Turkey’s Treasury and Finance Minister Şimşek: “The Economic Program We Implement Is Delivering Results”

Mehmet Şimşek Confirms the Economic Program Is Working

Treasury and Finance Minister Mehmet Şimşek stated that the government’s economic program is producing positive outcomes. Speaking at an economic summit, Şimşek addressed criticisms of the program and assured that the fight against inflation will continue steadily.

“The program we are implementing is delivering results,” he said, noting that the government has entered the second phase of its economic plan.

Şimşek acknowledged that some sectors still face challenges but stressed that the government is not indifferent and will take action to resolve the issues.

Inflation Decline and Market Confidence

Şimşek underlined that the recent data from the past two months should not alter the perception of ongoing disinflation. “The conditions are favorable for disinflation. We prefer progress over perfection,” he added.

According to Şimşek, even the service sector is responding positively to the government’s program, signaling broader stability across the economy.

Stronger Reserves and Lower Risk Premium

Highlighting Turkey’s strengthened financial position, Şimşek said the country now meets international standards for reserve adequacy. “Our risk premium has fallen below 250 basis points. Without global shocks, we could be talking about levels below 200,” he noted.

Şimşek added that the economic improvements will eventually reflect in corporate valuations, pointing to a stronger and more resilient financial outlook.

Growth in Employment and Investments

Since the beginning of the program, over one million new jobs have been created. Şimşek also emphasized that foreign direct investments have started to pick up again and projected significant growth over the next one to two years.

The Minister said the Central Bank’s efforts will continue to be supported to maintain disinflation through the negative output gap and added that revaluation rates will be set in line with the inflation target.

Fiscal Discipline and Future Goals

Şimşek mentioned that the share of current expenditures in the budget has been reduced by one-third, showing progress in fiscal discipline. “Our goal is to increase voluntary tax compliance,” he said.

He also noted plans to bring the domestic debt rollover ratio below 100%, which would free up more resources for the real sector.

Finally, he clarified that despite fluctuations in global energy markets, Turkey’s import levels remain stable when energy costs are excluded.

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