Minister Şimşek assures that inflation will continue to decline in the coming months
Minister of Treasury and Finance, Berat Albayrak Şimşek, highlighted the importance of strengthening the foundations of Turkey’s growth through the Medium Term Program (MTP) during his speech at the “NGO and Business World Meeting” program in Karabük.
Acknowledging that some may perceive a slowdown in growth, Şimşek reassured that this was a temporary phase as Turkey aims to establish the groundwork for higher and sustainable growth. He noted that inflation, which peaked at 75 percent in May, has now reduced to 52 percent as of August, with a continued downward trend expected in the coming months.
With regards to the sustainable current deficit, Şimşek expressed confidence in meeting the Central Bank’s forecast band estimates for inflation in the upcoming years. He emphasized the government’s commitment to reducing the budget deficit to support the decline in inflation, aiming to reach below 3 percent in the near future.
On the issue of reserves, Şimşek mentioned the significant increase in gross reserves, which now align with international definitions of reserve adequacy. He highlighted the successful efforts in increasing net reserves, excluding swaps, to around 30 billion dollars, showcasing the government’s dedication to resolving the reserve issue.
Furthermore, Şimşek discussed the goal of exiting exchange rate protected deposits and the positive developments in enhancing confidence in the Turkish lira. He emphasized the importance of discipline and savings in the public sector to maintain stability and support economic growth.
Looking ahead, Şimşek outlined the government’s determination to raise Turkey to investment-grade level and attract investors by improving the investment environment. He reiterated the focus on reducing inflation to single digits through the MTP, aiming to achieve this goal by 2026.
Additionally, Şimşek emphasized the significance of green and digital transformations in enhancing efficiency, competition, and growth potential in Turkey. He highlighted plans to support high-tech industries through targeted investments and programs like HIT-30, aimed at reducing foreign trade deficits and promoting technological advancements.
In conclusion, Minister Şimşek shared insights on various infrastructure and development projects undertaken across Turkey, underscoring the government’s commitment to sustainable growth and economic prosperity. The program also included visits to key institutions in Karabük, showcasing the ongoing efforts to drive progress and development in the region.
