Turkey is not doing enough to convince investors it will maintain fiscal discipline in the absence of International Monetary Fund oversight, economists said on Wednesday after the government unveiled medium term budget plans intended to reassure markets.

Ali Babacan, economy minister, forecast Turkey’s economy would contract by 6 per cent this year but will recover to grow by 3.5 per cent in 2010 and 4 per cent in 2011, estimates that broadly match the independent consensus.