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Hisarcıklıoğlu: Rapid growth in 2010 but reforms needed
Speaking in Kocaeli at a meeting with the Economic Journalists Association yesterday, Hisarcıklıoğlu stated that as the president of the largest business organization in Turkey, he is optimistic for the Turkish economy but that it needs a few reforms to make it grow even further. “From a numbers standpoint it seems that the road is open for us, but there are things that we also need to do. It will be a good year, but if we can take care of a few reforms it will be even better,” said Hisarcıklıoğlu.
Hisarcıklıoğlu stressed the importance of bank lending this year, stating that lending by private banks to small and medium-size enterprises (SMEs) took a sharp 10 percent turn downward during 2009, which was only partially covered by public banks such as Halk and Ziraat. He added that despite making this risky move, lending to SMEs, public banks posted the highest profit levels in 2009. Personally applauding the performance of these public banks, Hisarcıklıoğlu called on private banks to use the funds in their possession to lend. Referring to the experience of public banks, he said: “They have money in their hands. If they lend, their profits will increase.”
Hisarcıklıoğlu, evaluating the fourth quarter gross domestic product (GDP) growth figures stated that in the last quarter of the year private consumption increased by 3.3 percent and government spending by 2.3 percent; investments decreased by 1.1 percent and a faster increase of imports than exports led to a 1 percent decrease in the GDP growth rate. He stated that these factors led to the 6 percent growth rate experienced in the last quarter of the year.
Regarding 2010, he stated that in the coming period the public sector would not be able to contribute as much to growth as it had previously but that an increase in private consumption and a restocking of depleted inventories would help reinvigorate the economy in 2010.
Regarding reforms and structural changes to the Turkish economy, Hisarcıklıoğlu stated that revamping the vocational education system, restructuring debts by businesses to the government and lifting barriers to exports would help the Turkish economy make the most out of the potential of 2010. He also stressed the role of the banking sector this year, stating that there is currently TL 51 billion in liquidity in banks’ hands that could be turned into loans and that this would “hopefully be the engine of growth in the coming period.”
In an unexpected move, Hisarcık-lıoğlu stated that the “bureaucrat of the year” award should go to Banking Regulation and Supervision Agency (BDDK) President Tevfik Bilgin for his work on enlivening the banking sector and making sure that all lending institutions lent properly and effectively.
Logistics as the main artery
Hisarcıklıoğlu also took note of the Turkey’s logistics sector, stating the potential that it has due to the increasing trade between the traditional silk road countries. “Turkey will be one of the main arteries of the logistics sector, because global production is again centered around the East -- in fact 51 percent of it is east of Turkey, whereas consumption is to Turkey’s west. If Turkey can play its cards right, then it can resurrect the historic silk road and become one of the main centers of logistics and transportation. But we need to play our cards right.”
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