Turkey needs macro reforms for future: Business leader

ISTANBUL

Turkey cannot make lasting improvement without enacting macroeconomic reforms, according to the head of the Turkish Industry and Business Association (TUSIAD).

It is too soon to say "things are going to get better," Simone Kaslowski told Anadolu Agency on Friday.

"We cannot be a country which is unable to make education, justice and taxation reforms at a time of rapid technologic transformation," he stressed.

On foreign currency exchange issues, he said predictability for foreign currencies is important because volatility -- downward or upward -- causes problems.

"Currently, exports support our economy, while decreasing foreign currencies may damage exporters. We expect to reduce volatility," he stressed.

Mentioning how inflation in Turkey reached 25% while the country's target was 5%, he added:

"If we bring down inflation and bring it under control to low levels, nobody has to watch exchange rates.”

He said “arguing about exchange rates” is not productive.

High inflation is harmful, and Turkey should not allow it again, he highlighted.

Kaslowski also said the current deficit is shrinking due to narrowed domestic demand.

"Investments for the future are important for Turkey's growth rate and employment capacity," he stressed.

He added: "We can’t realize any our GDP targets if we can’t boost our investments."

Turkey also needs a strong and creative start-up ecosystem, or start-ups and young people could migrate, Kaslowski said.

"If Turkey provides a competitive, safe, and predictable business and investment environment, it can reach high growth rates and development levels, with its alternative tourism opportunities, agriculture, young, educated population, and entrepreneurial spirit."

*Writing by Gokhan Ergocun