Investment cannot be made due to high interest rates: ASRİAD Chairman

Investment cannot be made due to high interest rates: ASRİAD Chairman
Date: 7.12.2023 10:00

ASRİAD Chairman Cemil Yıldız, who took over from the founding chairman Adnan Danışman at the general assembly held last month, evaluated the developments in the economy.

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ASRİAD General Assembly was held last month and Cemil Yıldız took over from ASRİAD Founding Chairman Adnan Danışman.
 
We talked about the developments in the economy with ASRİAD Chairman Cemil Yıldız, to whom we paid a congratulatory visit.
 
ASRİAD Chairman Cemil Yıldız stated that Turkey's third quarter growth rate increased to 3.8 percent.
 
"The growth rate has been extremely good, but it is not possible to talk about the same goodness for the quality of growth spread to all components. This growth rate is not reflected in the base. Because the growth was export-indexed. However, there is currently no decline in high inflation, which is Turkey's chronic economic reality and which burdens our citizens. Inflation figures announced by TÜİK for November show that inflation has entered a downward trend, but the inflation that will occur at the end of the year is still high. Inflation is behind the target inflation forecast announced by the Central Bank, but it is necessary to ensure a permanent decrease in inflation. In addition, our Minister of Treasury and Finance stated that with monetary tightening, there would be a contraction in demand and thus inflation would be reduced. This was already foreseen in the Medium Term Plan. We think that the downward trend in inflation will occur next year, that is, after June 2024," Yıldız said.
 

“MINIMUM WAGE SHOULD MAKE EMPLOYEES HAPPY”

 
Yıldız stated that, as ASRİAD, they advise their stakeholders to make their purchases in this direction.
 
"First of all, interest rates must stop in order for investments to be made. The policy rate, which was increased from 8.5 percent to 40 percent, is really high. This brought about a vicious circle. Interest rates should be according to the real economic environment. And it should fall on its own," Yıldız added.
 
Stating that they are currently entering a process regarding the minimum wage, Yıldız said, "The minimum wage was increased once a year. But due to high inflation and the decrease in purchasing power, the minimum wage began to be increased twice a year. Statements were made by the government that it would be increased once this year and that the minimum wage would be determined without subjecting the minimum wage to high inflation. There is also the question: 'Will the minimum wage be determined according to the targeted inflation or the actual inflation?' Many of our friends have minimum wage workers at their workplaces. These minimum wage earners are unhappy with the purchasing power of their salaries. The minimum wage should be increased to a level that makes the minimum wage earner happy. It seems necessary for the government, employers and the commission that determines the minimum wage to reach a decision that will eliminate this paradox. Here, it is necessary to proceed in a balanced way that will also protect employers. It is very important to establish a balance in ensuring that the minimum wage is not subjected to purchasing power and inflation, and that employers can also pay this wage to their employees."

YEREL HABERLER

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