Mehmet Şimşek reaffirms commitment to disinflation and fiscal discipline

At the Istanbul Economy Forum, Turkish Treasury and Finance Minister Mehmet Şimşek stated that while the disinflation process has slowed due to global conflicts and energy supply shocks, the government remains committed to price stability and fiscal discipline. Şimşek highlighted that Türkiye maintains a relatively low public debt-to-GDP ratio of 22 percent and a budget deficit below 3 percent, providing a fiscal buffer against external shocks.

Central Bank Governor Fatih Karahan noted that the global economy is undergoing a comprehensive shift where geopolitical developments are increasingly shaping energy and trade flows. Egyptian Finance Minister Ahmed Kouchouk also praised Türkiye’s low public debt levels, noting they provide a significant advantage for maintaining macroeconomic stability.

However, the economic outlook faces domestic scrutiny. Political figures and labor representatives have raised concerns regarding the gap between official inflation statistics and the actual cost of living experienced by retirees and low-income earners. Additionally, parliamentary inquiries have questioned the upward revision of inflation targets in the Medium-Term Program and its impact on the purchasing power of civil servants and pensioners.