Minister Şimşek: Türkiye does not have growth problems while struggling with inflation

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Lerato Khumalo

Minister of Treasury and Finance Mehmet Şimşek spoke at the ‘Policy Makers Board: Can Leaders Offer Optimism Instead of Being Cautious?’ within the scope of the ‘Future Investment Initiative’ held for the 8th time this year. He spoke at the panel titled:

Stating that Turkey does not have a growth problem while struggling with inflation, Şimşek said, “The worst is over, inflation is falling, and will continue to fall thanks to tight fiscal and monetary policies.”

Emphasizing that the Turkish economy is resistant to fragmentation in global trade, Minister Şimşek said, “We have free trade agreements with approximately 54 countries around the world, and we export approximately 60 percent of our exports to these countries. Fragmentation in trade is a real risk, but we tend to benefit from supply trends in close and friendly geographies. Therefore, “Although fragmentation is a risk, we are more resistant to this risk,” he said.

Underlining that Turkey has overcome many macroeconomic challenges, Şimşek said that the Central Bank reserves increased by 100 billion dollars in 1.5 years.

Stating that the program they implemented is going well, Minister Şimşek stated that the ratio of Turkey’s public debt to gross domestic product (GDP) is at a very low level of 26 percent compared to other countries and that this offers an advantage for Turkey’s growth.

Emphasizing that Turkey does not have a growth problem while struggling with inflation, Şimşek noted that the growth rate in the country in the last 20 years has been above 5 percent on average.