Minister Şimşek drew attention to Türkiye's growth composition, emphasizing that the country will be less affected than other countries that are more dependent on external demand. Şimşek stated, “When we produced our GDP, we went on the basis of domestic demand, not export-based. Therefore, the repercussions on Türkiye will be more limited compared to countries that are more dependent on foreign demand.”
Uncertainties in the Global Economy and Assessments on Protectionism
Minister Şimşek stated that the biggest problem facing the world economy is uncertainty. Stating that there is a serious uncertainty about the global economy, Şimşek added that with the change in global balances, a more complex economic environment is being faced. He also emphasized that protectionism has become the “new normal” and noted that Türkiye's dependence on exports is lower compared to other countries.
Global Warming and Fighting Inflation
Stating that global warming has become a reality for the world, Minister Şimşek pointed out that the economic consequences of this will be serious. He added that Türkiye's gross debt to GDP ratio is well below the world average. Regarding inflation, he explained that Türkiye has taken important steps to bring inflation under control and will enter the disinflation process in the second half of 2024. Stating that reducing inflation to single digits is one of their targets, Şimşek noted that they plan to bring inflation down to single digits by 2027.
Budget Discipline and Economic Performance
Minister Şimşek also touched upon Türkiye's budget discipline and financial performance. In 2023, he stated that there was no deviation in the budget and that TRY 1.2 trillion in savings was achieved, which is a serious performance. He also added that Türkiye's growth targets will be sustainable and balanced, focusing on high growth in the long term while reducing inflation in the short term.
Employment and Economic Resilience
Stating that a significant success was achieved in the field of employment, Minister Şimşek announced that nearly 1 million net jobs were created and unemployment rates decreased. He emphasized that Türkiye has increased its resilience against internal and external shocks and the fragility of the economy has decreased. He also stated that reserves serve as a buffer against shocks and that by reducing the RRR, Türkiye's uncertainties have been reduced.
Green Transformation and Technology Investments
Stating that green transformation has become a necessity for Türkiye, Minister Şimşek stated that foreign dependence on energy will decrease significantly in the future. He announced that concrete steps have been taken regarding investments in high technology and green transformation and that USD 30 billion in support will be provided in this area until 2030. He also noted that there is no need to worry about Türkiye's future in energy and agriculture.
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