Inflation will be around 40 pct at the end of 2024: Şimşek

ISTANBUL

The current course of inflation is in line with their projections, Finance Minister Mehmet Şimşek has said.

“We believe that we will close the year with an inflation rate of around 40 percent,” Şimşek said in an interview on Aug. 6 with private broadcaster A Haber.

Annual inflation fell in June, further dropped in July and the decline will continue in August, according to the minister.

“We are very determined to bring inflation down…We will meet the inflation target this year,” Şimşek reiterated.

Annual inflation cooled to a nine-month low of 61.78 percent in July, data from the Turkish Statistical Institute (TÜİK) showed on Aug. 5.

The main pillar of the economic program is disinflation, and they are implementing the program with determination, the minister said, adding that 2025 will be “the year of disinflation.”

“People will see the more of results of the program next year.”

If the crisis in the Middle East intensifies, the Turkish economy could be affected through tourism and oil prices, Şimşek said.

“We are a developing country, changes in risk appetite impact us.”

Şimşek also predicted that the current account deficit will be around 2 percent of GDP this year.

“Reserve accumulation has been much more spectacular than we had envisaged,” Şimşek said.

Reserves have improved by $90 billion, from minus $60 billion to around plus $24 billion, he added.