ECONOMY

Turkey seen beating GNP, CPI targets

ISTANBUL (Reuters) – Turkish economic growth is seen at 6 percent by year’s end, above the government’s IMF-backed target, a central bank survey showed yesterday. Turkey targets 5 percent gross national product (GNP) growth under its $19 billion IMF loan accord, but official statistics showing strong first-quarter growth have raised expectations the country will easily surpass its goal. GNP grew by 12.4 percent year-on-year in the first quarter, well above market expectations of 8.4 percent. The twice-monthly survey of some 80 financial leaders, which the central bank uses to help determine monetary policy, previously forecast GNP growth at 5.8 percent by year-end. Consumer price inflation (CPI) was seen at an annual rate of 10.9 percent, lower than the previous forecast of 11.1 percent made on July 8. Turkey targets 12 percent CPI by the end of the year. June CPI was 8.93 percent year-on-year. Reining in Turkey’s chronic inflation is a major plank in its IMF program. The lira was seen finishing the year at 1,564,100 to the dollar, compared to 1,577,200 two weeks ago. The currency traded at 1,463,000 on the interbank market on yesterday.