Treasury and Finance Minister Mehmet Şimşek stated, “Inflation is declining and will continue to do so. We have done everything to implement this program, there is strong political support, and we are determined.”

Speaking at the “Global Challenges and Turkey’s Outlook” session held within the scope of Antalya Diplomacy Forum, Treasury and Finance Minister Mehmet Şimşek made comprehensive evaluations regarding the fragile period the global economy is currently going through and Turkey’s positioning in this context.

Minister Şimşek mentioned that the global economy is going through a period of high uncertainty and volatility, emphasizing that Turkey is relatively more resilient to global challenges. He discussed reforms in foreign trade, energy transformation, artificial intelligence, and defense industry fields.

Referring to IMF estimates of a 7% decrease in global GDP, Minister Şimşek stated, “Trade wars, protectionism, and geopolitical tensions are challenging global production. China dominates global manufacturing while Europe, the US, and Japan are losing power.” He emphasized Turkey’s focus on domestic demand rather than exports as the primary factor driving economic growth.

Minister Şimşek also highlighted the importance of regional integration, pointing out that 62% of Turkey’s exports are to countries with free trade agreements, with the EU being a significant partner. He stressed the need for peaceful and stable regional cooperation, indicating that Turkey seeks a region beneficial to its interests.

By describing Turkey as part of the Middle corridor reaching China, Minister Şimşek mentioned new development corridor investments linking Iraq to Turkey, London, and Beijing. He emphasized that these projects provide cost-effective and efficient logistics solutions, underscoring the importance of connectivity for prosperity and security.

Addressing the fight against inflation, Minister Şimşek reaffirmed their determination, stating, “Inflation is decreasing and will continue to do so. We have done everything to implement this program. Strong political support exists, and we are resolute. We have the capacity to manage this process.” He added that short-term market fluctuations could disrupt expectations, but the disinflation process will continue.

Minister Şimşek explained that the limited depreciation in the exchange rate could be balanced by the decrease in oil prices and that tight monetary policy would have clear disinflationary effects. He also assured that budget discipline would be maintained on the fiscal side, with public debt being at around 25% of GDP. Minister Şimşek noted Turkey’s progress in the defense industry, reaching 80% localization rate and becoming one of the top 10 exporters after being among the largest importers 25 years ago. He also mentioned Turkey’s production of a high number of graduates in the field of artificial intelligence among other countries.