Mehmet Şimşek makes an 'İmamoğlu' admission! 'We went through an intense period'

Treasury and Finance Minister Mehmet Şimşek, who is frequently targeted by the pro-government newspaper Yeni Şafak, made statements regarding the economic outlook during a program he attended.

Speaking on Haber 7, Şimşek acknowledged the economic developments in March—when operations targeting the İBB and Ekrem İmamoğlu began—as a 'shock' and claimed that the Turkish economy has entered a recovery process.

"We have gone through an intense period in terms of both domestic and foreign shocks over the last few months. We have returned to a positive cycle," said Şimşek, continuing as follows: 

"I think we managed it well. Because financial indicators have returned to pre-shock levels. Our reserves were over 170 billion dollars in mid-March. Now they have reached those levels again. Therefore, we have returned to the levels before these shocks began. There is a recovery of more than two-thirds in net reserves.

We are maintaining spending discipline in the budget. The probability of a limited deviation from the target is currently high. When we look at the big picture, we think we are managing it well." 

Recalling the first days of the operations targeting İmamoğlu without naming him, Şimşek said, "It was a difficult period in terms of domestic politics due to the developments in March."

"WE TOOK THE NECESSARY DOSES"

Şimşek continued:

"There is also a war in our region; we are not a party to the war, but you are affected when there is a war in your region. Oil prices, cancelled flights. Oil prices have now come back down. These are all developments that affect us. We acted according to international norms. We did not panic; we took the necessary doses at the right time. The program has proven its worth. We faced multiple shocks. The current account deficit is under control. Growth in the real economy continues. When you look at the big picture, I am of the opinion that it is being managed well. We experienced major shocks and the figures have returned to pre-shock levels."

"IF IT WEREN'T FOR FROST AND DROUGHT..."

Minister Şimşek said the following regarding the inflation forecast: 

"The Central Bank is announcing a forecast range. 24 percent is the midpoint. When you look at it by saying 29 percent is the upper point, we believe we will be in the mid-to-upper forecast range. We foresee a figure below 29 percent. There was a 2-point deviation last year. The essence of our program is the fight against the cost of living. Our goal is to increase the purchasing power of citizens.

Inflation was over 64 in 2022. It was around 65 in 2023. Last year was the first year of the disinflation plan. We envisaged a one-year transition. We said, 'We will rebuild policies for 1 year.' We finished last year with 44 percent inflation. As of now, it is 35 percent. We aim to finish the end of the year with a figure in the 20s, below 30 percent. Inflation is a general figure; I think one should look at the details. Food inflation has now fallen to 30 percent. This is despite the agricultural frost and drought. If it weren't for the agricultural frost and drought, food inflation would have been below 30 in June. Inflation will fall even further."