HORASIS Global Meeting was held in Gaziantep with the participation of Minister Şimşek, Minister of Trade Ömer Bolat, international investors and top executives.
In his presentation on the outlook of the Turkish economy, Mr. Şimşek explained the macro challenges of the economy, the policies aimed at solving them and the investment opportunities in Türkiye.
Pointing out that the weak growth of trading partners, global interest rates that will remain high for a long time, rising energy prices and the strong dollar are the global challenges they face, Şimşek emphasised that the fight against inflation is their top priority.
Şimşek stated that tight monetary policy and selective credit and quantitative tightening steps were taken for disinflation and said, "Earthquake expenditures caused temporary deterioration in the budget balance. It is important to improve the public financial balance by establishing fiscal discipline."
Pointing out that revenue and expenditure policies that will restore fiscal discipline have been put into practice, Şimşek said that the budget deficit is targeted to be below the Maastricht Criterion of 3 percent at the end of the programme period.
"Foreign investor interest in our country has increased"
Underlining that Turkiye's indebtedness level is low, Şimşek noted that the low level of public indebtedness creates an opportunity to meet a large expenditure such as an earthquake.
Stating that Turkiye's century-long growth average is 4.8 per cent and the last 20-year average is 5.4 per cent, Şimşek made the following assessments:
"However, there has recently been a need for rebalancing in the composition of growth. Despite increasing tourism revenues, strong domestic demand and high gold imports have negatively affected the current account deficit. With the expected rebalancing and normalisation of gold imports, the current account deficit will improve. Moreover, our natural gas and oil production potential will be able to meet a portion of our energy needs in the upcoming period. Foreign investor interest in Turkiye has recently increased. A significant financing opportunity will be provided from abroad. International reserves continue to improve. Monetary and fiscal policy implementations will be supported by comprehensive structural reforms in the period ahead. Turkiye is a highly attractive country for investors with its central location convenient for international trade, large domestic market, young and dynamic population, qualified and competitive labour force, liberal investment environment and completed logistics infrastructure. This potential of Türkiye creates significant opportunities."
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