Middle Corridor, pipelines and defense: Şimşek outlines Türkiye’s economic course

Speaking at the Istanbul Economic Forum, Turkish Finance Minister Mehmet Şimşek pledged not to retreat from disinflation, cited the Middle Corridor and pipelines as pillars of growth and said defense spending will rise 229% in 2027.

Turkish Treasury and Finance Minister Mehmet Şimşek acknowledged at the opening of the central bank’s Istanbul Economic Forum that disinflation slowed this year because of the war, but stressed that Ankara would not give up on price stability. "Türkiye continues to implement reforms," he said.

Describing Türkiye’s approach to an era of conflict as staying out of wars and "investing in peace," Şimşek said defense investment had become unavoidable. Defense spending will rise 229% in the 2027 budget, and Türkiye, once among the world’s top five arms importers in the 1990s, is nearing the top 10 exporters, he said.

Transport corridors and energy

Şimşek noted that Turkish Airlines flies to more destinations than any other carrier, that Türkiye is building the Middle Corridor and encouraging neighbors to invest in alternative routes, with the Development Road project viewed in the same light. Türkiye has long invested in oil and gas pipelines, and renewables now account for nearly 60% of electricity generation.

The Istanbul Financial Center, venue of the forum, and the Ataşehir skyline (2023)

As host of COP31, Türkiye aims to raise electrification from 23% to 35%, reducing its dependence on energy imports.

Debt and growth

Public debt stands at 22% of GDP, giving fiscal space, and the economy grew more than 3% last year, about twice as fast as trade partners, he said, also citing an $8 billion rail investment crossing the Bosphorus to link Beijing and London.