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INSTANT VIEW- Turkey revises down growth forecasts for 2012-2013

ISTANBUL, Oct 9 (Reuters) - Turkey's economy is expected togrow 3.2 percent this year, below a previous forecast of 4percent, before growing 4 percent next year, Deputy PrimeMinister Ali Babacan said on Tuesday.

Announcing the government's medium-term programme for2012-2015, Babacan said the government maintained its growthforecast of 5 percent for 2014 and 2015.

COMMENTARY TIMOTHY ASH, HEAD OF EM, STANDARD BANK

"Remember that this programme covers the next three yearswhen Turkey faces local, presidential and parliamentaryelections, plus a likely referendum on constitutional reform. Inmy mind, given the backdrop of elections, this looks like aprudent and very credible set of targets, and it sends themessage, that despite all the noise, Erdogan has still sidedwith the trusted technos in the cabinet. If the rating agenciesbuy into this plan, IG status should follow."

GIZEM OZTOK ALTINSAC, ECONOMIST, GARANTI SECURITIES

"A more-than-expected slowdown in growth is resulting with alower current account deficit to GDP forecast...Forecasts for2013 are more cautious...The medium-term economic programme isoffering a consistent macro frame, but we think especially forthe end of 2013 5.3 percent inflation is pretty optimistic."

MARKET REACTION The yield on the benchmark two-year bondfell to 7.64 percent from 7.65 percent before the announcement.

The lira weakened slightly to 1.8143 against thedollar, compared with 1.8119 beforehand.

(Reporting by Seda Sezer)

((seda.sezer@thomsonreuters.com)(+90 212 350 7051)(ReutersMessaging: seda.sezer@thomsonreuters.com))

Keywords: TURKEY ECONOMY/GROWTH

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