Speeches

12/12/2024

TÜSİAD YİK Meeting Held in Ankara

TÜSİAD YİK President Ömer Aras: "For direct capital investments, a strong law state along with a macroeconomic stability, a fair, fast and effective justice system has to be established... " TÜSİAD Executive Board Chairperson Orhan Turan: "We think struggling with inflation has to be sustained as to include public section. Otherwise, with an approach based only on monetary policy, struggling with inflation rapidly and conclusively is hard and put entire burden on real sector and households. . We see the necessity of maximum importance to be given on discipline in finance policy as it was the case after 2001 crisis... Growth data announced last week put forward that industrial production receded by 2,2%. As a matter of fact, increase in industrial production since the first quarter of 2022, has always been below of gross domestic product. We know that production is the prerequisite of a healthy economy; if there is no production increase, then we have a problem. Fast and radical conversion in production structure is a must"...

TÜSİAD Supreme Consultancy Council (YİK) meeting has been held in Ankara on Thursday, 12 December 2024. Opening speeches of the meeting have been delivered by TÜSİAD YİK Person Ömer Aras and TÜSİAD Executive Board Chairperson Orhan Turan.

TÜSİAD YİK President Ömer Aras has noted that the GSP figures announced last week showed that Türkiye was close to upper limit of Middle Income Trap and went on to say: "We have to come out of Middle Income Trap now, we have to be a country of high income. All members of the society have to feel this. ... Decrease trend started in inflation thanks to executing monetary policy. As we earlier emphasized, this is a time consuming process. Determination and stability in policies is important for this process to be successful. We have to be patient. Current deficit rapidly narrowed down as one of the highest indicators of signaling nature of Türkiye economy. While current deficit narrows down, foreign currency reserves gain strength. Recovery of economy also was confirmed by the international markets. CDS and rating notes of our country showing our risk premium improved. However, direct capital investments to make the biggest contribution of efficient growth is limited. For direct capital investments, a strong law state along with a macroeconomic stability, a fair, fast and effective justice system has to be established. Steps taken in right direction in monetary policy will not be complete if it cannot be supported with structural reforms. We must fully aware of the fact that without maintaining social harmony, without strengthening law state and democracy, without establishing trust, without assigning well educated, smart and well trained young people of merit, the distance we take in economy will be limited."

TÜSİAD Executive Board Chairperson Orhan Turan noted: "... inflation is still high. Estimations made for next year shows that we still in need of time for reaching well-being. In the process, we see the sacrifices required for struggling with inflation started to force the resistance capacity of both real sector and households. For this very reason, we think it is a must to sustain the struggling with inflation so as to include public section. Otherwise, with an approach based only on monetary policy, struggling with inflation rapidly and conclusively is hard and put entire burden on real sector and households. We remember the inflation struggling program after 2001 crisis. In subject process, finance policy was pursued simultaneously with monetary policy in full coordination. Public finance was disciplined, public expenditures, public deficits and public debt burden decreased. ....As the result of these reforms, Türkiye not only decreased the inflation but also entered into a rapid growth path. ....We see maximum discipline a must in finance policy now as it was the case then.

Growth data announced last week put forward that industrial production receded by 2,2%. As a matter of fact, increase in industrial production since the first quarter of 2022, has always been below of gross domestic product. We know that production is the prerequisite of a healthy economy; if there is no production increase, then we have a problem. For a permanent success in terms of inflation, production conditions in industry, agriculture and animal husbandry and in services sector have to be improved. ...Clearly, a rapid and radical conversion is a must in production structure...."