The Turkish government should implement a comprehensive program of structural economic reforms to deal with inflation, high interest rates, the weak pound and unemployment, said Orhan Turan, head of the Turkish Confederation of companies and enterprises (TÜRKONFED) based in Istanbul.
It would be wrong to attribute what is happening to the economy solely to the COVID-19 pandemic, Turan mentionned at an annual conference of the organization on weekends. He called for urgent measures to correct economic imbalances, saying Turkey is not taking the necessary measures to ensure that the growth of the economy is sustainable.
The Turkish lira is trading near a record low against the dollar, consumer price inflation stands at 16.6% – the highest of emerging markets outside of crisis-hit Argentina – and more than a quarter of the country’s youth are unemployed.
Turan also highlighted a deterioration in the rule of law, saying it had a wider effect on politics and society. Reforms of the justice system should be a priority, he said.
“Belief in the rule of law is in decline, discrimination and hate speech are widespread and our relationship with reality is deteriorating,” Turan said. Reversing this trend is the only way to prevent events such as lynching attacks on political party leaders and attacks on district offices of political parties, he said.
TÜRKONFED represented more than 40,000 companies under 30 federations and 274 associations, according to its website.