Business · Economy · 19 hrs ago
Türkiye says fiscal discipline will help shield economy from global shocks
Turkish Finance Minister Mehmet Şimşek said the government is keeping fiscal policy tight to protect financial stability from global shocks.
He spoke at the opening of the Istanbul Economic Forum, a two-day gathering organized by Türkiye’s central bank.
Şimşek pointed to conflicts, trade barriers, high debt, demographic change, climate risks and artificial intelligence as challenges facing the global economy.
Türkiye plans to increase defense spending by 229% in its 2027 budget, while the central bank’s inflation target for next year is 21%.
The government is also investing in transport links, energy supplies, renewable electricity and technology.
Şimşek said Türkiye’s public debt was 22% of gross domestic product and its total indebtedness was lower than the average for emerging-market peers.
The government says it will pursue tax and other reforms, and plans measures to raise women’s participation in the workforce.
Treasury and Finance Minister Mehmet Şimşek said Türkiye is using tight fiscal policy to cushion the economy from global shocks.
He made the remarks at the opening of the Istanbul Economic Forum on Oct. 8.
Şimşek cited conflicts, trade protectionism, high indebtedness, demographic pressures, climate risks and artificial intelligence as global headwinds.
He said total indebtedness in Türkiye was 91%, compared with 230% for emerging-market peers, while public debt was 22% of GDP.
The government is targeting a 3.1% deficit this year and has reduced current expenditures to 2.9% of the budget from 4.6%.
- Who
- Turkish Treasury and Finance Minister Mehmet Şimşek.
- What
- He said tight fiscal policy and macro-financial stability would help cushion Türkiye from global shocks.
- When
- Oct. 8.
- Where
- The opening ceremony of the Istanbul Economic Forum in Istanbul.
- Why
- To cushion the impact of shocks and address global economic headwinds.
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- Total indebtedness
- 91%, compared with 230% for emerging-market peers
- Public debt
- 22% of GDP
- Deficit target
- 3.1% this year
- Current expenditures
- Reduced from 4.6% to 2.9% of the budget
Sources
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