President Recep Tayyip Erdoğan continues his contacts in New York, USA, where he is attending the 81st United Nations (UN) General Assembly. Erdoğan met with leading figures of the Turkish business world in New York and evaluated the progress made by the Turkish economy in recent times, as well as the gains achieved and future goals.
In his speech, President Erdoğan said, "Distinguished representatives of the Turkish-American business world, esteemed guests, I greet you all with my most heartfelt feelings and affection. I would like to thank the American Chamber of Commerce, our Business Councils, and DEİK for their contributions to this year's meeting. Let me first answer the question you are most curious about: What stage is our economic program at, and to what extent have we progressed in our goals? The program we are implementing has four main components: price stability, fiscal discipline, sustainable external balance, and structural transformation. Despite the wars that have broken out in our region over the last year, we have made visible progress in all four of these principles," he stated.
"Rental inflation has fallen to its lowest level in the last 4 years"
President Erdoğan said, "Core goods inflation has fallen to its lowest level since 2020, and rental inflation to its lowest level in the last 4 years. If it were not for the direct and indirect effects of the war, we would have closed 2026 with inflation in the low 20s. Under current conditions, we anticipate finishing the year at around 28 percent. We believe that 2027 will be a stronger year in terms of disinflation. We are in a very good position regarding fiscal discipline. We have implemented tax cuts to protect our citizens and the real sector from rising fuel prices. Because of this, despite the resulting tax loss, we have performed beyond our target in the budget. We will close the year with a budget deficit of 3.1 percent of national income. To make a comparison, this ratio approaches an average of 6 percent in similar countries. As for public debt, while the ratio of public debt to national income in developing countries is on average 78 percent, it is below 22 percent in Turkey," he said.
"We are accelerating infrastructure investments that will support digital transformation"
Stating that "despite the rise in energy prices, we have managed to keep our current account deficit and external debt indicators below the averages of the last 20 years in terms of external balance," President Erdoğan said, "All of these show the distance we have covered in the program. However, the real issue is efficiency. For this reason, we have placed structural transformation at the center of our program. We are ambitious about green transformation. We are hosting COP 31 in Antalya this November. We are implementing targeted and selective policies to increase value-added in industry. We are accelerating infrastructure investments that will strengthen us in artificial intelligence and support digital transformation," he said.
President Erdoğan stated, "In the field of health, we are providing strong incentives to investors with the industrial zone we are establishing in Ankara. We are moving forward with determination in line with the goal of a 'Terror-Free Turkey' to mobilize our regional potential. In short, Turkey is an economy that does not merely react to shocks, but one that has gained resilience against them and invests in durability, efficiency, and economic security."
"As we approach the centenary of our diplomatic relations, our strategic cooperation with America is developing in every field. We desire to reflect the harmony we have achieved in our political relations into our economic and commercial relations as well," Erdoğan said, adding, "In fact, we have very serious potential in this area. Recently, through our joint efforts, we have concluded important agreements in energy, aviation, and other critical sectors. America is currently our number one LNG supplier, making us one of the leading countries in Europe that prefers American resources. We aim to expand this cooperation to all areas of energy, including nuclear," he said.
President Erdoğan said, "On the other hand, it is not correct to read our economic relations with America solely through trade figures. I am of the opinion that there is a need for a strategic economic cooperation model with Turkey at a time when the global economic order is being reconfigured. With the conflicts left behind, five major transformations will accelerate in our region," he said.
"Supply chains are being repositioned"
President Erdoğan noted the following:
"First, supply chains are being repositioned. Companies are no longer looking for just the cheapest place, but the most reliable one. Turkey is the natural address for this search with its strong industrial infrastructure linked to a wide free trade area that has a customs union with the European Union. Second, energy routes are being redrawn. From Baku-Tbilisi-Ceyhan to TANAP, Turkey is the most reliable corridor for uninterrupted energy flow. Third, trade corridors are changing. The Middle Corridor, which connects Asia to Europe, and the Development Road, which connects the Gulf to Europe, intersect in Turkey. Fourth, a reconstruction period is beginning. Roads, ports, power plants, housing, and factories will be rebuilt in our region. The Turkish contracting sector is the most prepared actor for this process with its experience in working in difficult geographies. Fifth, defense and advanced technology. Our defense industry, which produces to NATO standards, has reached a capacity that will contribute to the supply security of our allies."
President Erdoğan said, "To ensure our country benefits from these transformation opportunities, we implemented one of the world's most competitive investment packages in April. Our foreign missions, especially our investment and finance offices in Washington and New York, are always ready to support you. In concluding my remarks, I would like to thank you once again for your efforts to strengthen Turkish-American relations," he said.
Following his speech, President Erdoğan listened to the views of the business people at the meeting.
News Source: 12punto
