Minister Şimşek stressed that the inflation reduction process has started permanently, and said: “With the delayed effect of monetary policy, inflation will decline strongly in 2025, and we expect the business world to take the medium-term program as a guide.”
Treasury and Finance Minister Mehmet Şimşek, who accompanied President Recep Tayyip Erdogan in New York to attend the 79th session of the United Nations General Assembly, gave a presentation on the progress made in the medium-term program and the policies to be followed at the event organized by the US branch of the Anatolian Businessmen’s Association (ASKON).
Şimşek said that Turkey had a serious current deficit a year ago, and with the measures taken, the current deficit decreased from around $57 billion to less than $20 billion. Şimşek said, “The current deficit is no longer a source of fragility or concern.”
Şimşek stressed that they will permanently remove the current account deficit from being a concern, saying, “Additional measures are needed but as of today we are facing an external balance that is no longer a concern and can be managed very easily.”
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Şimşek pointed out that insufficient reserves were also a concern last year, stating that resolving this issue was one of their primary goals and that an improvement of around $95 billion was recorded in net reserves as of last week.
Şimşek added that the improvement in reserves reflects strong confidence in the program, saying, “There is strong interest in the program from within and outside and thus Turkey has also removed the issue of reserves from being a concern.”
Şimşek pointed out that there has been a huge improvement in access to external financing, saying, “We are strengthening the foundations for healthier and more sustainable growth. There is a temporary slowdown in growth but Turkey’s structure will be strengthened. Sustainable high growth in Turkey is our ultimate goal.
