Vice President Cevdet Yılmaz: We want to reduce inflation to single digit again in 2026

October 5, 2024 BTT

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Vice President Cevdet Yılmaz made important statements regarding Turkey’s economic policies and goals during his speech at the Ümraniye Business World Meeting. Yılmaz emphasized that they aimed to bring Turkey back to single-digit inflation rates by 2026. He also stated that the target for 2024 was to reduce inflation below 20%.

Yılmaz noted that the success of economic programs depended on political and social support, and when these elements were present, the programs were more successful. He mentioned that Turkey was currently going through a period where uncertainties had been minimized, and after the general and local elections, political uncertainties had been eliminated. He emphasized that the Medium-Term Program (MTP) had also resolved uncertainties in economic policies, ensuring predictability.

Yılmaz highlighted that Turkey had achieved an average growth rate of 5.4% over the past 20 years and recorded a growth rate of 5.1% last year. He also stated that Turkey’s GDP exceeded $1 trillion for the first time, and per capita income reached $13,243. By the end of the year, GDP is expected to exceed $1.3 trillion, and per capita income is expected to reach around $15,000.

He stressed that fighting inflation was critical for sustainable growth, as high inflation led to lower growth rates. During the AK Party’s term, when inflation was reduced to single digits, an average growth rate of 5.4% had been achieved. Yılmaz also stated that the disinflation period had started in June 2023, and inflation had dropped by 26 points since May.

Lastly, Yılmaz pointed out that the current account deficit had significantly decreased and that Turkey’s CDS risk premium had declined. The export target for the end of 2023 is $264 billion, and these achievements are proof that the Medium-Term Program is working effectively. He emphasized that in addition to monetary and fiscal policies, structural reforms were also crucial for the success of the economic program.