Statements on Economy and Budget from Mehmet Şimşek at the Istanbul Economy Forum

In his speech at the Istanbul Economy Forum, Treasury and Finance Minister Mehmet Şimşek evaluated the Turkish economy, stating that the primary objective of the Medium-Term Program is price stability and that fiscal discipline will be resolutely maintained.

Istanbul Economy Forum Begins

Hosted by the Central Bank of the Republic of Turkey at the Istanbul Financial Center, the Istanbul Economy Forum brought together central bank governors and high-level policymakers from around the world.

Speaking at the opening of the forum, Treasury and Finance Minister Mehmet Şimşek discussed the challenges the global economy is going through and the practices implemented to combat these negativities.

Global Challenges and Macrofinancial Stability

Stating that the global economy faces a wide range of challenges such as conflicts, trade protectionism, high global indebtedness, and rising energy prices, Minister Şimşek noted that Turkey's initial response to this process was to prioritize macrofinancial stability.

Disinflation Process and Fiscal Discipline

Expressing that the disinflation process has slowed down partially this year due to the impact of the war, but that the fight has not been abandoned, Şimşek emphasized that the primary goal of the Medium-Term Program is price stability.

Stating that fiscal discipline has been achieved and that this discipline will definitely be preserved, Şimşek underlined that the Turkish economy continues to grow.

Defense Expenditures and the 2027 Budget

Stating that they are located in a challenging geography and that while avoiding conflicts they are also investing in peace, Minister Şimşek noted that Turkey is strengthening its deterrence.

Şimşek announced that defense expenditures will be increased by 229 percent in the 2027 budget, which was recently prepared and will soon be submitted to the Grand National Assembly of Turkey.