President Recep Tayyip Erdogan on And Friday, he said that Turki thwarted what he said were traps through which he targeted his country global financial Tools, also promotes government’s new economic program.
“With the mechanisms and measures that we have put in place, we have thwarted the traps set up Before our country through global financial Erdogan said at the summit of economic transformation and new models in Istanbul.
The President highlighted government’s new economic programdubbed the Turkish Economy Model, which was unveiled last year. The program It prioritizes low interest rates to boost exports, production and investment, with the aim of lowering inflation and reversing the country’s chronic situation current Account deficit into a surplus.
All global Crisis confirmed how Turkish economic approaches, which were once seen as “continuous” against The grains are “correct, realistic and healthy,” Erdogan suggested.
Turkey created a profile new path By analyzing developments, opportunities and challenges in The world and his region in The best way possibleHe said.
“I’d like like Explicitly recognizing that political and economic sanctions are unfair, illegal and unjust against Our country had to us to look for this is path’ He Don. ‘We have separated our economy.’ policy Let’s free ourselves from these traps. We have created our own unique economic model. “
While doing so, Turkey has never parted from that global And the local reality, the wonderful accumulation of His economic theories, rich centuries-old experiences.
“We’ve proven that we are moving on right path with The flexibility we have shown in The face of The global The economic crisis that started with And the epidemic spread with War, Erdogan added.
. said world Trying to understand and adapt to new challenges It was brought by the epidemic and the war in Ukraine, but Turkey already she has experience with these challenges.
in layout with The new Economic model and the Turkish center bank cut it policy rate 200 basis points to 12% in The last Two months, surprise markets after inflation rose to 24-year high in August.
The bank embarked on a rate-cutting Course more from U.S year Since I lowered him one- repo week rate by 500 basis points to 14%, where it was left It’s fixed in The first seven months of this is year.
Erdogan on On Thursday, he reiterated his strong opposition to high interest rates, saying he had advised the central bank to lower it key policy rate Also at its next meetings.
These statements came a day after he said that he expected the central bank to cash policy Commission to hand over her last pieces one- repo week rate in October and bring it down for odd numbers year-End.
Erdogan is well known for opposition higher Borrowing costs, which is says It just makes the rich richer and the poor poorer. High interest rates are often called “mother of all evil.”
Higher interest rates make it more expensive for Households and businesses to borrow money.
The ability to reduce inflation
The new economic program Seeks to help Low inflation, which has exceeded 80% last month, driven mainly by skyrocketing food and energy prices, which jumped after Russian prices invasion of Ukraine.
Erdogan stressed the country’s ability to bring down Consumer prices rise.
It may surprise some that our inflation rate to relatively high levels. However, we are a country also he have ability to me reduce The same inflation at speed That would surprise them even more, Erdogan said.
“We’ve been through this in The pastThen we lowered it (inflation).”
while the world suffered negative growth Rates and even recession, Turkey continued to grow thanks to new Economic program Erdogan noted.
Turkish economy Expanded 7.6% better than expected year-over-year in The second quarter on strong local demand and exports. The rate made Turkey second- Fastest growth economy in The G-20.
The country’s GDP grew 7.5% annually in The second quarter. else yearThe economy recoil back strongly from the COVID-19 pandemic and grew by 11.4% highest rate in a decade.
“We stood out with our strong infrastructure, qualified young HR and Flexibility business models against turbulence in traditional Production and supply chains in The world Erdogan said.
“we moving step by step Toward goal of placing our country among the world’s 10 largest economies.”