TURKEY’S BUSINESS CIRCLE BACKS NEW ECONOMIC PROGRAM
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.