Şimşek outlined the key priorities of the Medium-Term Program (MTP), stressing that the top priority of the MTP is to tackle inflation and bring it back to single digits.
He noted that the global economic landscape is currently characterized by slow growth, with average growth expected to be around 3 percent.
This level is considered relatively low and Şimşek attributed it to factors such as the post-pandemic rise in inflation and the prevailing tightness in global financial conditions.
Regarding fiscal targets, Şimşek expressed the goal of reducing the budget deficit to 3 percent, excluding the impact of natural disasters such as earthquakes. He acknowledged some budgetary challenges stemming from earthquake-related expenses and past decisions, such as changes in retirement age requirements.
On inflation, Şimşek highlighted the three-month and three-year historical perspective used for forecasting. He emphasized that economic forecasts can fluctuate significantly within this period.
To address inflation concerns, a comprehensive assessment was conducted and Şimşek's team worked closely with the Council of Ministers to develop strategies. He acknowledged that some may view their inflation targets as ambitious, but stressed their commitment to setting realistic figures.
Regarding international support, Şimşek revealed that they had a substantive meeting with the President of the World Bank and the Governor of the Central Bank.
During this meeting, it was announced that the World Bank is ready to provide an additional $18 billion, in addition to the existing $17 billion, to support Turkey's economic initiatives.
These developments and strategies demonstrate Turkey's determination to navigate the complex global economic landscape with a focus on stabilizing inflation and fiscal management, while leveraging international partnerships for economic growth and resilience. (ILKHA)