Question about Ekrem İmamoğlu for Mehmet Şimşek in Qatar

Treasury and Finance Minister Mehmet Şimşek attended the "Global Growth and Geoeconomics" session at the Qatar Economic Forum held in Doha, where the future of the global economy was discussed. Saudi Arabia's Minister of Economy and Planning Faisal Al-Ibrahim and Qatar's Minister of Finance Ali bin Ahmed Al-Kuwari also participated in the forum.

In the session moderated by Stephanie Flanders from Bloomberg, the outlook of the Turkish economy, investor perception, monetary policy, and the impact of recent political developments were discussed.

IMAMOĞLU'S ARREST AND THE MARKET REACTION

Financial turmoil following the arrest of Istanbul Metropolitan Municipality Mayor and presidential candidate Ekrem İmamoğlu on March 19 was also brought up during the session. Moderator Flanders stated that the Turkish Lira experienced a sharp depreciation following İmamoğlu's arrest and that investors were seriously affected by this development.

Flanders asked Şimşek, "The depreciation of the TL and the subsequent high-interest rate environment still make investors uneasy. What should be done for long-term investments to turn back to Turkey?"

"THE ECONOMIC PROGRAM IS ON TRACK"

Minister Şimşek said, "Our economic program is working as planned and has begun to show its effect." Acknowledging that inflation is still high, Şimşek used the expression, "However, we have seen the lowest level of the last 40 months."

Şimşek stated that there has been a recovery in foreign exchange reserves, a 90-basis-point decline in the credit risk premium (CDS), and a general improvement in investor perception.

"THE PROGRAM DOES NOT RELY ON HOT MONEY"

Emphasizing that the economic program focuses on structural transformation, Şimşek argued that it does not rely on short-term capital flows (hot money). He said that foreign direct investments have increased over the last 12 months.

Stating that Turkey is attractive to global investors with its strong infrastructure and qualified workforce, Şimşek said, "Countries that are resilient to disruptions in global trade and can benefit from regional prosperity will be at the forefront. Turkey is one of these candidates."

Acknowledging that the economic program has caused temporary difficulties in some sectors, Şimşek stated, "No treatment is without side effects. However, we are creating support mechanisms to reduce these side effects. We increased support for labor-intensive export sectors at the beginning of this year in particular."

Stating that their main goal is to permanently reduce inflation, Şimşek said that they will continue the program with determination in this direction.

EVALUATED THE TURKISH ECONOMY  

Touching on the general outlook of the Turkish economy, Şimşek stated that the manufacturing industry has been affected by the global slowdown, and that the stagnation in Europe, in particular, is challenging production.

"Manufacturing accounts for only 23 percent of GDP. However, the service sector remains strong and continues to generate employment. Approximately 1 million people were provided with new employment last year," said Şimşek, also emphasizing that the ratio of household debt to national income is below 10 percent.

SYRIA AND PKK STATEMENT

During the session, Şimşek was also asked about his assessment regarding the US signal to lift Syria sanctions and the PKK's decision to lay down arms.

"A stable, peaceful, and prosperous Syria would be a great gain for both Turkey and the region," said Şimşek, adding that the end of conflicts would positively affect regional economies.

Pointing to the importance of the PKK's step toward laying down arms, Şimşek said, "We have spent approximately 1.8 trillion dollars in the 50-year fight against terrorism. It is a great opportunity for Turkey that these resources are now directed toward development and productive areas."

TURKEY PREPARES FOR "LONG-TERM PROSPERITY"

At the end of his speech, Şimşek said that the ultimate goal of the economic program is long-term prosperity and sustainable growth.