Vice President Yılmaz: Inflation will decrease by mid-2025 and we will achieve more permanent stability in 2026

Vice President Cevdet Yılmaz made important statements regarding the economy, inflation, global developments, and early election discussions during a live broadcast on CNN Türk. Yılmaz emphasized that the government’s economic policies were being implemented with determination, inflation was being brought under control, and the country had entered a deflationary process.

In said interview Yılmaz highlighted that there had been a 23.5-point decrease in inflation over the past three months, stating that the economic program was beginning to yield positive results and that risks were decreasing. He also noted that international organizations had upgraded Turkey’s credit rating, and credit default swaps (CDS) had decreased.

Global Investments

Regarding the global investment climate, Yılmaz noted that Turkey had secured an important position in industrial investments due to its logistical advantages and young population. He mentioned that Turkey captured 1% of the global investment pie and projected that the country would be in a more favorable economic environment by 2025. He also stated that commodity prices were favorable for Turkey, particularly with decreases in oil prices.

Early election

On the topic of early election discussions, Yılmaz stated that Turkey had completed its elections and that political uncertainties have been resolved. He described ongoing discussions about elections as meaningless, arguing that they complicate the implementation of long-term policies.

Renewable energy

Yılmaz discussed energy policies, emphasizing the importance of renewable energy and investments in water and nuclear energy, highlighting the significance of oil found in Gabar and natural gas discoveries in the Black Sea for energy strategies.

Exchange rates

In his evaluations regarding exchange rates, Yılmaz indicated that Turkey operated under a floating exchange rate regime, stating that there was no fixed exchange rate system. He noted that exchange rates were determined by supply and demand, and that while the Central Bank could intervene in speculative situations, it would not intervene if there were no speculative circumstances.

Fight against inflation

Regarding the fight against inflation, Yılmaz mentioned that the effects of the deflationary process were becoming apparent, with the Turkish lira gaining real value. He indicated that exports were increasing and imports are decreasing, projecting that inflation would decrease by the middle of 2025 and that a more stable environment would be achieved by 2026. He reiterated the goal of achieving single-digit inflation and single-digit interest rates, stating that efforts in this direction will continue.