The rigorous macroeconomic policy framework should be maintained. A long-awaited acceleration of the privatisation programme, which included large sales to foreign investors, has improved investor sentiment, although the related “loss” of dividend revenues from privatised firms could put some pressure on the fiscal outlook. Growing capital inflows are putting upward pressure on the currency, emphasising the need for an acceleration of the reforms needed to improve the flexibility and competitiveness of the economy. The positive central scenario is surrounded by risks associated with the extremely rapid growth of private credit, the exchange rate and movements in international interest rates.

Population (000s), 2004	71 789
Area (000 sq km)	781
Currency	Lira
GDP (Billion USD), 2004	302.0
Life expectancy at birth (Women, Men), 2003	71.0, 66.4
Total labour force (000s), 2004	24 790
Government type	Republican Parliamentary Democracy

Indicators	% change unless otherwise indicated
	2005	2006	2007
GDP growth	5.8	6.0	6.4
Consumer price index	8.0	6.2	4.5
Short-term interest rate (%)	15.9	12.5	10.5
Unemployment rate (%)	10.0	9.7	9.3
Current account balance (% GDP)	-6.2	-6.6	-6.7

Source: OECD© OECD Observer, No. 252/253, November 2005