Vice President Cevdet Yılmaz: “In Turkey, the service sector is driving inflation”
Yılmaz provided an update on the latest developments in the Turkish economy at the “Turkey and the Surrounding Area Private Equity Investments 2025 Outlook Conference” at the London Stock Exchange.
He highlighted that under President Erdoğan’s strong leadership, political stability has been achieved, and outlined the goals of the Medium-Term Program (OVP) for 2025-2027. These goals include reducing inflation to single digits, boosting economic growth, production, and exports.
Is the Service Sector the Main Factor Driving Inflation?
Yılmaz noted that the service sector is the primary factor contributing to inflation and emphasized that more focus would be placed on this area.
Turkey is expected to experience economic growth of around 3.5% in 2024, with a projected GDP of $1.3 trillion. Additionally, the current account deficit is expected to fall below 1% of GDP, with growth in foreign trade and exports. Yılmaz stressed the importance of structural reforms, stable credit flows, and international capital inflows to sustain Turkey’s growth. He also mentioned the goal of increasing foreign investments and boosting Turkey’s share of global capital.
Minister of Industry and Technology Mehmet Fatih Kacır shared achievements in the defense industry and developments in the electric vehicle sector. He introduced the HIT-30 program, aimed at increasing strategic investments in these sectors. Barış Öney, founder of Globalturk Capital, noted a significant rise in direct foreign investments in Turkey.
