Messages on disinflation and fiscal discipline delivered at the Istanbul Economy Forum
Speaking at the forum hosted by the Central Bank, Mehmet Şimşek drew attention to the fight against disinflation and the advantage of low indebtedness.
Speaking at the Istanbul Economy Forum hosted by the Central Bank of the Republic of Turkey, Treasury and Finance Minister Mehmet Şimşek emphasized that the fight against disinflation will not be abandoned and fiscal discipline will be preserved.
Host and Participants of the Forum
The Istanbul Economy Forum, hosted by the Central Bank of the Republic of Turkey in Istanbul on October 8-9, brought together central bank governors and economic management figures from around the world.
Emphasis on Disinflation and Fiscal Discipline
Treasury and Finance Minister Mehmet Şimşek stated in his opening speech at the forum that they will definitely not give up on the fight against disinflation.
Şimşek stated that the primary goal of the Medium-Term Program is price stability and that fiscal discipline will be maintained with determination.
Turkey's Debt-to-GDP Ratio Advantage
Stating that the average debt ratio in developing countries is around 230 percent, Minister Şimşek emphasized that this ratio is at the level of 90 percent in Turkey.
Şimşek shared with the public that this low indebtedness ratio constitutes a significant advantage for the Turkish economy.
Fund Markets and Budget Developments
Touching upon developments in fund markets, Mehmet Şimşek noted that the process is completely under control and will contribute to the formation of healthier capital markets.
Among the details that drew attention at the forum was the announcement that defense expenditures will be increased by 229 percent in the 2027 budget.
Global Economy and Messages from the Fed
Federal Reserve Board Member Christopher Waller stated that if inflation does not approach the 2 percent target quickly, additional rate hikes could come to the agenda.
Geopolitical risks in the global economy, energy prices, artificial intelligence, and high public debt constituted the main agenda items of the forum.