Mehmet Şimşek: “Inflation Will Continue to Decline”

Türkiye’s Treasury and Finance Minister Mehmet Şimşek addressed the International Economic Summit via video message, reinforcing Ankara’s commitment to its disinflationary economic program and pledging ongoing fiscal discipline.

“Inflation Is Declining and Will Keep Falling”

Minister Şimşek emphasized that Türkiye’s inflation trajectory is steadily improving:

🗨️ “Inflation will continue to fall. We will persist with our disinflation program.”

He added that the weak domestic demand environment is expected to limit exchange rate pass-through, helping shield the economy from currency-related price pressures. This suggests lower volatility in cost-push inflation despite global fluctuations.

Türkiye’s Global Position: Resilience in an Era of Uncertainty

Highlighting macro trends, Şimşek pointed to the unprecedented uncertainty in global economic policymaking, especially driven by U.S.-China rivalry and rising protectionism. Despite this, Türkiye remains competitively positioned:

• 62% of exports go to countries with free trade agreements, bolstering trade resilience.

• Türkiye’s low comparative tax rates and growing role in defense supply chains offer strategic economic advantages.

• On the IMF’s Artificial Intelligence Readiness Index, Türkiye is “performing well,” indicating future-focused potential.

Fiscal Stability and Current Account Outlook

The minister reaffirmed no compromise on public expenditure control, underscoring the administration’s goal to minimize macro-financial vulnerabilities via current account balance improvements.

🗨️ “Our goal is to reduce the current account deficit while maintaining economic stability.”

Recent oil price declines, he noted, support expectations for a better-than-targeted current account performance.

Employment Gains Amid Stabilization

Despite tight policy conditions, Şimşek said employment growth has continued — calling it a “major achievement.” He expressed confidence in Türkiye’s shock-resilience, stating that the country now has stronger buffers against global volatility.

🗨️ “We have compelling reasons to remain optimistic.”