A new year means new hopes… 

Türkiye is leaving behind another politically and economically active year of many firsts and important changes. As we are entering the last month of 2024, we can say that the most important thing about This year was undoubtedly the local elections. Türkiye went to the polls to elect its new leaders who will serve for five years. The other most important information about this year was the economic measures taken by the government. Effective steps were taken to combat inflation and the aim was to put the economy back on a rational line.

It obviously seems that it will take some time to fight against inflation to produce.

The government increased interest rates as part of the fight against inflation by increasing economic growth, employment growth and price stability. In the last decision made in November, interest rates were kept constant at 50% for the eighth time in a row.

The interest policy that realized at 50% compared to December caused financial conditions to tighten and domestic demand to start. No doubt that, everyday, it is becoming more difficult for our businesses to continue their existence, to protect their capital and to achieve export consistency with these such high interest rates.

In this process, the weak demand process of Europe which is our main export market prevents the decline in domestic demand from being compensated for through exports.

Although we say that the Turkish economy has entered a recovery process compared to the previous year, unfortunately the economic contraction continues to be a problem for our industrialists.

Macro and structural challenges that hinder potential growth, including high inflation, low productivity growth and weakening foreign direct investment, challenge a sustainable economy. Economic growth can be facilitated with robust fiscal measures and ambitious structural reforms.

 

Global economy will determine economic appearance of Türkiye

Of course, the developments in the world economy concerns Türkiye as well. The war between Russia and Ukraine, which has been going on for about two years continues to affect the entire world, especially Europe. The war between Israel and Palestine in the Middle East stands as a great humanitarian disaster. The risk of the war spreading in

the region is growing every day.

Developments in the USA, which is one of the most important elections in world history, China in the Far East, the European Union and especially the situation of Germany will determine Turkey’s economic appearance in 2025.

The world is now on a fragile ground and far from its old growth rates. The fact that the European Union which is our largest market, continues in this situation is a factor that challenges our export opportunities. The pressure that China creates in the field of competition is challenging the Turkish industrialists.

 

We must keep up with the technological developments

There is a brand new future waiting for us. Therefore, as Turkish industrialist, we must keep up with the technological developments. Industry 4.0 transformation have a vital importance for countries like us. We will pay special attention to quality and quantity. It should not be forgotten that in the 4.0 transformation, we need a qualified workforce, not quantity. If we are having difficulty producing technology, we should at least pay attention to creating human resources with the skills to make a difference while using that technology.

Let’s not forget that time is passing quickly these days as we come to the end of the months on the calendar. I hope that we will spend our time more efficiently and valuably in the new year and that 2025 will be better than this year. I hope that the new year will bring peace and abundance to our country and the world, and I wish it will give us health, peace and happiness.

 

Happy new year…