Turkish Treasury Minister: The country's economic program has proven its success

Mehmet Şimşek, Turkey's Minister of Treasury and Finance, announced that the country's economic program has successfully overcome two major economic shocks that occurred in March and April, and has demonstrated its effectiveness.

"This program was tested, and its success became clearly evident."

Sustainable reduction in inflation rate

Şimşek emphasized that the main goal of the economic program is to sustainably reduce the inflation rate to single digits. He stated that significant progress has been made in this area and that the downward trend in inflation continues.

Reduction of current account and budget deficits

He also pointed to a reduction in the current account deficit, adding that the ratio of this deficit to the gross domestic product has dropped to below 1%. Although the budget deficit is still relatively high, the trend of decline has started.

Decreasing reliance on exchange rate-protected deposits

Şimşek announced that the volume of exchange rate-protected deposits has fallen to below 15 billion dollars, and this achievement was made without causing disruption in the market.

Increase in foreign reserves and decrease in country risk

He stated that the country’s foreign exchange reserves have significantly increased and the country risk (CDS) has also decreased. These factors indicate the market’s confidence in the economic program.

Further decrease in inflation expected by the end of 2026

Şimşek predicted that the inflation rate will drop to single digits by the end of 2026. He added that strict fiscal and monetary policies will continue until this goal is achieved.

Increase in citizens' purchasing power starting in 2026

He stated that from 2026, the purchasing power of citizens will increase and access to financial resources at reasonable costs will be facilitated for the real economy sector.

Positive impact on southeastern and eastern regions

Şimşek emphasized that with reduced security threats, southeastern and eastern regions of Turkey can become new engines of economic growth.

Support for the real economy sector

He announced that the government has allocated about 2 trillion liras to support the real economy sector and is supporting farmers, small and medium-sized businesses, and exporters.

Attracting direct foreign investment

Şimşek stated that Turkey, with its strong infrastructure, skilled workforce, and strategic geographic location, is an attractive destination for direct foreign investments, and it is expected that such investments will increase.