CBRT Chairman Kavcıoğlu Reveals Inflation Outlook
The Central Bank of the Republic of Turkey (CBRT) Chairman, Şahap Kavcıoğlu, recently gave a statement regarding the Turkish economy. Kavcıoğlu mentioned that the country’s high growth has continued, and it has also shown an increase in productivity. According to international data, Turkey ranks high among the G20 and OECD countries, and its per capita income is converging with developed countries. The Turkish banking sector has maintained its safe and sound outlook, and the country has achieved significant liraization in the deposit structure of the banking sector.
Kavcıoğlu predicted that the inflation rate would be 22.3% by the end of 2023, and inflation would occur in the range of 18.1-26.5% by the end of the same year. However, he stated that cost pressures on inflation had largely disappeared in the recent period. The Liraization Strategy will continue to be implemented in the upcoming period, with the aim of creating financial conditions that will increase the supply capacity.
Despite the earthquake disaster, Turkey’s total exports have reached pre-earthquake levels, and the tourism sector continues its strong course in 2023. The country has managed to recover quickly from the disaster, and indicators regarding the strength of the post-earthquake recovery give positive signals. Furthermore, according to Kavcıoğlu, the relatively flat course of industrial production in the first quarter is an indicator of the resilience and dynamism of the Turkish economy.
In conclusion, Kavcıoğlu stated that the policies implemented by CBRT have the power to reduce inflation. They will continue to evaluate the developments in the country and world economy with their up-to-date and comprehensive data set and work towards achieving sustainable and permanent price stability.
