Cevdet Yılmaz: We are entering a period of disinflation

Vice President Cevdet Yılmaz made evaluations regarding the "economic program" in a statement on his social media account.

Stating that he congratulates the exporter companies that received awards at the 31st Ordinary General Assembly of the Turkish Exporters Assembly (TİM) and the Export Champions Award Ceremony, Yılmaz noted the following:

"Despite a period in which foreign demand has remained weak, we expect the current account deficit to fall below 2.5 percent in 2024, thanks to the high performance of our goods and services exporters. Within the framework of our Medium-Term Program and 12th Development Plan, we will continue to implement our high value-added production and export-oriented policies.

The first year of our program has been completed successfully in terms of budget and external balance. We are entering a period of disinflation on the solid foundation we established during the 'transition process'.

We have planned our monetary and fiscal policies, along with our structural reform agenda, within a holistic framework and are implementing them decisively with effective coordination. We will continue to support the disinflation process through balanced, production and export-oriented growth."

ABOUT THE DISINFLATION PROCESS

Disinflation refers to the slowing down of the rate of price increases, i.e., the inflation rate, over time. It describes the process of falling inflation experienced during the transition from high inflation to low inflation.

Disinflation refers to the decrease in the rate of price increases due to certain reasons. It is an economic program that is also widely used in our country.

Since a decrease in the rate of price increases will positively affect the purchasing power of citizens, it prevents incomes from eroding due to inflation.

HOW DOES DISINFLATION OCCUR?

The ultimate goal of disinflation is to reduce the inflation rate below a certain level. If high inflation in an economy shows a downward trend over the years, the existence of this concept can be mentioned.

For example, if an economy with an inflation rate of 20 percent in 2015 has reduced its inflation rate to figures such as 18 percent and 17 percent in 2016 and 2017, it means that disinflation is present.