Int’l banks do not expect change in economic policies
ISTANBUL
In their assessments on the outcome of the March 31 local elections, Deutsche Bank and Goldman Sachs argued that the government is unlikely to change its economic policies.
Deutsche Bank in a report on April 1 that it is constructive on Turkish assets following the results of the March 31 elections.
President Recep Tayyip Erdoğan’s initial statements after the elections indicated his ongoing endorsement of the current economic program, economists at Deutsche Bank wrote in a report on April 1.
“With the conclusion of the local elections, attention now shifts toward the policy framework and the trajectory of the orthodox economic policies that have been in place since last year’s general elections,” they said.
Meanwhile, Goldman Sachs commented in a note on the outcome of the elections that markets would likely welcome the fact that the government has recommitted to the current economic policy.
“Just maintaining current policies, which we expect to be the case, should in our view support capital flows in the coming weeks, and with the current account having structurally corrected sharply and seasonally going to improve, we think the lira should be much better supported than in recent months,” it said.
As Türkiye has left the local elections behind, now it is time to focus on the economy and economic reforms, representatives of various business associations have said, stressing the fight against inflation and price stability.
There will be no elections in the next four years, stressed Rifat Hisarcıklıoğlu, the head of the Union of Chambers and Commodity Exchanges of Türkiye (TOBB), saying that this offers an opportunity.
“We must focus on the fight against inflation… We must take effective and decisive steps on structural reforms,” he added.
This should be a period when the cooperation between the central government and local governments is strengthened, said Orhan Turan, the president of the Turkish Industry and Business Association (TÜSİAD).
“We must work together to achieve the goal of a more developed, respected, fair and environmentally friendly Türkiye by focusing on structural reforms that will strengthen our economy, democracy and legal system,” Turan stressed.
The pace of reform efforts was rather slow in the runup to the elections but now it is time to focus on economic-related issues, said Erdal Bahçıvan, the president of the Istanbul Chamber of Industry, (İTO).
The period ahead is crucial to swiftly take all necessary steps, with determination to fight inflation and carry out structural reforms, according to Nail Olpak, the head of the Foreign Economic Relations Board (DEİK).
“As the business world, we think Türkiye now should focus on the current economic program. This will ensure that Türkiye will remain a safe haven with its strong economy and democracy in a region engulfed with conflicts and wars,” Olpak said.
