In a recent report OECD forecasts that Turkey’s annual GDP growth would be 5.7% on average in the period of 2006-2009 that will be the highest growth rate among all the EU member states, and OECD countries.
As far as the unemployment rate is concerned, OECD expects unemployment rate to stand at 11.2% in 2005, and the figure will come down to 9.5% in 2009. According to the OECD calculations, current account deficit ofTurkey will be 3% of GDP in 2005, and in 2009 the figure will inch up to 3.5%.
The report also forecasts that Turkey’s GDP deflator will be 10.2%, and 6% in 2005, and 2009, respectively.
On the other hand long-term interest rates are expected to be 18.1% in 2005, and the figure will decline to 10% in 2009.
Parliament starts discussions on social security draft
The social security draft, which foresees the transfer of all hospitals, and health organisations that have been operating under different public institutions, and Social Security Institution to the health ministry, started to be discussed in the general assembly of the parliament.
Two articles of the draft have been passed, and the deputies will continue to discuss the draft today. The draft that foresees the operation of health institutions under one roof is one of the pillars of the IMF-required social security reform.
The drafts regarding social security should be submitted to the parliament for the IMF Board to convene to discuss the new stand-by programme with Turkey. The opposition CHP and labour platform, which is formed by the representatives of workers, civil servants, and civil society organisations, fiercely oppose the draft.
Labour platform have brought onto the agenda the general strike, yet has not taken any decision regarding the issue.However, we do not think that those attempts could prevent the passage of the bill.