Economic Coordination Committee charts plan to boost food output, curb inflation

The final Economic Coordination Committee meeting of 2024, convened by Turkish ministers, outlined strategies to enhance food production aimed at ensuring price stability and combating inflation.

The meeting, held on Sunday in Sanliurfa, followed the “Southeastern Anatolia Project (GAP) Action Plan Information and Consultation Meeting” and was chaired by Vice President Cevdet Yilmaz.

Key attendees included Labor and Social Security Minister Vedat Isikhan, Energy and Natural Resources Minister Alparslan Bayraktar, Treasury and Finance Minister Mehmet Simsek, Industry and Technology Minister Mehmet Fatih Kacir, Agriculture and Forestry Minister Ibrahim Yumakli, AK Party Parliamentary Group Chairman Abdullah Guler, AK Party Deputy Chairman Mustafa Elitas, AK Party Deputy Chairman for Economic Affairs Nihat Zeybekci and Presidential Strategy and Budget Director Ibrahim Senel.

Following the meeting, a written statement was released via Yilmaz’s X account, highlighting the global economic challenges of 2023, including geopolitical tensions, rising protectionism and persistent uncertainties. Despite these hurdles, Türkiye effectively implemented its economic program launched in 2023, demonstrating robust coordination.

The statement emphasized that the program yielded significant results such as a decline in inflation, economic rebalancing, a substantial reduction in the current account deficit, and record-high international reserves.

Key achievements outlined in the statement include:

• Unemployment remained in single digits while employment reached historic highs.
• Türkiye’s country risk premium declined, external borrowing costs decreased, and access to external financing for banks and the real sector improved under better conditions.
• Macro-financial stability strengthened, bolstering confidence in the Turkish lira.
• Despite earthquake recovery efforts, budget deficits narrowed, and fiscal discipline improved.
• Türkiye successfully exited the Financial Action Task Force’s (FATF) grey list.
• The nation became the only country to secure a two-notch credit rating upgrade from two of the world’s three major credit rating agencies.

These milestones established a strong foundation for the Medium-Term Program’s dual goals: achieving price stability and accelerating structural transformation.

Policies to leverage agriculture as growth driver

The statement emphasized the necessity of regional development to enhance Türkiye’s competitiveness and growth potential. It underscored that development policies aim to reduce regional disparities, ensure balanced social welfare, and maximize the potential of all regions.

The Southeastern Anatolia Project (GAP) was highlighted as a pivotal regional initiative contributing to Türkiye’s economy. Under the 2024–2028 GAP Action Plan, investments in agricultural irrigation will be completed, smart farming practices will be adopted, rural economies will be diversified, tourism-driven growth will be promoted, and labor-intensive sectors will receive investment incentives.

Combating inflation through increased food production

Looking ahead, the statement reiterated Türkiye’s commitment to implementing regional development programs across sectors such as transportation, industry, tourism, and logistics with a holistic perspective and inter-agency cooperation.

Key topics discussed at the meeting included:

• Enhancing regional competitiveness under the National Regional Development Strategy (2024–2028).
• Evaluating projects under the Local Development Initiative Support Program to boost investment, production, and employment.
• Reviewing the status of irrigation investments in the GAP region and measures to expand sustainable and smart agriculture, positioning agriculture as a driving force for regional development.
• Strengthening social welfare and combating inflation through increased food production.
• Assessing the potential impact of recent developments in Syria on foreign trade and outlining policies for the coming period.