Turkish Treasury, Finance Minister emphasizes Turkey’s readiness for business, dialogue
Date
10/3/2024 6:10:25 AM
(MENAFN) During the Berlin Global Dialogue (BGD) 2024, Turkish Treasury and Finance Minister Mehmet Simsek emphasized Turkey’s readiness for business and dialogue, asserting that the country has crafted a robust reform program aimed at enhancing its competitiveness, productivity, and potential for growth. This commitment comes in the wake of pandemic-driven supply chain diversification that has notably benefited Turkey’s economy.
Simsek addressed the audience, stating, "We are open for business, and we are open to dialogue," underscoring the need for collaboration in navigating global economic challenges. He acknowledged the difficult regional context, particularly the ongoing Russia-Ukraine conflict, which has significantly influenced inflation trends in Turkey. Although the country has made strides in overcoming various macroeconomic hurdles, he cautioned that persistent inflation issues will require additional time and strategic measures to resolve.
The minister pointed out that while Turkey was grappling with a substantial current account deficit, this figure has shown improvement. Furthermore, he noted that the budget deficit, excluding expenditures related to earthquake recovery, has been successfully managed, now standing at 1.6 percent of gross domestic product (GDP).
Looking ahead, Simsek expressed optimism regarding inflation forecasts, projecting a decline to single digits by the end of 2026. He attributed this expectation to the government's commitment to a stringent monetary policy and fiscal discipline, which have been effective in stabilizing the economy.
Referencing a study from the International Monetary Fund (IMF), Simsek highlighted the risks posed by trade fragmentation in the global economy, suggesting that such fragmentation could potentially decrease GDP by as much as 7 percent, a loss comparable to the combined GDPs of Germany and France. He reinforced Turkey’s resilience against these challenges by emphasizing the country's full Customs Union with the European Union, positioning it as a vital player in international trade.
In conclusion, Simsek's remarks at the BGD reflect Turkey’s proactive approach to economic reform and its desire to engage constructively with global partners, positioning the nation as a stable and attractive environment for investment and collaboration.
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