Terror attacks biggest concern of top business executives in Turkey: Poll

ISTANBUL

Hürriyet Photo

Senior executives of leading Turkish companies have said terrorist attacks are set to be their biggest worry for the country’s economy in 2016, according to a new survey. 

Some 22.4 percent of 166 chief executives said the terror climate in Turkey’s eastern regions will hit the Turkish economy the most in the New Year, according to a survey by the Turkish weekly Ekonomist magazine. 

According to 43.1 percent of CEOs, terror attacks and security concerns will top the agenda in 2016, which will be followed by debates over a new constitution and the presidential system. 

Turkish companies’ foreign partners are most worried about the diplomatic crisis between Russia and Turkey, according to the business heads, with 38.2 percent of CEOs saying their foreign partners wondered whether the tension would end with Russia. At the same time, foreigners who have invested in Turkey are also concerned about the future of Turkey’s east, according to 28.9 percent of the surveyed CEOs. 

More than half of the CEOs also said they needed to revise their 2016 plans in the light of several local, regional and global developments. 

Most of the chief executives expected the economy to grow by 3-4 percent in 2016, but 43.8 percent also said they believed there would be “no rise in employment,” according to the survey. While some 16.7 percent of survey participants said they would increase employment over 5 percent, some 7.4 percent said they would downsize.

Pessimism on Turkish Lira

A majority of top executives also said they expected the Turkish Lira to again hit 3 to the U.S. dollar in 2016, with 60.2 percent saying the foreign exchange rate would be between 3.00 and 3.20. A further 20 percent, however, said they rate could even fall between 3.20 and 3.40.

While 36 percent of the CEOs believed that 2016 inflation would be around 7-8 percent, around 26 percent said the rate would be at 8-9 percent. But according to 6.8 percent of chief executives, the inflation rate will even rise to double-digit figures.

Most of the CEOs do not expect any change in credit ratings of around 78.4 percent. While 18 percent of the CEOs expected the rating to fall, the remaining 3.7 percent expect a rise in the country’s rating. 

The survey results also showed that most top executives believe the European Union will remain Turkey’s largest export market in 2016 at around 59 percent. While some 25.8 percent believed the Middle East and North Africa will lead the category, the remaining 8.2 percent pointed to Sub-Saharan Africa.