Treasury and Finance Minister Mehmet Şimşek outlined Türkiye’s 2025 economic objectives, emphasizing a sharper focus on disinflation and structural reforms. Speaking at an event hosted by the Independent Industrialists and Businessmen’s Association (MÜSIAD) in Istanbul, Şimşek discussed global economic trends, Türkiye’s disinflation efforts, and the government’s strategic roadmap.
“Disinflation Has Begun”
Şimşek highlighted the progress made in reducing inflation, which fell to 44% in December 2024 from 75% in May of the same year. “Our main goals for 2025 are to accelerate disinflation to a noticeable level and expedite structural transformation,” he said.
The minister reiterated the overarching aim of achieving “sustainable high growth and a more equitable income distribution,” underlining the need for policies that support long-term economic stability.
Global Trends Favor Türkiye’s Economic Agenda
Şimşek detailed how Türkiye is positioned to benefit from global economic trends. He pointed to more stable commodity prices, anticipated growth recovery in the EU—Türkiye’s primary trading partner—and the country’s strategic geographical location as key advantages.
Global inflation trends, which continue to ease, were also noted as a supportive factor for Türkiye’s economic policies, providing favorable financial conditions in the short term.
Challenges Ahead: U.S. Policies and Global Trade Fragmentation
Şimşek cautioned against uncertainties tied to U.S. economic policies under the new administration, set to take office after Jan. 20. Changes in U.S. trade policies, he noted, could significantly impact Türkiye, particularly if China adjusts its export routes.
Long-term challenges include rising protectionism, global debt levels, aging populations, and the economic impacts of climate change. Şimşek also underscored the transformative role of technologies like artificial intelligence in shaping global economies.
“Fragmentation Is the New Normal”
Discussing the ongoing geostrategic competition between the U.S. and China, Şimşek described fragmentation in global trade as the “new normal.” He highlighted the numerous restrictions imposed over the last two years, emphasizing the need for Türkiye to adapt to these shifts.
By accelerating reforms and capitalizing on favorable global trends, Türkiye aims to strengthen its economic foundation while navigating the complexities of a changing international landscape.