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Inflation to ease soon as Türkiye’s economy<br />
model yields results<br />
Türkiye’s exports are approaching the $300<br />
billion threshold by breaking records every<br />
month, President Recep Tayyip Erdoğan<br />
said as the country tries to navigate<br />
the economic crisis with a model that<br />
promotes growth via exports, employment,<br />
production and a current account surplus.<br />
The president also said that the negative<br />
impact of inflation will begin to ease as of<br />
the beginning of the new year thanks to<br />
the measures taken by the government.<br />
Erdoğan sent a video message to the<br />
Türkiye <strong>2023</strong> Summit and Money Talks<br />
organized by Turkuvaz Media Group in<br />
Istanbul.<br />
Expressing his hope that the summit will<br />
be beneficial, Erdoğan congratulated the<br />
media group on the event that saw the<br />
participation of many respected names and<br />
thanked all the participants who enriched<br />
the program with their ideas, presentations<br />
and evaluations.<br />
Stating that the world has been going<br />
through a painful process over the last<br />
three years that started with the pandemic<br />
and then grew more complicated with hot<br />
conflicts and regional tensions, Erdoğan<br />
said that energy, food and raw material<br />
prices, which have reached the highest<br />
levels in recent years, and the subsequent<br />
inflation problem is an issue all economies<br />
are facing.<br />
Meanwhile, he stated that the classical<br />
approach to reducing inflation by raising<br />
interest rates has not met expectations<br />
thus far, adding that many economies that<br />
try to restrain inflation with such policies<br />
are struggling with employment losses and<br />
facing a cost-of-living crisis.<br />
Under the country’s economic program,<br />
dubbed the “Türkiye Economy Model,” the<br />
Turkish government prioritizes low-interest<br />
rates to boost exports, production and<br />
investments, aiming to lower inflation and<br />
flip the country’s chronic current account<br />
deficits to a surplus.<br />
In line with the model, Türkiye’s central<br />
bank in its last meeting in November<br />
lowered its key policy rate, or the one-week<br />
repo rate, by 150 basis points to 9.0%.<br />
The lender said the easing cycle that<br />
started in August has come to an end as it<br />
was assessed that the current policy rate is<br />
at a sufficient level, taking into account the<br />
increasing risks to global demand.<br />
Price increases moderated in Türkiye in<br />
November, recent official data showed,<br />
signaling that inflation pressures that have<br />
been plaguing consumers for about a year<br />
and a half might be finally easing.<br />
The annual consumer price index (CPI)<br />
dipped to 84.39%, the Turkish Statistical<br />
Institute (TurkStat) announced, ending a<br />
17-month-long cycle of rises.<br />
It dropped from a 24-year peak of 85.51%<br />
in October and marked the first time that<br />
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