PLASFED President Ömer Karadeniz:
“WITHOUT STRENGTHENING PRODUCTION, SUSTAINABLE GROWTH CANNOT BE ACHIEVED IN THE TURKISH ECONOMY”
Stating that they support the process of combating inflation, PLASFED Chairman of the Board Ömer Karadeniz said that production and industry must be put back at the center of the economy for sustainable growth. Making evaluations ahead of the second-quarter growth data to be announced in the coming days, Karadeniz stated that high financing costs weaken the appetite for investment, saying, "The key to Turkey's new growth period is production, investment, and exports."
Stating that the steps taken within the scope of combating inflation in the Turkish economy provide positive signals in macroeconomic indicators, Ömer Karadeniz, Chairman of the Board of the Plastics Industrialists Federation (PLASFED), said that sustainable growth will only be possible with production-oriented policies. Pointing out that industry is the cornerstone of growth, exports, and employment, Karadeniz said, "Combating inflation is certainly important. However, economies that cannot protect their production power cannot create lasting prosperity. Turkey's new growth story must be written with production and industry."
Expressing that the economic data announced recently show that progress has been made in the disinflation process, Karadeniz emphasized that, on the other hand, high financing costs, the weakness in the appetite for investment, and the contraction in the manufacturing industry continue to pose significant risks for the real sector.
Expressing that production is not only an economic magnitude, but also the primary determinant of technology development, exports, employment, and global competitiveness, Karadeniz said that supporting the industry is of critical importance for Turkey's medium and long-term development targets.
"Growth cannot be lasting without strengthening the industry"
Reminding that the industry lagged behind the economy in the first-quarter growth data, Karadeniz stated that steps towards strengthening production capacity must be accelerated.
Karadeniz used the following statements: "For the balancing process in the economy to succeed, the production side must also be supported to the same extent. Policies that will increase industrial investments, encourage exports, and grow value-added production must become a priority. Growth supported by consumption may reflect positively on figures in the short term, but in the long term, the path to sustainable development runs through production."
All eyes are on the industry for second-quarter growth
Stating that the second-quarter growth data to be announced in the coming days will reveal the direction of the recovery in the economy, Karadeniz said, "Leading indicators do not yet point to a strong recovery at the desired level in the industry. Therefore, the contribution of production to the economy in the second-quarter growth data will be closely monitored. The quality of growth is as important as its speed. A picture where production and export contribute more strongly to growth is much more valuable for the future of the Turkish economy. An economy where industry is once again the locomotive of growth will form the basis of sustainable development, lasting prosperity, and global competitiveness."
Pointing out that Turkey has a strong industrial infrastructure, Karadeniz said that the existing potential can be transformed into much higher value-added with correct policies and practices that encourage production.
"Our competitiveness must be protected"
Stating that competition in global markets is intensifying day by day, Karadeniz said that the balance between Turkey's production costs, financing expenses, and exchange rate must be managed carefully for exporters.
Reminding that the Turkish industry has achieved significant export successes in recent years, Karadeniz stated that keeping production costs under control is of great importance for this success to be sustainable.
The President of PLASFED, the umbrella organization of the plastics sector, stated that the Turkish industry has continued to produce, invest, and increase its exports despite all difficulties until today. Pointing out that Turkey's path to achieving its sustainable growth targets passes through production, technology, and industry, Karadeniz said, "The right steps to be taken today will strengthen not only the industrialist, but also exports, employment, and our country's global competitiveness. An economy that produces, invests, and creates value-added will be the most solid foundation of Turkey's new growth period."
For more information and contact:
Nilgün Özdemir / nilgun.ozdemir@plasfed.org.tr / 0532 724 95 90
This content has been translated using artificial intelligence technology.