Türkiye Focuses on Economic Stability Amid Global Challenges

Türkiye is reaffirming its commitment to economic growth despite global uncertainty. President Recep Tayyip Erdoğan spoke at the 28th General Assembly of the Independent Industrialists and Businessmen’s Association (MÜSIAD) on Friday, highlighting the government’s progress in strengthening the country’s economy. Erdoğan emphasized that the government’s stability and reform program has been key to reducing inflation and improving Türkiye’s economic resilience. He reassured citizens that the government has a clear plan to navigate the ongoing global challenges.

Economic Stability Amid Global Disruptions

President Erdoğan noted that Türkiye is navigating through a time of global “painful and historical changes,” emphasizing the risks caused by global trade tensions, including the impact of customs tariffs. Reflecting on the lingering effects of the COVID-19 pandemic, Erdoğan pointed out that protectionist trade policies continue to rise, further complicating the global economic outlook.

The president acknowledged that inflation reached unprecedented highs during the pandemic, marking the highest levels in nearly 70 years. However, he stressed that inflation fears have become a central factor in shaping the economic policies of many nations, including developed countries. Erdoğan believes that these global uncertainties will persist, driven by geopolitical and trade tensions.

Türkiye’s Strategic Response to Global Challenges

Despite these challenges, Erdoğan expressed confidence that Türkiye is prepared to weather the storm. He emphasized that the government remains calm and rational in decision-making, despite the daily crises that arise.

The president further explained that Türkiye has strengthened its economy by implementing a stability and reform program, especially after the 2023 elections. This program has focused on reducing external vulnerabilities and boosting resilience to economic shocks. Erdoğan highlighted that these efforts have created a solid foundation for long-term, sustainable growth.

Inflation Control and Economic Growth

A key focus of the government’s economic program has been to reduce the cost of living for citizens. Erdoğan proudly pointed out that inflation in Türkiye has been declining for 11 consecutive months. As of April, annual inflation dropped to 37.9%, the lowest level in 40 months. He is hopeful that this trend will continue.

The decline in inflation marks a significant improvement from the peak of over 75% in May 2024. This reduction follows aggressive monetary tightening by the central bank, which began in December and saw a series of interest rate cuts. However, the central bank reversed course in April with a surprise interest rate hike to 46%, signaling a renewed commitment to controlling inflation and stabilizing the economy.

Maintaining Financial Discipline

Erdoğan emphasized that the government will not deviate from its commitment to financial discipline. He reiterated that, despite the economic challenges, Türkiye is maintaining its spending discipline and savings measures. Even as the government works to recover from the impact of recent natural disasters, including the earthquake, it remains focused on fiscal responsibility.

He also mentioned that Türkiye’s current account deficit is steadily decreasing. According to Erdoğan, the country is showing a surplus when gold exports are excluded, which is a sign of improving financial health.

Oil Prices and Employment

One of the positive factors for Türkiye’s economy is the decline in global oil prices. Erdoğan stated that this trend is helping to reduce both inflation and the country’s external deficit. He also highlighted that Türkiye is seeing record employment levels. The unemployment rate dropped to 7.9% in March, with a particularly low rate of 6.5% among men. However, the rate for women remains higher at 10.6%.

While temporary slowdowns in domestic and foreign demand are possible, Erdoğan acknowledged that these fluctuations are natural. He reassured citizens that the government is focused on long-term, inclusive growth, beyond short-term disruptions.

Economic Resilience Amid Global Uncertainty

Despite the challenges, Erdoğan pointed out that Türkiye’s economy has proven its resilience. He stated that Türkiye has successfully weathered the fluctuations in the last one and a half months, citing the country’s ability to withstand external shocks, manipulative attacks, and sabotage attempts.

Erdoğan concluded by expressing optimism for Türkiye’s future, stating that as global uncertainties ease, the country will continue to stand out positively among developing economies.