Economic Management Evaluation of MTP and Statement on Austerity Measures

Central Bank Governor Fatih Karahan and Treasury and Finance Minister Mehmet Şimşek made statements regarding the Medium Term Program, providing information on the inflation outlook and public austerity steps.

Inflation Outlook and Monetary Policy

Central Bank Governor Fatih Karahan stated that they did not see any revisions in the inflation outlook that would create pessimism.

It was stated that inflation data coming in areas affecting monetary policy have been progressing positively.

Public Austerity and Investment Perception

Treasury and Finance Minister Mehmet Şimşek emphasized that the perception that public savings are achieved by making cuts from investments does not reflect the truth.

He noted that there will be increases along with the planned appropriations in public expenditures and that very important steps have been taken regarding austerity measures.

Current Account Deficit and Economic Developments

While it was pointed out that significant shocks were encountered in 2023, it was stated that reducing vulnerability in the current account deficit is of critical importance.

It was announced that economic improvements reached very serious dimensions in analyses conducted excluding gold.

Rental Vehicles and SME Supports

It was reported that the re-leasing rate of rental vehicles whose contracts will expire in 2025 has been reduced by 21 percent.

Within the scope of steps supporting access to finance and productive capacity, it was conveyed that the share of SME loans within total loans rose to the level of 27 percent.