Simsek

ISTANBUL—Turkey could get hit hard by the euro zone's sovereign-debt troubles next year, but will bounce back strongly just as it did after the Lehman crisis, according to the country's finance minister, Mehmet Simsek.

Turkey Touts Its Resilience Amid Crisis in Europe Marc Champion 2011

Mr. Simsek, Mr. Ergun and Economy Minister Zafer Caglayan all warned against panic Friday, after Thursday's slide on stock markets around the globe.

Turkey Ministers Back Rate Cut Marc Champion 2011

Mr. Simsek in many ways epitomizes a new, more prosperous Turkey that feels able to offer lessons on structural reform and fiscal prudence to richer neighbors in the EU.

Turkey Touts Its Resilience Amid Crisis in Europe Marc Champion 2011

Mr. Simsek said the recent jump was partly due to tax increases.

Turkey Touts Its Resilience Amid Crisis in Europe Marc Champion 2011

Mr. Simsek ticked off Turkey's economic highlights: low public debt 42% in 2011, according to the International Monetary Fund estimates, compared to 120% in Italy and 99% in the U.S.; a budget deficit of 1%; a tightly regulated banking sector with average capital ratios above 16%, well above Western banks'; and falling unemployment.

Turkey Touts Its Resilience Amid Crisis in Europe Marc Champion 2011

He contrasted Turkey's ability to make quick decisions as a single-party government that has its own currency with the euro zone's need to reconcile 17 different governments, leaving them "behind the curve," Mr. Simsek said.

Turkey Touts Its Resilience Amid Crisis in Europe Marc Champion 2011

"Yes, through trade channels, through other channels our macroeconomic performance may come under pressure," but Turkey won't suffer any "permanent damage," said Mr. Simsek, although fallout from Europe's debt crisis for the world economy, including Turkey, could be "very significant."

Turkey Touts Its Resilience Amid Crisis in Europe Marc Champion 2011

In an hourlong interview with The Wall Street Journal over the weekend, Mr. Simsek echoed a confidence among Turkish officials that led Europe Minister Egemen Bagis to say last week: "Look out Europe, Turkey is coming to the rescue!"

Turkey Touts Its Resilience Amid Crisis in Europe Marc Champion 2011

"We would accept that domestic demand has been a lot stronger than we have had ever anticipated," Mr. Simsek said.

Turkey Touts Its Resilience Amid Crisis in Europe Marc Champion 2011

An ethnic Kurd and son of illiterate subsistence farmers, Mr. Simsek grew up in extreme poverty in the mainly Kurdish Batman region of eastern Turkey.

Turkey Touts Its Resilience Amid Crisis in Europe Marc Champion 2011