Türkiye’s Finance Minister Outlines Strategic Program for Economic Transition
Istanbul, The Gulf Observer: Türkiye is in the midst of a transitional phase toward disinflation, with monetary policy adjustments aimed at achieving price stability, stated Mehmet Simsek, Türkiye’s Treasury and Finance Minister. Speaking to a gathering of domestic and international investors in Istanbul on Tuesday, Simsek outlined the country’s strategic program, emphasizing the objectives of restoring fiscal health, narrowing the current account deficit, rebalancing growth, and implementing structural reforms to enhance productivity and competitiveness.
Highlighting the recent course correction in monetary policy as a form of normalization, Simsek noted the current compound interest rate at 56%, one year ahead of the expected inflation rate of approximately 38%. He emphasized that the Central Bank believes it has taken sufficient measures concerning interest rates and anticipates additional support in the form of selective credit and quantitative tightening.
Simsek indicated that the transition period will extend until June, after which a rapid disinflation phase is expected. Türkiye is actively reviewing expenditures and combatting informal economic activities during this process.
In terms of infrastructure development, Simsek underscored the need for investments in energy, fiber optics, and the green transition. He invited the private sector to engage in public-private partnership projects in Türkiye, citing the government’s investment of around $258 billion in infrastructure over the past two decades and the necessity of an additional $200 billion.
While acknowledging successful achievements in road infrastructure and airports, Simsek emphasized the ongoing development of a high-speed railway network, requiring an investment of at least $70 billion over the next 30 years. He emphasized the critical role of infrastructure in competitiveness, sustainability, and resilience.
Addressing the improvement in Türkiye’s official reserves since May of the previous year, Simsek provided insights into the country’s economic policies, signaling a commitment to strategic measures aimed at fostering economic stability and growth.
