Weaker inflation's effects to be felt more clearly in 2nd half of 2024: President Erdogan

By Gokhan Ergocun

ISTANBUL (AA) - President Recep Tayyip Erdogan said Friday that the effects of the loss of momentum in inflation in Türkiye will be felt more clearly, especially in the second half of 2024.

Speaking at a forum in Istanbul, Erdogan said the government is making significant efforts to reach the medium-term program's targets in inflation -- 33% for 2024, 15.2% for 2025 and 8.5% for 2026.

"We have consistently provided the necessary support to our entrusted colleagues in economic management. Today, our confidence in them and their policies remains steadfast," he said.

The inflation rate in Türkiye, which was more than 85% last year, was around 65% as of December.

Erdogan revamped his financial team after his May election victory, bringing in prominent figures including, Mehmet Simsek, the new finance minister and Hafize Gaye Erkan, the first woman to lead the central bank.

The new economic administration pledged to focus on fiscal discipline, gradual monetary tightening and structural reforms that were welcomed by foreign and domestic investors.

Erdogan stressed that the foreign capital flow to Türkiye accelerated during the last six months, international reserves increased, rapid currency fluctuations reduced and financial conditions eased.

Central bank reserves hit a historical high of $145.5 billion, he said, adding the country also saw record exports in 2023.

The country's 2023 exports totaled $255.8 billion.