International capital inflow to Türkiye will accelerate once rising inflation is brought under control, President Recep Tayyip Erdogan has said, addressing a ceremony marking the 150th anniversary of Borsa Istanbul, Türkiye’s stock market.
"The positive impact of the decline in the default swaps and the improvement in the credit rating will be felt in our capital markets, especially the stock market," Erdogan said during Friday's ceremony.
He underlined that the stabilisation of inflation will help the stock market and make investors’ access to financing resources easier.
Stressing that with the deepening of capital markets in developed economies, the real sector is better financed and savings rates rise, Erdogan said: "We must also take a more determined stance in this direction and prevent anyone, whether politicians or economists, from manipulating capital markets."
With the sweeping transformation in capital markets and Borsa Istanbul under steps taken since the AK Party took the helm in 2002 and the Istanbul Finance Center's coming on stream, Türkiye's central role in the field of finance has been strengthened, he said.
International capital hub
Erdogan highlighted that the Turkish economy’s high growth potential is attracting attention from both domestic and international investors.
"While there is a contraction in the global economy and foreign capital flows are falling, Türkiye continues to attract foreign capital through its stock market, that is, to provide financing for its economic growth," he explained.
Noting that Türkiye maintained its position as an international capital hub, Erdogan said Türkiye has attracted more than $255 billion in investment in the last 21 years.
"We will focus on further deepening our capital markets and spreading them to the base in the days to come," the president added.
For his part, Treasury and Finance Minister Mehmet Simsek said that under President Erdogan’s leadership, Türkiye's gross domestic product will reach $1.1 trillion as of the end of this year, from $238 billion 21 years ago.
In the coming period, predictability in the Turkish economy will rise significantly thanks to the government’s medium-term program, he said.
The foundations of sustainable growth will get stronger and macroeconomic stability will improve, Simsek added.
An important goal of the MTP is deepening capital markets; as capital markets deepening and inflation decreasing to the single-digit level, companies will be able to reach sources with easier conditions, he expressed.
➤Click here to follow our WhatsApp channel for more stories.
