Chairman of Turkey’s TUSIAD says danger signals are increasing in the world economy

Mr. EROL BILECIK, the chairman of TUSIAD (Association of Turkey’s Industrialists and Businessmen) has commented that the world economy is certainly facing signals of increasing danger. In a meeting organized by a private company in cooperation with TUSIAD for the presentation of a report about “Global Risks” the president also said the question for Turkey was not if Turkey’s economy would be affected but it was how much it would be affected”.

In his speech at the event, TUSIAD Chairman Erol Bilecik said the tension between the United States and China not only affected the economies of both countries, but also had an impact on all the countries of the world. The economy in Europe has started to slow down as it was affected both by global trade wars and uncertainty with Brexit case. Global growth is expected to incur  further decline in the next two years.

TUSIAD Chairman went on to share following as well; “Compared to the picture before the global crisis countries are in much more debt today. This ratio on a global scale has risen to 225 percent of national income corresponding to three-fold increase. It is definite that the world economy is sending danger signals in an increasing manner. The question for Turkey is how much our economy would be affected by this. In order to avoid long term problems in economy, it should manage short term risks the in a correct manner”.

Based on the study, the two outstanding risks were environmental and technological for the last five years whereas it was stated in said report that four of the most important global risks had to with climate. It was also mentioned in said meeting that technology continued to play an important role in shaping the global risk environment.

The participants also referred to the point that the world has entered a stage where business processes and production operations were fully connected to information systems, more data was kept within these systems and all threats to cyber risks and information technologies were increasing. It was stated in the report that Cyber Attacks and data fraudulence were wo of the top five risks.

Based on the report nearly two-thirds of those participating in a Global Risk Perception survey expect that risks related to counterfeit news and identity theft will increase further in 2019. Research points to potential uses of artificial intelligence to create stronger Cyber Attacks. It is considered to be obvious that in the coming years, after the digitalization inevitably penetrates all areas, technological risks are due to increase even more.

According to the report, the risks that are expected to increase in 2019:

1- Economic disputes between the great powers
2- Depreciation of international trade agreements
3- Political conflicts between the great powers
4- Cyber ​​attacks: Money or data theft
5- Cyber ​​attacks: Operational and infrastructural distortions