Şimşek: Türkiye won’t give up on disinflation, eyes $1 trillion regional reconstruction

Turkish Finance Minister Mehmet Şimşek said Ankara remains committed to disinflation despite a war-driven slowdown, and that Türkiye aims to contribute to a regional reconstruction effort worth at least $1 trillion while pursuing a free trade deal with the Gulf Cooperation Council.

Türkiye will not back down from disinflation even though the regional war slowed the process this year, Treasury and Finance Minister Mehmet Şimşek said at the opening of the Istanbul Economic Forum. "This year the disinflation process may have slowed somewhat because of the war, but we will never give up on it," he said.

Reconstruction and the Gulf

Türkiye, second only to China in international contracting, aims to contribute to a regional reconstruction process expected to reach at least $1 trillion over the next decade, Şimşek said. It has 54 free trade agreements in force and is negotiating with the Gulf Cooperation Council, Japan, Indonesia and Canada.

He described the Development Road project linking the Gulf to Europe via Iraq and Türkiye as part of connectivity efforts alongside the Middle Corridor, and said Türkiye ranks sixth in the world for international students.

Şimşek speaks at the opening of the Istanbul Economic Forum

Growth with low debt

The economy grew more than 3% last year against about 1.5% for trade partners, and public debt is 22% of GDP, Şimşek said, announcing a 229% rise in defense spending in the 2027 budget because "investment in defense has become a necessity amid conflicts."

Tourism revenues have risen ninefold in dollar terms over 25 years, with a target of roughly doubling them again in a decade; Türkiye has more than 50 internationally accredited health institutions, and Turkish TV series rank third globally in services exports, he added.