Growth statement from İTO President Avdagiç

Istanbul Chamber of Commerce (ITO) President Şekib Avdagiç shared the views of the business world regarding the Presidential Decree on State Aid in Investments published in the Official Gazette and the 2 percent growth of the Turkish economy in the first quarter of the year in a written statement.

Avdagiç made the following assessment: "Investment loans, 11.5 to 18.4 points of interest-profit share support and incentives up to 20 percent of the investment amount and 240 million liras will have a positive impact on production and input costs. Providing cash support up to 25 percent of the machine price, 15 percent of the investment amount and 240 million liras for the machinery purchases that businesses will make with their own resources will accelerate investments." Avdagiç stated that they see the new investment incentive system published in the Official Gazette and the details of which were drawn attention by the Minister of Industry and Technology Mehmet Fatih Kacır as a measure that will increase the contribution of industry to growth and the effectiveness of the supports, and continued as follows:

"The government covering the employer's share of the SSI premiums of employees working in the OIZs in the provinces located in the incentive regions for 14 years and the employee's share for 10 years are positive steps. In addition, it would be beneficial to provide incentives not only to companies in the OIZs but also to companies outside the OIZ. Because there are also widespread investments that need to be encouraged outside of organized industries. We also believe that innovation-oriented initiatives should be supported with a special and strong incentive mechanism."

"The entire cost of cooling domestic demand should not be borne by the industrialists"

Avdagiç, who noted that the first quarter growth data announced by TÜİK today confirmed this, stated that the Turkish economy grew by 2 percent on a quarterly basis compared to the same period last year, and said, "The 1.8 percent decline in industry and 2 percent decline in agriculture in the growth table contain serious signals. Similarly, there is a 1.8 percent contraction in machinery and equipment investments."

Avdagiç warned, "We see that exports remained flat and imports increased by 3 percent. The entire cost of cooling domestic demand should not be borne by the industrialists. We should not shift our growth composition away from a structure that is focused on industry and exports."

Emphasizing that the disinflation program is a common goal for all of us, Şekib Avdagiç said, "While reducing inflation is a common goal for all of us, I would like to state that it has become essential to alleviate the costs paid by industrialists who provide employment for hundreds of thousands of people. Every measure that will strengthen industrial production will also increase confidence in the disinflation program. We expect policies that will increase investments and the competitiveness of exporters to be put into effect rapidly. In the prescription for combating inflation, emphasis should be placed on practices that will strengthen the breathing capacity of industrial production. We should not give up on directing the agricultural sector, in particular, back to the growth path. The method of suppressing exports in order to suppress inflation will not yield positive results in the long term. Similarly, a disinflation program that cools down industry will harm the entire fight against inflation."

In his statement, İTO President Avdagiç also stated that closing the financing gap through regulatory activities in the credit market will contribute to the fight against inflation, and added, "We would also like to express that it is important not to allow exchange rates that remain below inflation to put pressure on the current balance as a necessary condition."

UAV

Editor: News Center