Simsek: Türkiye Holds Tight Fiscal Line as War Stalls Disinflation
(MENAFN) Turkish Treasury and Finance Minister Mehmet Simsek said Thursday that Türkiye is putting macro-financial stability first and keeping fiscal policy tight to absorb shocks while it confronts global structural headwinds.
Simsek spoke at the opening ceremony of the Istanbul Economic Forum, a two-day event organized by the Central Bank of the Republic of Türkiye. The forum brings together central bank governors and senior policymakers from around the world, including the US and the UK, to address global economic policy challenges.
He listed the headwinds as conflicts, trade protectionism, high indebtedness, unfavorable demographics, looming climate disasters and artificial intelligence (AI).
Defense and Global Standing
Türkiye plans to raise defense spending by 229% in its 2027 budget to build deterrence, Simsek said, while the Central Bank targets 21% inflation next year. He said the value of defense research and development has topped $100 billion across roughly 1,400 products and projects, putting the country on course to become a top-10 defense exporter.
He said Türkiye ranks among the top three nations globally for official development assistance and diplomatic footprint. He also noted that Turkish Airlines serves more destinations than any other carrier.
Infrastructure, Energy and Trade
Simsek said the government has invested in an $8 billion railway project crossing the Bosphorus in Istanbul, designed to link Beijing with London. Türkiye is also urging its neighbors to back additional corridors, such as the new development road, to strengthen connectivity and resilience, and has put money into natural gas and oil pipelines to secure energy supplies.
Renewables now account for almost 60% of electricity generation, he said. As host of COP31, the country has set a 35% electrification target, up from 23%.
To counter global protectionism, Ankara has widened its trade network to 54 free trade agreements, with three more pending and negotiations under way with Japan, Indonesia, the Gulf Cooperation Council and Canada.
Services and Soft Power
Tourism revenue has grown ninefold in 25 years, Simsek said, placing Türkiye among the world’s top five tourist destinations. He said the country has more than 50 internationally accredited healthcare facilities and draws medical tourists, particularly for cosmetic treatments.
He added that Türkiye is the world’s third-largest exporter of soap operas and ranks second only to London in its gaming ecosystem for startups and unicorns. It is second to China in the global league of contractors, he said, and hopes to help rebuild the region, a job he said will require at least $1 trillion over the next decade. Türkiye also hosts the sixth-largest number of international students.
Simsek spoke at the opening ceremony of the Istanbul Economic Forum, a two-day event organized by the Central Bank of the Republic of Türkiye. The forum brings together central bank governors and senior policymakers from around the world, including the US and the UK, to address global economic policy challenges.
He listed the headwinds as conflicts, trade protectionism, high indebtedness, unfavorable demographics, looming climate disasters and artificial intelligence (AI).
Defense and Global Standing
Türkiye plans to raise defense spending by 229% in its 2027 budget to build deterrence, Simsek said, while the Central Bank targets 21% inflation next year. He said the value of defense research and development has topped $100 billion across roughly 1,400 products and projects, putting the country on course to become a top-10 defense exporter.
He said Türkiye ranks among the top three nations globally for official development assistance and diplomatic footprint. He also noted that Turkish Airlines serves more destinations than any other carrier.
Infrastructure, Energy and Trade
Simsek said the government has invested in an $8 billion railway project crossing the Bosphorus in Istanbul, designed to link Beijing with London. Türkiye is also urging its neighbors to back additional corridors, such as the new development road, to strengthen connectivity and resilience, and has put money into natural gas and oil pipelines to secure energy supplies.
Renewables now account for almost 60% of electricity generation, he said. As host of COP31, the country has set a 35% electrification target, up from 23%.
To counter global protectionism, Ankara has widened its trade network to 54 free trade agreements, with three more pending and negotiations under way with Japan, Indonesia, the Gulf Cooperation Council and Canada.
Services and Soft Power
Tourism revenue has grown ninefold in 25 years, Simsek said, placing Türkiye among the world’s top five tourist destinations. He said the country has more than 50 internationally accredited healthcare facilities and draws medical tourists, particularly for cosmetic treatments.
He added that Türkiye is the world’s third-largest exporter of soap operas and ranks second only to London in its gaming ecosystem for startups and unicorns. It is second to China in the global league of contractors, he said, and hopes to help rebuild the region, a job he said will require at least $1 trillion over the next decade. Türkiye also hosts the sixth-largest number of international students.
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