Türkiye’s Treasury and Finance Minister Mehmet Şimşek announced on Friday that the country anticipates maintaining its current account deficit at a sustainable 1.4% of gross domestic product (GDP) in 2025, underscoring the government’s commitment to structural reforms to enhance economic stability and external financing.

In a statement posted on X, Şimşek evaluated the July balance of payments data released by the Central Bank of the Republic of Türkiye (CBRT), highlighting a current account surplus of $1.8 billion for the month. This surplus reduced the annual deficit to $18.8 billion. He noted that Türkiye’s external debt rollover ratios remain robust, with the real sector at 163% and banks at 227% in the first seven months of 2024.

“We expect the annual current account balance to improve further in the third quarter, driven by a narrowing trade deficit and rising tourism revenues,” Şimşek stated. He emphasized that the projected 1.4% deficit-to-GDP ratio for 2025 aligns with the government’s medium-term economic program aimed at ensuring long-term fiscal discipline.

Şimşek also outlined plans to bolster Türkiye’s global competitiveness through productivity growth and a technology-focused transformation, supported by comprehensive structural reforms. “We are working to make improvements in the current account balance permanent,” he said.

Analysts view the surplus data and Şimşek’s reform commitments as encouraging signs for investors, signaling Türkiye’s dedication to strengthening its economy against external shocks and fostering sustainable growth. (ILKHA)