Türkiye gains edge amid uncertainty, stays on disinflation track: Finance Minister

Türkiye’s Treasury and Finance Minister Mehmet Simsek stated on Friday that despite severe structural problems affecting the global economy, Türkiye holds a relatively advantageous position and remains committed to continuing its disinflation program.

In a video message sent to the International Economic Summit, Simsek warned that global economic policy uncertainty has risen to unprecedented levels, largely driven by escalating trade wars. “If trade wars continue in this manner, the likelihood of global growth falling below 3% is quite high,” he said, noting that in the post-global financial crisis period, the expansion of global trade has lagged behind overall economic growth.

Simsek emphasized that Türkiye is in a favorable position due to the structure of its foreign trade, as approximately 62% of its exports are directed to countries with which it has free trade agreements.

He acknowledged a decline in investor risk appetite as an indirect consequence of global uncertainty, but underlined that Türkiye has been among the least affected countries by U.S. President Donald Trump’s tariff policies, as the applicable levies were imposed at a minimum rate of 10%.

Turkish economy eyes lasting price stability, sustainable deficit

“Our aim is to bring inflation down to single digits permanently, create fiscal space for reforms, and implement structural transformation by boosting productivity and potential growth,” Simsek said, reaffirming the government’s determination to take all necessary actions to achieve these targets.

He also remarked that while the Turkish lira had experienced limited depreciation, the impact on domestic prices is expected to remain muted due to weak domestic demand. Commenting on recent global market dynamics, Simsek highlighted declining oil prices, which he said signal a current account deficit that is likely to remain below official projections.

“Türkiye’s resilience to external shocks has strengthened. We have strong reasons to be optimistic,” he concluded.

​The International Economic Summit, formerly known as the Uludag Economic Summit, is an annual business and economic forum organized by Capital and Ekonomist magazines since 2012. It convenes prominent figures from Türkiye and around the world, including government officials, CEOs, economists, and thought leaders, to discuss global and regional economic developments. The 2025 summit, being held in Sapanca from April 17 to 20, focuses on the theme “Changing Global Realities and Future 5.0.”