Turkiye will take steps to strengthen economic program, Erdogan says

Turkiye will take steps to strengthen its medium-term economic program and the three main priorities are to increase public savings, prioritize investments and accelerate structural reforms, President Tayyip Erdogan said.

Speaking on Tuesday evening after a cabinet meeting, Erdogan said his economic team had made preparations for such steps to strengthen the program, MTP, and, “hopefully we will share them with the public very soon.”

“We have three main priorities in strengthening the MTP. These are to increase public sector savings, prioritize investments, and accelerate structural reforms.”

Speaking to reporters after the cabinet meeting, Vice President Cevdet Yilmaz said both the finance ministry and the budget authority were carrying out studies on public sector savings, with more than 15 articles being worked upon.

“We mean not only reducing expenditures, but making existing expenditures more efficient, prioritizing them, and making them contribute more to the economy’s competitiveness, efficiency and social welfare,” state broadcaster TRT reported him as saying.

Erdogan also said on Tuesday evening that economic growth will approach 4 percent this year with a positive impact from exports, and forecast that the current account deficit will be 2.5 percent of gross domestic product at the end of the year.

Official data on Wednesday showed that Turkiye’s current account deficit stood at $3.265 billion in February, less than a Reuters forecast for a deficit of $3.7 billion.

Central Bank Governor Fatih Karahan told a panel in Washington on Tuesday that Turkiye is on track to reach its 36 percent inflation target by the end of the year after peaking at around 75 percent in the coming months.