He said Türkiye’s budget deficit stood at 2.9 percent of gross domestic product (GDP) last year, compared with about 6 percent for the emerging-market average, while government debt was 24 percent of GDP compared with an emerging-market average of 74 percent.
Simsek said Türkiye’s current account deficit is expected to rise because of higher oil and gas prices but remain manageable at about 3 percent of GDP.
He added that Türkiye still has adequate reserves, while external debt as a share of GDP is trending down towards the low-30 percent range.
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New incentives and investment case
Simsek also outlined new measures aimed at attracting investment, capital and talent to Türkiye.
He said a bill approved by parliament and signed by President Recep Tayyip Erdogan reduced the corporate tax rate for manufacturers in industry and agriculture to 12.5 percent.
“This is one of the most competitive corporate tax rates for any global emerging market,” he said.
He also said Türkiye introduced a 100 percent tax exemption on service exports, including software, video games, medical tourism, education, engineering, design and consultancy.
The minister said Türkiye also introduced zero corporate income tax on transit trade for companies operating in the Istanbul Financial Centre, while a 95 percent tax exemption applies outside the centre.
Simsek said Türkiye remains attractive due to its large and growing economy, strong connectivity, manufacturing base, services capacity and labour force.
He said Türkiye is the world’s 16th-largest economy by gross domestic product at current exchange rates and the 11th-largest by purchasing power parity, with PPP-adjusted GDP above $4 trillion.
Simsek said Türkiye will continue investing in regional integration and connectivity, citing the Development Road project with Iraq, the Middle Corridor and potential new routes linking Türkiye with Saudi Arabia and the Gulf region.
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