Finance minister Simsek marks Türkiye’s steady course at Atlantic Council meeting in Washington
Photo illustration shows a financial graph overlayed on a background featuring the Turkish flag and banknotes, symbolizing Türkiye's economic trends, financial performance, and currency fluctuations, accessed on November 4, 2024. (Collage by Türkiye Today)
Treasury and Finance Minister Mehmet Simsek reiterated Tuesday Türkiye’s commitment to “prudent, responsible, and sustainable macroeconomic policies” amid ongoing global economic uncertainty during his speech at the Atlantic Council in Washington, D.C.
Speaking at an event hosted by the Atlantic Council on the sidelines of the International Monetary Fund (IMF) and World Bank spring meetings, Simsek stated that the government’s economic stabilization program remains on track.
He acknowledged the risks posed by recent global fluctuations, particularly concerning inflation, but said that lower oil prices and tighter monetary policy could help ease these pressures. “Inflation is likely to remain well within the program’s target band,” he emphasized.
Simsek stressed that Türkiye’s response to global economic policy uncertainty is to maintain its disciplined macroeconomic approach. He also highlighted that, despite challenges in global trade, Türkiye’s financial conditions continue to support domestic demand and curb imports.
“With oil prices significantly lower, the actual current account deficit is expected to fall below our program target,” he noted. “I can assure you, spending discipline will be maintained.”
He underscored that structural transformation remains a top priority, with particular emphasis on digital infrastructure, artificial intelligence, and the green transition—all aimed at reducing Türkiye’s reliance on energy imports.
‘Türkiye positioned well to attract western investment’
Addressing global trade dynamics, Simsek warned that fragmentation in global trade would be detrimental to all stakeholders, including Türkiye. Nevertheless, he pointed to several factors that contribute to the resilience of the Turkish economy.
“We rely primarily on domestic demand, investment, and consumption within Türkiye for growth. We are not as exposed as many of our competitors,” he explained. “Over 80% of our exports are directed to countries with which we have free trade agreements or that are geographically close.”
Simsek also emphasized Türkiye’s robust manufacturing sector and its growing integration into global value chains.
“Türkiye is among the few countries with a large-scale manufacturing base. Our integration with global value chains, particularly with the West, is set to deepen,” he said.
“Türkiye is well-positioned to attract investment from Western nations. Additionally, Asian firms may see Türkiye as a strategic base to serve nearby markets.”
Simsek reiterated that Türkiye remains a strong investment destination from a long-term perspective, citing the country’s advanced infrastructure, skilled labor pool, and leadership in artificial intelligence readiness among emerging economies.
“If you are evaluating from a long-term perspective, Türkiye remains a compelling proposition, despite the occasional challenges,” he stated.
Simsek also highlighted Türkiye’s potential to contribute to the European Union’s defense ambitions, noting the bloc’s plan to allocate €800 billion ($912 billion) to defense spending over the next four years. He emphasized that Türkiye can support these objectives.
Regarding Türkiye’s relationship with the World Bank, Simsek noted that the bank’s financial commitments to Türkiye have more than doubled over the past three years, rising from $17 billion to $35 billion.
“The World Bank’s focus aligns perfectly with our priorities. They are supporting us on the green transition, productive infrastructure, and digital infrastructure,” he said.
Türkiye bucks global trend as IMF lifts growth forecast
In its April edition of the World Economic Outlook, the IMF lowered its global growth forecast to 2.8% for 2025 and 3% for 2026, down from its January projection of 3.3% for both years.
Despite this downward revision to the global outlook, the IMF slightly increased its forecast for Türkiye’s economic growth in 2024 from 2.6% to 2.7% and maintained a 3% forecast for 2025.
| Indicators | 2025 | 2026 |
|---|---|---|
| Current account balance-to-GDP ratio | -1.2% | -1.2% |
| Türkiye inflation forecast | 35.9% | 22.8% |
| Unemployment rate | 9.4% | 9.2% |
| Economic growth | 2.7% | 3.2% |
The IMF projects Türkiye’s inflation at 35.9% for 2024 and 22.8% for 2025. The unemployment rate is expected to stand at 9.4% this year and 9.2% next year.
Additionally, the IMF revised Türkiye’s current account balance-to-gross domestic product (GDP) ratio for 2025 from minus 2.1% to minus 1.2%, with the same figure projected for 2026.
