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Turkey targets annual economic growth of 5.0% through 2022

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Turkey targets annual economic growth of 5.0% through 2022

Turkish Treasury and Finance Minister Berat Albayrak on Sept. 30 unveiled the government's latest economic program, which targets a growth rate of 5.0% each year from 2020 to 2022, up from an estimated 0.5% expansion in 2019, state-run Anadolu news agency reported.

The projected economic growth would add 1 million new jobs annually in the three-year period, lowering the unemployment rate to 9.8% in 2022 from an estimated 12.9% jobless rate in 2019.

The growth rate targets are "quite optimistic" considering the high debt levels in Turkey's corporate sector and ongoing deleveraging efforts amid increasing global uncertainties, according to a research note from Muhammet Mercan, ING's chief economist for Turkey.

On inflation, the government lowered its full-year forecast for 2019 to 12% from 15% previously, and set inflation targets of 8.5%, 6% and 4.9% for 2020, 2021 and 2022, respectively.

"Under these targets, priority will continue to be given to the coordination of money and fiscal policies," Albayrak was quoted as saying in the Anadolu report.

On public finances, the government projected a budget deficit of 2.9% of GDP for 2020 and 2021, and a deficit of 2.6% for 2022.