Prominent businessman: Problems of Turkish economy are not without solutions

TUSIAD made a presentation about the latest developments during its meeting with Treasury and Finance Minister Mehmet Şimşek. Speaking after the meeting, Tuncay Özilhan, Chairman of the Supreme Advisory Council, said, “The Turkish economy is experiencing twin deficits, but our problems are not without solutions.”

The High Consultative Council of the Turkish Industrialists’ and Businessmen’s Association (TUSIAD) was held. Before the Council, TUSIAD High Advisory Council Chairman Tuncay Özilhan met with Treasury and Finance Minister Mehmet Şimşek and announced that they had made a presentation to Minister Şimşek about the current state of Turkey’s economic policies and future policies. He said “We held a very open and sincere meeting. The Turkish economy is experiencing twin deficits, but our problems are not without solutions.”

WE HOPE IT WILL ENTER INTO A RAPID GROWTH TREND

Noting that investments were not coming to Turkey despite the low policy interest rates, Özilhan said, “We hope that economic stability will be achieved in a short time with the new economic management and the economy will enter a rapid growth trend. We believe that with appointments that give confidence to the markets, especially the Central Bank, and with the new reforms that will be implemented, the steps that can be taken to realize this growth can be taken.”

INVESTMENTS NEED TO BE REVIDED

Emphasizing that the number of entrepreneurs in Turkey is very high, Tuncay Özilhan said,

“In countries with such a competitive environment intrusive management of the market does not give results. In any case, there has never been a statist economic model in Turkey that has been constantly spreading to all areas of the economy, as in China and the Soviet Union. In the market model, the state does not selectively intervene to shape market balances, but compiles data that will guide the sector, conducts analyses, makes applications that will prevent market disruptions, but the market is determined in accordance with supply and demand. Fiscal policies, social policies, production and foreign trade policies are used. With these measures to be taken, we need to revive investments.”

METHOD OF REDUCING CURRENT ACCOUNT DEFICIT IS NOT STRENGTHENING OF LIRA

Emphasizing that the appreciation of the TL alone will not be enough to reduce the current account deficit, TUSIAD YIK President Özilhan said, “The biggest solution to both reducing the current account deficit and fighting inflation is an increase in production and savings. It has been observed that increasing consumption without increasing this also increases the current account deficit. We need to produce more and invest. In order to increase production and investment, it is necessary to ensure macroeconomic stability first. By ensuring macroeconomic stability, it is necessary to strengthen the fight against inflation.

However, the fight against inflation is not about increasing the value of the TL. As the TL gains in value, the foreign trade deficit increases and exports are negatively affected. To prevent the possible appreciation of the TL, instead of leaving the currency on the market, it is through investigating the already weakened Central Bank reserves.”