Pending investments will be put into operation in 2020
Economy will grow 2-3%, double digit inflation will continue
According to the survey results, 52 percent of members believe that 2020 will be better than 2019 in terms of their business. Members have a more positive view for their business in 2020. However, expectations regarding the economy are different. The rate of those who think negatively about the expectations for 2020 regarding the economy is higher than those who have the view that the recovery in the economy will continue. While 52 percent of the members estimate that the stagnation in the economy will continue, 45 percent believe that the balancing and recovery that will manifest as of the second half of 2019 will continue. 50 percent of respondents in the expectation survey said they estimate a growth of 2-3 percent in the Turkey's economy. However, the majority of members expect the double digit inflation figures to continue in 2020. While the majority pointed out as the biggest risk in 2020, the cost of life and unemployment, this is followed by the downturn of real sector companies with a rate of 23 percent. Most of the members think that the 2020 year-end TRY loan interest rates will be in the range of 12 to 15 percent.
The most demanding solution: revitalization of domestic demand
While half of GYİAD members stated that they are planning a new investment in 2020, the majority stated that they will focus on new customer acquisition this year. While 36 percent of the respondents consider the possibilities of mergers and acquisitions, 31 percent stated that they would decide according to the developments. The members participating in the survey agree that the most demanding solution is the revitalization of domestic demand. Respondents see the stabilization of exchange rates as the second problem waiting for another solution. 52 percent of the members think that the non-economic obstacle in front of the company targets in 2020 is the problems in foreign policy.
Expected dollar rate at the end of the year: TRY 6.50 - 7
When asked about the expectations for the dollar rate at the end of 2020, 42 percent of the respondents indicated a range of TRY 6.50 - 7, while 31 percent stated that the dollar rate would remain between TRY 6 and 6.50.
Growth expected in Turkey, while the global economy will slow down
Considering the global expectations in economy, an overwhelming majority of respondents (81 percent) agree that growth in the world economy, which has lost momentum in 2019, will slow down; 76 percent think that the stagnation in relations with the European Union will continue.
“We need to increase youth employment”
GYİAD Board President Fuat Pamukçu evaluated the results of the GYİAD Expectation Survey as follows: “Considering the responses of our members to the survey, it is seen that we are hopeful about 2020, but of course it is also obvious that we have to work harder to get our economy out of the turbulent period. While it is estimated that the growth in global economy will slow down, it is expected that there will be a growth in Turkey, even if a slight one, which is pleasing. It seems that investment plans that have been on hold for some time will be implemented this year. As the respondents point out, the biggest risk in 2020 is cost of living and unemployment. Young population needs to be brought into the economy and youth employment should be increased. We do our part in this regard. We need to overcome the problems in foreign policy, especially to strengthen our relations with the European Union. The digitalization of the SMEs and the increasing number of women in employment promise a boost in the economy. As the young business world, we have trust in our country for 2020 and we continue our efforts in all circumstances.”