Vice President Cevdet Yılmaz on Tuesday said overall financial conditions were expected to improve in 2026, adding that the government is aware of financing challenges faced by the real sector and is implementing necessary measures to ease access to funding.
Speaking at the Investment Environment Improvement Coordination Council (YOIKK) meeting in Ankara, Yılmaz said the government remains determined and coordinated in its fight against inflation while seeking to strengthen financial stability.
"As the government, we continue our determined and coordinated efforts to reduce inflation. At the same time, we aim to provide a more solid foundation for the real sector by reinforcing financial stability," he said.
Türkiye's annual inflation eased to 30.7% in January. But a monthly spike of nearly 5% in consumer prices triggered market doubts about whether the downward course seen throughout 2025 is on track.
Officials have dismissed those doubts, saying there's no deterioration in Türkiye's disinflation path but rather a slowdown mainly due to food prices and seasonal effects.
Yılmaz said the global economy is navigating a period of heightened risk and uncertainty, with geopolitical developments, financial volatility and fragile trade flows directly affecting investment decisions.
Citing data from the United Nations Conference on Trade and Development (UNCTAD), he said leading indicators point to a 14% increase in global foreign direct investment (FDI) flows in 2025. However, much of the rise stemmed from financial transactions among developed economies, and when these are excluded, the real increase stands at around 4%.
FDI flows to developing countries declined by 2%, he added.
"Within such a global outlook, Türkiye has been among the positively differentiated countries, recording a 12.2% increase in 2025," Yılmaz said, noting that international FDI inflows reached $13.1 billion.
He said wholesale and retail trade ranked first with a 32% share, driven largely by e-commerce investments, followed by manufacturing at 31% and information and communication at 14%.
Focus on quality investments
Yılmaz said the sectoral distribution shows investments are concentrated in areas that strengthen production infrastructure, increase trade volume and enhance technological capacity.
Under Türkiye's International Direct Investment Strategy, the government continues to prioritize climate-friendly, digital, knowledge-intensive and global supply chain-oriented investments, he added.
Yılmaz said the government expects overall financial conditions to improve in 2026 while continuing selective measures to facilitate access to financing.
"We are aware of the difficulties our real sector faces, particularly in accessing finance, and we continue to implement necessary measures, especially for labor-intensive sectors and SMEs," he said.
He highlighted a newly announced TL 100 billion ($2.28 billion) financing package aimed at preserving employment in manufacturing enterprises, particularly small and medium-sized businesses (SMEs).
In addition, he said a new program to be launched by the Turkish Employment Agency (IŞKUR) will support youth employment and strengthen labor-intensive manufacturing firms.
Yılmaz said the government's investment-, employment-, production- and export-oriented policies are designed to reinforce balanced growth and stability while sustainably increasing social welfare.