British economist O'Neill: the reaction of the market reforms in Turkey will be positive

Economist Jim O'Neill , who previously served as Head of Portfolio Management at the Treasury Department and Goldman Sachs in the UK , answered the questions of the AA correspondent.

Stating that the monetary policies in developed economies will support the developing economies in the coming period, O'Neill said, “The policy environment and monetary policy in the West, especially the Fed's asymmetrical targeting of high inflation since August, I think is generally supportive for emerging economies. this will be especially good for those countries that need external financing, such as Turkey. " used the expression.

"The response of the markets will be positive"

O'Neill, Turkey in the evaluation for the entry into a new period of reform was used the following phrases:

"If Turkey is serious about reform, this is really a good time to make them. Due to the factors mentioned above by a little. If you are looking for a country if an investor will achieve higher earnings and wherein if implemented serious reforms, it is normally best to invest in the debt market of emerging markets the combination is positive. I hope management is serious about reforms in Turkey. Because if you are serious, the market reaction will be extremely positive. "

O'Neill said Turkey should reduce its reliance on highly volatile capital flows by increasing savings rates in the future.

"Manufacturing has a very strong position in Turkey"

A new type of coronavirus (Kovid-19) from the exchange due to the outbreak of the global supply center in Turkey also underlines O'Neill can benefit, expressed as follows:

"If the walls Turkey, in the manufacture of (global) can benefit from slipping. Never forget, MINT (Mexico, Indonesia, Nigeria and Turkey) I went for a week to visit Turkey for the subject areas the BBC program countries, we visited the famous washing machine manufacturer. How good and I was very impressed at what is competitive. Turkey, many of the world instead, especially in a very good position to make the production to Europe. in principle, in this sense, Turkey has a very strong position. "

"Global recovery will be in the form of W"

Jim O'Neill said that re-quarantine in western economies will affect the growth momentum, and that growth in "W" shape rather than "V" is expected in the next period.

O'Neill, who also evaluated the vaccine studies developed against Kovid-19, which has gained speed recently, said, "I think we will receive more positive news about vaccination studies in the coming days and weeks. This will help especially in terms of investments and expenditures in sectors that have been struggling lately. We will see absolutely cyclical growth in. " found the assessment.

"The epidemic can cause social unrest"

On the other hand, O'Neill said that increased unemployment during the epidemic period can cause social unrest in many different parts of the world, “All these developments still have many consequences. We do not know about them yet. From the British perspective, I think unemployment will not increase as some pessimists think. But we cannot know this already. If I am right, everything will be quieter. But if a situation occurs like 10 percent of the population being unemployed, it will have very unpleasant consequences. Similar events (disturbances) may occur in other countries. " He spoke in the form.

" China will be the only growing country in the G20 this year"

Emphasizing that developing economies can gain momentum of growth again with the introduction of the Kovid-19 vaccine, O'Neill said, "When vaccination studies begin to be implemented, when the people of these countries are vaccinated, we will see very strong growth. likely to see. " said.

Stating that China has achieved great success in leaving the effects of the epidemic behind, O'Neill said, "China will be the only country that has grown this year among the G20 countries. At the end of 2021, its economy will be 10 percent larger than in 2019. countries' economies may remain smaller (in 2021 compared to 2019). " used the expression.