Türkiye’s Treasury and Finance Minister Mehmet Şimşek is in the United States for a high-level G20 meeting as Ankara released fresh economic data showing that the Turkish economy expanded by 2.3% year-on-year in the second quarter of 2026. Şimşek also outlined key priorities for Türkiye’s upcoming 2027–2029 Medium-Term Program, with price stability, technological transformation, productivity and sustainable prosperity at the center of the government’s economic roadmap.
Türkiye’s Treasury and Finance Minister Mehmet Şimşek had a packed agenda on August 31, combining international economic diplomacy in the United States with important messages on Türkiye’s domestic economic outlook.
Şimşek traveled to Asheville, North Carolina, to attend the G20 Finance Ministers and Central Bank Governors Meeting, which began on August 31 and is scheduled to continue through September 1.
The gathering comes at a critical time for the global economy, with geopolitical tensions, mounting public debt, trade imbalances and uncertainty surrounding global growth dominating discussions.
Global Economic Challenges on the G20 Agenda
The Asheville meetings are expected to focus on the impact of geopolitical tensions on the global economy, the global growth outlook, widening economic imbalances and rising public debt levels.
Finance ministers and central bank governors are also discussing growth-friendly economic policies and ways to strengthen cooperation with the private sector.
Global debt has recently reached a record level of around $353 trillion, adding urgency to discussions over how governments can support growth while managing increasingly heavy debt burdens.
Energy disruptions, global trade imbalances, China’s large trade surplus and the economic transformation driven by artificial intelligence investment are also among the issues shaping the discussions.
Şimşek Expected to Hold Bilateral Meetings
For Türkiye, the G20 gathering also provides an important platform for economic diplomacy.
Alongside the official sessions, Şimşek is expected to hold bilateral meetings with finance ministers from other countries as well as senior executives of international financial institutions.
The meetings provide Ankara with an opportunity to communicate Türkiye’s economic policy priorities, investment strategy and macroeconomic outlook directly to international policymakers and financial institutions.
US Pushes Growth and Investment Agenda
As this year’s G20 host, the United States is emphasizing stronger economic growth as part of its strategy to address mounting global debt concerns.
US Treasury Secretary Scott Bessent has argued that stronger growth, increased private-sector investment and reduced regulatory burdens could help economies manage their debt challenges while unlocking additional economic potential.
The Asheville discussions are therefore expected to range from sovereign debt and global economic imbalances to energy security, investment and structural changes in the global economy.
Türkiye’s Economy Expands 2.3% in Second Quarter
While Şimşek was in the United States, fresh economic data released in Türkiye showed that the economy expanded by 2.3% year-on-year in the second quarter of 2026.
On a quarterly basis, gross domestic product increased by 1.1%.
Türkiye’s annualized national income also exceeded $1.7 trillion, according to Şimşek.
The minister said the economy continued to grow despite difficult global conditions and heightened geopolitical tensions.
Market expectations, however, had been somewhat stronger. A Reuters poll had forecast annual growth of 2.9%, meaning the second-quarter result came in below expectations.
Agriculture Leads Growth
Agriculture emerged as one of the strongest-performing sectors during the quarter, expanding by 13.3% year-on-year.
Industrial value added increased by 2.4%, supported in part by positive developments in technology-intensive industries.
Private consumption increased by 3.5%, while investment grew by 0.6%. Net external demand also made a positive contribution to economic growth.
Şimşek described the second-quarter performance as a more balanced growth picture supported by both domestic and external demand.
Current Account Deficit Reaches $38.9 Billion
Şimşek also addressed Türkiye’s external balance.
The annualized current account deficit reached $38.9 billion in the second quarter amid geopolitical developments affecting Türkiye’s trading partners and higher commodity prices, particularly in energy.
The current account deficit stood at approximately 2.3% of GDP, a level Şimşek described as sustainable.
Şimşek Expects Growth to Gradually Accelerate
Looking ahead, Şimşek said progress in Türkiye’s disinflation program and potentially more supportive global conditions should help economic growth gradually strengthen.
He argued that improvements in Türkiye’s macroeconomic fundamentals have increased the economy’s resilience against external shocks.
The government has been pursuing a broader economic program focused on reducing inflation, maintaining fiscal discipline, strengthening financial stability and improving the sustainability of economic growth.
New 2027–2029 Medium-Term Program Takes Shape
Another major message from Şimşek concerned Türkiye’s upcoming 2027–2029 Medium-Term Program (MTP).
The new program is expected to establish the government’s economic roadmap for the next three years.
According to Şimşek, the program will focus on achieving price stability, strengthening Türkiye’s growth potential through technological transformation and productivity gains, and delivering sustainable improvements in prosperity.
The new MTP will therefore be closely watched for updated targets on growth, inflation, employment, fiscal policy and Türkiye’s broader macroeconomic strategy.
Şimşek Highlights Türkiye’s Debt Position
Şimşek also highlighted Türkiye’s debt indicators as evidence of the country’s ability to withstand economic shocks.
Türkiye’s gross external debt stood at 31.6% of GDP in the second quarter, while the country’s total debt-to-GDP ratio was around 91%.
According to figures cited by Şimşek, this remains significantly below the average of 229% for emerging economies and the global average of 306%.
The minister said Türkiye’s strengthening macroeconomic fundamentals were increasing the economy’s resilience in an increasingly uncertain international environment.
Attention Turns to Şimşek’s US Meetings
Şimşek’s August 31 agenda therefore brings together two major fronts of Türkiye’s economic policy: the domestic effort to maintain growth while continuing the disinflation process, and Ankara’s international economic diplomacy.
With the G20 Finance Ministers and Central Bank Governors Meeting continuing in Asheville through September 1, attention is now turning to Şimşek’s bilateral meetings and any additional messages that may emerge from his discussions with international counterparts and financial institutions.
The outcome of those meetings could provide further signals about Türkiye’s economic strategy, international investment relations and Ankara’s approach to a global economy increasingly shaped by geopolitical tensions, high debt levels and rapidly changing trade and investment patterns.
