Turkish Treasury and Finance Minister Mehmet Şimşek expressed optimism about the country’s economic outlook on Wednesday, stating that Türkiye’s disinflation program is progressing successfully despite ongoing global economic challenges.

In an assessment of domestic and international economic developments, Şimşek projected that inflation in Türkiye will drop below 30% by the end of 2025. “As the disinflation program succeeds, we will return to a sustainable high growth path and grow strongly,” he said.

Şimşek noted that global trade growth is expected to slow until 2026, but emphasized that Türkiye’s strategic export advantage positions the country to capitalize on emerging opportunities. Currently, 62% of Turkish exports are directed to 54 countries with which Türkiye has free trade agreements. “This provides significant assurance against protectionism,” he added, citing improved global financial conditions and moderate commodity prices as further support for Türkiye’s economy.

The finance minister highlighted Türkiye’s favorable debt position, pointing out that the country’s debt ratio is lower than that of many developing nations. He also noted the government’s commitment to fiscal discipline, projecting a budget deficit of approximately 3.5% in the near future. Türkiye’s risk premium, he added, has fallen to its lowest level in five years, reflecting growing investor confidence in the nation’s financial stability.

Şimşek also underscored the rapid growth of Türkiye’s defense industry, suggesting that the country could soon rank among the top 10 global defense exporters. On the inflation front, he acknowledged that the $90 billion spent on earthquake recovery efforts contributed to price pressures. However, he emphasized that inflation on basic goods is already below 20%, and overall headline inflation is expected to fall below 30% by year-end.

As Türkiye navigates global economic uncertainties, Şimşek’s remarks reflect confidence in the nation’s resilience and its ability to leverage strategic advantages. Analysts say that Türkiye’s combination of disciplined fiscal policy, strong export performance, and growing domestic industries could support continued economic growth in the coming years. (ILKHA)