We aim to achieve balanced growth, fiscal discipline: Şimşek

ANKARA

The government aims to achieve a more balanced, inclusive and sustainable high growth level, Treasury and Finance Minister Mehmet Şimşek has said, also vowing to reinstate fiscal discipline.

Despite all global challenges and geopolitical tensions, the Turkish economy grew 5.5 percent in 2022, and notwithstanding the February earthquakes, expanded by 3.9 percent in the first half of this year, Şimşek said in a presentation he made at the parliament plan and budget commission on Oct. 31.

However, the current growth is driven by domestic demand, and there is a need to rebalance the economy, the minister added.

“While aiming for permanent price stability in this period, we continue to prioritize investments, employment, production and exports,” he said.

The government’s GDP growth forecasts for 2023 and 2024 are 4.4 percent and 4 percent, respectively.

Şimşek said that they are aiming for a more balanced growth in which net exports will make a positive contribution to growth in the coming period.

“We will implement public finance policies in a transparent manner. We will support the fight against inflation by reestablishing fiscal discipline and reducing the budget deficit,” the minister said, adding that they will reduce inflation to single digits in the medium term.

In the coming period, monetary, fiscal and income policies will be carried out in coordination, and structural reforms that will increase production, competition and efficiency will be implemented, according to Şimşek.