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Finance and Finance Minister Mehmet Şimşek attended the 2023 MÜSİAD Economic Assessment Meeting.
The highlights of the statements made by Şimşek, who gave a speech here, are as follows:
Growth remained strong in Turkey in 2023. In the second half of the year, the growth composition developed more balanced. This continued in the last quarter.
As we look to 2024, growth will remain weak. Inflation will continue to fall. More favorable financial conditions will lead to looser monetary policy around the world.
“THERE ARE GREAT OPPORTUNITIES FOR Türkiye”
By supporting the MTP, we ask ourselves: “How can we turn these conditions into opportunities for Turkey?” at a time when such difficult global conditions are the new normal. If we can realize the MTP with the support of all walks of life, there will be great opportunities for Türkiye.
We need price stability for a fairer distribution of income. We will reduce inflation to ensure price stability.
The tightening of monetary policy must be supported by structural reforms and fiscal policy.
“Inflation is compatible with our MTP targets”
We have considered the same framework in the MTP as the world lowers inflation. We are currently in the implementation phase. Both core and headline inflation are rising monthly. Our program meets our goals. Since inflation is high in our country, the tightening of monetary policy will continue for a while. Inflation will rise to levels that will recover and remain tight for a while.
Given the rapid decline in annual inflation that began in the second half of the year, we see a high probability that expectations will move closer to target.
“We expect Türkiye’s creditworthiness to increase”
Access to long-term financing has improved and we have begun to lay the foundation for sustained high growth. We expect an increase in Türkiye’s credit rating.
We want a fairer tax base through tax reform.
We will reduce the current account deficit by curbing domestic demand. Gold imports will normalize, we will reduce foreign dependence on energy.
“PORTFOLIO PREFERENCES WILL BE IN FAVOR OF THE LIRA”
The portfolio preferences will be in favor of the lira, that is the case so far. In this way, the formation of reserves is achieved.
We started getting results from the program. After the election, confidence in this program will increase internally and externally.
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