Date set for new economic roadmap: 'A 3-legged strategy'

Vice President Cevdet Yılmaz stated that they will announce the Medium-Term Program on Thursday, September 5.

Highlights from Cevdet Yılmaz's remarks are as follows:

"Growth figures have been announced; the Turkish economy recorded a growth of 2.5 points in the second quarter. While announcing the 2nd quarter, it also revised the growth data for the 1st quarter and the year 2023. This is a practice done worldwide with the final data received. Statistical institutions can make certain revisions with the latest data. First of all, as you know, our growth in 2023 was 4.5. TÜİK (Turkish Statistical Institute) determined and announced this as 5.1 with its latest revisions.

In other words, our base has grown, and the effect of that on this year's growth is slightly negative. Of course, when the base grows, you need to achieve a growth rate on top of that. With the effect of this, it also revised our first-quarter growth. It pulled it down from 5.7 to 5.3; when you consider the second quarter's 2.5 growth and the average for the first 6 months, we recorded a growth of 3.8."

"OUR MAIN FRAMEWORK IS TO LOWER INFLATION"

In response to the question, "When will you announce the MTP? Is the calendar set?", Yılmaz gave the following answer:

"We have been working on the updated MTP for a long time. On one hand, our institutions are carrying out technical work; as you know, our Strategy and Budget Presidency, which reports to our President, is working intensively on these issues. Our Ministry of Treasury and Finance has also put in intensive effort. All other relevant ministries have worked, but we did not settle for technical work alone. We also carried out a consultation process with all relevant segments with a participatory approach.

Just like we did last year, I personally held meetings this year with the working segments, unions, employer segments, tradesmen, the agricultural sector, and all other segments. Our ministers each held these consultations in their own fields, and we will have renewed this updated MTP according to the results of both technical work and consultations. Our basic framework here does not change. Our main framework is clear: to lower inflation. To heal the wounds of the earthquake, and while doing these, to protect our growth and employment.

"THREE BASIC UPDATES ARE IN QUESTION"

On one hand, to increase permanent social welfare and to reflect the results of all these efforts to our citizens and our people. Within this framework, there are three basic updates in question.

First, we will update our macroeconomic values, from growth to national income, from exports to tourism, our macro figures. Inflation figures are also included in this. On the other hand, the Medium-Term Program also forms the basis of the budget. The Medium-Term Program shapes the basic framework of the budget proposal that our government will send to our Parliament. Therefore, the basic magnitudes will be expressed here and shared with the public.

"YOU WILL SEE IT IN OUR MEDIUM-TERM PROGRAM"

Our budget magnitudes, what our budget deficit will be, our expenditures, our revenues—all these figures will be included in our Medium-Term Program. The 3rd dimension is structural reforms. Regarding structural reforms, there are things we have done from last year to today.

There are things that have not been done yet. There are issues we are working on. Here, there are also the results of our consultations regarding the point we have reached. We will reflect these as well; in other words, we are acting with a 3-legged strategy. You will see monetary policies, fiscal policies, and structural reforms in our updated Medium-Term Program.

As for the calendar, I can state this: we have made a plan for the morning hours of next Thursday. Of course, our President needs to sign it and it needs to be published in the Official Gazette. Following this process, our plan is to share our updated Medium-Term Program with our society and the public on Thursday, September 5."

News Source: AA