Minister Şimşek: Turkey Has Become One of the Global Players in the Defense Industry
Minister of Treasury and Finance, Mehmet Şimşek, highlighted Turkey’s success in the defense industry, stating, “We have completed over a thousand defense industry projects, and reached a domestic production rate of over 80% in the sector. With our defense industry export performance, we have become one of the global players.”
Minister Şimşek made these remarks during the opening of the panel titled “Addressing Global Economic Uncertainty: Resilience Strategies,” which was part of the closing session of the TRT World Forum 2024, held at the Istanbul Congress Center.
Referring to the recent rise of protectionism in global trade, Minister Şimşek stated, “As a result of global geostrategic competition, trade restrictions have increased nearly nine times compared to 2009. If protectionism continues in this way, we might see declines in global GDP. As a result of rising tariffs, we could experience higher inflation and long-term interest rates in the US. This poses a significant challenge for developing countries and the global economy. In response to these tariffs, China might redirect its exports to other countries, which could indirectly put our markets at risk. Additional tariffs from the US will negatively impact developing countries. So, how will Turkey respond? Turkey is resilient to the growing protectionist trends in trade. With the Customs Union, we have free trade agreements with 54 countries, which accounts for 62% of our total exports. We are also negotiating comprehensive trade agreements with other countries. Turkey holds an advantageous position in supply trends from neighboring and friendly countries. We are close and friendly with Central Asia, the Middle East, the Balkans, the European Union, and North Africa. Moreover, we have advantages in strengthening regional integration and connectivity through transportation routes.”
“Turkey’s Debt Levels Are Much Lower Than Both Developed and Developing Country Averages”
Minister Şimşek also pointed out that Turkey’s total debt level is significantly lower compared to both developed and developing countries. “This is true for both the private and public sectors. Turkey’s total debt to GDP ratio is 99%, while in developing countries, this ratio stands at 245%. Our low debt level is one of the key factors that enhance the resilience of our country. Turkey is in a relatively strong position regarding the increase in the working-age population. Additionally, Turkey has significant demographic potential. The female labor force participation rate is 36%, and our goal is to bring this rate closer to the OECD average. Achieving this will unleash a significant potential.”
“Turkey Has Become a Global Player in the Defense Industry”
Regarding Turkey’s success in the defense industry, Minister Şimşek said, “We have completed over a thousand defense industry projects and achieved a domestic production rate of over 80% in the sector. With our defense industry export performance, we have become one of the global players. Last year, we were the 11th largest exporter. The ongoing geopolitical tensions are certainly not desirable, but every country must be prepared for them. In this context, Turkey possesses deterrent power and resilience.”
Minister Şimşek also emphasized that they had taken the necessary steps for structural reforms and were determined to proceed with them, stating that inclusive structural reforms were on their agenda for Turkey.
