Turkey's economy is experiencing one of the most difficult process. Increasing unemployment figures, inflation rates, contraction in the industry and high interest rates are gradually putting the citizen into a bottleneck.
The government, which has been engaged in elections for the last year, has not been able to focus on the problems in the economy.
The announced reform packages could not be found in the markets. The positive atmosphere drawn by the members of the government in the discourse unfortunately did not find a response in the markets.
Ankara industry boss, Ankara Chamber of Industry (ASO) President Nurettin Ozdebir criticized the economic policy of the government at the June Assembly Meeting.
WE HAVE BEEN UNDERSTANDING AN EFFECTIVE INDUSTRY POLICY FOR YEARS
Turkey's Özdebir stressed the need to put forward an active industrial policy, "the exit from the recessionary environment we live in, that resources should be transferred in the nature of capital to the public of the real sector in order to make the protection and jobs markets of the production power of firms. We have not been able to put forward an effective industrial policy for years. We have always perceived industrial policies as incentives. In fact, the incentives are an element, but what the public needs to do is to put forward industrial policies that can transform the private sector into an innovative and high value-added structure. The basis of an effective industrial policy is an eco-system that will increase the competitiveness of firms through public-private dialogue".
Özdebir, the exchange rate shock that began in August, the effect of high inflation and high interest rates in the first quarter of 2019, which continued to shrink as 2.6 percent, he said. Second quarter figures Özdebir said the it was more important in terms of the end, "our economy, exchange rate, inflation and interest rates is facing based on a contraction process I hope Turkey's economy with the third quarter will enter a growth trend," he said.
Özdebir addressed the council members at the meeting, stating that the announced packages do not have a positive effect, "As of August 2018, the unfavorable developments in the financial markets caused disruption of the dynamism of the economy and the government announced 7 different packages in 9 months to eliminate these negativities. However, these packages could not have a positive effect on the functioning and growth of the market. What needs to be discussed today is whether these introduced packages are suitable for treatment. The statistics show that the financial support within these packages does not turn into investments. The problems become more permanent rather than solved. In this environment, companies have difficulty in making a medium and long-term plan. The reasons for this are the ongoing volatility in exchange rates, high inflation and inadequate domestic demand and the uncertainty caused by these. Macroeconomic stability and trust are the only prerequisites for companies to determine a long-term and balanced strategy."
Özdebir, stating that it will exit with production from the crisis in the economy, "Turkey is an approach to production-oriented economy, it will become a non-dependent on high value-added forms and import production model to demonstrate a healthy growth pattern. We have to produce more for this. However, the obstacles to production still persist. In the high interest environment, the investment appetite of the private sector decreases and faces exclusion. A country that does not produce cannot reach healthy growth".