Şimşek says Türkiye’s economic program strengthened resilience

ANKARA

Treasury and Finance Minister Mehmet Şimşek spoke during discussions on the Ministry’s 2027 budget at parliament’s Planning and Budget Committee. (AA Photo)

The economic program has strengthened macroeconomic fundamentals and increased Türkiye’s resilience, Treasury and Finance Minister Mehmet Şimşek said, adding that deviations from the program’s targets remained limited despite the multiple shocks experienced in 2026.

Speaking during discussions on the Treasury and Finance Ministry’s 2027 budget at parliament’s Planning and Budget Committee on Nov. 5, Şimşek said the economy is expected to grow by 3.3 percent this year, 0.5 percentage points below the Medium-Term Program target.

Şimşek noted that growth is expected to gradually accelerate in 2027, supported by a recovery in external demand as well as productivity and value-added-oriented investments.

“In 2027, the tight monetary stance, moderate domestic demand conditions, improving expectations, easing inertia in services inflation and the projected decline in global commodity prices will support the disinflation process,” Şimşek also said.

Şimşek stressed the current account deficit had been kept at manageable levels thanks to the strengthened policy framework.

“We expect the current account deficit-to-GDP ratio, which stood at 1.9 percent in 2025, to be around 2.2 percent this year, in line with the third-quarter estimate, despite the war,” Şimşek said.

He also said the budget deficit would remain below 3.5 percent.

Şimşek also said additional steps would be taken to strengthen investor confidence and ensure the sound functioning of capital markets, adding that a draft currently being prepared would increase penalties for market manipulation.