Treasury and Finance Minister Nureddin Nebati answered questions about the economy agenda on A Para television channel.
Stating that they expect the downward trend in annual inflation, which started with the base effect in December, to move downwards permanently with the measures taken from now on, Nebati said that they see this acceleration happening every month.
When asked about the inflation expectations for April, which will be announced tomorrow, Nebati stated that TÜİK and the Central Bank follow the prices, and that the Ministry of Treasury and Finance continues its evaluations in the field with their own teams. Nebati said, “Leading indicators show that inflation will fall well below 50 percent, and that the inflation to be announced tomorrow will most likely be below 45 percent. The decline in inflation is in line with our expectations.” used the phrase.
Drawing attention to the destruction after the earthquake disaster in Kahramanmaraş on February 6, Nebati said, “In such an environment and at the same time, the EYT regulation and the fact that the inflation is coming below our expectations despite the high improvement in the minimum wage and civil servants’ wages shows how appropriate our decisions are in the coming days. It strengthens our expectations that the easing in food prices, which is caused by seasonal conditions, will accelerate a serious downward inflation in June, July and August.” he said.
Noting that there were decreases in input costs such as fuel and fertilizer prices compared to last year, Nebati stated that with the favorable seasonal conditions, a much better food price formation will be achieved in the coming months, beyond expectations. Stating that the food price confidence index in Turkey is above the general index, Nebati said, “I predict that there will be a relief in the CPI with the decrease in the pressure of the food index.” said.
“Meat production is sufficient, there is a volatility in prices, we are working towards this”
When asked about the high price increase in dried onions, Nebati stated that seasonal conditions can be very effective in some products, and that such products first peak and then fall to normal levels. Stating that the opposition’s election campaign over the price of onions shows their weakness, Nebati said, “This onion campaign exploded in their hands. On the one hand, Togg’u TCG Anadolu, Akkuyu Nuclear Power Plant, natural gas, Altay tank, Kaan plane, Hürjet” While I am talking, if you build your entire campaign on onions, the society will understand that there is no equivalent.” he said.
Stating that they also follow the price increases in beef, Minister Nebati said:
“Meat production is sufficient, so there is a volatility in prices, we are working towards this. I would like our citizens to be vigilant against such virtual operations. Our Ministry of Agriculture and Forestry and the Ministry of Trade are working. It will provide a transformation towards reducing volatility in this regard. Feed prices. “There is no good faith in the price increase due to the increase in the minimum wage. Long-term plans should also be made in this regard. In this regard, it is very important and long-lasting with our Ministry of Agriculture and Forestry.” A long-term study is being carried out, we need to bring it to a sustainable point.”
Stating that the Meat and Dairy Institution has regulated this issue, Nabati stated that they offer affordable products for low-income citizens to access these products.
“Every model needs to be updated with lived stories”
Stating that they support investments and exporters within the scope of the Turkish Economy Model, Nebati stated that each model should be updated with the stories experienced, that they are working on which areas and which deficiencies exist within the framework of the Turkish Economy Model, and that steps will be taken regarding the shortcomings of this model, if any, after the election in the coming weeks.
Nebati emphasized that the temporary measures taken after the COVID-19 epidemic, the Russia-Ukraine war and the February 6 earthquakes should be lifted, and steps should be taken to transform the market into a more predictable, self-sustaining structure that can spread to the medium and long term.
When asked whether there would be a change in the interest policy in the update of the model, Nebati said:
“There will be an interest rate under the headline inflation. At the moment, the interest rate is 8.5 percent, the current inflation is 50.5 percent, so there is a margin of 42 points. The important thing for us is that this margin moves down, that is, the continuation of the downward direction of inflation, the only It is our target to continue this struggle until we go to the households and to ensure that inflation and the Central Bank’s interest rate are on the same path. From now on, I have been asking two questions very clearly to the economic staff of the Nation Alliance. They are almost trying not to answer them. Question one is, ‘Will you surrender to the IMF?’, no answer. Two, ‘Will you raise interest rates? When we asked this question last year, They said ‘we will increase it immediately’, now they do not answer. Banks have internalized this business, banks and the society do not have any expectations of an interest rate hike. I ask the Nation Alliance again, ‘Will you increase the interest rate, how much will you increase in what period? At what point do you foresee the growth in Turkey? What will be the contribution of the negative growth related to this decision to unemployment? Have you studied the effects on the banking sector at the point of interest increase?’ They will respond to Turkish society about this. We are waiting for your explanations.”
“The growth trend in the Turkish economy will continue”
Stating that they predicted that the earthquake would negatively affect growth in the first half, Minister Nebati said that the negative effect of the earthquake would show itself as of the first quarter, but that it would recover afterward.
Stating that the new houses to be built after the earthquake will contribute at least 0.5 points to the growth of the economy, Nebati said that this contribution can reach up to 0.9 points, and that they predict that the growth trend in the Turkish economy will continue in this quarter as well.
“We provide support without compromising budget discipline”
Stating that the decrease in energy prices will contribute to the current account deficit, Nebati stated that the steps taken to increase exports will increasingly continue.
Pointing out the importance of finding natural gas in the Black Sea and presenting it to consumers, Nebati said that this natural gas supply will breathe in natural gas imports when it reaches the optimal point in a few years.
Nebati stated that with the realization of the Akkuyu Nuclear Power Plant, “Turkey’s soft belly” will make a very important contribution to the elimination of the current account deficit created by energy imports.
Emphasizing that they provided their support without compromising the budget discipline, Nebati said, “We decided that at a time when the natural gas produced by Turkey for the first time in its history meets the land and the citizens have the feeling of ‘I am using domestic natural gas’, the calculation of approximately 25 billion liras that will cost us there should not be done. We have provided the source immediately. We continue on our way by paying 10-12 billion liras for the part that will be used within 1 year and will be as of the end of May.” he said.
Nebati stated that 66 percent of the natural gas used in residences is met by the Treasury of the Government of the Republic of Turkey and that as natural gas prices decrease, it contributes to the reduction of the burden on the treasury and to directing this margin to different areas.
“There are no infrastructure indicators to meet the melting of TL against the dollar”
When asked about his expectations regarding exchange rates after the election, Minister Nebati stated that there are no infrastructure indicators to meet the melting of TL against the dollar in the upcoming period.
Stating that bilateral prices can occur in some places and that the citizens will see the dual price mechanism come to an end after the election, Nebati said, “I would like to warn our citizens that there will not be a rally that took place before 20 December, do not be fooled.” used the phrases.
Answering the questions regarding the demands in Mersin, the constituency, Nebati stated that the people of Mersin wanted the Çukurova Regional Airport to be opened as soon as possible.
Stating that the airport in question will be opened to scheduled flights as of June, Nebati said that a test will be carried out on the runway on Thursday.