Statement on Inflation and Economy from Treasury and Finance Minister Şimşek

Treasury and Finance Minister Mehmet Şimşek stated that the disinflation process has stalled this year due to the impact of war, but the economic program has not been abandoned.

Economic Program and Targets

Treasury and Finance Minister Mehmet Şimşek made statements at the "Strategic Outlook in the Global Economy" meeting. Stating that the primary goal of the Medium-Term Program is price stability, Şimşek expressed that the disinflation process stalled this year due to the impact of the war.

Risks and Fiscal Buffers

Şimşek emphasized that the most important risk in the short term is energy supply shocks caused by conflicts. Stating that these shocks could increase inflation and tighten financial conditions, Şimşek noted that Turkey has built fiscal buffers against these developments.

Public Debt and Budget Status

Expressing that Turkey is in an advantageous position in terms of indebtedness compared to developing countries, Şimşek said that the budget deficit is below 3 percent and the ratio of public debt to national income is around 22 percent.

Investments and Sectoral Targets

Touching upon defense investments as well, Şimşek announced that defense expenditures will be increased by 229 percent in the 2027 budget. Stating that energy and supply security as well as trade and service exports are priority areas, Şimşek added that Turkey is investing in renewable energy.