Turkish economy emerges from uncertainties, says Şimşek

ISTANBUL

Türkiye’s economy has successfully emerged from a period marked by domestic and global uncertainties, reentering a phase of virtuous cycle, Finance Minister Mehmet Şimşek has said.

In a statement shared via social media after Moody’s upgraded Türkiye’s credit rating, Şimşek emphasized that the upgrade confirms that “we have managed the process successfully and that our economy is resilient.”

He reaffirmed the government’s commitment to permanently reducing inflation, maintaining a sustainable current account balance and strengthening fiscal discipline — excluding earthquake-related expenditures.

He also highlighted plans to reinforce these gains through structural reforms, particularly in green and digital transformation.

Şimşek added that as the program continues to be implemented with patience and determination, Türkiye’s risk premium will decline further, access to financing will improve, and additional rating upgrades are likely.

Moody’s upgrade Türkiye

Moody’s on July 25 upgraded Türkiye’s credit rating to Ba3, revising its outlook from “negative” to “stable.”

The agency cited improved macroeconomic management, tighter monetary policy, and efforts to restore investor confidence as key factors behind the decision.

“The upgrade reflects the strengthening track record of effective policymaking, more specifically in the central bank’s adherence to monetary policy that durably eases inflationary pressures, reduces economic imbalances and gradually restores local depositor and foreign investor confidence in the Turkish lira,” the international credit rating agency said in a statement.

“The upgrade also reflects the view that the risk of a policy reversal has receded, although it will remain present in the coming years,” it added.

Moody’s noted that maintaining the current policy path and advancing planned structural reforms could further enhance Türkiye’s resilience to external shocks, particularly by reducing its energy import dependence and increasing the competitiveness of exports.

Meanwhile, Fitch Ratings on July 25 affirmed the country’s Long-Term Foreign-Currency Issuer Default Rating at BB-, maintaining a stable outlook.

The agency acknowledged Turkey’s progress in monetary tightening, reduction in inflation and partial recovery in international reserves. However, Fitch also pointed to ongoing challenges, such as high inflation and external financing risks.