Vice President Cevdet Yılmaz made statements about current issues and answered questions during the Başkent Kulisi program on Kanal 7.

In response to a question regarding the 10th meeting of the Investment Advisory Council held yesterday under the leadership of President Recep Tayyip Erdoğan, Yılmaz mentioned that since the election, a stable and determined policy has been implemented in the economy, and the updated Medium-Term Program confirms this.

Yılmaz noted that there is serious confidence in the economic program, and investors participating in the Investment Advisory Council Meeting have expressed this. He stated, “Turkey has entered a new era in both portfolio and direct investments. We will see more of the results in the upcoming period.”

Cevdet Yılmaz explained that through the Investment Environment Improvement Coordination Council (YOİKK) mechanism he chairs, they have brought together the public and private sectors and developed effective action plans.

He highlighted that the international aspect of this mechanism was established by the Investment Advisory Council, saying: “The Investment Advisory Council is a platform where international CEOs participate, and people directly from the market express their opinions and suggestions. It has been very beneficial. The outcome report has also been shared with the public. We will hold this event again next year. Investors say that there are very few countries left to invest in due to political, geopolitical, and economic reasons worldwide.”

Yılmaz emphasized that Turkey is a country characterized by stability, a clear policy framework, and predictability. Most importantly, it is a peaceful country. Therefore, Turkey has become a place of serious interest for investors to discuss and communicate during this period. The key is to turn this interest into results.

SAUDI COMPANY PLANS $5 BILLION INVESTMENT IN TURKEY

Yılmaz assessed that they need to increase permanent, employment-generating international capital investments that will bring new technologies.

He discussed seeing the desire of investors to make direct investments in Turkey at the Investment Advisory Council Meeting, stating, “A company owned by Saudis expressed its intention to invest $5 billion in Turkey in energy and other sectors. In the U.S., our ministers and our President met with investors.

No matter the setting, we see a significant interest from the world and a serious perspective from investors. Turkey is a country that is being seriously discussed on how to proceed. We will see the results of this.”

“INVESTORS ARE NOT CONCERNED ABOUT DOMESTIC POLITICS”

Cevdet Yılmaz pointed out that surveys conducted by the International Investors Association show a twofold increase in the number of investors willing to invest in Turkey.

Yılmaz emphasized that they have seen an acceleration in direct investments in the last three months, stating, “Direct investments have surpassed $6 billion in the last seven months. By the end of the year, we expect it to be over $10 billion. We currently hold a 1% share of the world, and our goal is to increase this to 1.5%.”

He mentioned that there is also a segment trying to spread pessimism in the country and cast shadows on the government’s program, adding:

“Investors are not concerned about domestic politics. Investors look at the country’s situation and figures. They are observant people. They appreciate many aspects of Turkey, including its stability, peace, geography, entrepreneurial workforce, and young, dynamic population. This year, Turkey is the only country where three credit rating agencies have positively upgraded their ratings. Our investment image and perception are improving. Turkey will meet new investors. It is becoming a focal point not only for investors from China but also from Latin America, the Gulf, the Far East, Europe, and America. We need to make the most of this.”

CALLS FOR EARLY ELECTIONS

In response to a question about calls for early elections, Yılmaz said, “Turkey has no such agenda. Under the AK Party, our President has introduced political stability to Turkey. Without political stability, there is no economic stability. Annual elections and new governments per year were problems Turkey faced in the 1990s, and we paid a heavy price for them economically. Therefore, we need political stability and a secure environment to focus on the real problems of our people and find solutions.”

Yılmaz conveyed that both domestic and foreign investors primarily seek predictability in a country, stating that political stability is the key concept for achieving this.

He pointed out that market expectations regarding the Medium-Term Program have significantly improved, but they have not yet received the full results.

Recalling that they closed the previous year with a budget deficit of 5.2, Yılmaz mentioned that they forecasted 6.4 for this year, but their current estimate is 4.9.

Despite allocating 2.5 trillion lira for earthquake budgets this year, they managed to keep the budget deficit below 5%, noting, “Next year, we are targeting around 3%. The budget deficit has largely recovered. Last year, the current account deficit was around 6%, with nearly $60 billion in deficit. As we stand now, exports are increasing, imports are decreasing, tourism revenues are doing well, and our current account deficit is around 2%. We expect it to be 1.7% by the end of the year.”

INFLATION FORECAST

Vice President Yılmaz stated that risks in the economy have been reduced and resilience against shocks has been increased, emphasizing that Turkey is now moving forward with a much more solid structure.

While reducing these risks, he pointed out that inflation temporarily increased somewhat, elaborating:

“Previously, we said that inflation will rise slightly but will then decrease. You will see a noticeable decrease, especially in the second half of the year. Thankfully, we were not proven wrong; it had risen to 75.5 in May, but from June onwards, a decline began, showing a reduction of 23.5 points over the last three months and reaching 52%.

We are expecting a figure in the 40s, below 50, to be announced soon. By the year-end, our estimate is around 41.5%. By this time next year, we expect inflation to be between 20 and 30%, with an expectation below 20% by the end of the year.”

Cevdet Yılmaz mentioned, “We observe a systematic effort to create pessimism among the public and harm the country with speculative events. We will not give in to these, and we will continue on our resolute path.”


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