Minister Şimşek: “We Have Entered the Third Phase of the Economic Program”

Single-Digit Inflation and Stronger Balances Ahead

Treasury and Finance Minister Mehmet Şimşek announced that Turkey has moved into the third phase of its economic program. He said inflation is expected to fall to single digits within the next two years, while the budget deficit will be reduced permanently to below 3 percent of national income and the current account deficit to under 1 percent.

Turkey as a Regional Hub

Speaking at Batman University, where he received an honorary doctorate, Şimşek highlighted rising global protectionism and growing geopolitical competition. He stressed that Turkey is relatively resilient in global trade, with the bulk of its exports going to friendly, nearby countries and free-trade partners. Major connectivity projects such as the Middle Corridor and the Development Road, he said, are turning Turkey into a logistics and production hub by sharply reducing transport times between Asia and Europe.

Low Debt, Reform Agenda and Growth Potential

Şimşek underlined that Turkey’s low public and household debt provides room for structural transformation. As inflation declines and financial conditions ease, access to long-term financing is expected to improve. He also pointed to Turkey’s demographic advantage, continued investment in tourism, healthcare and renewable energy, and improving fiscal discipline as key growth drivers.

Third Phase Targets

According to Şimşek, the first two phases of the program—fighting inflation and restoring fiscal balance—have largely been completed. The third phase focuses on sustainable external balance, structural reforms, higher productivity and fairer income distribution. Falling inflation, a lower risk premium, upgraded credit ratings and single-digit unemployment are cited as signs of progress.

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