Türkiye is targeting a decrease in the annual inflation rate to below 20% next year and single-digit levels in 2026, its vice president said recently while addressing a meeting with the business community, underscoring the country is in a period of reducing uncertainties as both local and presidential elections are left behind.
Speaking at a meeting with business leaders in Istanbul late on Friday, Vice President Cevdet Yılmaz stated that uncertainty is the most important problem in the economy but Türkiye is in a period when it is reducing uncertainties to a minimum.
“Political uncertainties have been removed with the general and local elections, and we have addressed policy uncertainties with the medium-term program we are implementing,” he said.
“Therefore, we continue on our path with an understanding that ensures predictability and stability and strengthens trust,” he added.
As part of his speech, he reiterated the government aims to bring inflation down to single digits.
The data from the Turkish Statistical Institute (TurkStat) showed earlier during the week that Türkiye’s annual inflation rate was at 49.38% in September, its lowest since July 2023.
The rate eased further and fell below the central bank’s policy rate of 50%, while also marking a significant decline compared to 75.45% in May.
The vice president also touched upon the growth, saying it is “important,” recalling the words of President Recep Tayyip Erdoğan who emphasized “investment, employment, production and exports,” adding that Türkiye is a developing country and it should continue to grow.
He noted that Türkiye’s growth rate was at 5.4% on average during the last two decades.
While emphasizing that by reducing inflation “you strengthen the stability environment, increase predictability and improve the investment environment,” the vice president underscored the importance of achieving sustainable growth and striking the balance between the two.
He also recalled that the Turkish economy continued to expand for 14 years, adding that it has now come to “a different place” as he recalled that the national income exceeded $1 trillion for the first time last year.
Türkiye’s economic growth is continuing, he added, saying that the size of the economy is forecast to exceed $1.3 trillion at the end of the year in nominal terms, while the per capita income level would reach around $15,000 for the first time.
Furthermore, emphasizing that the current account deficit was close to $60 billion in the middle of last year, he said it is currently below $20 billion.
Yılmaz also noted that there was a significant decline in the country’s risk premium and reserves of the central bank reached a historical record as of Sept. 27, with gross reserves amounting to $157.4 billion.
