DEIK President Olpak: Economy is not as rosy as in a lavender field

September 12, 2024September 12, 2024 1 min read

DEİK President Nail Olpak told Bloomberg HT: “We are not in a lavender field in an economically rosy environment. I mean, let’s not be pessimistic, but let’s read the signals well.”

DEİK President Nail Olpak made evaluations about the Medium Term Program (MTP) to Bloomberg HT in Burdur.

Olpak said, “I see the Medium Term Program as a program with more reasonable targets. The inflation scissors established in terms of expectation management have been opened. We expect small steps to be taken regarding the exchange rate without disturbing the fiscal discipline.”

The highlights of Olpak’s speech are as follows:

In the MTP, a three-point correction was made in inflation. It stands in front of us as a more realistic program in which growth is reduced from 4 percent to 3.5 percent. Exports seem to be able to meet the year-end targets despite all kinds of difficulties. One of the issues that exports frequently raise is the widening gap between the exchange rate and inflation; we work under a free exchange rate regime. In terms of expectation management, the gap has widened, which impairs the competitiveness of exporters. If there is no intervention with the exchange rate, what can be done? I think there are small steps that can be taken without disrupting the fiscal discipline. This will both pave the way a little bit and provide an expectation management.