“Inflation has dropped for 10 months, it will continue to fall”

Minister of Finance and Finance Minister Mehmet Simsek sent a video message to the international economy Summit in Sapanca.

Simsek, also known as “trade wars”, said “the uncertainty in global economic policy has increased as much as it has recently. In fact, protectionism has increased in the past 15 years. The restrictive measures have increased in the past 15 years. The trade restrictions have increased last year.

Şimşek pointed out that the likelihood that the likelihood of relieving less than 3 percent of global growth in this way, and the main reason for the increase in protectionism is the geostrategic competition between the USA and China.

“Türkiye is more resistant in this area against similar countries”

Şimşek explained that economics developed in the past 20 years such as the United States, the European Union and Japan have severely lost their global shares in the manufacturing industry to China:

“Turkey is more resistant to similar countries in this environment. There are two reasons for this. First of all, our dependence on export is relatively low. The main element that our growth directs is domestic demand. The proportion of exports in our national income is approximately 20 percent. Therefore, the influence of the influence of Türkiye.

Simsek emphasized that there is indirect effects of this process, but it is too early to measure it and said China will react to high tariffs.

Şimşek pointed out that excess offer is a risk of turning to Torkiye or its markets at low prices.

“The global economy is faced with increasing risk of debt”

Şimşek pointed out that the other important risk of the global economy is increasing debt and that the rate of global debt on national income has increased by more than 100 points and has reached 328 percent in the past 25 years.

Minister Şimşek said that this level of debt in an environment with a low interest amount is managed more, but in the scenario in which the global interest rates rise, many countries can be forced and that global growth is adversely influenced.

Şimşek, Türkiye, is also advantageous here, the total debt compared to the national income rate is 93 percent, this rate is far below the average of developing countries, he said.

With the demographic transformation, the older population rose quickly worldwide and said that the other important problem that affected the global economy, the geopolitical tensions and conflicts is growing and therefore the global defense spending increases.

“Inflation has dropped for 10 months, it will continue to fall”

With the indication that there are serious structural problems in the world, but that Türkiye is more advantageous against these difficulties, said Şimşek:

“We want to transform our advantages into permanent profits. Therefore, we have been using our macroeconomic stability and reform program with determination since June 2023. To increase the structural transformation by increasing.”

Blitz, with regard to the developments in the program “Inflation has dropped for 10 months, it will continue to fall. We are determined to implement the disinfelation program. We have a very strong political will and we have a very strong program,” he said.

Şimşek, who drew attention to recent developments, used the following statements:

“The expectations of the latest market fluctuations may have broken a little at short notice, but we believe that we will remain in the target area. There has been a limited depreciation in the Lira, but because the domestic demand is weak, we expect the exchange rate crossing to be low. Oil prices can affect the exchange rate rate.”

“The decline in oil prices implies the current account deficit according to the program objectives”

Şimşek, earthquake in Kahramanmaraş base of the budget deficit in the past 2 years recalled that they have risen to 5 percent and emphasized that they are addressing a lower budget deficit this year.

“We will never affect the discipline of expenses.” Şimşek said: “Therefore, the latest developments in the markets can cause weaker budget credit compared to the medium -term program (MTP). Our purpose of financial consolidation is to support the central bank. We will support the disinflation by keeping expenses under control.

Şimşek said that they can reduce the current account deficit and become the economy that can give structural surpluses in the long term and reminded that the current surplus was given with the exception of gold imports last year.

Şimşek: “We turned to a threshold in a moderate growth environment in which we can grow without a current account deficit, but there are still steps. We have commissioned the Green and Digital Transformation to implement productivity and technological -oriented transformation in industry.

“Compensation in the economy”

Şimşek explained that the compensation in the economy is achieved and that employment is strong and said:

“The recent fluctuations in the markets can lead to a temporary abbreviation of the economic activity, but we have reduced the external fragility of our country through the program we implemented, increased resistance to shocks, strengthened macro financial stability. We create solid foundations for high growth. We have structural advantages against global problems. These global crises are not only important for our country.

At the opening of the International Economy Summit, Renaissance held the honorary president Erman Ilıcak, the chairman of the Repie Investment Holding, Emre çamlıbel, and the publishing director of Sedef Seçkin Büyük Capital & Economist Magazine.