Turkish economy continues to get stronger: Finance minister

ANKARA

Treasury and Finance Minister Nureddin Nebati has stated that public finance continues to be one of the strongest elements of the Turkish economy despite all the negative developments in the world, and that the government has never and will never compromise on fiscal discipline.

In his presentation at the parliament during the additional budget negotiations on June 28, Nebati stated that the budget targets and forecasts for 2022 were determined based on the macroeconomic outlook in the second half of 2021, but that the rapidly rising inflation in the world, the problems in supply chains and logistics, the record levels in commodity prices and geopolitical tensions all over the world caused changes in the macroeconomic outlook and assumptions in Türkiye as well. He stated that the government had increased the revenue estimates and appropriations in the budget by taking those developments into account, and that an additional budget proposal that focuses on the citizens had been prepared.

“We are going through a period in which inflation rates are rising on a global scale, the cost of living is increasing, financial conditions are tightening, growth is slowing down and tensions are rising in international relations,” the minister said.

“The Turkish economy, which is integrated into the global economy, is naturally affected by these difficult conditions. Especially, energy importing countries like us are exposed to cost shocks.”

Explaining that they created the Turkish Economy Model under the leadership of President Recep Tayyip Erdoğan in order to make the best use of the opportunities that arise on a global scale in the future, by using Türkiye’s strengths and advantages, Nebati said the ultimate goal of the model is “to make growth sustainable, balanced and inclusive.”

“The fact that in the last six months, sectors such as industry and tourism, which are subject to foreign trade and earn foreign currency, have gained momentum again and come to the fore in global competition, clearly shows we have taken appropriate the steps within the scope of the Turkish Economy Model,” he added.

Stating that Türkiye has achieved successful growth data, Nebati said, “Our economy grew by 7.3 percent in the first quarter, the contribution of domestic demand to growth is 3.9 points, and the contribution of foreign demand is 3.5. Leading indicators point out that the positive outlook in economic activity continues.”

The minister emphasized that rising inflation is a big problem for both Türkiye and the world.

“We are aware of the negative effects of inflation,” he said.

“We have the necessary experience and equipment to fight inflation, we continue our struggle with determination, and we will succeed in reducing inflation in a short time in this process, we are making maximum efforts to ensure that our citizens are less affected by price increases.”

Listing the data regarding the additional budget for 2022, Minister Nebati said, “We will continue to pursue fiscal discipline with determination in the coming period. We will implement our fiscal policy with a transparent, selective and target-oriented approach, by continuing to observe the needs of all our citizens, especially our workers, tradesmen, farmers and the real estate sector.”