(MENAFN) Turkey is setting ambitious economic goals, aiming to reduce its annual inflation rate to below 20 percent in 2025, with hopes of achieving single-digit inflation levels by 2026. Vice President Cevdet Yilmaz made this announcement during a recent meeting with business leaders in Istanbul, emphasizing the importance of economic stability and predictability.

Yilmaz pointed out that uncertainty remains a significant challenge facing the Turkish economy, but he expressed optimism about the country's efforts to minimize these uncertainties. The Turkish Statistical Institute (TurkStat) reported that Turkey’s annual inflation rate had decreased to 49.38 percent in September, marking its lowest level since July 2023. This decline reflects the government's ongoing commitment to fostering a stable economic environment.

In his remarks, Yilmaz underscored the necessity of continued economic growth, stating that as a developing nation, Turkey must prioritize growth in its economic strategy. He highlighted that the country's average growth rate over the past two decades has been 5.4%, significantly higher than the global average of 3.6%.

Yilmaz also addressed Turkey’s current account deficit, which he noted had been approximatelyUSD60 billion in mid-2023 but has now fallen to belowUSD20 billion. This improvement indicates a strengthening of the country's economic fundamentals and a move towards greater fiscal health.

Moreover, the vice president highlighted a notable reduction in the country's risk premium, signaling increasing investor confidence. As of September 27, Turkey’s Central Bank achieved a historic milestone with gross reserves reaching USD157.4 billion. This record level of reserves is indicative of a more robust financial position and provides a buffer against potential economic shocks.

In summary, Turkey’s commitment to lowering inflation and fostering economic growth reflects a proactive approach to addressing economic challenges. With targeted policies and a focus on reducing uncertainty, the government is working towards creating a more stable and predictable economic environment that will benefit both businesses and consumers in the years to come.

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