"With Turkey facing political turmoil recently the government has lost its focus on the country’s economic issues. Taking the worsening global conjuncture into consideration the economy must be put to the top of the governments agenda," said Tuncay Ozilhan, CEO of the Anadolu Group, one of the leading Turkish Companies, and  the former chairman of the Turkish Industrialists' and Businessmen's Association (TUSIAD), on Wednesday.     

Businessmen and institutions have long been indicating the possibility of crisis emerging in Turkey, but just now starting to noticeably feel the effects of such a crisis, Ozilhan said.    

Ozilhan warning the government about the measures that must be taken said that, "The government is a little late in taking the necessary measures and the easing fiscal discipline is making businessmen uncomfortable. What’s more, there are concerns of a further easing ahead of the upcoming local elections."

Turkey cut its primary surplus target, the anchor of the country's budget performance, for 2008 from 4.2 percent of GNP to 3.5 percent. 

Union of Chambers and Commodity Exchanges of Turkey (TOBB), Rifat Hisarciklioglu also sent the government warnings on Tuesday. "The entire region of Anatolia (in terms of trade) and the internal markets are clearly sending out an S.O.S signal," Hisarciklioglu said during a speech delivered to Independent Industrialists' and Businessmen's Association (MUSIAD) members.

Hisarciklioglu pressed the government to take immediate measures to curb the growing budget and current account deficits, and focused particularly on the ever increasing current account deficit, nearing a record high $45 billion.

"We must focus our attention to two issues, the current account deficit and the budget deficit, in the coming term. The current account deficit is increasing towards $45 billion for 2008 and this means we need to find $45 billion this year in order to avoid entering an economic crisis," Hisarciklioglu stressed.

Turkey had announced a $4.157 billion current account deficit in March, representing a 37 percent rise compared to the same period last year. The 12-month rolling deficit reached $40.4 billion, exceeding the $40 billion level for the first time.  

Photo: DHA