Vice President Cevdet Yılmaz mentioned that a company owned by Saudis intends to invest $5 billion in Turkey in energy and other sectors. Speaking on the Capital Agenda program on Kanal 7, Vice President Cevdet Yılmaz made statements on the agenda and answered questions. In response to a question about the 10th Meeting of the Investment Advisory Council held yesterday under the chairmanship of President Recep Tayyip Erdoğan, Yılmaz stated that from the election to the present, a stable and resolute economic policy has been implemented, reaffirmed by the updated Medium-Term Program.

Yılmaz mentioned that there is a considerable confidence in the economic program, and investors who participated in the Investment Advisory Council Meeting expressed this. He said, “In both portfolio investment and direct investments, Turkey has entered a different period. We will see the results of this more in the upcoming period.” Yılmaz explained that with the Investment Environment Improvement Coordinating Council mechanism he chairs, they bring together the public and private sectors and develop very good action plans.

Emphasizing the international dimension of this mechanism, which he pointed out is formed by the Investment Advisory Council, Yılmaz continued, “The Investment Advisory Council is a platform where CEOs from international corporations participate and put forward their views and suggestions directly from the market. It was very beneficial. The outcomes were also shared with the public. We will do the same next year. Investors say that there are not many countries left in the world where investments can be made due to political, geopolitical, and economic reasons. Turkey has become a country seriously discussed and talked about by investors in this period. It is essential that we turn this interest into results.”

YILMAZ CALLS FOR $5 BILLION INVESTMENT PLAN FOR TURKEY

Yılmaz evaluated that they need to increase direct international capital investments that will provide permanent employment opportunities and bring new technologies. At the Investment Advisory Council Meeting, Yılmaz stated that they witnessed the desire of investors to make direct investments in Turkey. He said, “A company owned by Saudis mentioned that they aim to invest $5 billion in Turkey in energy and other sectors. Our ministers, our President met with investors in the US.

Wherever we go, we see a serious interest coming from the world, a very serious perspective from investors. Turkey is a country that is very seriously debated on what it can do. The results will become apparent.” He used the expression, “INVESTORS HAVE NO CONCERN WITH DOMESTIC POLITICS.” Yılmaz stated that they saw an increase of twice the amount in the number of investors who wanted to invest in Turkey according to surveys conducted by the International Investors Association.

Highlighting an acceleration in direct investments in the last three months, Yılmaz stressed, “Direct investments have exceeded $6 billion in the last 7 months. We aim to surpass $10 billion by the end of the year. We only have a 1% share worldwide; our goal is to raise it to 1.5%.” Yılmaz expressed that there is a segment in the country that spreads pessimism and shadows the government’s program. He noted, “Investors are not concerned with domestic politics. They look at the situation of the country and the numbers. People see what the situation is. Investors appreciate Turkey’s stability, peace, geographical location, entrepreneurial workforce, youth, various aspects. Turkey is the only country this year that three credit rating agencies have upgraded positively. Our investment image and perception are improving. Turkey will meet new investors. Turkey is the center of attention not only from China but also from Latin America, the Gulf, the Far East, and Europe, and America. We need to take advantage of this very well.”

CALLS FOR EARLY ELECTIONS

Responding to questions about calls for early elections, Yılmaz stated, “Turkey does not have such an agenda. In the AK Party period, our President introduced Turkey to political stability. There is no economic stability without political stability. Yearly elections, new governments every year, Turkey experienced those in the 1990s, and we paid a heavy price economically. Therefore, what we need is to focus on the real problems of our people in an environment of political stability and trust and to produce solutions to them.” Yılmaz pointed out that both local and foreign investors primarily seek predictability in a country, emphasizing that political stability is the key concept for this.

Yılmaz remarked that they have seen a significant improvement in the market expectations for the Medium-Term Program, but have not yet fully realized the results. Reminding that they closed last year with a deficit of 5.2, Yılmaz forecasted 6.4 for this year and stated that their current estimates are around 4.9. Even though they allocated 2.5 trillion liras for earthquake aid this year, Yılmaz mentioned that they managed to bring the budget deficit below 5%. He stated, “Next year, we are targeting below 3%. The budget deficit has largely recovered. Last year, the current account deficit was around 6% in the middle of the year, and we had nearly a $60 billion current account deficit at that time. Today, we are increasing exports, reducing imports, tourism revenues are going well, and our current account deficit is around 2%. It will go down to 1.7% by the end of the year.”

INFLATION ESTIMATION

Vice President Yılmaz pointed out that Turkey now continues on its path with a much stronger structure by reducing risks in the economy and increasing resistance to shocks. While mentioning that inflation has temporarily increased while reducing these risks, Yılmaz continued, “We previously said, ‘inflation will increase slightly but then decrease. Especially in the second half of the year, you will see a significant decrease.’ Thanks to God, it had risen to 75.5% in May, entered a decreasing process from June and decreased by 23.5 points in the last 3 months, coming down to 52%. Next month, at a close date, we are expecting a figure below 50. We have a prediction of around 41.5% by the end of the year. Around this time next year, we expect it to be between 20% and 30%, and at the end of the year, we expect it to be below 20%.” Yılmaz stated, “We see a systematic effort to create pessimism in society, trying to harm the country with speculative events. We will not give in to these and will continue on our path firmly.”