Industrialists and exporters are waiting for difficult times in the economy due to the government’s opening of the credit taps by increasing the money supply on the one hand, high wage increases, on the other hand, the exchange rate that does not fall off and the possible energy crisis in the winter months.
Plastic Industrialists Federation President Ömer Karadeniz stated that in the current conjuncture, the industrialists could not see their way. Explaining that it is normal for expenditures to increase during election periods, but it is also normal to have concerns due to existing problems, Karadeniz said:
“While wage and input cost increases, which will adversely affect the competitiveness of our industrialists, are a concern, the effects of possible sharp increases on the increase in inflation should not be ignored. Although our citizens, whose purchasing power has decreased rapidly in recent years, have been breathing for a short time with sharp wage increases, policy makers should also consider that this effect is short-lived. On the other hand, the possible economic problems that may be encountered with the onset of the winter period and the increase in natural gas consumption in our country also make our industrialists uneasy.”
Stating that industrialists expect a more predictable economic management, Karadeniz said that otherwise, it is inevitable that investments will slow down with policies that change from today to tomorrow.
THERE MUST BE A BALANCED POLICY
Ülkü Karakuş, President of Turkish Feed Manufacturers’ Association, who said that the practices aimed at encouraging investments and expenditures before the elections would increase the burden of inflation and external debt in cases where there was not enough money, made the following comments: “We experienced the effects of the introduction of more hot money into the market as price increases after the pandemic. Increases in our import-dependent sector, in particular, adversely affected animal husbandry and contributed to food inflation. Taking all these into account, the pursuit of balanced economy, monetary and fiscal policies, even during the election period, will contribute to ensuring sustainability in production by preventing sudden price increases.”
“INFLATION TAKES 2 MORE YEARS”
Expectations and concerns regarding the election economy are also reflected in the parliamentary meetings of the Istanbul Chamber of Industry. This issue was also discussed at the council meeting held last week. “Will the current monetary policy lead us to the elections? The answers of economists to questions such as “Banks receive money from the Center with 13 percent and do not even give us 35 percent” were as follows: Economist Özlem Derici Şengül said, “There are great risks in banking besides great profitability”, “Banks that see the danger of recession do not want to take on the risks of companies. and is reluctant to lend. A significant slowdown is coming in the second half of 2023. The Credit Guarantee Fund can step in, but it has to be fair distribution. The effects of the election economy will be inflation. Even if a very good administration comes, we will deal with inflation for at least two more years, get used to it. “There is no painless way to normalize,” he said. Stating that the government knows that the current monetary policies will not continue, Prof. Dr. Ege Yazgan said, “The only thing that can distort the government’s goals until the election is the exchange rate. There is no answer to this question from where we will find the foreign exchange that will close the foreign deficit in this economy.