Economic board commits to shielding Türkiye from global economic pressures

Türkiye is taking all necessary steps in strong coordination to ensure that recent developments in domestic and global markets have only a short-lived and limited impact on the national economy, the country’s Economic Coordination Board said in a statement following its meeting on Friday.

The board convened under the leadership of Vice President Cevdet Yilmaz in the Black Sea province of Giresun, where top officials reaffirmed their commitment to macroeconomic stability, structural reforms, and inflation control amid ongoing global and domestic economic challenges.

The meeting brought together key members of the Turkish economic team, including Treasury and Finance Minister Mehmet Simsek, Labor and Social Security Minister Vedat Isikhan, Energy and Natural Resources Minister Alparslan Bayraktar, Industry and Technology Minister Mehmet Fatih Kacir, Agriculture Minister Ibrahim Yumakli and Trade Minister Omer Bolat.

Also in attendance were central bank governor Fatih Karahan, Presidential Strategy and Budget head Ibrahim Senel, parliamentary leaders, deputy ministers, and representatives from several regulatory bodies.

In a statement released following the meeting, the board emphasized that ongoing economic reforms and comprehensive policy implementation have helped reinforce macro-financial stability, correct imbalances in the economy, and significantly reduce the current account deficit. Officials noted that the annual inflation rate has been steadily declining for 10 consecutive months.

“The foundations of our economy have become more resilient and robust,” the statement read.

Türkiye’s growth effort anchored in value-added output

The government stressed that structural reforms aimed at boosting productivity and competitiveness are already underway to ensure sustainable, inclusive, and high-growth performance. Specific reference was made to active industrial policies that support strategic transformation in the manufacturing sector and accelerate the green and digital transition.

Programs such as the Technology-Oriented Industry Initiative, Investment-Linked Advance Loans (YTAK), and HIT-30 High-Tech Investment Program were cited as key tools to support strategic investment and high-value-added production. Officials highlighted that financial access for both producers and exporters has been eased, contributing to employment gains despite relatively modest economic activity.

The board noted that nearly 1 million jobs were added in 2024, with the unemployment rate remaining in single digits. According to the statement, active labor market policies are being implemented to improve labor productivity and reduce skills mismatches, particularly for women and youth.

Turning to agriculture, the board acknowledged that a recent frost event—the most severe in decades, according to Yumakli—caused varying degrees of damage to several fruit crops. However, officials assured that there is no risk to the domestic supply of essential agricultural products such as grains, pulses, and oilseeds. “All necessary measures have been taken to ensure continued production and stable food prices for consumers,” the statement noted.

The board also discussed regional development policies designed to harness the unique potential of different provinces. Among the key topics was the need to reduce Türkiye’s dependence on imports, expand its share in global trade, and promote technology-intensive, high-value-added production.

During the session, board members evaluated the growing trend of protectionism in global trade and assessed the potential risks and opportunities this may present for Türkiye’s foreign trade outlook. While reaffirming the government’s commitment to its current economic program, the board emphasized that fiscal discipline remains a priority and that support for investment, employment, exports, and high-value-added production will continue.