Türkiye is in an "advantageous" position regarding global indebtedness, Treasury and Finance Minister Mehmet Şimşek said Thursday, noting that the country's low total debt level enhances its resilience to economic shocks.
"The ratio of total debt to global output has exceeded 300% globally and 230% in emerging markets. Türkiye is in an advantageous position in this respect," Şimşek told the 19th Verona Eurasian Economic Forum held in Istanbul.
"The low level of indebtedness in Türkiye enhances its resilience to economic shocks. Thanks to low indebtedness, the ability to respond to economic shocks and sustain growth is higher," he added.
His remarks came amid growing concerns about high public debt in some countries, including France, which has recently been rocked by massive nationwide protests and riots.
Speaking at the opening of the forum, Şimşek also evaluated the importance of connectivity amid global supply shocks, also suggesting that protectionism has become the new normal for the world economy since the global financial crisis.
The 19th Verona Eurasian Economic Forum kicked off in Istanbul on Thursday, bringing together political, diplomatic, academic, and business representatives from more than 30 countries. It is organized with the support of the Independent Industrialists and Businessmen's Association (MÜSIAD) and Ibn Haldun University.
The two-day forum, held at the Çırağan Palace under the theme "Challenges of a Changing World and a Changing Economy," was set to focus on major shifts in the global economy and geopolitical landscape.
The minister, as part of his remarks, also reiterated that Ankara's approach regarding regional conflicts is to advocate for peace and stability, and he also underscored the importance of trade agreements and work on enhancing relations with more partners within the framework of "rules-based trade."
On the question of debt, Şimşek noted that Türkiye's budget deficit-to-GDP ratio is about half of the global average for emerging markets, and the public debt-to-GDP ratio is about one-third of that average.
Moreover, he mentioned that an aging population has become a significant global problem, stressing that the decline in fertility rates and the decrease in the working-age population pose new challenges for countries. However, he pointed out that Türkiye still, according to their calculations, has an 18-20 year window of opportunity in this respect, as its working-age population growth is still positive.
He also evaluated AI preparedness, noting that Türkiye is ahead of developing countries in terms of readiness for artificial intelligence, but not at the same level as advanced economies, and acknowledged that there is more to be done in this area.
On the broader macroeconomic picture, he reaffirmed the goal of taming inflation.
"We expect our national income to reach approximately $1.8 trillion this year at current exchange rates, and about $4 trillion based on purchasing power parity," he said.
"(Despite our advantages), of course, we have challenges too. We are implementing holistic policies to overcome high inflation," he said.
"As President Erdoğan and his team, we are business-friendly. If you choose to conduct all or part of your business in Türkiye, we want to assist you."