Türkiye Sees Disinflation Resume Within Months as Budget Deficit Stays Near 3.5% of GDP
Updated
Updated · en.yenisafak.com · Jun 12
Türkiye Sees Disinflation Resume Within Months as Budget Deficit Stays Near 3.5% of GDP
3 articles · Updated · en.yenisafak.com · Jun 12
Summary
Mehmet Simsek said Türkiye’s disinflation process should resume within months despite recent geopolitical and energy shocks, with the government keeping price stability as its top priority.
Fatih Karahan said the central bank will maintain a tight policy stance and use all tools decisively, arguing reserves, macroeconomic rebalancing and softer domestic demand still support falling inflation.
Simsek said fiscal discipline remains intact even after earthquake spending, with the budget deficit targeted at 3.5% of GDP and likely to outperform that goal.
He added the current account deficit should close at 3% of GDP or below, while gross external financing needs are seen at about 17% of GDP this year versus a roughly 20% long-term average.
Türkiye’s officials framed the message as a resilience test: war-related trade damage has stayed below $1.5 billion since December, tourism revenues are steady, and about 40% of the recent reserve drop reflected gold-price moves.