Speaking at the “Global Challenges and Turkey’s Outlook” session held within the Antalya Diplomacy Forum, Treasury and Finance Minister Mehmet Şimşek elaborated on the fragile period the global economy is going through and Turkey’s positioning in this scenario.

Minister Şimşek pointed out that the global economy is facing a period of high uncertainty and volatility, highlighting Turkey’s relative resilience against global challenges and explaining the reforms being carried out in foreign trade, energy transformation, artificial intelligence, and defense industry sectors.

Referring to IMF forecasts of a 7% decrease in global GDP, Minister Şimşek emphasized how trade wars, protectionism, and geopolitical tensions are putting pressure on global production. He added, “China dominates global manufacturing, while Europe, the US, and Japan are losing power.”

Stressing that Turkey’s growth model is not export-dependent, Minister Şimşek noted, “Historically, net exports have been more of a restriction than a contributor to growth. The main driving force of the Turkish economy is domestic demand and investments.”

Minister Şimşek also highlighted the importance of regional integration, stating, “You rise with your neighbor, you fall with your neighbor. Turkey wants a peaceful and stable region because it is in our best interest.”

Regarding the fight against inflation, Minister Şimşek reiterated their determination, stating, “Inflation is decreasing, and it will continue to decrease. We have done everything to implement this program. We have strong political support, and we are determined. We have the capacity to manage this process.”

Minister Şimşek mentioned that short-term market fluctuations could disrupt expectations but noted that the disinflation process would continue. He also mentioned that the limited weakening of the exchange rate could be balanced by the decrease in oil prices, emphasizing that tight monetary policy would have a clear disinflationary effect.

Sharing that Turkey’s localization rate in the defense industry has reached 80%, Minister Şimşek highlighted the country’s progress in becoming one of the top 10 exporters after being one of the biggest importers 25 years ago. He also addressed the potential of artificial intelligence to increase global productivity unevenly and mentioned Turkey’s significant number of graduates in this field.