Insider: Minister Şimşek said, “Inflation doesn’t decrease through easy ways, it requires 2.5-3 years”

At the “Economy and Consultation Meeting” attended by business representatives and seven ministers close to press, the primary topic of discussion was the financing issue. During the meeting, Treasury and Finance Minister Mehmet Şimşek indicated that the financing problem would be resolved within 1.5-2 months. Deputy President Cevdet Yılmaz stated that there is an expectation for tax reform across all sectors.

According to a report by Yener Karadeniz from Ekonomim, the meeting, which lasted about 4.5 hours, included 5-minute presentations by each NGO representative regarding sector-specific issues. In the meeting where Treasury and Finance Minister Mehmet Şimşek had to leave early, the two most discussed topics were financing and the shortage of skilled labor.

Şimşek mentioned that the financing challenge was due to issues related to regulations and that it would be resolved within 1.5-2 months once those were overcome.

Oother key points highlighted included:

“We are transitioning into a 3-year period of macroeconomic stability. We are making monetary policy functional. We need to normalize for the system to function properly, and we are working towards achieving that. The Central Bank is making efforts to anchor inflation to market realities. Access to financing will ease within 1.5-2 months. The burden of the earthquake on the economy is significant. An additional expenditure of nearly 4% of GDP is required, and this will continue in 2024-2025. Reforms take time and don’t yield immediate results. We prioritize investment and production-oriented approach towards exports. We aim to bring the current account deficit to a reasonable level. The Central Bank has set realistic targets, and we will shape expectations with the right policies. Our goal is more production, exports, and employment. Inflation doesn’t come down through easy means. It requires 2.5-3 years. Measures to increase competitiveness will be our priority.”

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