Mehmet Şimşek: Inflation is decreasing, it will decrease.

12.04.2025 19:30

The Minister of Treasury and Finance, Mehmet Şimşek, stated in his speech at the Antalya Diplomacy Forum that Turkey is resilient against global economic challenges and that inflation will decrease. Şimşek emphasized that Turkey's growth model is not based on exports, but rather that the driving force of the economy is domestic demand and investments.

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The Minister of Treasury and Finance, Mehmet Şimşek, stated, "Inflation is decreasing, it will decrease. We have done everything to implement this program, there is strong political support, we are determined."

Speaking at the session titled "Global Challenges and Turkey's Outlook" held as part of the Antalya Diplomacy Forum, Minister of Treasury and Finance Mehmet Şimşek provided a comprehensive assessment of the fragile period the global economy is currently in and how Turkey is positioned in this context.

"CHINA DOMINATES GLOBAL MANUFACTURING"

Stating that the global economy is going through a period of high uncertainty and volatility, Minister Şimşek explained that Turkey is relatively more resilient against global challenges, detailing the reforms being carried out in foreign trade, energy transformation, artificial intelligence, and the defense industry. Şimşek reported that according to IMF forecasts, a 7% decrease in global GDP is expected, saying, "Trade wars, protectionism, and geopolitical tensions are challenging global production. China dominates global manufacturing; Europe, the USA, and Japan are losing power."

"INFLATION IS DECREASING, IT WILL DECREASE"

Minister Şimşek emphasized their determination in the fight against inflation, stating, "Inflation is decreasing, it will decrease. We have done everything to implement this program. There is strong political support, we are determined. We also have the capacity to manage this process." Şimşek added that short-term market fluctuations could disrupt expectations, but the disinflation process will continue.

Minister Şimşek noted that the impact of the limited weakening in the exchange rate could be balanced by the decline in oil prices, stating that a tight monetary policy would create clear disinflationary effects. He expressed that on the fiscal side, budget discipline would be maintained, and the public debt-to-GDP ratio stands at 25%.