Business circles welcome new medium-term program

ISTANBUL

Türkiye’s leading business associations have welcomed the government’s new medium-term program, as they expect the economic roadmap to increase predictability.

The new medium-term program, which covers 2024-2026, outlines a comprehensive strategy aimed at reducing inflation, fostering growth and addressing various key challenges.

President Recep Tayyip Erdoğan unveiled the program on Sept. 6. Among the program’s goals, Erdoğan highlighted the aspiration for Türkiye to join the ranks of high-income countries, projecting a GDP size exceeding $1.3 trillion and a per capita national income of $14,855 in 2026.

Business associations agree that the program will increase stability and predictability and improve investment environment. They also hail the program’s special focus on green transformation and digitalization.

“We highly value the medium-term program as it will reduce uncertainties. We expect the program to give a boost to economic activity and predictability,” said Rifat Hisarcıklıoğlu, the president of the Union of Chambers and Commodity Exchanges of Turkey (TOBB).

It is also very important that the program focuses on improving business climate as well as green and digital transformation, he added, noting they expect reforms to be implemented within the time frame.

According to the program, the government plans reforms in seven key areas, including green and digital transformation, growth and trade, price stability, public finances, investment environment, employment and human capital and disaster management.

Export and employment targets set out in the program are realistic, said Mustafa Gültepe, the president of the Turkish Exporters’ Assembly (TİM).

“The emphasis on price stability is very important to exporters. We had problems in production and sales in the past periods due to high inflation,” he said while praising the program for including the goal of green and digital transition.

The program will serve as an important anchor to manage market expectations, according to Şekib Avdagiç, the president of the Istanbul Chamber of Commerce (İTO).

Avdagiç, who agreed that the targets in the program are realistic, also noted the program’s balanced approach toward maintaining fiscal discipline and considering the real sector’s concerns.

He also welcomed the structural reforms aimed at achieving sustainable development.

Gürsel Baran, the chair of the Ankara Chamber of Commerce (ATO), emphasized the need for combatting inflation, describing it as Türkiye’s most pressing issue.

“This program, which aims to lower inflation to single digits while prioritizing investments, production and exports, gives reasons to us to be hopeful about the future,” Baran said.