Companies keep eye on financing, costs in 2023

ISTANBUL

Companies operating in the services, real eatate sectors and export-oriented industries are keeping a close eye on finance and costs in 2023.

Uncertainties over energy security, supply-related issues and the EU’s carbon tax will be high on Turkish companies’ agenda in the new year.

But most industries are mainly concerned about energy costs and access to financing.

The anticipated economic crisis and energy problems in the EU pose a huge threat as the bloc is the largest export market, says Adil Pelister, the head of the Istanbul Chemicals and Chemical Products’ Exporters Association (İKMİB).

The domestic and foreign market outlook is likely to be gloomy in the first half of the year, but it could be better for the industry in the second half, Pelister said.

Hopes and expectations are running high for 2023 in the tourism sector, according to Müberra Eresin, the head of the Hoteliers’ Association (TÜROB).

“If the current situation prevails, 2023 will be a good year in tourism. But the main problem is the rising costs for the hospitality sector, which is struggling with the elevated energy prices,” she added.

Türkiye expects to welcome 60 million visitors and generate $56 billion in tourism revenues this year.

The automotive sector is likely to continue to face car availably problems in 2023, predicts Ali Haydar Bozkurt, the president of the Automotive Distributors’ and Mobility Association (ODMD). “Added the energy crisis and inflation, 2023 will be more like 2022 [for the automotive sector],” said Bozkurt.

Exports of the apparel industry is set to shrink between 15 to 20 percent in the first quarter of 2023, according to Şeref Fayat from the apparel and ready-wear industry assembly at the Union of Chambers and Commodity Exchanges of Türkiye (TOBB).

“The main reasons for the expected decline in sales to foreign markets are the contraction in demand, inflation and we are not able to cite prices due to the foreign exchange rates thus losing orders,” he explained.