İmamoğlu highlights inequality in income distribution: 2025 will be more challenging

Istanbul Metropolitan Municipality (İBB) Mayor Ekrem İmamoğlu spoke at the "8th Istanbul Economic Summit" held at a hotel in Beşiktaş.

Pointing out that the world is in a process of major economic change and transformation, İmamoğlu said:

"WE ARE IN AN ECONOMIC BOTTLENECK OF A SCALE WE HAVE NOT EXPERIENCED BEFORE"

"I would have liked to paint a positive picture here, but unfortunately, we are in an economic bottleneck of a scale we have not experienced before. The economic policies that put Turkey in more trouble every day were reshaped after the 2023 general elections. Some surprise decisions taken without impact analysis or consultation have unfortunately disrupted the balance of the economy and paralyzed many companies and sectors at this stage. Instead of addressing the source of the problems and solving them at the root, typical austerity policies from the 1980s and 90s have unfortunately been adopted. These are simply policies based on suppressing exchange rates and wages through interest rate and tax hikes. Since the structural problems in the Turkish economy and sustainability concerns from the past continue, we have unfortunately not yet been able to see or experience the desired level of effectiveness of the implemented austerity policies, other than reducing high exchange rate risks. Moreover, the injustice in income distribution is at a level in our country that hurts us to an extent never seen before in history. Poverty among the public is increasing. A large segment of society is experiencing serious problems even in accessing essential services such as education, health, and social security. In summary; the realized data shows that a sharp contraction has begun in the real sector and fragility in the employment market is increasing, but the policies being pursued have not yet created the desired effect on consumption, expectations, and asset prices."

"WE MUST SEE THAT 2025 WILL BE MORE CHALLENGING"

"These developments also show us that monetary policies alone are not enough to reduce inflation. If we need to make an assessment valid for all sectors; we must see that the 2024-25 period will be more challenging for everyone. If this is the case, we all have to ask ourselves the question of 'what to do' and, more importantly, 'how to do it.' First and foremost, our Turkey needs a serious mental shift. In order for our country to grow more and be more resilient against economic shocks, we need a comprehensive new economic reform that will help increase competitiveness, productivity, and potential growth. Even more than that, a complete economic paradigm shift is required. Because, if we want to get rid of social stagnation and the economic bottleneck, it is very clear and obvious that we need a new story and a new economic model that includes new policies to develop our country."

"THERE IS NO RESOURCE PROBLEM"

"On the other hand, we also know that Turkey does not have a resource problem. Especially human resources, experienced investors, and entrepreneurial power. This is a very valuable resource in our Turkey. It is far above what is estimated. Underground and above-ground resources are our greatest strength. Likewise, Turkey's location, with its strategic position independent of governments, is a feature that makes our country very strong. As a result of the steps taken since the beginning of our Republic, we have a country with an important geographical feature that has turned into a regional production center. Of course, it must be said; Turkey is the largest production area between Italy and China. Precisely for this reason, in an environment where we can put forward a new story and a new economic model, our place in the global arena will rapidly rise to a very different and much stronger level."

News Source: 12punto