Lightning: Growth During the Disinflation Process is Progressing Moderately and Equably According to Our Predictions

The Minister of Treasury and Finance, Mehmet Şimşek, stated that growth during the disinflation process has been moderate and balanced in line with projections. Şimşek evaluated the GDP figures announced today by the Turkish Statistical Institute (TÜİK). He stated, "The Turkish economy grew by 2.1% year-on-year in the third quarter of 2024. Thus, growth in the first three quarters was 3.2% year-on-year. National income reached an annualized 1 trillion 260 billion dollars."

Şimşek continued: "Annual growth continues in sectors excluding industry, which accounts for approximately three-quarters of our national income. The necessary rebalancing for sustainable high growth has been achieved through our program. Domestic demand contributed 1.3 points to growth in the first three quarters, while net external demand contributed 1.9 points. The outlook in the labor market indicates that the short-term effects of the disinflation process are limited. In the third quarter, seasonally adjusted employment increased by 1 million people year-on-year, while the unemployment rate declined by 0.5 points to 8.7%.

We have made significant gains with our rule-based and predictable policies. In the disinflation process that began in June, annual inflation decreased by 26.9 points. Fiscal discipline is strengthening. The ratio of the annualized current account deficit to national income fell by 3.6 points in the third quarter compared to the same period in 2023, reducing to 0.8%. With increasing confidence in the Turkish lira and inflow of external resources, significant reserve accumulation has been achieved. Three major credit rating agencies have upgraded our country's credit rating by two notches this year.

Growth during the disinflation process is proceeding in line with our forecasts in a moderate and balanced manner. With the decrease in inflation leading to increased predictability, the recovery among our trade partners, improvements in global trade, and supportive global financial conditions, we anticipate an acceleration of economic activity from the second half of next year. We will continue to work towards sustainable, high, and inclusive growth while considering the welfare of all segments of society."