Turkey’s Minister of Treasury, Mehmet Şimşek: “Turkey has left a challenging period behind and economic stabilization has begun”

Turkey’s Minister of Treasury and Finance, Mehmet Şimşek, assessed the Gross Domestic Product (GDP) data for the second quarter of 2024, emphasizing that Turkey had left a challenging period behind and that economic stabilization had begun. Şimşek highlighted that Turkey’s economy had grown by 2.5% year-on-year in the second quarter, resulting in an annual growth rate of 3.8% for the first half of 2024. He also mentioned that the annualized national income had exceeded $1.2 trillion as of the second quarter.

Şimşek noted that while the industrial sector had contracted in the second quarter, growth continued in all other sectors outside of industry. He pointed out that economic stabilization was ongoing, with the contribution of domestic demand to growth falling to 1.2 points, while net external demand contributed positively by 1.3 points.

The Minister reported that the unemployment rate had remained steady at 8.8%, with employment increasing by 1.2 million people compared to the same period last year and by 205,000 people from the previous quarter. He added that leading indicators suggested that balanced growth continued into the third quarter.

Şimşek emphasized that Turkey’s economy had strengthened through predictable policies aligned with international norms. He stated that stabilization had begun, with the current account deficit narrowing, risk premiums decreasing, foreign capital inflows increasing, reserves improving, and the country entering a disinflationary period. Additionally, he announced that the Medium-Term Program for 2025-2027 would soon be shared with the public. Şimşek reaffirmed the government’s commitment to implementing decisive steps to solidify the foundation for sustainable growth and to enhance the welfare of its citizens.