In the statement released after the Economic Coordination Committee (ECB) meeting, it was reported that a significant decline in annual inflation is expected in the second half of the year as a result of the tight monetary policy stance supported by fiscal and incomes policies.
The EKK meeting was held at the Presidential Complex under the chairmanship of Vice President Cevdet Yılmaz.
The statement made after the meeting was as follows:
“At the May Economic Coordination Committee meeting, evaluations were made for more effective implementation of economic policies and our structural reform agenda in coordination. We are resolutely implementing the actions set out in the 12th Development Plan and the Medium Term Program (MTP), which are the road map of our economy, and we are getting positive results. In this context, there is a decline in the current account deficit, an increase in international resource inflows, strengthening in reserves and improvement in risk indicators. While the strong outlook in the labor market was maintained, employment reached a historically high level and the unemployment rate remained at single-digit levels.
We expect a significant decline in annual inflation in the second half of the year as the tight monetary policy stance is supported by fiscal and incomes policies to achieve our primary objective of price stability permanently. The rebalancing in the economy and strengthening financial stability support our fight against inflation. The “Public Savings and Efficiency Package”, the details of which we shared with the public on 13 May 2024 to strengthen fiscal discipline, is expected to make a significant contribution to the disinflation process by increasing expenditure control and savings in the public sector and directing investments to priority areas.
Structural reforms, one of the main pillars of our program, constitute our main agenda. Our support for value-added production, qualified investments and high-tech exports will support sustainable growth together with structural reforms.
The issues discussed at today’s meeting are as follows:
It was decided to accelerate the work on structural reforms, which are scheduled in the MTP and envisaged to be completed in the first half of 2024. As of the first quarter of 2024, 20 of the 81 actions envisaged in the MTP within the scope of reform arrangements have been completed. Significant progress has also been made in the work on other actions whose timetable is approaching.
Agricultural production planning and the new support model, which are among our priority reform areas in the MTP, were discussed in detail. With the model, production planning will be made by determining target sufficiency ratios in strategic agricultural products for food supply security. In addition to the support model in agricultural production and water use, additional steps to be taken to increase productivity and improve domestic production through the use of new technologies were evaluated.”
