Structural reforms main priority, says economic board

ANKARA

Structural reforms that are one of the main pillars of the government’s economic program remain a priority, said the statement released after the Economic Coordination Board meeting.

Vice President Cevdet Yılmaz chaired the meeting, which was attended by several ministers, including Finance Minister Mehmet Şimşek, Trade Minister Ömer Bolat, Energy Minister Alparslan Bayraktar and Industry Minister Mehmet Fatih Kacır.

“It was decided to accelerate the pace of structural reforms, for which a timeframe was laid out in the medium-term economic program and were expected to be completed in the first half of 2024,” the statement said.

As of the first quarter of 2024, 20 of the 81 actions envisaged in the program under reform arrangements have been completed, while significant progress has also been made in the work on other actions, it added.

Agricultural production planning and the new support model were discussed in detail at the meeting, according to the statement.

Under the model, production planning will be made by determining target sufficiency ratios in strategic agricultural products for food supply security, it said.

The economic program is yielding results with the current account deficit declining, international flows gathering pace, reserves strengthening and improvements in risk indicators, the statement also said, adding that the unemployment rate remains at single-digits.

“We expect a significant decline in annual inflation in the second half of the year as the tight monetary policy stance is supported by fiscal and incomes policies,” it said.

The “Public Savings and Efficiency Package,” which was announced earlier this month to strengthen fiscal discipline, is expected to make a significant contribution to the disinflation process by increasing expenditure control and savings in the public sector and directing investments to priority areas, according to the statement.