They pay 200 dollars a day, but they cannot find employees: Turkey can import employees

They pay 200 dollars a day, but they cannot find employees: Turkey can import employees

In his statement to journalists, İTO President Avdagiç made evaluations about the prominent issues in the economy and the expectations of the business world. Recalling that there was a problem with access to loans before, Avdagiç said that now the high cost of loans is being discussed.

Avdagiç said, “As the business world, we know very clearly that, unless a desired downward trend in inflation emerges, falling loan interest rates has no equivalent in terms of both Turkey’s and the world’s economic realities. We need to reduce inflation to single digits very quickly. Once it is reduced to single digits “Then it must be permanent and even come down. Even 9-9.5 percent is a high rate right now.” he said.

Pointing out that the biggest risk in the fight against inflation is external factors, Avdagiç said:

“There are constantly different developments taking place in this geography. Where will the Russia-Ukraine War evolve? How long will this aggressive attitude of Israel continue? Correspondingly, where will the process in the Red Sea evolve? The upcoming US elections are important. Oil prices, natural gas prices. .. Therefore, the risk regarding inflation for the coming period is external factors. Internally, the policy regarding inflation continues to be consistent within itself. Although we have some revision requests regarding this, it operates as a framework determined within itself as a big picture. From now on, for Turkey, the inflation target The most important risks that may cause deviation may be external risks.

For example, the Red Sea issue has advantages and disadvantages for Turkey, but what will be the effects of this and the reception of this event? There is uncertainty here, the pieces are not in place. We do not lose hope. As representatives of the business world, we never have the luxury nor the intention to be hopeless. We will continue to share the necessary issues for the business world to move forward faster and more effectively with our interlocutors, Ministers, relevant institutions and local governments. “We will try to find solutions to these.”

“Only inflation, CBRT and access to financing are not on our radar.”

Avdagiç emphasized that the former Governor of the Central Bank of the Republic of Turkey (CBRT), Hafize Gaye Erkan, conveyed many issues to him both in general and one-on-one meetings during his term of office, and that they made clear progress on many issues that they had never disclosed to the public, and that the same process will continue with CBRT President Fatih Karahan. reported.

Stating that those in this position take into consideration the demands of the business world, Avdagiç said, “Our communication channels are open with all Ministries, we can convey our issues. Many issues such as access to the workforce in the processes facing the business world, review of the employment policy of our foreign guests are on our agenda. We do not only have inflation, CBRT and access to financing on our radar.” “We bring many issues to the authorities in many different areas.” made his assessment.

“Turkey should never hesitate to achieve its export-related targets”

In his evaluation, Avdagiç also touched upon the issues for which the business world expects the most urgent solutions and continued as follows:

“The most important issue is that Turkey should never get stuck in achieving its export-related targets. One of the most important issues for this is that the exchange rate should be realistic. Here I am not saying that the exchange rate should rise or fall. In our opinion, the most important indicator of the realistic exchange rate is the difference between the increase in inflation and the increase in the exchange rate.” Let’s say that we started the year 2023 with 19 liras to the dollar and finished it with about 29 liras, but this year, roughly, there is an increase of 0.9 liras every month. Arithmetically, but it did not happen like that. The dollar went at 19 liras for 5-6 months, then it rose to 27 liras very quickly. It rose to -28. There were similar rapid rises in previous periods. Therefore, we still have a defense mechanism in our genes against sudden changes in foreign currency in the business world. It is very important that this expectation disappears, because accordingly, people spend their savings more in TL. They will evaluate.

Our current expectation is a reasonable and balanced exchange rate increase. Here, perhaps, if inflation is always 40 percent, when the exchange rate increases by 36 percent, even if not by 40 percent, the correlation is intact. We are on this line. In my opinion, saying ‘the exchange rate should be this much’ is dangerous. In a place where the exchange rate is 30 lira, saying ‘let it be 40-45 lira’ means a very serious jump. Both rapid increase and rapid descent will hit you. Therefore, we want an exchange rate that is realistic, stable and correlated with inflation. “We never quote numbers, and I don’t think that’s right.”

“More foreign currency should come from the foreign currency going to Turkey”

Pointing out that the second issue for which the business world requires an urgent solution is the failure to make imports attractive, Avdagiç said that the ratio of exports to imports should be constantly increased above 80 percent in order for exports to continue to grow in a balanced manner, for imports to be on a reasonably horizontal course or even to continue to decline. .

Avdagiç said, “We must cover the remaining 20 percent with tourism and service exports and achieve a balance. The third issue awaiting solution is the effective and correct direction of domestic resources. Because if you cannot manage the perception and expectation correctly on this issue, people will continue to stay in foreign currency. Their savings But it continues to remain in banks but in foreign currency under the pillow. At the end of the day, more foreign currency should come from the foreign currency going to Turkey. We closed 2023 with 100 billion dollars of service exports, but service imports are at the level of 51 billion dollars. Why do our exporters prefer foreign logistics companies? “We must seek to find answers to these.” made his assessment.

“We need to include the young generation in the business world”

Pointing to the “staff” problem experienced in some sectors, Avdagiç said the following:

“The number of young people in Turkey who are ‘neither at work nor at school’ is 2.5 times that of the EU, and nearly 3 million of our young people are neither at work nor at school. Whatever we do, 1 million of these nearly 3 million young people who are neither at work nor at school in Turkey are employed.” We need to attract this young generation to the business world as entrepreneurs but employees, as employees in industry and commerce. We must rapidly increase the number of our trained employees. For example,

While welders in the Tuzla shipyards area were receiving $100 per day, they now demand $200. Now the process has reached the point of bringing welders from the Far East, but if we cannot train our children and equip them for this job, there is a situation where we need to review the system.

Our new Minister continues the process through Vocational Education Centers (MESEM). I think we should develop MESEMs quickly, taking into account the positive and negative outcomes of the experiences experienced so far. We need to get a good output from there. “We must revive the journeyman and apprenticeship structure that is in our historical genes.”

“I do not think that the issue of tax dissemination will create a new burden on the business world.”

İTO President Avdagiç also touched upon the issue of spreading the tax to the base.

Pointing out that this will not create a new burden on the business world, Avdagiç said that they agree 100 percent with the Minister of Treasury and Finance Mehmet Şimşek on this issue.

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