Minister Şimşek made the following remarks on his official X account.
A year in review:
The program is working, the progress we have achieved in our policy priorities shows that we are on the right track.
Fiscal discipline
-The budget deficit is high, but the deficit to GDP ratio excluding earthquake expenditures was 1.6 percent in 2023.
-We will continue our fiscal policy focused on spending discipline, savings, tax justice and efficiency. We are determined to reduce the deficit below 5 percent in 2024 and below 3 percent in 2025.
Stabilization in growth
-The contribution of net external demand to growth turned positive by 1.6 points after 5 quarters.
-We are addressing macroeconomic imbalances caused by strong domestic demand.
Sustainable current account deficit
-The annual current account deficit fell by 26 billion dollars.
-We are accelerating the structural transformation towards a current account deficit target below 2.5 percent for the sustainability of external debt.
-We will ensure permanent reserve accumulation with the decreasing need for external financing as a result of the shrinking deficit.
Access to external financing
-Banks' external debt rollover ratio rose from 96 percent to 153 percent, while the real sector's ratio rose from 73 percent to 118 percent.
-Since the beginning of the year, banks have accessed 4.1 billion dollars of subordinated external funding.
Our important target is to increase long-term, subordinated external financing.
Reserve Savings
-Central Bank gross reserves increased by 44 billion USD and exceeded 142 billion USD.
Net reserves excluding swaps turned positive.
Disinflation process kicks off
-The highest level of annual inflation is behind us. We are heading into a period of significant and permanent decline in inflation.
The market's 12-month-ahead inflation expectation is 33.2 percent, while the 24-month-ahead expectation is 21.3 percent.
Rising confidence
-Our risk premium CDS fell by 440 basis points.
-Our credit rating increased, our outlook remains positive.
Gray list exit process
-Technical studies have been completed, on-site inspection was carried out. The technical report is in the affirmative.
-We are committed to the fight against money laundering and financing of terrorism.
Structural transformation
-We are implementing a new industrial policy.
-We are accelerating the dual transformation.
-We aim to increase international direct investments by optimizing the investment climate.
In short, the program is working, but we still have a long way to go.
Although it will be challenging to bring inflation down to single digits, we will succeed by implementing our program with utmost determination. We are fully committed to achieving all of our aims.