The Economic Coordination Board Meeting has ended: Annual inflation will rapidly decline in the second half of the year.

The meeting of the Economic Coordination Council (ECC), chaired by Vice President Cevdet Yılmaz, has concluded. In the statement made after the meeting, it was stated that "the disinflation process will begin in June and annual inflation will rapidly decline in the second half of the year. Market inflation expectations also confirm this."

In the statement made after the ECC meeting, it was emphasized that the current account deficit has significantly decreased, reserves have strengthened, and there has been a significant decline in country risk premium.

The ECC, chaired by Vice President Cevdet Yılmaz, convened at the Presidential Complex. The meeting was attended by Minister of Labor and Social Security Vedat Işıkhan, Minister of Energy and Natural Resources Alparslan Bayraktar, Minister of Treasury and Finance Mehmet Şimşek, Minister of Industry and Technology Mehmet Fatih Kacır, Minister of Agriculture and Forestry İbrahim Yumaklı, AK Party Parliamentary Group Deputy Chairman Abdullah Güler, AK Party Deputy Chairman Nihat Zeybekci, Presidential Strategy and Budget President İbrahim Şenel, Central Bank Governor Fatih Karahan, Banking Regulation and Supervision Agency President Şahap Kavcıoğlu, Social Security Institution President Raci Kaya, Turkish Banks Association Board Chairman Alpaslan Çakar, Climate Change President Halil Hasar, and representatives of relevant institutions and organizations.

"THERE HAS BEEN A SIGNIFICANT DECLINE IN COUNTRY RISK PREMIUM"

In the written statement made after the meeting, it was reminded that the fifth meeting of the ECC for the year 2024 was held, which was established to ensure the effective implementation of economic policies. The statement stated that the gains achieved so far indicate that progress is being made in the right direction, as the first year of the economic program is left behind. It was stated in the statement, "During this process, while moving towards a more balanced growth, employment has reached historical high levels, and the unemployment rate has continued to decrease and remained in single digits. While the current account deficit has significantly decreased, our reserves have strengthened, and there has been a significant decline in our country risk premium."

"THE DISINFLATION PROCESS WILL BEGIN IN JUNE"

The statement emphasized that ensuring price stability is a fundamental priority in order to achieve sustainable welfare increase and further improve the investment environment. It was stated, "The disinflation process will begin in June and annual inflation will rapidly decline in the second half of the year. Market inflation expectations also confirm this. The fiscal discipline, which we will further strengthen with the savings and efficiency package we have implemented in the public sector, will continue to support the disinflation process. We are accelerating our green and digital transformation efforts, which are at the center of the Twelfth Development Plan. We are implementing new industrial policies to achieve twin transformation. We will continue to increase value-added production and productivity with the support we provide for qualified investments and high-tech product exports."

TOPICS DISCUSSED IN THE MEETING

The statement reported that the meeting discussed the consultations on the efforts to achieve green transformation in the industry within the scope of the National Emission Trading System and Border Carbon Adjustment Mechanism, which will be established to maintain and strengthen Turkey's international competitiveness.

The statement mentioned that the situation in Investment Commitment Advance Loans (YTAK), which have been restructured for investments that will increase high value-added, export potential, and ensure sustainable improvement in the current account balance, was evaluated. It was stated that the acceleration of YTAK processes, which are an important component of active industrial policies, was decided.

The statement stated that the impact analysis study on employment incentives was shared with the council members during the meeting, and the necessary steps to review the incentives and increase the effectiveness of the system were discussed for the future. It was emphasized that the current status of the "Digital Turkish Lira Project" led by the Central Bank of the Republic of Turkey and the "Social Investment Note" studies to be given to banks were also reviewed in the meeting.