Additional financing for Turkey from the World Bank: 'The impact of inflation will decrease'

World Bank Country Director for Turkey Humberto Lopez announced that 10 billion dollars in financing will be provided to Turkey in addition to all currently ongoing funds.

Speaking at the TSKB Development Day, organized for the first time by the Industrial Development Bank of Turkey (TSKB), Lopez said that significant steps have been taken in Turkey over the last 20 years in terms of growth.

Pointing out that Turkey has achieved an average growth rate of 5.4 percent during this period, Lopez noted that 10 billion dollars in financing will come to Turkey in addition to all funds currently being offered.

'IT IS NOT VERY EASY TO BE PRODUCTIVE'

"We can talk about three main headings. The first of these is growth, and there is no development without growth. First of all, we need to ensure growth," said Lopez, continuing as follows:

"The second heading is the social dimension of the matter, inclusivity. We must ensure that growth is valid not just for a certain segment, but for all segments of society. The third is sustainability; the sustainability dimension that will feed the concept we call green growth. In Turkey, the per capita national income has increased 4-fold over a 26-year period. That is to say, we can say it has increased 4-fold in real terms within 20-30 years. This success must certainly be appreciated.

We need to ensure that the success of the last 20-25 years continues in the next 20 years. This needs to be built upon. In a high-inflation environment, it is not very easy for investments to flow into more efficient, productive sectors. It may not always be very possible to predict what the best sector is."

'AFTER A CERTAIN PERIOD, THE IMPACT OF INFLATION WILL DECREASE'

Stating that investments are shifting to sectors that can protect themselves, Lopez reminded that in order to ensure growth within the economy, investments must flow into sectors that will make the economy efficient and effective. Stating that there can be difficulties regarding this in the short term, Lopez said, "I am not talking about one or two years, but when we look at the upcoming period, the impact of inflation will decrease after a certain time. It is necessary to be patient regarding this."

'WITH THE SAME CAPITAL ELEMENTS...'

Underlining that an issue that should be evaluated in a slightly longer-term horizon in the context of growth is productivity and efficiency, Lopez said, "To be competitive in global markets, you must be able to produce more and at a lower cost with the same inputs, the same labor force, and the same capital elements."

Emphasizing that when looking at the productivity factor in Turkey, it has decreased somewhat in the last 10 years, Lopez expressed that the energy transition strategy is important.

News Source: AA

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