Global Trade Solution: Regional Integration and Turkey's Role

Emphasis on Structural Transformation in the Turkish Economy

Minister of Treasury and Finance Mehmet Şimşek drew attention to the importance of the achievements recently obtained in the Turkish economy, which has a size of 1.6 trillion dollars, stating that structural transformations are necessary for these gains to become permanent. Şimşek noted that the President declared 2026 as the year of structural reforms and expressed an optimistic approach in this context.

On Recent Economic Indicators

Şimşek reminded that the budget deficit ratio of the Turkish economy has decreased to 3% over the last 2.5 years and that the debt stock ratio to Gross Domestic Product has fallen to 24%. The considerable closure of the current account deficit and the increase of gross reserves by 120 billion dollars indicate that Turkey is undergoing a solid economic transformation.

Fragmentation in Global Trade and Turkey's Strategy

During the panel, Şimşek addressed the changes in global trade dynamics, stating that approximately 80-85% of Turkey's foreign trade is within a rules-based framework. He emphasized that 62% of exports are directed to countries with free trade agreements and stated that Turkey ranks among the top 20 countries in the world for service exports.

The Importance of Regional Integration

Şimşek highlighted the goal of making a free trade agreement with the Gulf Cooperation Council countries, emphasizing the importance of regional integration against the fragmentation in global trade. He expressed that creating infrastructure through joint projects could connect Turkey with Beijing and London.

Strategies for Economic Welfare in the Long Run

Şimşek stated that increasing productivity is the key to long-term prosperity and emphasized the importance of enhancing labor efficiency. He said, “As the world's 14th largest manufacturing base, we need to focus on logistics investments and our smart fiscal policies to avoid indirect effects.”