Minister of Finance and Finance Mehmet Şimşek said they have resolved many concerns in the economy. Şimşek said, “The main issue now is that structural transformation will make all these benefits permanent. I am very optimistic about this.”
Minister of Finance and Finance Mehmet Şimşek, drawing attention to the recent achievements of the Turkish economy, which has a size of $1.6 trillion, said: “The main issue now is the structural transformation that will make all these gains permanent. Our honorable President has declared 2026 as the year of 'structural reform' and I am very optimistic about this.”
Şimşek spoke at a panel titled “Shockwaves and Safety Nets: Rethinking Trade in the Age of Disruption” at Doha Forum 2025, where Anadolu Agency (AA) is the Global Communications Partner.
Reminding that the Turkish economy's budget deficit has fallen to 3% over the past 2.5 years and the debt-to-Gross Domestic Product (GDP) ratio has fallen to 24%, Şimşek said, “The current account deficit has largely disappeared. Our total reserves have increased by $120 billion over the past 2.5 years and exchange-protected deposits have decreased by $140 billion.”
“Inflation will drop to single digits”
Şimşek stated that economic growth in Türkiye was at 5.5% in the past 25 years, but today it is about 3-4%, and continued his speech as follows:
“This growth rate is modest but manageable. Unemployment is also in the single digits. The biggest problem is still inflation. Inflation has come down from an average of 70% to 31% and will go down to single digits. So we have addressed many concerns. Now, the main issue is the structural transformation that will make all these gains permanent. Our president has declared 2026 as the year of ‘structural reform’ and I am very optimistic about this.”
“WE WANT TO SIGN A FREE TRADE AGREEMENT WITH THE GULF”
Referring to changing trade policies around the world, Şimşek emphasized that about 80-85% of Türkiye's foreign trade operates within a rules-based framework, while 62% of exports are directed to countries with free trade agreements.
Şimşek emphasized that Türkiye is among the world's top 20 countries in service exports and that it wants to maintain a surplus in the service sector as a tourist destination.
In this context, Şimşek stated that Türkiye aims to become a regional digital services export hub and said:
“We prefer rules-based trade and therefore want to conclude a free trade agreement with the Gulf Cooperation Council countries. If there is fragmentation in global trade, we will focus on regional integration as an antidote to this problem. Therefore, we are trying to convince our regional partners to invest in a new development road project connecting the Persian Gulf with high-speed rail and highways. Therefore, we can connect connecting the region to Beijing and London because we have the infrastructure, so connectivity, regional integration, industrial policy and service exports go hand in hand.”
“WE ARE CONCERNED ABOUT THE INDIRECT IMPACT OF TARIFFS”
Regarding US tariffs and trade tensions, Şimşek said that the indirect impact of the US-China tariff war poses significant risks and changes in Asia's trade roadmap.
“We are more concerned about the indirect effects of tariffs and barriers beyond tariffs than we are about tariffs.” Şimşek emphasized that they maintain constructive dialogue with their Chinese counterparts.
Emphasizing that no country can be “completely immune” to such trade developments, Şimşek said, “The indirect impacts are much more obvious for economies like Türkiye, because we are the 14th largest manufacturing base in the world. The geography of production is changing, especially in labour-intensive sectors. We are focused on how we can support the segments affected by this transformation. Do Developing logistics investments, smart financial policies and rapid solutions against those disruptions is critical.”
Emphasizing increased productivity and efficient use of labor as the key to long-term prosperity, Şimşek said, “Demographics are no longer in favor of the global economy in terms of workforce, many countries still face high debt. So the most realistic way left is to increase productivity. This requires directing resources to more productive sectors and technologies.”
