President Erdoğan Announces SME Definition Change Amidst Declining Inflation and Record Tourism Revenue
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Ankara – President Recep Tayyip Erdoğan announced a revised definition of Small and Medium-sized Enterprises (SMEs) following a Cabinet meeting held at the Presidential Complex today. The meeting, which lasted one hour and forty minutes, focused on economic developments, including a sustained decline in inflation and record-breaking tourism revenue.
Erdoğan highlighted the continuous 14-month decrease in inflation, noting that both annual and food inflation reached their lowest levels in 44 months in July, even though he acknowledged that current levels remain below desired targets. He also reported strong industrial production and expanded access to SME support programs.
A key declaration involved the updated definition of SMEs,designed to broaden eligibility for goverment assistance.This change aims to bolster the Turkish economy by supporting a wider range of businesses.
The President also emphasized the success of turkey’s expanding engagement with Africa, stating that the number of Turkish embassies on the continent has more than tripled, rising from 12 in 2002 to 44 today. He pointed to increased trade volume with African nations, citing a nine-fold increase as 2002.
Recent diplomatic efforts were also discussed, including the signing of 20 agreements with Kazakhstan during the 5th meeting of the High-Level Strategic Cooperation Council. Turkey is resolute to achieve its trade target of $15 billion with Kazakhstan.
Context: Turkey’s Economic Trajectory and Foreign Policy Shifts
Turkey’s economic policy under President Erdoğan has focused on fostering growth thru investment and expanding trade relationships. The emphasis on SMEs reflects a broader strategy to strengthen the domestic economy and reduce reliance on external factors. The country has experienced periods of high inflation and currency volatility, prompting the government to implement various measures to stabilize the economy.
Turkey’s increasing engagement with Africa represents a important shift in its foreign policy.Historically focused on Europe and the Middle East, Turkey has actively sought to build stronger ties with african nations, viewing the continent as a key partner for trade, investment, and political cooperation. This expansion is part of a broader effort to diversify Turkey’s foreign policy and enhance its global influence.
The strategic partnership with Kazakhstan is also crucial, given Kazakhstan’s role as a key transit hub in Central Asia and its rich natural resources. The agreements signed between the two countries are expected to further strengthen economic ties and promote regional stability.
Frequently Asked Questions About Turkey’s Economic Updates
- what is the significance of the new SME definition in Turkey?
- The revised definition of SMEs aims to include more businesses in government support programs, fostering economic growth and job creation. This change broadens access to financial assistance and other resources.
- How long has inflation been declining in Turkey?
- Inflation in Turkey has been falling uninterruptedly for the past 14 months, according to President Erdoğan’s statements. Though, the current levels are still not at the desired target.
- What is Turkey’s current trade volume with african nations?
- Trade volume with African nations has increased ninefold as 2002, demonstrating the success of Turkey’s expanding engagement with the continent.
- What agreements were signed with Kazakhstan during the recent meeting?
- Turkey and Kazakhstan signed 20 agreements during the 5th meeting of the High-Level Strategic Cooperation Council, focusing on trade, investment, and regional cooperation.
- What record has Turkey broken in tourism revenue?
- Turkey achieved all-time record tourism revenues of $25.8 billion in the frist six months of 2024, highlighting the sector’s strong performance.
- What is Turkey aiming for in trade with Kazakhstan?
- Turkey is determined to reach a trade target of $15 billion with Kazakhstan,building on the recent agreements and strengthening economic ties.
- How many Turkish embassies are currently located in Africa?
- There are currently 44 Turkish embassies located across the African continent, a significant increase from the 12 embassies present in 2002.
