With a delay of a few months, the disinflation process will resume and get back on track, Treasury and Finance Minister Mehmet Şimşek has stated.
Speaking at the 69th General Assembly of the Banks Association of Türkiye (TBB) on June 12, Şimşek said the government will provide the necessary fiscal and structural support to bring inflation down permanently to single digits. He added that he remains confident this goal will be achieved, even if it takes slightly longer.
“Price stability is extremely important for us. It forms the foundation of the program,” Şimşek said.
He also noted that there has been no significant deterioration in the foreign trade deficit despite a major oil shock.
“The current account deficit is very manageable. On an annualized basis, there is no major deterioration in the foreign trade deficit,” he said.
Şimşek added that there has been no significant decline in key sectors such as tourism. He said the ratio of gross external financing needs to national income stands at 20 percent, adding that it would have been around 15 percent in the absence of external shocks.
He also addressed recent developments in foreign exchange reserves, noting that declining gold prices had a negative impact this year.
“There was a significant improvement in reserves overall. Some outflows occurred due to the war. As a substantial portion of reserves is held in gold, nearly 40 percent of the change was driven by the decline in gold prices. There is no cause for concern regarding reserves,” he said.
