TÜSİAD President Orhan Turan stated that the most challenging period for the industrial sector was now behind, noting that the economy had entered a “recovery phase.” Emphasizing that reducing inflation from 75% to 30% is a major achievement, Turan warned that “maintaining the downward momentum in inflation would be a tough process.”
At the 17th Competition Congress, speakers emphasized that global economic and competitive dynamics were being reshaped, urging Turkey to focus on boosting its competitiveness in this changing environment.
Export and Technology Balance
Turan pointed out that the products gaining market share in global trade were primarily high-tech goods. “Over the past 30 years, Turkey has become one of the countries with the highest export basket and market diversity. However, nearly 60% of the new products added to our export basket are low-tech,” he said. “That’s why, despite becoming an important part of the global value chain, Turkey is still struggling to reach the $500 billion export target.”
A Critical Phase in Inflation
“Ensuring macroeconomic stability is essential for sustainable economic success,” Turan said. “In today’s uncertain and unpredictable global environment, maintaining that stability has become even more critical. The biggest factor in achieving it is keeping inflation low and stable. Our top priority remains bringing inflation down permanently to single digits.”
He added that industrialists had faced heavy costs due to high financing expenses and slowing demand during the fight against inflation. “Bringing inflation down from 75% to 30% is a remarkable success,” Turan said, “but we must acknowledge the difficult road ahead. Factors like frost in agriculture, energy prices, and price pressures in the service sector are slowing the decline in inflation. Continuing this downward path will be a challenging process.”
“We Can’t Rely Solely on Monetary Policy”
While acknowledging the critical role of monetary policy, Turan underlined that it could not work alone: “To achieve lasting stability, we can’t rely solely on monetary policy. Structural reforms, particularly fiscal discipline, are essential.”
Turan also noted signs of improvement in the industrial sector: “We believe the most intense period of pressure in industry is over, and we are now in a recovery phase. Investments are showing strength. However, two key points must be kept in mind: first, a significant part of this recovery comes from the defense industry; second, we must be prepared for possible shifts in global economic trends.”
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