The Turkish government is optimistic about the country's economic and inflation stabilization. According to Finance Minister Mehmet Simsek, inflation could ease to 30% by the end of 2024, marking a significant slowdown in price growth.
Simsek attributes such a sharp drop in consumer prices to the government's comprehensive program aimed at lowering inflation. He anticipates that consumer price growth in Turkey will slow to 30% by year-end. Inflation rates are expected to start declining in June and continue for the next few years. Currently, monthly inflation rates are in line with the targets set out in the medium-term program, the minister said.
Looking ahead, the official predicts a slowdown in price growth to nearly 10% by the end of 2025 and a return to single-digit inflation by 2026. In this case, the national financial market will gain ground, which will help the economy become more robust and stable.
Previously, Simsek estimated that inflation in Turkey would peak inflation in late May 2024, with consumer price growth potentially exceeding 70%. To that end, Turkish authorities agreed to stop leasing new buildings and vehicles for three years.
These measures are crucial in combating soaring inflation, Simsek reckons. In addition, the Turkish government plans to introduce a cap on the salaries of board members of state institutions and cut public investment by 15%. According to the minister, these initiatives are expected to save the government around 100 billion lira.
