Minister Şimşek on inflation target: 'Sustainable high growth'

Treasury and Finance Minister Mehmet Şimşek spoke at a session titled "Building Competitive Economies", held as part of the Qatar Economic Forum in Doha, the capital of Qatar.

Emphasizing that the government is determined to take all necessary steps to ensure price stability, Şimşek said, "We have a robust program to reduce inflation. Fiscal policy will also support the disinflation process."

"STRUCTURAL REFORMS ARE WHAT MATTERS"

Pointing out that fiscal policy will be tightened and income policies will be more supportive in the fight against inflation, Şimşek stated, "But what matters are structural reforms. We will increase productivity and competitiveness through structural reforms."

Minister Şimşek underscored that investments will be directed toward more productive areas and that some expenditures will be cut to create more fiscal space.

Minister Şimşek noted that the tightening in the fiscal stance will help reduce inflation, adding, "We have sound policies and a direction toward structural transformation. We believe that the combination of the two will help gain the confidence of investors."

Emphasizing that low inflation is necessary for sustainable high growth, Şimşek stated, "We are pursuing sustainable high growth. Price stability really comes into play here. This is definitely at the core of this program, and we are determined; we will achieve this. Because it is very difficult to operate and attract foreign direct investment inflows in a high-inflation environment."

Şimşek stated that high productivity is required for competitiveness, adding, "However, this requires sound policies, and price stability forms the foundation of this."

DISINFLATION STATEMENT

Şimşek said, "It will be possible to see the effects of policies aimed at disinflation as of this summer. Now is the time to take action for disinflation."

Pointing out that they have significantly eased Turkey's macroprudential measures, Şimşek stated, "A well-functioning market is the key to competitiveness and productivity. And that is exactly what we are doing."

Reminding that Turkey's gross domestic product (GDP) is 1.1 trillion dollars, Şimşek explained that the economy has grown by an average of 5.5 percent over the last 20 years.

News Source: 12punto