Treasury and Finance Minister Mehmet Şimşek Evaluates the Istanbul Economy Forum

Treasury and Finance Minister Mehmet Şimşek emphasized in his speech at the Istanbul Economy Forum that the disinflation process has partially slowed down due to the impact of the war, but they are definitely not giving up the fight.

Disinflation and the Medium-Term Program

Treasury and Finance Minister Mehmet Şimşek made important statements at the opening of the Istanbul Economy Forum held at the Istanbul Finance Center. Şimşek stated that the primary goal of the Medium-Term Program is to ensure price stability and that fiscal discipline will be maintained with determination.

Global Challenges and Tight Policy

Touching upon the challenges experienced by the global economy, Şimşek said that Turkey's response to supply chain disruptions and rising energy prices is to prioritize macrofinancial stability. He stated that in response to the Central Bank's tightening steps, they are also maintaining a relatively tight fiscal policy.

Peace and Defense Expenditures

Emphasizing that Turkey's approach is to stay away from conflicts and invest in peace, Şimşek announced that defense expenditures will be increased by 229 percent in the 2027 budget to be submitted to the Turkish Grand National Assembly soon in order to strengthen deterrence.

Indebtedness and Capital Markets

Stating that Turkey is in an advantageous position in terms of debt ratios, Şimşek noted that the ratio of public debt to GDP is at the level of 22 percent. He also conveyed that recent developments in fund markets will contribute to the formation of healthier and deeper capital markets.