How Did Business Representatives of Turkey Interpret the Growth Figures?

Representatives of the business world of Turkey , who find it important that the industry makes a positive contribution to growth in the Turkish economy, which has shown growth performance for 13 consecutive quarters, evaluated that the increase in investment and exports in growth is positive for the balancing process. Such news are very closely followed by foreigner investors plans for business registration in Turkey.
Thursday, November 30, 2023, 14:43

The prominent statements of the representatives regarding the growth figures are briefly as follows:

TİM President Mustafa Gültepe: A year of respite

The year 2023 stands out as a ‘year of respite’ in global trade. From here, countries with high fitness will emerge victorious, so to speak. I am talking about countries that make a difference with their production infrastructure, new investments, R&D and innovation activities. Türkiye is one of these countries. Critical demand contractions are noticeable in our important export markets. Despite this, we are taking firm steps towards our year-end export target. The World Trade Organization has reduced its 2023 global goods trade forecast from 1.7 percent to 0.8 percent. There is an optimistic picture for 2024 in terms of goods trade. We will experience periods in 2024 when the support of exports to our growth figures will increase even more. There are many topics we mean when we say ‘Türkiye will Rise with Exports’. Growth is one of these topics and perhaps the most important. Türkiye will continue to grow uninterruptedly, led by production and exports.

İTO President Şekib Avdagiç: It is important for the industry to turn positive again

It is important that the industry, which made a negative contribution to growth in the previous quarter, turns positive again. Although the highest contribution to growth came from consumption, we observed a significant slowdown in this contribution. We find this valuable as it gives signs of balancing in the economy, in line with the goals of the new program. On the other hand, we see that the contribution of net foreign demand to growth decreased in the third quarter due to the impact of the slowdown in the main export markets. However, we expect the negative contribution of net foreign demand to growth to decrease in the coming periods due to the slowdown in imports in recent months. We do not view growth as data reduced to just numbers. In addition to growth, we attach great importance to social welfare. Therefore, we believe that while fighting inflation on the one hand, policies that prioritize production, employment and exports should be carried out in balance.”

DEIK President Nail Olpak: Investment and export growth is positive

This data, which comes after the 4 percent growth in the first half of the year, shows that Turkey’s production rate has increased in a period when global economic activity has slowed down, we are positively differentiated from the world, and the process of balancing growth is ongoing.

When looked at by sector, industry increased by 5.7 percent, construction by 8.1 percent, and agriculture by 0.3 percent. This indicates that growth is widespread across the board. In terms of demand, while the 11.2 percent increase in household consumption and the 5.3 percent increase in public expenditures indicate that consumption still dominates growth, it is also important that it tends to decrease. It is a positive development that exports, which have made a negative contribution to growth for 3 quarters starting from the last quarter of 2022, have made a positive contribution by increasing by 1.1 percent in this period. It is also pleasing that investment expenditures grew by 14.7 percent, reaching double digits in this period, after growing by 3.8 and 5.6 percent, respectively, in the first two quarters. While taking steps to combat inflation, it is also important to take policy steps to support export- and investment-oriented growth. Increased investment and export growth is positive for the balancing process.

MÜSİAD President Mahmut Asmalı: We have full faith that production and export-oriented growth will continue.

Unfortunately, the contribution of net foreign demand to growth was 2.6 points in a negative direction, as imports increased faster than exports in the third quarter. Observing an increase in all activities that make up GDP was a very important development as it showed that growth spread to all sectors in the third quarter. The figures announced today confirm how justified our confidence in our national economy is. The growth performance of 5.9 percent will be a great source of motivation for 2024 as we approach the end of the year. On this occasion, we, as real sector representatives, reiterate our belief that the production, export and employment-oriented growth process of the Turkish economy will continue and in the new era that we describe as the Turkish Century.

ASO President Seyit Ardıç: It is important to support qualified production and investment

It is important that Turkey demonstrates a positive growth performance despite the impact of earthquakes, tightening steps taken in the domestic market and global tightening trends. The impact of the tightening monetary policy practices of the Central Bank of the Republic of Turkey (CBRT) on economic activity in the said period.

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