The Independent Industrialists' and Businessmen's Association (MÜSİAD) held its annual Economic Assessment and New Year Expectations Meeting at MÜSİAD Headquarters, with the participation of the Minister of Treasury and Finance of the Republic of Turkey, Mr. Mehmet Şimşek. The event, which featured speeches by the Minister of Treasury and Finance of the Republic of Turkey, Mr. Şimşek, and MÜSİAD President Mahmut Asmalı, addressed the economic expectations for the new year.

MÜSİAD President Mahmut Asmalı shared his analyses for 2024 and his predictions for 2025.

Asmalı assessed 2024, a year marked by global and local economic challenges, emphasizing Turkey's fight against inflation and the need for structural reforms in the economy. Asmalı said, "2024 was a challenging year for the real sector; however, the moderate increase in exports and the preservation of employment once again demonstrated the resilience of the Turkish economy."

Asmalı stated that combating inflation will remain a priority in 2025, emphasizing the need for structural reforms and innovation-based solutions that will enhance the competitiveness of the real sector. He also stated that the newly launched Global Competitiveness and Capacity Building support programs and the HIT-30 Support Program will significantly contribute to SMEs' innovative product development. "2025 Should Be a Year of Reform"

Regarding inflation and future expectations, Chairman Asmalı said the following:

"Reducing inflation will be the top priority for the economy in the new year. The survey we conducted with our MÜSİAD members confirms the importance of this decision. However, it must be emphasized that this challenging struggle also negatively impacts real sector investments, employment opportunities, and growth targets.

While our citizens and companies are attempting to bear the costs of fighting inflation, we must ensure that these costs are not paid in vain.

We must turn this challenging period into an opportunity by implementing structural reforms that enhance competitiveness, ensure more effective use of idle capacity, strengthen the innovation ecosystem, and improve income distribution. Thus, the struggle and sacrifices made over the last year and a half can become even more meaningful by making the Turkish economy more value-added, productive, and inclusive. As the MÜSİAD family, we are ready to provide all kinds of support to make 2025 a true year of reform."

The latest developments in our economic management Steps taken to maintain the competitiveness of the real sector during this period, such as increases in rediscount credit limits and the Employment Protection Program, are highly valuable. The Central Bank's reduction of the policy rate at its final meeting of the year, in line with inflation developments, is another development that gives the real sector hope for 2025.

MÜSİAD (Ministry of Finance and Finance), describing 2025 as a "year of reform," stated its determination to continue its efforts to ensure the Turkish economy achieves a structure focused on sustainable growth, employment, and investment.

"Global inflation will continue to decline in 2025"

Treasury and Finance Minister Mehmet Şimşek made important assessments regarding economic forecasts and policies for 2025. Minister Şimşek stated, "Geopolitical developments are a matter we all carefully monitor and attach importance to. These developments will further highlight Türkiye's rising geopolitical value. This will become even more evident in 2025."

Addressing issues that directly affect Turkey in the global economy in the short term, Şimşek noted that economic growth is expected to accelerate in the European Union and Türkiye's immediate region in 2025. Şimşek pointed out that this realization would create a positive trend in terms of foreign demand and exports, saying:

"This development will support Türkiye's growth and export targets. However, we see that the increasing uncertainty in European and US economic policies stems largely from political dynamics. On the other hand, the decline in global inflation is a supportive factor for us. More favorable short-term financial conditions will encourage both the Medium Term Program (MTP) and economic activity. Furthermore, no real increase in commodity prices such as oil and natural gas is currently anticipated."

Şimşek, who also emphasized geopolitical issues, stated that Türkiye's growing strategic importance will become even more prominent in 2025: "Turkey will maintain its leadership role in resolving many problems in our region. This will increase Türkiye's global recognition and reinforce its strategic importance. In this context, the short-term economic outlook supports exports and the real sector."

Commenting on the decline in global inflation, Şimşek said, "Compared to 2023 and 2024, global inflation is expected to continue to decline in 2025. According to projections, the global average inflation will fall to 4.3 percent."