Hopes Invested in 2017 Will be Harvested in 2018

• 26.12.2017
• Archive

Turkish economy surprised many estimators by a strong performance in 2017. Various international foundations and rating institutions from OECD to IMF increased their estimations on growth which they made as 2% at the beginning of 2017 to 6% by revising almost two or three times. With the growth which the industry supported strongly and realized by a record rate of 11,1% in the third quarter, these revisions have been confirmed.

Undoubtedly, the most effective actor in this is that all the actors of the economy was aware of their own responsibilities. Especially, the most important one was the measures taken already before getting into 2017 by the government. While getting into the year with the increase in the financing quality and access opportunities to financing, negative expectations were significantly reduced. On the one hand reduction in VAT and SCT, on the other hand increase in Turkish Eximbank opportunities in terms of exporter caused a doping effect on the economy for which a stability had been expected within the year. In this matter as ICI, we attached importance to be a part of the solution with an active approach, instead of being a mere spectator for developments.

Various international foundations and institutions from OECD to IMF started to revise their growth estimations, which had been around 2% as I stated above, about Turkish economy at the first months of the year. The estimations which had been firstly increased around 3%s re-increased in an instant to around 6% in the third quarter.

There was an important leading indicator of this positive atmosphere. Istanbul Chamber of Industry Manufacturing PMI data had indicated about this issue by increasing to 53-55 levels since the second month of the year. Finally when gotten into the third quarter, those expectations and growth revisions were seen that they hadn’t been in vain.

Economy experts are expecting that this acceleration will maintain within 2018, even if it slows down. Economy experts considering that economy will have a more reproductive, productive and strong course, and we will benefit our hope’s worth which we invested in this year in 2018 highlights that the fragility of the economy should not be neglected by crowing over the high-rated growth obtained in 2017.

Benefiting 2018 in a much better way and alleviating the fragilities should be attached importance in terms of qualified growth focused on production in terms of quality and sustainability of economic growth, increasing inflation, increased current deficit and budget balance.

This issue of our magazine which you are holding at your hands has a file researching the expectations in the macro economic parameters and including the opinions of specialists for the ones who are curious what will happen in 2018 in detail.

Life goes on. Calendar pages are left behind, even if we want the opposite.

Yes! We just left 2017 full of intense activities behind with its ups and downs. I hope the new year brings prosperity, fruitfulness, peace and welfare to the world, our country and us, the industrialists. Happy New Year!

Erdal Bahçıvan
Istanbul Chamber of Industry
Chairman