Speaking at the session titled “Global tests and Türkiye’s appearance” organized within the scope of the Antalya Diplomatic Forum, Treasury and Finance Minister Mehmet Şimşek made comprehensive evaluations about the fragile period in which the global economy is located and how Türkiye is positioned in this table. Stating that the global economy has passed through the period of high uncertainty and volatility, Minister Şimşek told that Türkiye is relatively more resistant to global challenges and the reforms carried out in the fields of foreign trade, energy transformation, artificial intelligence and defense industry. According to the IMF’s forecasts, a 7 percent decrease in the global GDP is expected to reduce Şimşek, “Trade wars, protectionism and geopolitical tensions are forcing global production. China is dominating global production; Europe, the United States and Japan are losing power,” he said.
Instead of export, domestic demand is in the foreground
Emphasizing that Türkiye’s growth model is not based on exports, Minister Şimşek said, “Historically, it has been restrictive rather than contributing to net exports. The main driving force of the Turkish economy is domestic demands and investments,” he said. Şimşek, therefore Türkiye is less fragile against shrinkage in global trade, he said. Minister Şimşek, 62 percent of the exports were made to the countries that are a free trade agreement, the leader of the European Union, said: “As long as relations with these countries, an important part of our exports should be protected,” he said. Drawing attention to the importance of regional integration Şimşek, “rises with your neighbor, you fall with him. Türkiye wants a peaceful and stable region because this is our interests,” he said.
New corridors in energy and logistics
Saying that Türkiye is a part of the middle corridor extending to China, Minister Şimşek told about the investments of the new development corridor to be connected to Turkey from Iraq to Türkiye, from there to London and Beijing. Emphasizing that these projects offer cost effective and effective logistics solutions, Şimşek said, “The connection is very important. We invest in peace, security and prosperity because we make profit from it,” he said.
Net message in the fight against inflation: “falling, it will fall”
Minister Lightning, underlining that they are determined to fight inflation, “Inflation is falling, falling. We have done everything to implement this program. There is strong political support, we are determined. We have the capacity to manage this process,” he said. Şimşek added that short -term market fluctuations may disrupt expectations, but the disinflation process will continue.
The effect of limited weakening in the exchange rate can be balanced with the decrease in oil prices Minister Simsek, strict monetary policy will have clear disinfressive effects, he said. Lightning, on the financial side of the budget discipline will be preserved, public debt is at a level of 25 percent compared to GDP, he said.
High debt and aging world
Global debts have increased by more than 100 points in the last 25 years, long -term high interest rates can put countries in the country said Minister Mehmet Simsek, Türkiye’s total borrowing in the world and developing country is under the average of the country, he said. Lightning, “Currently investors are withdrawing from developing markets, but when the storm listens to the basic indicators. Türkiye will come to the fore here,” he said.
Referring to the aging population worldwide, Minister Şimşek said that Türkiye still has a young population and that the advantage can be maintained through reforms that will increase women’s employment and emphasized that human resources are strong for investors.
