Şimşek spoke at the 16th Bosphorus Summit held in Istanbul under the theme “Global Challenges: Adapting to New Realities”, organized by the International Cooperation Platform. He noted that although global uncertainty has decreased recently, it still remains high.
The Global Economy in a Low-Growth Trap
Minister Şimşek stated that global economic uncertainty persists due to high debt levels, population aging, uneven technological progress, climate change, and regional conflicts.
He reminded that global growth has stagnated around 3% in recent years, compared with 4.5–5% before the global financial crisis. “Low growth has now become the new normal globally,” he said.
“Türkiye Has Outperformed Emerging Economies”
Şimşek highlighted that Türkiye has grown at an average rate of 5.5% over the past 22 years. “When compared with emerging economies excluding China and India, Türkiye stands out clearly. Even when these two countries are included, Türkiye’s real GDP growth remains impressive,” he noted.
Focus on Regional Integration
Şimşek said that in terms of international investment, countries that rely on domestic demand and service exports are coming to the forefront — and Türkiye is well positioned in this regard.
“Our service exports will post a surplus of USD 65 billion this year. Despite rising protectionism, Türkiye is relatively less affected because most of our exports go to countries with which we have free trade agreements,” he said.
Recalling that Türkiye has free trade agreements with 54 countries, Şimşek added: “Our exports to nearby and friendly countries account for more than 80% of total exports. This makes us less vulnerable.”
“We Prioritize Productivity-Enhancing Infrastructure Investments”
Şimşek emphasized that Türkiye has achieved significant momentum in service exports in recent years, citing major progress in tourism, construction, healthcare, education, TV and gaming exports, transportation, and logistics.
He noted that Türkiye’s debt-to-GDP ratio stands at 89%, well below the global average:“This means our fiscal space is strong to cope with global challenges.” “We prioritize infrastructure investments that increase productivity. We are connecting all organized industrial zones and industrial districts to ports by rail. This will boost our competitiveness while reducing our carbon footprint,” he said.
Şimşek also stated that Türkiye is ahead of other developing countries in artificial intelligence, but needs to boost infrastructure investments to catch up with advanced economies.
Defense Industry Exports Exceed USD 8 Billion
Touching on projects in green transformation, renewable energy, and mining, Şimşek emphasized Türkiye currently manages around 1,400 active defense industry projects. “Our defense industry exports are accelerating. As of October, annual exports exceeded USD 8 billion, while new orders total more than USD 12 billion,” he stated.
Şimşek emphasized that past embargoes had helped Türkiye build a robust defense industry infrastructure: “Today, the number of defense companies in Türkiye is close to the total number across the European Union,” he added.
“2026 Will Be the Year of Structural Transformation”
The Minister recalled that Türkiye’s economic program consists of three stages:
The first phase established macroeconomic stability, while the second phase focuses on correcting imbalances. “The third phase, namely the year 2026, will mark the acceleration of structural transformation and the achievement of price stability. Our program is working we are progressing patiently and decisively,” he stated.
Şimşek noted that inflation has dropped significantly: “Inflation has fallen from 65% to around 32%. Over the next three years, we will support disinflation and bring inflation back to single digits.”
“Türkiye Is Moving Toward Investment-Grade Rating”
Şimşek underlined that external borrowing needs have decreased and the current account deficit has narrowed: “Concerns about the Turkish lira have become unfounded. Türkiye’s access to international markets has strengthened,” he said.
Highlighting the increase in reserves and a 460-basis-point drop in Türkiye’s credit risk premium, he added:“Now both Turkish companies and the Treasury can borrow at lower costs.”
“Türkiye is moving toward investment-grade credit status. We have received multiple upgrades in the past two years,” he said, emphasizing that the program’s outcomes are also being recognized internationally.
“We Can Turn Global Challenges into Opportunities”
Concluding his remarks, Şimşek drew attention to the transformation of the global economic system: “There are major global challenges, but we know how to turn them into opportunities. We have strong potential in regional trade, service exports, and green transformation. The Turkish business community should also view these issues from this perspective. We may not decide the future of a rules-based system, but by adapting to it, we can make a difference.”
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