Türkiye expects further economic recovery from mid-2025 as inflation trends improve: minister

ANKARA, Nov. 15 (Xinhua) — Türkiye could see a relative economic recovery starting in the second half of 2025, said Turkish Finance Minister Mehmet Simsek on Friday, citing easing inflationary pressures and improving global economic conditions.
Speaking at the budget discussions in the parliament, Simsek reaffirmed the government’s commitment to its economic program, saying that Turkish President Recep Tayyip Erdogan strongly backs the program, which remains the cornerstone of their economic strategy.
“The most significant macroeconomic imbalance in Türkiye is high inflation,” he said. “We will do whatever it takes to ensure price stability.”
“With the program we have implemented, significant progress has been made in reducing external vulnerabilities and strengthening macro-financial stability,” the Turkish minister explained.
He highlighted that the delayed effects of monetary policy adjustments are expected to become more apparent in the coming months.
The administered prices will align with inflation targets to sustain the disinflation process initiated in June after inflation peaked in May, he said.
Simsek also emphasized the importance of structural reforms, and said, “We will accelerate reforms across all sectors to enhance competitiveness and growth potential.”
The minister said that the government aimed to maintain the current account deficit below 2 percent of GDP to support additional reserve accumulation and reinforce external debt sustainability.
“Access to external financing is improving. Demand for the Turkish lira is increasing, and both reserves and macro-financial stability are strengthening,” Simsek said.
The country’s annual inflation rate declined slightly from 49.38 percent in September to 48.58 percent in October, with monthly consumer prices rising by 2.88 percent. ■