process<\/a> will continue again and get back on track,\u201d he added.<\/p>\n\u015eim\u015fek said there was no concern over fiscal discipline despite earthquake-related spending, arguing that T\u00fcrkiye had a stronger fiscal position than many comparable economies.<\/p>\n
T\u00fcrkiye\u2019s budget deficit target stands at 3.5 percent of gross domestic product, but actual performance will \u201cvery likely\u201d be better than that, he said.<\/p>\n
The minister also said the current account deficit, long viewed as one of T\u00fcrkiye\u2019s main vulnerabilities, was now manageable.<\/p>\n
\u201cWe may close the year with a current account deficit of 3 percent or below,\u201d \u015eim\u015fek said.<\/p>\n
He said the deterioration in the annual foreign trade deficit since December had remained below $1.5 billion despite the oil shock, while tourism and other key areas had not seen major deterioration.<\/p>\n
\u015eim\u015fek said T\u00fcrkiye\u2019s gross external financing need was expected to stand at around 17 percent of GDP this year, below its long-term average of around 20 percent.<\/p>\n
He also said there was \u201cno room for concern\u201d over reserves, noting that nearly 40 percent of the recent reserve decline after the war stemmed from changes in gold prices.<\/p>\n
Central Bank Governor Fatih Karahan said the bank would continue to use all policy tools to protect price stability and financial stability.<\/p>\n
Karahan said geopolitical developments and energy market volatility had created short-term risks for inflation and the external balance, but added that they were not expected to reverse the disinflation process if the right policy steps were maintained.<\/p>\n
\u201cAt the point we have reached today, we assess that the necessary conditions for the continuation of the disinflation process have been preserved thanks to our policy tools, strong reserve position and macroeconomic rebalancing,\u201d Karahan said.<\/p>\n
He said the central bank\u2019s tight monetary policy stance would continue, with future decisions taking into account the impact of geopolitical developments on costs, economic activity and expectations.<\/p>\n
Karahan said rebalancing in domestic demand, a healthy current account outlook and a strong reserve position supported the disinflation process.<\/p>\n
\u201cThe path to healthy and sustainable growth in the banking sector runs through low and stable inflation,\u201d he said.<\/p>\n
Karahan also said Turkish markets continued to function properly during periods of increased global volatility, while long-term external financing inflows confirmed the resilience of the banking sector.<\/p>\n","protected":false},"excerpt":{"rendered":"ISTANBUL T\u00fcrkiye\u2019s economic program remains on track despite recent geopolitical and energy-related shocks, with fiscal and monetary policies…\n","protected":false},"author":2,"featured_media":637982,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,156451,1294,165423,40706,56,54,55],"class_list":["post-637981","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-disinflation","tag-economy","tag-process","tag-trkiye","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/637981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=637981"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/637981\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/637982"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=637981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=637981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=637981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"T\u00fcrkiye](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/6a2cf486f67bd186f7d47e94.jpg\")
<\/p>\n