Turkey

With most analysts predicting that the IMF delegation currently in Ankara going through Turkey's books will likely leave this week pretty satisfied, these are good times for the country's government. News that wholesale inflation had finally dipped below two digits, while exports have continued to rise, has also put market watchers and movers in a strongly positive mood.

With the seizure by Turkish authorities of some 219 companies belonging to the Uzan Group mid-February, the final chapters in one of the country's most controversial corporate sagas appeared to be closing this week. Now, many are wondering what next, as the state's new portfolio gets examined, and prospects for a lucrative fire sale get aired.

These have been busy times recently in Turkey's energy industry, with news of a major privatisation coming alongside reports of new oil exploration in the Black Sea. Meanwhile, the ongoing dispute over use of the Bosphorus by oil tankers flared into life again, with accusations and denials flying over alleged unnecessary closure of the straits by the Turkish authorities.

With a batch of positive figures rolling in as December closed, Turkey's economy looked to be in good shape as the year 2004 began. Meanwhile, as the stock market broke its historic high, analysts seemed confident that any potential knocks in the months ahead would not do too much harm. The questions now are how to sustain this momentum - and how deep this recovery is really going.

While a string of healthy-looking economic results has left a sense of relief in Ankara in recent days, the launch of a new World Bank report on the country's progress has highlighted the need for continued restraint. If Turkey is to achieve its stability and growth targets, the Bank says, it must do more to restore investor confidence. It's a point the government too seems anxious to make, with the troubled privatisation programme likely to be an important proving ground.

The following interview with Ali Babacan, State Minister in Charge of the Economy, is taken from the Oxford Business Group's latest publication, Emerging Turkey 2004. For more information on how to order a copy of the most comprehensive review of the Turkish economy to date, please write to us at mail@oxfordbusinessgroup.com, or click on the link to Printed Publications on the right-hand side of the page.