Medium-term program to be updated in September: Yılmaz

ANKARA

The government considers updating its medium-term economic program in September, Vice President Cevdet Yılmaz has said, adding that, however, policy set will remain intact.

“Over the past year some developments occurred in the world and Türkiye. Under light of those developments, we will update the program,” Yılmaz said during an interview with private broadcaster CNN Türk.

Yılmaz reiterated that the annual inflation rate will begin to fall starting June. “We have entered the disinflation period as of June. This will be felt more in July and August,” the vice president said, recalling that the Central Bank’s inflation forecast for the end of 2024 is 38 percent.

Next year inflation will come down below 20 percent, and single-digit inflation will probably be achieved in 2026, according to Yılmaz.

The government does not want to introduce any “inflationary tax,” he added.

“We do not favor taxes which could adversely affect inflation. The share of indirect tax is higher [in Türkiye]. We now aim to increase the share of direct taxes while improving social justice,” Yılmaz said.

There will not be elections in Türkiye in the next four years, which offers opportunities, the top government official said.

“People do not need another election but improvement in the economy and increase in social welfare,” Yılmaz said, noting that there is no economic or political ground for opening discussions about early elections.