Agencies
President Recep Tayyip Erdogan said Turkey had made progress in its efforts to take inflation under control, but still acknowledged that the decline is not yet sufficient.
“We have made significant progress in the fight against inflation. Inflation is slowly being brought under control, but the decline is not enough. We will need a little more patience, and soon we will see much better results,” Erdogan said.
He was speaking at the 51st General Assembly of the Turkish Employers’ Association of Metal Industries (MESS) in Istanbul.
Turkey’s annual inflation dropped to 49.4% in September – below the central bank’s key policy rate for the first time since 2021 – from a peak of 75% in May.
Since June 2023, the central bank has hiked its key interest rate to 50% from 8.5% as part of a broader monetary and fiscal shift to more orthodox policies.
Despite Turkey being surrounded by what Erdogan described as a “ring of fire,” he emphasized that the country’s production capabilities and strong infrastructure have helped it continue to grow.
He also highlighted the impact of last year’s devastating earthquakes, which added an estimated $104 billion in costs, but noted the positive effects of Turkey’s economic policies.
“In August, we recorded the highest monthly current account deficit in five years, amounting to $4.3 billion,” he said.
Erdogan also said now is the time to make progress on structural reforms.
He stressed that the country is prioritizing saving awareness in all expenditures except for earthquake spending.
Last year, twin devastating tremors hit 11 provinces in Turkey, causing thousands of deaths as well as huge economic losses.
Erdogan also said the Central Bank of the Republic of Turkey’s (CBRT) reserves hit a record level of $156 billion last month and the country’s exports exceeded $260 billion annually.
