Minister Şimşek’s Critical Statements on Defense Industry and Economy, Promising Developments in Current Account Deficit and Inflation
Minister of Treasury and Finance Mehmet Şimşek made important statements about Turkey’s economic policies and defense industry on NTV live broadcast. Minister Şimşek gave information about a new package that will provide additional resources especially for defense projects and stated that this package aims to increase Turkey’s deterrence power. In addition, details about the cooperation with Gulf countries, current account deficit, fight against inflation and saving policies in public expenditures were shared.
Important Resource Package for Defense Industry
Emphasizing that Turkey is located in a difficult geography, Minister Şimşek announced that they have prepared an additional resource package for the defense industry. Stating that this package is completely allocated to defense projects, not even a penny of it will enter the general budget, Şimşek drew attention to the need to increase Turkey’s deterrence power. Referring to the importance of investments in defense projects in line with the geopolitical developments in the region, Şimşek said that Turkey should be strengthened in the field of defense.
Gulf Visits Contribute to the Economy
Şimşek also talked about the negotiations with the Gulf countries and stated that the cooperation with countries such as Qatar and Kuwait has yielded positive results. Emphasizing the importance of the upcoming summit with Qatar in terms of economic relations, the Minister said that the Gulf countries, which have serious opportunities in tourism and other sectors, have great potential for Turkey’s economy.
In addition, Şimşek said that as a result of the meetings with investors, confidence in the Turkish economy has increased and concerns have diminished. Stating that Turkey is moving forward with the principle of diversity and complementarity in the economy, Şimşek said that investors are taking advantage of these opportunities and their interest in Turkey has increased.
Signals of Decline in Current Account Deficit and Inflation
Minister Şimşek also shared promising developments regarding the current account deficit, one of Turkey’s biggest economic problems. He stated that the current account deficit has decreased significantly compared to last year and that the current account deficit would be more balanced if there were no regional conflicts. Şimşek announced that they are providing support for green transformation and high-tech product production in order to permanently reduce the current account deficit. He stated that these steps will contribute to Turkey’s transition to current account surplus in the long run.
Regarding inflation, Şimşek stated that inflation in basic goods has fallen to 28 percent and that inflation will continue to fall, and drew attention to the regulations made to limit the impact of rent increases on inflation. Stating that services inflation will also decrease over time, Şimşek said that the economic policy they have been patiently implementing has started to yield results.
Savings in Public Expenditures and Earthquake Effects
Referring to the savings made in public expenditures, Şimşek stated that a 15 percent reduction was achieved in rental vehicles and that the deviation in public expenditures was below 1 percent. Stating that the deficit in the budget after the earthquake was largely due to these expenditures, Şimşek emphasized that the priority was to heal the earthquake wounds.
Stating that the contractionary fiscal policies implemented in the economy have yielded results, Şimşek said that Turkey has taken important steps towards economic sustainability with the improvements achieved in the current account deficit, inflation and budget balance.
Green Transformation and Global Cooperation
Stating that green transformation is among Turkey’s priority projects, Şimşek emphasized that there is great interest in projects in this field on a global scale. Stating that investors are approaching green transformation projects with great appetite in cooperation with Gulf countries, the Minister said that these projects are of great importance for both Turkey’s environmental sustainability and economic growth.
Minister Şimşek’s statements show that Turkey’s steps towards economic stability and investments in the defense industry are critical for the country’s future.
