Türkiye is an advantegious position due to its relatively low debt level, says Finance Minister Şimşek. (AA Photo)
Türkiye is in an advantageous position compared with many countries thanks to its relatively low debt burden, Treasury and Finance Minister Mehmet Şimşek has emphasized, adding that this bolsters the economy’s resilience against external shocks.
Speaking at the opening of the 19th Verona Eurasian Economic Forum in Istanbul on Oct. 22, Şimşek said one of the major challenges facing the global economy is high indebtedness.
“Globally, total debt has exceeded 300 percent of world GDP, while in emerging markets it has surpassed 230 percent. Türkiye is in an advantageous position in this respect,” he said.
Şimşek said Türkiye’s low level of indebtedness increases its ability to withstand economic shocks and provides greater room to respond to such shocks while maintaining reasonable economic growth.
He also noted that Türkiye’s budget deficit as a share of GDP is around half the average level seen across emerging markets, while public debt as a share of GDP stands at roughly one-third of the emerging-market average.
Şimşek said the size of Türkiye’s economy is expected to reach about $1.8 trillion this year at current exchange rates and nearly $4 trillion in purchasing power parity terms.
He acknowledged that the country still faces challenges, particularly high inflation, and said the government is implementing comprehensive policies to bring inflation down.
“President [Recep Tayyip] Erdoğan, our team and I are business-friendly. If you choose to conduct all or part of your business in Türkiye, we want to help you,” Şimşek said.
The 19th Verona Eurasian Economic Forum, organized with the support of the Independent Industrialists and Businessmen’s Association (MÜSİAD) and Ibn Haldun University, brings together representatives from more than 30 countries to discuss the future of the economy, geopolitics and international cooperation.
