Investors welcoming Turkey’s decision to hold snap polls cementing the transition to a presidential system is triggering a large inflow of funds to the country, said Deputy Prime Minister Mehmet Şimşek on April 30.
“Firstly, uncertainty will be reduced. Secondly, the presidential system will open the way for Turkey, and thirdly, putting reforms quickly on the agenda offers an opportunity to resolve existing problems,” Şimşek told private Turkish broadcaster NTV, state-run Anadolu Agency reported.
If the elections had been held next year as originally scheduled, a longer period of uncertainty and campaign atmosphere would have had a negative affect and deterred investors, he said.
Şimşek said the president elected this June 24 will immediately establish a government that will enable him to implement the right policies and reforms for a five-year period.
“After the new government is set up, these reforms could be brought forward for a very fast start,” said Şimşek, highlighting that the government introduced a reform package to improve Turkey’s investment climate.
Şimşek added that early polls would not hurt Turkey’s growth, as the country has strong momentum shown by leading indicators.
“Generally, elections do not negatively affect growth. Turkey had a strong growth trend in the first quarter of the year. There is no reason for it not to continue at this stage,” he said.
Turkey has held many elections, and maintained fiscal discipline throughout, according to Şimşek.
The deputy prime minister also underlined that Turkey’s focus on savings, with a savings ratio of around 25 percent over the last 12 months, fell short of its investment appetite.
“Our main goal is to channel existing savings into productive areas. We will enable taxes, incentives, and credit policies to ensure that savings are channeled into the right areas,” Şimşek said.