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Erdoğan Pledges 'Permanent Decrease' in Inflation

Erdoğan Pledges 'Permanent Decrease' in Inflation

Turkish President Recep Tayyip Erdoğan has emphasized his administration’s commitment to achieving a lasting reduction in inflation.

Publish Date: 27/05/24 13:54
reading time: 3 min.
Erdoğan Pledges 'Permanent Decrease' in Inflation
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"The main priority of our economic program is to increase the welfare of our nation by reducing inflation to single digits," Erdoğan said during an event in Istanbul on May 25.

The annual inflation rate in Turkey surged from 68.5 percent in March to 69.8 percent in April. Erdoğan acknowledged the rise but projected that inflation would peak on an annual basis in May before beginning a rapid decline.

"Thus, we will enter a disinflation period starting from the second half of the year. Market expectations also strongly support our predictions," he stated. Erdoğan assured that no additional inflationary pressures would be introduced through fiscal policy.

Erdoğan highlighted that monthly inflation is decelerating in line with targets. "We are not aiming for temporary relief, but a permanent decrease in inflation," he remarked.

The president also claimed growing investor confidence in the country.

Earlier this month, the Central Bank adjusted its year-end inflation forecast to 38 percent from a previous 36 percent, while maintaining projections of 14 percent for 2025 and 9 percent for 2026.

"Our country risk premium has decreased to pre-pandemic levels. The interest of local and foreign investors in Turkish Lira assets has increased," Erdoğan said. He added that the banking and real sectors' foreign debt rollover ratios have improved.

Despite capital outflows from developing countries in recent months, Turkey has seen a rise in capital inflows, according to Erdoğan.

Looking ahead to the next presidential elections in 2028, Erdoğan vowed to use the intervening period efficiently and avoid unnecessary disputes.

"Hopefully, we will turn this painful period that the whole world is going through into a historical springboard for Turkey and the Turkish economy," he said, "as long as we don't listen to the disaster merchants who try to demoralize the nation for their own petty interests."

Earlier last week, Erdoğan has asserted Turkey's credibility as an investment hub.

"No entrepreneur who aimed to win by making [Turkey] win felt regretful afterwards," he stated during an event in Istanbul on May 24.

Erdoğan further pledged to bolster cooperation on a mutually beneficial basis, outlining plans to elevate Istanbul's status as a financial powerhouse.

"No one who trusted Turkey regretted it," he affirmed, highlighting the readiness of Turkish institutions to support investors.


Source: HDN

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