19.2 billion
Not calling released soldiers as "POWs" by OSCE Minsk Group - outrageous - Armenian media
Tesla developing platform to allow car owners in China data access
Bahar Azadi gold coin price rebounds in Iran
Over 10 mln COVID-19 vaccine doses administered in Saudi Arabia
Russia reports over 7,600 COVID-19 cases in the past day
Revanchist statements in Armenia mustn't be taken seriously - Azerbaijani Security Council
Precious metal prices in Azerbaijan fluctuate
No reason to worry about fulfillment of trilateral statement - Azerbaijan's Security Council
Nominations for gas flows at TAP’s interconnections
Azerbaijan to build road to legendary "Isa Spring" in Shusha city
EU countries agree to open up to Israeli tourists
Turkmenistan names data on deposits in credit institutions
Iran unveils volume of transit through Gilan Province
Largest share of Uzbek textile production falls on Fergana region
Turkey boosts export of cars to Kazakhstan
Turkey publishes data on 4M2021 steel exports
Iran's Amir-Kabir Petrochemical Company beats sets new production record
Turkey's 4M2021 exports of locally-made furniture up in value
Turkey reveals 4M2021 data on export of grains, legumes to Azerbaijan
Exports through Iran's Astara border checkpoint increase
Uzbekistan to launch several TPPs in 2021
Uzbek agency reveals data on most profitable companies
ADB approves loan for construction of Georgia’s Olympic swimming pool
Georgia in talks with Johnson & Johnson and Novavax to receive vaccines
Georgian ISET-PI shares pricing on residential real estate in Tbilisi
Georgian Pension Agency shares data on pension fund's assets
Uzbekistan reveals number of vaccinated people
Kazakh uranium extracting company opens tender to buy spares
Kazakhstan decreases trade with Canada amid COVID-19
China increases import of Turkish-made cars
Turkey reveals 1Q2021 data on cargo movement via local ports from Belgium
Kaspersky Lab shares data on Azerbaijani users facing cyber attacks in 2020
Several facilities in education sector put into operation in Iran
Gold production at Iran's Zarshouran mine increases
Azerbaijan to completely clear "Victory Road" to Shusha city of mines soon
Azerbaijan shares details on mine clearance in liberated territories
South Korea to contribute to developing Azerbaijan's innovation ecosystem
Iran reveals COVID-19 data for May 6
Turkey sees increase in 4M2021 cement exports
Iran releases data of exports from Arvand Free Trade Zone
Azerbaijan shows footage from Garapirimli village of Aghdam district (PHOTO/VIDEO)
Azerbaijan announces commissioning date for 'Victory Road' to liberated Shusha (PHOTO/VIDEO)
1Q2021 value of Turkish export of cars to Iran rises
Azerbaijan to continue importing COVID-19 vaccines - Health Ministry
Situation in Karabakh significantly normalized - Russian FM
People aged 30-59 suffer most from COVID-19 in Azerbaijan
Azerbaijan Health Ministry talks strengthening quarantine on holidays
Number of empty beds in Azerbaijani hospitals growing - Health Ministry
Kazakhstan boosts exports to US amid COVID-19
Azerbaijan notes positive trend in data on people recovering from COVID-19
COVID-19 vaccines used in Azerbaijan are safe, effective - Ministry of Health
Azerbaijan to start new stage of vaccination against COVID-19 - Deputy Minister
All news