‘We know the difficulties, we started to get results’

ANKARA / Graphics: Gözde GÜNEŞ

Created Date: January 04, 2025 04:00

Minister of Treasury and Finance Mehmet Şimşek stated that the progress made in all areas clearly demonstrates the strong potential of the economy and said, “We know the difficulties. We created a strong policy framework and started to get results. “We still have a long way to go,” he said.

Şimşek shared on his social media account after the inflation figures were announced: disinflation He reiterated that the program was implemented with determination and said, “In December, inflation was 1 percent, at the lowest level in the last 19 months. Annual inflation decreased to 44.4 percent, 2.4 points above the Central Bank forecast range announced in November 2023. “We expect inflation to be in line with our target in 2025,” he said.

REBALANCE

Minister Şimşek, who shared statements one after another, also gave information about the developments in the economy in 2024. “Thanks to the program we are implementing, we have achieved significant gains in 2024. “We will continue to implement our policies in line with our goal of sustainable high and inclusive growth in 2025.” Şimşek pointed out that the economy has rebalanced. Şimşek said, “Although real growth will remain below our forecasts, national income in dollar terms will reach 1.3 trillion dollars.”

KKM DECREASED SIGNIFICANTLY

Emphasizing that exports maintain their resilient outlook, imports decline significantly and tourism continues its strong performance, Şimşek said:

“The current account deficit has decreased to sustainable levels, and the program will be realized well below our predictions. Our international reserve position has strengthened. Confidence in the Turkish Lira increased. Exchange rate protected deposits decreased significantly. Our country risk premium has decreased. Access to external financing has increased. The additional premium difference (spread) over the US Treasury similar maturity bond yield decreased. Foreign borrowing costs decreased. We have completed our exit process from the gray list. We became the only country to receive a two-level rating increase from the three major credit rating agencies. We are among the countries that provide the most resources from international organizations. “We provided 8.6 billion dollars of favorable conditional and long-term external financing for development-oriented projects.”

INFLATION EXPECTATIONS IMPROVED

Drawing attention to the developments in inflation, Şimşek stated that goods inflation was at 36 percent and services inflation was in a downward trend. Şimşek underlined that inflation expectations have improved and emphasized that the decline in inflation will continue with the delayed effect of monetary policy, stronger support of public finance and reforms that will increase supply.

WE STRENGTHEN FINANCIAL DISCIPLINE

Şimşek stated that they healed the wounds caused by the earthquake, reduced informality and strengthened justice in taxes. Underlining that they prioritize public investments with an emphasis on efficiency, Şimşek said, “We are reducing the budget deficit and strengthening financial discipline. Total indebtedness is low. The ratio of gross external debt stock to national income is declining. The ratio of EU-defined debt stock to national income is at its lowest level since the series was announced. “We reduce the exchange rate, maturity and interest risks of the debt stock,” he said. Pointing out that they have improved the investment environment, Şimşek reminded that they support value-added production with applications such as Investment Commitment Advance Loan (YTAK) and High Technology Investment Program-HIT 30.

THE MINISTER OF TREASURY AND FINANCE EXPLAINED THE DECLINE WITH GRAPHS

Mehmet Simsekincluded two graphs in his post about 2024 inflation from his X account. Minister of Treasury and Finance: “In 2024 inflation It decreased by 20 points compared to the end of 2022 and 2023. The decline in inflation will continue. “We expect inflation to be in line with our target in 2025, with the increasing support of fiscal policy as well as the decrease in rigidity in services inflation and the improvement in expectations,” he commented.