Mehmet Şimşek

The Turkish economy still has a growth potential and may join high-income countries within a year or two, Finance Minister Mehmet Şimşek has said, adding that disinflation has begun and is continuing.

"We are converging to European Union countries in terms of per capita income," the minister said, speaking at an energy conference in Istanbul.

The labor union Türk-İş demanded that the minimum wage should be increased from a current 17,000 Turkish Liras to 29,583 liras ($811).

Representatives of Türk-İş, the Turkish Confederation of Employer Associations (TİSK) and the government launched talks on Dec. 10 to decide about the minimum wage for 7 million workers, which will take affect in 2025.

Treasury and Finance Minister Mehmet Şimşek visited Muscat, the capital of Oman, on Dec. 19 for the 12th meeting of the Joint Economic Commission, according to information from the ministry.

As discussions to set the minimum wage for 2025 are ongoing, Finance Minister Mehmet Şimşek has hinted at a raise that could protect workers from the impact of inflation.

Speaking at parliament, Şimşek noted that the government has improved salaries and pensions with increases above the inflation rate.

The Finance Ministry's Tax Inspection Board has put companies that jack up prices despite no significant rise in costs and sectors where firms are suspected of engaging in cartel practices on its radar.

The board is working to identify firms that make profits above the sector average but failed to report their income properly in tax declarations.

Türkiye's credit debt swap (CDS) fell below 250 basis points, Finance Minister Mehmet Şimşek said, adding that this shows confidence in the government's economic program.

The country's CDS has dropped to its lowest level since February 2020, Şimşek wrote on social media platform X.

Per capita income is likely to exceed $15,000 at the end of this year, Finance Minister Mehmet Şimşek has said, reiterating that the government's economic program is yielding results.

The annual inflation rate has continued to decline, slowing from 48.58 percent in October to a 17-month low of 47.09 percent in November, according to data from the Turkish Statistical Institute (TÜİK) on Dec. 3.

This represents the sixth consecutive month of easing in the annual inflation.

The government has a comprehensive agenda for structural reforms in the economy, Treasury and Finance Minister Mehmet Şimşek has said, adding that Türkiye's productivity and competitiveness will be strengthened.

Türkiye's economy grew by 2.1 percent in the third quarter of 2024, according to data released by the Turkish Statistical Institute (TÜİK) on Nov. 29.

While the growth reflects moderate progress, it aligns with projections made during the country's ongoing disinflation policies.