TURKEY’S BUSI­NESS CIR­CLE BACKS NEW ECO­NOMIC PRO­GRAM

Dünya Executive - - OVERVIEW -

Turk­ish busi­ness peo­ple voiced their sup­port for the coun­try’s new eco­nomic pro­gram, which was re­vealed on Septem­ber 30.

Trea­sury and Fi­nance Min­is­ter Berat Al­bayrak an­nounced the eco­nomic pro­gram for the three-year pe­riod start­ing from 2020.

Al­bayrak said that the govern­ment will back the Cen­tral Bank in its ef­forts against in­fla­tion. He also said struc­tural re­forms will be un­der­taken to in­crease com­pet­i­tive­ness and ef­fi­ciency in the goods and ser­vices mar­kets. The new pro­gram will be main­tained un­der the theme of “Trans­for­ma­tion be­gins,” he added.

Is­mail Gulle, the head of the Turk­ish Ex­porters’ Assem­bly, said a com­pet­i­tive econ­omy, ac­tive cost man­age­ment and strength­ened fi­nan­cial sys­tem are im­por­tant topics for Turkey’s real sec­tor.

Busi­ness peo­ple see the lo­cal­iza­tion of im­ported prod­ucts, es­pe­cially raw ma­te­ri­als and in­ter­me­di­ate goods, and mea­sures for re­duc­ing volatil­ity in for­eign cur­ren­cies as sig­nif­i­cant steps, he stressed.

“With 85,000 goods and 5,000 ser­vices ex­porters, we will con­tinue to con­trib­ute to the New Eco­nomic Pro­gram tar­gets,” he added.

The new pro­gram re­vealed the coun­try’s tar­gets for in­fla­tion, growth, un­em­ploy­ment, bud­get deficit, cur­rent ac­count and fi­nan­cial sta­bil­ity.

The pro­gram tar­geted a 12 per­cent in­fla­tion rate for 2019, 8.5 per­cent for the fol­low­ing year, 6 per­cent for 2021 and 4.9 per­cent for 2022. Ri­fat His­ar­cik­li­oglu, the chair­man of the Union of Cham­bers and Com­mod­ity Ex­changes of Turkey, said the new plan re­vealed re­al­is­tic mea­sures by iden­ti­fy­ing prob­lems.

“We think that the planned steps will serve as a spring­board for the econ­omy, they will pro­vide a tran­si­tion to a strong and sta­ble growth process,” he said. He added: “As the Turk­ish busi­ness com­mu­nity, we will con­tinue to work hard for the coun­try’s tar­gets.”

The new econ­omy pro­gram also tar­geted five per­cent an­nual growth for the next three years and one mil­lion new jobs per year.

Nail Ol­pak, the pres­i­dent of the For­eign Eco­nomic Re­la­tions Board (DEIK), said the plan rep­re­sents fo­cused and col­lec­tive work of all rel­a­tive in­sti­tu­tions.

“We will see a coun­try which will grow 5 per­cent an­nu­ally with pro­duc­tion, re­duce in­fla­tion grad­u­ally and raise em­ploy­ment in the com­ing pe­riod,” he un­der­lined.

On the fis­cal discipline side, the pro­gram aims to reach the bud­get deficit-to-GDP ra­tio of 2.9 per­cent for the next two years and 2.6 per­cent for 2022.

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