Treasury and Finance Minister Mehmet Şimşek emphasized Wednesday the importance of evaluating opportunities and collective efforts among the countries' participants of the 14th Turkish-Arab Economic Forum (TAF'2023) in overcoming the current challenges.
Speaking during the event held in Istanbul under the auspices of the Foreign Ministry, the Ministry of Treasury and Finance, the Presidency of the Republic of Türkiye Investment Office and the Turkish Union of Chambers and Commodity Exchanges (TOBB), the minister expressed happiness for hosting the event, which he believes will serve to strengthen the ties between the countries' participants.
As part of the forum, a panel titled "Overcoming Global Challenges and Seizing New Opportunities," moderated by Şimşek, featured the participation of Deputy Prime Minister and Minister of Oil of Kuwait Saad Hamed Nasir Al-Barak, Egypt's Minister of Finance Muhammed Muid and Qatar's Minister of State and Chairperson of the Free Zone Authority Ahmed al-Sayed.
Highlighting the uncertainties in the world and the challenges in the region where Türkiye is situated, Şimşek pointed out the pressures stemming from the global backdrop for doing business as he commemorated the lives lost in Gaza.
Şimşek stated that the competition between the current superpower, the United States and the rising power, China, causes fragmentation in trade, protectionism and geopolitical tensions, noting that "global economic tension has now become our normal."
"In such a time, it is generally seen that regional trade integration occurs faster, but when we look at our region, trade and commerce integration within the region is the lowest in the world. Our regional trade, if you exclude oil, accounts for 11% of all trade. Including oil, in our region, it is at 14%. This is 70% in Europe and 50% in Asia," he explained.
"We do not need to reinvent the wheel. It will be beneficial to provide a positive environment in terms of politics and legislation," he added.
"We are going through a challenging period. When we look at the global economy, we see that there is moderate growth. According to the IMF's forecasts, the global growth rate will be only 2.9% next year. Excluding India and China, we see that the global growth rate will drop to 1.6%, which is almost a recession in terms of per capita income," he said.
"The problem is not only for the next year but also for the growth forecasts for the next five years. It is clear that developing regional trade and integration will become important in such a situation," he explained. He urged starting with a regional approach, as trade is one of the fundamental drivers of growth.
"By working closely, we can strengthen regional trade. And at the same time, we can overcome the challenge of slow growth together," he noted.
"The situation with global interest rates is also valid here. This will naturally affect the region as a whole. That's why we all need to work in better cooperation with each other. We need to solve regional problems together," he added.
Referring to the lack of investment in the energy sector and global uncertainties in this regard, the minister noted it is likely oil prices would remain higher for a longer period.
"We need to work together, not only in terms of the business world or economic integration but also in terms of solving political and geopolitical issues."