Türkiye's per capita income could exceed $15,000 by the end of the year, a top finance official said Wednesday while also reiterating the aim to achieve sustainable high growth as the main objective of the medium-term program (MTP).
Speaking at the event organized by state lender Halkbank, Treasury and Finance Minister Mehmet Şimşek outlined the performance of the Turkish economy, highlighting the narrowing trade gap since last year and the improvement in the risk premium, among others.
"The main goal of the MTP is to achieve sustainable high growth and a more equitable distribution of the income from this growth," Şimşek said.
The government updated the program to cover the period between 2025 and 2027 earlier this year, presenting expectations regarding main macroeconomic indicators such as growth and inflation.
The economic growth is projected to be realized at 3.5% this year, while authorities expect the gross domestic product (GDP) per capita to reach $15,551 at current prices. This is further expected to increase to $17,028 next year and $20,420 in 2027, respectively.
The minister noted the main subcomponents of the program to be price stability, lowering inflation, fiscal discipline, sustainable current account deficit, structural transformations and reducing the current account deficit.
"We have had a good performance so far," he said.
"Our current account deficit was $56 billion in the middle of last year, but now it has dropped below $10 billion. We have narrowed the current account deficit significantly," he explained.
He also pointed out the recovery in reserves and further noted that while the risk premium of developing countries has declined by 45 points "ours has fallen by 448 points."
"So, it means that our program exists and it works. Our credit rating has increased. We are the only country in the world whose rating has been increased twice in a row in one year by the three major credit rating agencies in 2024," he added.
"If the MTP was not working ... how would we have convinced the rating agencies," he questioned.
Şimşek took the helm of the ministry nearly 1.5 years ago, following the presidential elections, pivoting the country's return to a more conventional monetary policy that included hiking the interest rates by 4,150 basis to tackle inflation.
Inflation has been falling in recent months, touching 47.09% in November, official data showed earlier this week. The authorities expect this momentum to continue, with the ultimate goal of lowering it to single digits.
This view was echoed by Şimşek, who recalled although that inflation is still high, it is declining and it will continue to fall.
The minister also touched upon the global issues, issues experienced in the global area regarding the population, and said: "Our working age population is still increasing well compared to similar countries. However, we have great potential, and that is our women. If we can bring our women into the workforce by reforming, encouraging and providing education, we have tremendous potential."
At the same time, he noted Türkiye's foundations were "solid," as it has been growing at an average annual rate of 5.5% for the last 20 years, which he said is a good performance.
"We are slowing down temporarily now. Sometimes we need to rest to run again," he said.
"We have made great progress in solving many issues, but some of them need time," the minister concluded.
