Turkish President Recep Tayyip Erdogan confirmed that his country had made progress in its efforts to control inflation rates, but he considered it insufficient and had not yet reached the required level, according to what was reported by the Turkish newspaper Daily Sabah.
Erdogan said in his speech during the 51st General Assembly of the Federation of Employers in Metallurgical Industries in Istanbul, “We have achieved great progress in combating the worsening inflation,” explaining that inflation is declining, but slowly. “We need more patience, and we will soon see much better results.”
Economic infrastructure
Annual inflation rates in Turkey fell to 49.4% in September 2024, which is the first time since 2021 that the inflation rate has fallen below the central bank’s base interest rate, which currently stands at 50%.
Inflation peaked at 75% last May. Since June 2023, the Turkish Central Bank has raised the key interest rate from 8.5% to 50% as part of a broader shift towards more traditional financial policies.
Erdogan also pointed out that Türkiye, despite the challenges he described as a “ring of fire” surrounding the country, still has strong production capabilities and a solid infrastructure that helped sustain economic growth, according to the newspaper.
He also pointed out that the devastating earthquakes that struck Türkiye last year caused major economic damage estimated at about 104 billion dollars, but the country’s economic policies contributed to alleviating these effects.
New numbers and structural challenges
Erdogan also revealed that the monthly current account deficit in August reached $4.3 billion, the highest level in 5 years.
He also pointed out that the reserves of the Turkish Central Bank reached a record level of $156 billion last month, and Turkish exports exceeded $260 billion annually.
Within the framework of economic reforms, the Turkish President stressed the importance of enhancing awareness of saving in all expenses except spending related to earthquake recovery efforts. He also pointed out that the number of workers increased in the first eight months of this year by 654 thousand people, while the unemployment rate reached 8.5%.
Erdogan stressed that Türkiye will continue to adopt policies aimed at reducing unemployment rates, increasing job opportunities, and combating the informal economy.
He called for accelerating progress in implementing the structural reforms necessary to achieve sustainable economic growth.
