TURKEY’S BUSINESS CIRCLES WELCOME NEW ECONOMIC PROGRAM
Turkish business people have welcomed the country’s new economic program for the period of 2019-2021 announced on Septemebr 20. Nail Olpak, head of Turkey’s Foreign Economic Relations Board (DEIK), said in a statement that the gradual economic growth targets mentioned in the new Medium-Term Program (MTP) are consistent with inflation targets through 2021. “Setting practical goals and resting on systematic data is the most crucial aspect of the new MTP,” Olpak said. Olpak noted that the new MTP offers comprehensive content, including business people’s priorities of fiscal discipline, promoting free markets, battling inflation, working toward sustainable growth and boosting exports. “We will face difficulties in the short term but economic growth will continue steadily in the medium- to long-run,” he said. “Now it is time to take action, for all of us.”
In another statement, the Turkish Exporters’ Assembly (TIM) Chairman, Ismail Gulle, said that the new MTP reflects practical thinking. “Our year-end target is climbing over $170 billion in exports,” Gulle said. “We also promise to achieve next year’s export target of $182 billion. This year, net exports will contribute substantially to economic growth and it will continue next year. At every opportunity, we mention that producing value-added exports is the healthiest way to achieve quality economic growth and to lower the current account deficit. Steps to improve Turkey’s macroeconomic conditions will be based on exports, and both the number of our exporters and their quality will increase,” he added.
“We hope that the new MTP’s implementation will be closely followed up and concrete results will be achieved rapidly,” Turkish Industry and Business Association (TUSIAD) head Erol Bilecik said in a statement. Bilecik stressed that a stable financial system is the priority of the upcoming three-year period, as mentioned in the MTP. “The continuity of a strong financial system is essential to maintain the real sector’s contribution to production, employment, and growth,” he said. Bilecik noted that continuity of the current tight monetary policy and struggle with inflation, plus remaining within in the boundaries of the free market system, also bear tremendous importance to reach the goals listed in the MTP. “We will continue to make all efforts for the success of the new MTP,” he added.
Abdurrahman Kaan, head of the Independent Industrialists’ and Businessmen’s Association (MUSIAD), called the new MPT “reasonable, measurable, and prudential.” Pointing to the quarterly audit of the MTP, Kaan said: “It will support both the program’s efficiency and the possible updates of macro plans by monitoring the micro changes. Such updates are essential to allow for rapid reactions to changes.”
Close monitoring is also vital for the execution of the discipline stage of the program, Kaan added, stressing he has full faith in the private sector.