President Recep Tayyip Erdogan of Türkiye announced that the government will take steps to strengthen its medium-term economic program. He outlined three main priorities: increasing public savings, prioritizing investments, and accelerating structural reforms.
In a statement after a recent Cabinet meeting, Erdogan said his economic team had prepared plans for these steps and would share them with the public soon.
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“We have three main priorities in strengthening the medium-term program,” Erdogan stated. “These are to increase public sector savings, prioritize investments, and accelerate structural reforms.”
Türkiye’s Vice President Cevdet Yilmaz elaborated that the finance ministry and budget authority are conducting studies on public sector savings, examining over 15 potential measures. Yilmaz explained that the goal is not just reducing expenditures, but making existing spending more efficient, prioritizing it, and ensuring it contributes more to the economy’s competitiveness, efficiency, and social welfare.
Erdogan also projected that economic growth will reach around 4 percent this year, bolstered by exports. He forecast the current account deficit will be 2.5 percent of GDP by the end of 2023. Official data showed the current account deficit was $3.265 billion in February, less than the $3.7 billion forecast.
Additionally, Central Bank Governor Fatih Karahan told a panel in Washington that Türkiye is on track to hit its 36 percent inflation target by the end of the year, after peaking around 75 percent in the coming months.
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