Erdogan Says Inflation Not 'Insurmountable Threat'

Turkish President Recep Tayyip Erdogan attends a meeting with Russian President on the sidelines of the Shanghai Cooperation Organization (SCO) leaders' summit in Samarkand on September 16, 2022. (AFP)
Turkish President Recep Tayyip Erdogan attends a meeting with Russian President on the sidelines of the Shanghai Cooperation Organization (SCO) leaders' summit in Samarkand on September 16, 2022. (AFP)
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Erdogan Says Inflation Not 'Insurmountable Threat'

Turkish President Recep Tayyip Erdogan attends a meeting with Russian President on the sidelines of the Shanghai Cooperation Organization (SCO) leaders' summit in Samarkand on September 16, 2022. (AFP)
Turkish President Recep Tayyip Erdogan attends a meeting with Russian President on the sidelines of the Shanghai Cooperation Organization (SCO) leaders' summit in Samarkand on September 16, 2022. (AFP)

Turkish President Tayyip Erdogan said inflation is not an "insurmountable economic threat," adding it will begin to fall at the end of the year after it surged to more than 80% in August.

Under Erdogan's economic program, Türkiye gradually cut interest rates by 500 basis points at the end of last year, sparking a currency crisis. It cut them by another 100 basis points to 13% in August.

The lira's sharp decline, by 44% last year and another 27% so far this year, stoked prices and, along with surging global energy and commodity prices, pushed inflation to 24-year highs.

"Inflation is not an insurmountable economic threat. I am an economist," said Erdogan, who is not an economist by training.

Speaking to broadcaster PBS, Erdogan said inflation would fall after the end of the year. That view is shared by economists, who say the annual figure will decline beginning in December given the sharp price rises during the same time last year, while on a monthly basis prices will continue rising.

Erdogan added that some countries were threatened by 8%-9% inflation while Türkiye’s was around 80%.

"The racks are not empty in markets in my country. But the racks are empty even in the US, they are empty in France, they are empty in Germany. My citizens can find any type of product they wish at the market," he said, according to a transcript of the interview shared by the presidency.

Türkiye says it aims to lower inflation by first flipping its chronic current account deficits to a surplus.

The surging global commodity and energy prices, and a potential slowdown in exports in the second half, have made that goal all but unattainable this year. Ankara does not see a surplus in the next three years.



China Retaliates to EU Ban with Import Restrictions on Medical Devices

People walk along Qianmen promenade in Beijing on July 5, 2025. (Photo by Adek BERRY / AFP)
People walk along Qianmen promenade in Beijing on July 5, 2025. (Photo by Adek BERRY / AFP)
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China Retaliates to EU Ban with Import Restrictions on Medical Devices

People walk along Qianmen promenade in Beijing on July 5, 2025. (Photo by Adek BERRY / AFP)
People walk along Qianmen promenade in Beijing on July 5, 2025. (Photo by Adek BERRY / AFP)

China's finance ministry said on Sunday it was restricting government purchases of medical devices from the European Union that exceed 45 million yuan ($6.3 million) in value, in retaliation to Brussels' own curbs last month.

Tensions between Beijing and Brussels have been rising, with the European Union imposing tariffs on China-built electric vehicles and Beijing slapping duties on imported brandy from the bloc.

The European Union said last month it was barring Chinese companies from participating in EU public tenders for medical devices worth 60 billion euros ($70 billion) or more per year after concluding that EU firms were not given fair access in China.

The measure announced by the European Commission was the first under the EU's International Procurement Instrument, which entered into force in 2022 and is designed to ensure reciprocal market access.

China's countermeasures were expected after its commerce ministry flagged "necessary steps" against the EU move late last month.

"Regrettably, despite China's goodwill and sincerity, the EU has insisted on going its own way, taking restrictive measures and building new protectionist barriers," Reuters quoted the commerce ministry as saying in a separate statement on Sunday.

"Therefore, China has no choice but to adopt reciprocal restrictive measures."
The EU delegation office in Beijing did not immediately respond to a request for comment.

China will also restrict imports of medical devices from other countries that contain EU-made components worth more than 50% of the contract value, the finance ministry said. The measures come into force on Sunday.

The commerce ministry said products from European companies in China were not affected.

The world's second- and third-largest economies are due to hold a leaders' summit in China later in July.