Minister Şimşek Evaluates Today's Announced Growth Figures
Minister of Treasury and Finance Mehmet Şimşek announced that Turkey is growing moderately and balanced in line with predictions during its disinflation process. Evaluating the Gross Domestic Product (GDP) data shared by the Turkish Statistical Institute (TÜİK), Şimşek stated that a year-on-year growth of 2.1% was recorded in the third quarter of 2024.
Şimşek expressed that the Turkish economy grew by 3.2% year-on-year in the first three quarters, announcing that the national income reached an annualized $1 trillion and 260 billion. He emphasized that these developments are significant for achieving the necessary rebalancing for sustainable high growth.
Growth continues outside the industrial sector Şimşek revealed that growth continues in sectors outside of industry, which constitutes approximately three-quarters of the national income, indicating that their programs support this growth. In the first three quarters, domestic demand contributed 1.3 percentage points to growth, while net external demand contributed 1.9 percentage points.
Evaluating the positive developments in the labor market, Minister Şimşek stated that seasonally adjusted employment increased by 1 million people annually, and the unemployment rate decreased by 0.5 percentage points to 8.7%. This revealed that the short-term effects of the disinflation process are limited.
Inflation is decreasing, fiscal discipline is strengthening Şimşek emphasized that Turkey has made significant gains with rule-based and predictable policies, noting that annual inflation decreased by 26.9 percentage points during the disinflation process that began in June. He announced that fiscal discipline has strengthened and the ratio of the current account deficit to national income fell by 3.6 percentage points to 0.8% compared to 2023.
Expressing that increased confidence in the Turkish lira and incoming foreign resources have positively impacted reserve accumulation, the Minister stated that three major credit rating agencies raised the country's credit rating by two notches this year. He indicated that these developments reflect an increased confidence in the Turkish economy.
Positive expectations for next year Minister Şimşek noted that the moderately and balanced growth trajectory, which aligns with forecasts, increases predictability alongside falling inflation. He stated that the recovery in trading partners, improvements in global trade, and supportive global financial conditions will contribute to an acceleration of economic activity starting from the second half of next year.
He also highlighted that they will continue their efforts towards sustainable, high, and inclusive growth targets, considering the welfare of all segments of society, stating that they are making determined steps towards sustainable economic growth. He painted an optimistic picture for the future of the Turkish economy.