VP Cevdet Yilmaz:  No change in austerity  program after the elections

Speaking to businesspeople in Ankara, Vice President Cevdet Yılmaz stated that local elections are not likely to change macro policy.  This is the strongest message from the Erdogan administration to date that Simsek and Fatih Karahan will retain their posts after the elections, and an indirect admission that Erdogan doesn’t intend to revert to non-orthodox economic policies.  Yilmaz also urged  patience no the inflation front, reiterating the  administration’s resolve to wrestle it down to single digits in two years.

Regarding the inflation data, Vice President Cevdet Yılmaz said, “We foresee an inflation of around 15 percent in the Medium Term Program for 2025. We foresee a return to single-digit inflation for 2026. We have planned this transition and  designed the stabilization program accordingly.”

Yılmaz added: “We do not expect a serious decline in annual inflation until May. Starting from June, we will actually see significant decreases in inflation on an annual basis.”


Yılmaz gave messages regarding the economy in his speech at the award ceremony held at the Grand Ankara Hotel on the occasion of the 60th anniversary of the Ankara Chamber of Industry.

Stating that while the weak course of global growth continues, geopolitical risks increase the volatility of prices, Yılmaz added that headline inflation has started to decrease around the world, while core inflation is still relatively high.


Yılmaz claimed that the policy uncertainties had disappeared with the release of the Medium Term Program and  5 year Development Plan, which they prepared in consultation with all stakeholders immediately after May elections, and continued as follows:

“We see that there are discussions on the issue of  how local elections might impact economic policy afterwards. I would like to express once again that these have no basis. Local elections are not elections in which macro policies are likely to change. With general elections, the parliament is chosen, the government is determined. Then, policies are determined at the national level. Local elections are the elections of our provinces, which pertain to the management of city and local services. Therefore, on the occasion of this local election, I would like to express that the doubts  about our macro policies have no basis and consist of speculative discourse.”



Emphasizing that  combating inflation is the primary priority, Yılmaz continued as follows:

“We need to continue the fight here with determination and a long-term perspective. It is the same in the world, and it is the same with us. The fight against inflation all over the world is a struggle that takes a certain amount of time. It is important that we show determination here and follow the right policies persistently and patiently. There may be daily changes. But, the main thing is your policy framework and your direction. If you are on the right path, you will reach your goal sooner or later.”

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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and www.paraanaliz.com and has contributed to the financial daily Referans and the liberal daily Radikal.