Türkiye ‘does not face growth issues’ while combating inflation: Finance minister

‘Turkish Central Bank reserves increased by $100 billion in 1.5 years,’ he says

RIYADH

Türkiye does not experience growth issues while combating inflation and inflationary pressures “will continue to fall” thanks to tight monetary policy, Turkish Treasury and Finance Minister Mehmet Simsek said on Tuesday.

Speaking at the Future Investment Initiative (FII) Conference in Saudi Arabia’s capital Riyadh on Tuesday, Simsek said that the resilience of the Turkish economy withstands the fragmentation in global trade.

"We have free trade agreements with approximately 54 countries around the world, and we export approximately 60% of our exports to these countries,” he said.

“While fragmentation is still a risk, Türkiye is more resilient to this risk, and now, the worst (of inflation) is behind us,” the minister added.

Simsek noted that Türkiye has overcome its macroeconomic challenges and “the Turkish Central Bank’s reserves rose $100 billion in a year and a half.”

On the broad reform agenda of Türkiye, he said that green and digital transformation stand out, and with the country’s large economy and diverse production, the programs implemented are on track to reach their goals.

Simsek mentioned that Türkiye’s ratio of public debt to gross domestic product is at 26%, a low level compared to other countries, which offers an advantage for the country’s continued growth.

Türkiye’s growth rate has been above 5% on average in the last two decades, he said.




*Writing by Emir Yildirim in Istanbul