TÜSİAD President Orhan Turan on inflation: 'Dropping to 30 percent is a success, but...'

Turkish Industry and Business Association (TÜSİAD) President Orhan Turan said that the fight against inflation is a decisive factor for economic stability. Turan stated, “The greatest determinant of macroeconomic stability is the ability to maintain inflation at low levels. Our most important and priority issue is to permanently reduce inflation to low, single-digit levels.”

"THE FACT THAT INFLATION HAS FALLEN FROM 75 PERCENT TO 30 PERCENT IS IMPORTANT, BUT..."

Speaking at the 17th Competition Congress held at the Sabancı Center, Turan expressed that the industrial sector has felt the pressure of inflation heavily over the last two years due to high financing costs and a contraction in demand. Turan said, “Undoubtedly, the fact that inflation has fallen from 75 percent to 30 percent is a significant success. However, there is a difficult road ahead. We cannot rely solely on monetary policy for permanent price stability; we also need to take steps in structural areas.”

STRUCTURAL STEPS AND FISCAL DISCIPLINE

Touching upon developments on the fiscal side, Turan assessed, “It is gratifying that we are moving toward a more disciplined outlook on the budget side. However, it is essential that monetary and fiscal policies are supported by structural reforms.”

SIGNAL OF RECOVERY IN INDUSTRY

The TÜSİAD President stated that there is a revival in the production sector, saying, “We have entered a recovery phase in industry. Strengthening is observed in investments, but a large part of this recovery stems from the defense industry.”

EXPORTS AND FINANCING COSTS

Stating that rising demand in Europe and the Euro gaining value against the dollar will support exporters, Turan expressed that the easing of the financing burden will increase competitiveness.

THE IMPORTANCE OF RELATIONS WITH THE EU

At the end of his speech, stating that relations with the European Union maintain their decisive position in Turkey's competitiveness process, Turan said, “Undoubtedly, the European Union will continue to be one of the most important elements of our competitiveness in the future as well.”

EMPHASIS ON THE CUSTOMS UNION

Stating that updating the Customs Union is a strategic necessity for both sides, Turan said, “Global conditions make it necessary to act quickly. With its strong infrastructure and private sector, Turkey is a candidate to be one of the important players in the global economy of the future.”