IZTO President Mahmut Özgener Warned Against Temporary Losses in Industry and Announced Candidacy Again

Mahmut Özgener, Chairman of the Board of Directors of the Izmir Chamber of Commerce, addressed the economic administration ahead of the Medium-Term Program expected to be announced in September, emphasizing that temporary losses in the industry must not become permanent. Özgener, who has been serving as president for eight years, also announced that he is running for candidacy again in the elections to be held in October.

Medium-Term Program and Real Sector Emphasis

Mahmut Özgener, Chairman of the Board of Directors of the Izmir Chamber of Commerce (IZTO), made important warnings to the economic administration ahead of the Medium-Term Program (MTP) expected to be announced in September. Stating that the disinflation process must continue with determination, Özgener requested that the negative effects of high real interest rates, real exchange rate appreciation, and weak domestic demand on producer sectors should not be ignored. Reminding that the Central Bank raised its year-end inflation forecast for 2026 from 26 percent to 28 percent, Özgener stated that the problems of the real sector should be considered alongside price stability in the new program.

Stating that the current economic program has achievements such as breaking the inflation trend, encouraging Turkish lira savings, and providing reserve accumulation, Özgener argued that instead of loosening the program, structural reforms that support productivity, competitiveness, and technological transformation should be implemented.

Slowdown in Investments and Sectoral Risks

Pointing out that companies are postponing their long-term investment decisions due to high financing costs and weak domestic demand, Özgener stated that this pause in machinery, digitalization, and R&D investments could lead to serious losses in production capacity and competitiveness within a few years. He warned that temporary losses, especially in labor-intensive sectors and the iron-steel field, must not become permanent.

Expressing that the real appreciation of the Turkish lira, as well as rising wages, intermediate goods, and financing costs, are challenging sectors such as textiles and ready-to-wear clothing, Özgener stated that this situation could permanently affect production capacity, employment, and Turkey's position in foreign markets in the long term.

Technology Trap and Call for Credit Flexibility

Stating that the balances in the global economy are changing and countries are focusing on technological capacity and supply chain security in their industrial policies, Özgener emphasized that the biggest risk for Turkey is getting stuck in a medium-technology production structure. Özgener said that today's temporary losses could turn into permanent market and qualified workforce losses in the future.

Acknowledging the contribution of the selective credit policy to disinflation, Özgener stated that the growth limits on SME and foreign currency loans should be eased to support the industry. He demanded the restructuring of support mechanisms so that exporters can compete on equal terms with their global competitors.

IZTO Elections and Re-candidacy

Mahmut Özgener also shared IZTO's upcoming election calendar with the public. He announced that the elections to determine the professional committee and assembly members will be held on October 1 at Gaziemir Fuar İzmir, and the elections for the governing body will be held on October 8. Özgener, who has been serving as the chairman of the board of directors for eight years, announced that he is running for candidacy again for the new term.