IMF first deputy managing director Anne Krueger said that the growth rate should come down to more reasonable rates in the coming years. According to Krueger, the most important issue for Turkey is to maintain growth without triggering inflation. The Turkish economy grew by 9.9% last year and the rate is expected to slow down to 5% this year. CPI inflation was 9.3% in 2004, and consumer prices increased by 8.2% y/y in April.
The IMF official also commented that Turkish authorities should accelerate efforts regarding tax, and pension reforms, and underlined that tight fiscal policies should cntinue to be implemented. Recently, Krueger warned about high debt burden of the country. As of end-2004, the total public sector net debt/GNP ratio stood at 65.3%, down from 70.4% a year earlier, and 90.5% in 2001.