Business: Turkey anticipates economic growth

19/03/2010

Turkey's economy minister predicts GDP will rise more than 3.5% this year. Also in business news: the EC approves Bulgaria's stability programme, Croatia plans to invest in a wind energy plant and Serbia signs a deal with an Austria firm on a bridge construction project.

A steel worker monitors a giant iron melting pot at Kardemir Iron and Steel Factory in Karabuk, northwestern Turkey. The government is predicting solid GDP growth this year. [Getty Images]

Turkey will register a GDP growth of over 3.5% this year, Economy Minister Ali Babacan said on Wednesday (March 17th). He recalled that the IMF had projected GDP growth of around 3.7% for Turkey, while forecasts of other international financial institutions range as high as 4.5%.

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The European Commission announced on Wednesday (March 17th) that it has approved Bulgaria's stability and convergence programme. According to the programme, the general government budget is to be balanced this year and will post a slight surplus in 2011-2012.

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Greece's Pan-Hellenic Federation of Hoteliers urged its members Wednesday (March 17th) to cut their rates to attract more local tourists, in view of lower holiday spending expected this year. According to the federation, Greek tourists should be able to enjoy the same lower prices offered to foreign tourists.

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The Croatian power engineering company Koncar Elektroindustrija will invest 27.6m euros in the construction of a wind energy plant near Split, company CEO Darinko Bago announced on Wednesday (March 17th). Koncar will finance the project with 11m euros of its own funds, with the rest provided through loans from commercial banks. The power plant will consist of one 2.5MW generator and 15 smaller, 1MW generators.

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Kosovo and Montenegro plan to create joint groups to fight tax evasion and smuggling, according to a customs co-operation agreement signed on Tuesday (March 16th). This is the third agreement signed by Kosovo Customs. The others were with Albania and Turkey.

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Serbia has a good chance to join the WTO in 2011, Serbian Economy Minister Mladjan Dinkic said on Tuesday (March 16th). Dinkic and Teruhiko Shinada, representative of the Japanese Embassy in Belgrade, signed a protocol on concluding negotiations with Japan regarding Serbia's accession to the WTO. Belgrade submitted a formal application to start accession negotiations in December 2004.

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The Serbian public road company Putevi Srbije signed a 58m-euro deal with Austrian firm Strabag on Monday (March 15th) to rebuild the Gazela Bridge in Belgrade. The reconstruction is set to start within a week and will last 22 months. The EIB stressed that disbursing another 23m euros would depend on Serbia complying with a commitment to properly accommodate the Roma community that used to live under the bridge.

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The Croatian government will present new anti-crisis measures by the end of the month, Prime Minister Jadranka Kosor said on Monday (March 15th). The plan is focused on companies that are experiencing long-term difficulties, reported earlier than July 1st 2009. In addition, the cabinet intends to boost its efforts against corruption and provide for stricter control over agricultural subsidies, Kosor said.

(Various sources -- 12/03/10-19/03/10)