AA photo.
Türkiye’s low debt levels strengthen its ability to withstand economic shocks and sustain growth, Treasury and Finance Minister Mehmet Şimşek said on Oct. 22.
Speaking at the 19th Verona Eurasian Economic Forum in Istanbul, Şimşek said the global economy was facing a difficult period marked by volatility and uncertainty.
He described the current energy supply shock as seven times as large as the one experienced in 2022.
High indebtedness posed another major challenge, he said, with total debt exceeding 300 percent of global output and the ratio in emerging markets surpassing 230 percent.
Türkiye was better placed to respond to shocks because of its relatively low debt burden, Şimşek said.
The country’s budget deficit-to-GDP ratio was approximately half the emerging-market average, while its public debt-to-GDP ratio was around one-third of the corresponding average, he added.
Şimşek said Türkiye’s economy was expected to reach approximately $1.8 trillion this year at current exchange rates, or about $4 trillion in purchasing power parity terms. He also pointed to the country’s large population and strong infrastructure.
The minister acknowledged that high inflation remained a challenge, saying the government was pursuing comprehensive policies to bring it down.
He described President Recep Tayyip Erdoğan and his economic team as business-friendly and pledged support for companies operating in Türkiye.
“If you choose to conduct all or part of your business in Türkiye, we want to assist you,” he said.
