Türkiye’s economy overcomes challenges as inflation drops: Finance Minister Simsek

Türkiye’s Finance and Treasury Minister Mehmet Simsek stated that Türkiye has successfully tackled inflation without facing significant growth issues, noting that “the worst is behind us.”

Speaking during the “Future Investment Initiative Conference” in Riyadh, he emphasized that inflation is on a downward trajectory due to tight fiscal and monetary policies.

Inflation falling, growth remains stable

Simsek highlighted Türkiye’s ability to manage inflation while maintaining steady economic growth. “The worst is behind us. Inflation is falling, and it will continue to decrease thanks to disciplined fiscal and monetary policies,” he said during a panel discussion titled “Policymakers’ Board: Can Leaders Offer Optimism Instead of Caution?”

He further underlined that Türkiye’s economic performance remains resilient, especially in the face of global trade disruptions.

“We have free trade agreements with around 54 countries, and approximately 60% of our exports go to these countries. While trade fragmentation is a real risk, we are positioned to benefit from supply chain shifts in nearby friendly regions, making us more resilient to these challenges,” Simsek explained.

Central bank of Türkiye’s reserves see significant growth

In his remarks, Simsek pointed out the success of the central bank in increasing its reserves, saying, “Central Bank reserves have increased by $100 billion over the past 1.5 years.” He also emphasized that Türkiye has overcome many macroeconomic challenges and is focused on long-term reforms, including green and digital transformations.

Economic diversity and low debt advantage

Simsek highlighted the diversity of Türkiye’s economy and the country’s progress in maintaining a low public debt-to-GDP ratio.

“Compared to other nations, Türkiye’s public debt-to-GDP ratio stands at a relatively low 26%, which is a significant advantage for our continued growth,” he added.

He also emphasized that Türkiye has maintained an average growth rate of over 5% over the past two decades, stating that the country has not faced a growth issue while combating inflation.