Şimşek: Positive effects of economic measures start to show
Foreseeing a growth rate of around 4.5 percent for the year 2023, despite the complex global financial environment, Minister of Treasury and Finance Mehmet Şimşek underscored the favorable outcomes stemming from recent policy measures on Turkey's economic prospects.
- Economy
- Agencies and A News
- Published Date: 12:26 | 17 August 2023
- Modified Date: 12:27 | 17 August 2023
Anticipating a growth rate of approximately 4.5 percent for the year 2023, despite the challenging global financial landscape, Minister of Treasury and Finance, Mehmet Şimşek, emphasized the positive impacts of recent policy measures on Türkiye's economic expectations.
Speaking at the General Assembly Meeting of the Banks Association of Türkiye, Şimşek outlined key points:
"Our economic policies are founded on principles of transparency, predictability, and alignment with international norms. We structure our policies within this framework.
It's evident that there's a need for rebalancing within our economy. Our policy framework is guided by this necessity.
Our immediate focus is ensuring stability and predictability.
The reduction in political uncertainty and the measures implemented post-election are now generating positive effects on Türkiye's economic outlook. The country's risk premium has dropped from 700 to 400 basis points.
International credit rating agencies are gradually adopting a more favorable stance toward Türkiye, and a credit rating agency has even upgraded the outlook for our banking sector from negative to stable.
The era of private banks concentrating solely on consumer loans has concluded. It's our primary duty to support the real sector.
Enabling the real sector's access to financing is pivotal for maintaining sustainable high growth.
We will further enhance financial stability in the near future, continuing with policies that streamline and fortify. We will ensure that the offerings of the Central Bank of the Republic of Türkiye align with participatory finance.
We will take fresh strides in advancing participation-based insurance.
Despite the prevailing challenges in the global financial environment, we project a growth rate of approximately 4.5 percent in 2023.
We are likely nearing the conclusion of monetary tightening. We are in proximity. In other words, the likelihood of easing measures has heightened, likely from the latter half of 2024."