Türkiye targets decrease in annual inflation rate to below 20 percent next year
Date
10/6/2024 4:51:40 AM
(MENAFN) Türkiye is aiming to reduce its annual inflation rate to below 20 percent in the coming year, with a long-term goal of achieving single-digit inflation levels by 2026, as announced by Vice President Cevdet Yilmaz during a meeting with business leaders in Istanbul. He highlighted that the most pressing issue facing the Turkish Economy is uncertainty, which the government is actively working to minimize. Yilmaz's comments come on the heels of the Turkish Statistical Institute (TurkStat) reporting a September inflation rate of 49.38 percent, marking the lowest figure since July 2023.
During his address, Yilmaz emphasized the importance of predictability, sustainability, and confidence in the economy. He underscored that growth is essential for Türkiye, a developing nation that needs to maintain a robust growth trajectory. Over the past two decades, Türkiye has averaged a growth rate of 5.4 percent, significantly outpacing the global average of 3.6 percent. This historical context frames the current efforts to stabilize the economy and bolster growth.
Furthermore, Yilmaz noted the substantial improvement in Türkiye's current account deficit, which was nearly USD60 billion in mid-2023 but has since decreased to below USD20 billion. This significant reduction is indicative of the government's successful economic management strategies. He also pointed out a marked decline in the country’s risk premium, reflecting increased investor confidence.
As a sign of economic resilience, Yilmaz highlighted that the Central Bank's gross reserves reached a record high of USD157.4 billion as of September 27, showcasing the nation’s improved financial stability. These developments suggest a positive trajectory for Türkiye's economy as it navigates through challenges and strives for sustainable growth.
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