Statement on the Economic Program by TÜSİAD President Diren
Ozan Diren emphasized that the economic program should not be abandoned, but rather supported by structural and supply-side reforms.
Turkish Industry and Business Association (TÜSİAD) Chairman of the Board Ozan Diren stated that the economic program implemented over the past three years has provided an important framework against severe shocks, and what needs to be done at this stage is not to abandon the program, but to complete the missing reforms.
Inflation Fight Process
Stating that the Turkish economy has been in search of macroeconomic rebalancing and stability for the past three years, Ozan Diren expressed that the most fundamental condition of this process is the fight against inflation.
Pressure on Industry
Pointing out that fiscal policy has accompanied monetary policy with a delay and monetary tightness has lasted longer than expected, Diren noted that this situation has increased the pressure on industry.
Need for Structural Reform
Stating that structural and supply-side reforms in high-inflation areas such as food, housing, and education could not be sufficiently included in the program, Diren argued that the reforms should not be left incomplete.
Industrial Growth Rate
Explaining the impact of macroeconomic rebalancing on industry with figures, Diren conveyed that as of June, the 12-month average growth rate of industry declined to 1.8 percent.
Liquidity Need of the Real Sector
Emphasizing that industry needs support to breathe in the short term, Ozan Diren stated that the liquidity problem of the real sector should be addressed with targeted, selective, and transparent steps rather than a general easing.