We aren't saying it, Yeni Şafak is: 'Şimşek's inflation fight program has collapsed'

Yeni Şafak, known for its proximity to the government, continues to draw attention with its critical tone toward economic management in recent times. The newspaper's headline today also targeted Treasury and Finance Minister Mehmet Şimşek and the economic policies being implemented.

In its report published under the headline "Şimşek's inflation fight program has collapsed," the newspaper emphasized the gap between inflation targets and actual outcomes.

GAP BETWEEN INFLATION TARGET AND EXPECTATIONS

The report stated that the 8.5 percent inflation target announced by Şimşek for 2026 is expected to remain at the 29 percent level according to current forecasts. It was noted that this situation indicates a serious deviation between the target and the actual result.

CRITICISM OF HIGH INTEREST RATES

The newspaper's report also argued that the high-interest-rate policy being implemented is suppressing production and investment. Despite this, it was argued that the expected results in the fight against inflation have not been achieved.

While it was claimed that the economic program is creating negative effects on the real sector, assessments were included suggesting that the program is increasingly drifting away from its targets.

Here are some highlights from Yeni Şafak's report on Şimşek today:

"A huge gap has formed between the inflation target set in the first Medium-Term Program announced following the policy change in the economy in June 2023 and the actual figures. Şimşek promised to reduce 2026 inflation to 8.5%. However, 2026 inflation will be 29% at best. In other words, there was a 350 percent deviation between the target and the actual result.

"INTEREST RATES WERE RAISED FROM 8.5% TO 50%"

According to the Medium-Term Program announced in September 2023, inflation was to be reduced to 65 percent in 2023, 33 percent in 2024, 15 percent in 2025, and 8.5 percent in 2026. To meet these targets, interest rates were raised from 8.5 percent to 50 percent."

"THOUSANDS OF FACTORIES HAVE CLOSED AND CONTINUE TO CLOSE"

The high-interest-rate policy pursued by Mehmet Şimşek is dealing a major blow to the real sector while failing to lower inflation. Thousands of firms have declared bankruptcy, and thousands of factories have either closed or are producing at a loss. As the profitability of the manufacturing sector falls rapidly, funds that would go into investment are being deposited into interest-bearing accounts due to high returns."

News Source: 12punto