Turkey’s economic growth much higher than forecast

Strong economic growth will continue in Turkey this year, although at a more moderate level, according to the Turkish Finance Minister Mehmet Simsek.

He spoke as the latest data showed Turkey’s economy grew 8.9 percent last year and in the fourth quarter it was a much stronger than expected 9.2 percent.

That has raised fears the central bank may need to move to cool inflationary pressures.

The Ankara government had expected the economy to grow by seven percent during 2010 and its forecast growth for 2011 is 4.5 percent, but analyst polled by Reuters see it higher at 4.8 percent.

Simsek said: “Improved public finance balances, growing employment and strong banking sector balance sheets will support growth.”

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