Treasury and Finance Minister Şimşek Evaluated Global Economic Risks

Treasury and Finance Minister Mehmet Şimşek stated that Turkey has built fiscal buffers against short-term challenges in the global economy, such as energy supply shocks, inflation, and tight financial conditions. Şimşek announced that defense spending will be increased by 229 percent, trade agreements will be expanded, and tourism revenues will be doubled.

Energy Supply Shocks in the Global Economy

Treasury and Finance Minister Mehmet Şimşek evaluated the short-term challenges faced by the economy and energy targets. He stated that energy supply shocks caused by conflicts manifest themselves as higher inflation and tighter financial conditions.

Fiscal Buffers and Defense Spending

Stating that they have created fiscal buffers to absorb the impact of shocks facing the economy, Şimşek announced that a 229 percent increase will be implemented in defense spending.

Energy Investments and Electrification Target

Minister Şimşek noted that investments are being made in pipelines and renewable energy sources within the scope of energy security. Stating that the share of renewable energy is 60 percent, Şimşek recorded that the electrification target has been set at 35 percent.

Trade Agreements and Tourism Targets

Stating that they have expanded free trade agreements against protectionism in global trade and that 54 agreements have been made in this context, Şimşek announced that they aim to double tourism revenues, which have increased ninefold in dollar terms.