Mehmet Simsek projects inflation will fall to single digits by 2027, highlighting a successful strategy that has already slashed inflation from its peak and secured billions in foreign financing.
ANKARA – Turkey’s determined push to bring down inflation is succeeding, with the country firmly on a path to reach single-digit inflation within two years, Treasury and Finance Minister Mehmet Simsek announced in an interview with Reuters.
Expressing strong confidence in the government’s economic program, Simsek confirmed that the disinflation process is progressing as planned. This follows official data showing consumer price inflation slowed to 33.5% in July, a dramatic improvement from its peak of 75% in May of last year.
“We maintain our year-end inflation forecast; the necessary conditions for disinflation are largely in place,” Simsek stated. “What matters to us is that this improvement is lasting and stable.”
The minister laid out a clear timeline for continued progress, forecasting that inflation will fall below 20% next year before reaching single digits in 2027. This positive outlook is supported by a coordinated strategy combining monetary, fiscal, and income policies, which Simsek said provides “strong support to disinflation.” The central bank’s recent decision to cut its policy rate by 300 basis points reflects growing market stability and continued progress.
Highlighting strong international confidence in Turkey’s economic management, Simsek revealed that the country has already secured some $7 billion in external financing this year for development-focused projects, part of a $17.4 billion total secured in 2023 and 2024.
Looking ahead, the government aims to secure over $40 billion in additional external financing over the next three years through established partnerships with institutions like the World Bank and the Asian Infrastructure Investment Bank (AIIB).
While acknowledging a potential temporary slowdown in economic growth, Simsek emphasized that the government remains committed to spending discipline and that the country’s current account deficit is performing better than targeted, further underscoring the success of the current economic program.
