Şimşek vows to continue implementing economic program

ANKARA

Finance Minister Mehmet Şimşek has said that the economic program will continue to be implemented with determination.

Speaking at parliament’s budget and planning commission, Şimşek reiterated that the economic program has the strong backing of President Recep Tayyip Erdoğan.

The most important macro imbalance in Türkiye is high inflation, the minister said, adding: “We will do whatever it takes to ensure price stability.”

The lagged impact of monetary policy will be more visible and administered prices will be set in line with the inflation target, according to Şimşek.

He recalled that inflation peaked in May and the disinflation process which started in June is continuing.

“With disinflation and supportive global conditions, we anticipate a relative recovery in economic activity starting from the second half of next year,” Şimşek said.

The annual inflation rate declined from 49.38 percent in September to 48.58 percent in October with consumer prices advancing 2.88 percent month-on-month.

“We will accelerate structural reforms in all areas that will increase competitiveness and growth potential,” Şimşek also said.

Meanwhile, inflation expectations for the end of 2024 increased from 44.1 percent in October to 44.8 percent in November, a Central Bank survey showed on Nov. 15.

The 12-month ahead inflation expectations, however, fell from 27.4 percent to 27.2 percent, according to the monthly survey of market participants.

Participants of the survey kept their GDP growth forecast for 2024 unchanged at 3.1 percent, while cutting slightly their growth expectations for next year from 3.3 percent to 3.2 percent.