Mehmet Şimşek meets with investors in London

Mehmet Şimşek meets with investors in London

LONDON
Mehmet Şimşek meets with investors in London

Finance Minister Mehmet Şimşek participated in the Türkiye Conference hosted by Bank of America in London, where he engaged with more than 250 investors.

At the event, Şimşek made a comprehensive presentation on the general outlook of the Turkish economy and explained the main policy priorities and structural transformation targets.

Inflation will continue to decline due to the lagged impact of monetary policy, more supportive revenue policy, administered prices in line with the inflation target and supply-side measures, Şimşek told investors.

“This year we will reduce the budget deficit to around 3 percent of GDP. This target will be met thanks to the reduction in public expenditures,” the minister said.

The disinflation process will not only be supported by demand-side policies but also by supply-side measures in food, housing and energy, and they will accelerate reforms, according to Şimşek.

The reconstruction of the earthquake-hit areas zone, increasing the supply of social housing and urban transformation will be among the main elements of supply-side policies, he explained.

The normalization of gold imports and the decrease in energy imports played an important role in the decline in the current account deficit, said the minister, noting that the decline in the current account deficit reduces the need for external financing.

“We expect the decline in gross external financing requirement to continue for the next three years, and we aim to become a net external debt payer in the Treasury's eurobond issues starting next year,” Şimşek said.