Türkiye manages to avoid growth issues while addressing inflation
Date
10/30/2024 5:38:29 AM
(MENAFN) Türkiye is managing to avoid growth issues while addressing inflation, with Turkish Treasury and Finance Minister Mehmet Simsek asserting that inflationary pressures will continue to decline due to a tight monetary policy. Speaking at the Future Investment Initiative (FII) Conference in Riyadh, Saudi Arabia, on Tuesday, Simsek emphasized the resilience of the Turkish Economy amid global trade fragmentation.
The minister highlighted that Türkiye has established free trade agreements with approximately 54 countries, with about 60 percent of its exports directed toward these nations. While acknowledging that fragmentation in global trade remains a risk, he stated that Türkiye is better equipped to handle such challenges, asserting, "the worst of inflation is behind us."
Simsek noted that Türkiye has successfully navigated its macroeconomic challenges, citing an increase of USD100 billion in the Turkish Central Bank’s reserves over the past year and a half. He also emphasized the importance of a broad reform agenda, particularly focusing on green and digital transformation. With the country's large economy and diverse production capabilities, he expressed confidence that the implemented programs are on track to achieve their objectives.
Additionally, Simsek pointed out that Türkiye's ratio of public debt to gross domestic product stands at 26 percent, which is relatively low compared to other countries. This favorable ratio provides Türkiye with a significant advantage for sustained economic growth. He concluded by noting that Türkiye has maintained an average growth rate exceeding 5 percent over the last two decades, reflecting the country's strong economic fundamentals.
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