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Finance Minister Simsek projects sustained growth trajectory

By Newsroom
May 31, 2024 12:19 PM

Finance Minister Mehmet Simsek reflected on Türkiye’s robust economic growth of 5.7% in the first quarter of the year, emphasizing the role of rational and predictable policies in steering the economy toward balanced and sustainable expansion.

Responding to the growth figures released by the Turkish Statistical Institute (TUIK), Simsek highlighted the annualized gross domestic product (GDP) reaching ₺1.158 trillion, underlining the positive trajectory facilitated by the government’s policy framework.

The Minister credited domestic demand for contributing 4.1 percentage points to growth, while net exports returned to positive territory after five quarters, adding 1.6 percentage points. Investments surged by 10.3%, with machinery and equipment investments continuously growing for 18 consecutive quarters.

Additionally, Şimşek pointed out the growth in goods and services exports by 4%, alongside a 4.9% increase in industrial value-added, with high-tech manufacturing experiencing a remarkable 21% annual growth.

Furthermore, he highlighted positive labor market dynamics, with 1.046 million additional jobs created compared to the same period last year, resulting in a seasonally adjusted unemployment rate of 8.7%, its lowest level in 44 quarters.

Looking ahead to the second quarter, Şimşek expressed optimism, anticipating a continuation of economic stabilization with more supportive external conditions and moderate domestic demand.

He emphasized the role of the government’s program in achieving a balanced growth composition, which has contributed to a decrease in the current account deficit, increased confidence, improved expectations, and accelerated foreign capital inflows. These are all expected to contribute significantly to disinflation.

Simsek concluded by reaffirming the government’s commitment to accelerating structural reforms to support value-added production and productivity growth. The aim is to sustainably increase citizens’ welfare while progressing towards price stability and economic prosperity.

Last Updated:  Jun 5, 2024 3:46 PM