Structural transformation to gather momentum: Şimşek
ISTANBUL
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The government aims to achieve permanent price stability and accelerate the structural transformation of the economy in 2025, Finance Minister Mehmet Şimşek has said.
“Inflation will continue to fall while we will strengthen fiscal discipline and introduce supply-side policies to support monetary policy,” the minister said in an interview.
The economic program they have been implementing since May 2023 has yielded positive results, Şimşek stressed, adding that external vulnerabilities were reduced, the economy’s resilience was increased and macro-financial stability was strengthened in 2024.
“By successfully implementing the program, we eliminated the balance of payments risk and the risk of inflation getting out of control…In 2025, we will achieve permanent price stability,” he said.
“We will position our country among high-income countries by implementing structural reforms that will increase productivity and competitiveness for sustainable high growth and a fairer income distribution,” the minister added.
According to Şimşek, four main issues will be decisive in disinflation in 2025. “First, the lagged effect of monetary policy on inflation will be seen more clearly. Second, the decrease in the ratio of budget deficit to national will create an impact. Third, to the extent that the budget allows, we will set administered prices in line with the inflation target,” he explained.
Finally, they will support disinflation not only with demand-side policies but also with supply-side measures in many areas, such as food, housing and energy, and accelerate reforms in those areas.