Sabancı was sharing her expectations regarding the markets at a meeting with reporters in İstanbul yesterday. Noting that most observers predicted a slow recovery from the global financial crisis last year, she said Turkey is in a better position when compared to countries in the euro zone. “The EU has to maintain fiscal discipline following the crisis. This is not going to be easy, but they have fewer alternatives than in the past. …
When you look at Turkey, there is nothing to fear as much,” she said. Sabancı stressed that at least Turkey is not suffering from a deep debt crisis like Greece.
Despite her optimism for the future of the Turkish economy, Sabancı still has some reservations. “We will not be able to enjoy high growth rates for a long time. Unemployment will remain a major problem continuing to haunt the markets. Most observers share the same vision,” the she stated. Sabancı said the markets should be prepared for aftershocks from the crisis in the coming months and noted that a sustainable recuperation could come only after the markets become immune to such anticipated waves.
Mentioning a previously announced medium-term economic strategy plan, which covered measures for the following three years, Sabancı said the Turkish business world is able to look to the future thanks to this package while most European Union countries are still waiting for a comprehensive plan. “The government foresees that growth in the economy will be through the private sector. This is encouraging for us,” Sabancı said, adding they expected that the majority of targets in the three-year program would be realized aside from inflation. “By the end of the three years, we may not be able to realize the inflation target as stipulated in the plan.” As regards the current economic outlook, the holding chairwoman said she believed there was still time for new investments to start in the market while companies are trying to retain past capacity utilization figures. “There is a noticeable rejuvenation in production and demand; however, the recovery is not yet at the desired level,” she stated.
Also touching on the current political tension in the country, Sabancı emphasized that the Turkish business world expects the bleak atmosphere to disperse shortly, adding that such a discouraging picture will do nothing but harm to Turkey’s economy.
