Former Turkish Industry and Business Association (TÜSİAD) president of the Retail and Insurance Group of Sabancı Holding, Haluk Dinçer, said in a TV program: "Turkey has a surprisingly strong economy. We will end this year with almost 3 percent growth." He said it is not possible to separate the economy from the global economy, calling attention to the U.S. Federal Reserve's (Fed) rate decision. "The Fed's rate increase is a hot topic, yet the process is very important. Considering global conditions, Turkey's growth rate is very good. I can say Turkey have achieved satisfactory growth," Dinçer said. He said the biggest economic problem is currently the rise of the dollar. "In Turkey, the rent price for many offices and shopping centers is based on the dollar," he said. In the last nine months, the dollar-Turkish lira parity has increased TL 0.70 from TL 2.34 at the beginning of the year. "This is a serious issue. The rise of the dollar creates more turbulence than the rise of rates. The exchange rate is more important although there can be around a two-point increase in interest rates," he said.
Dinçer said the Central Bank of the Republic of Turkey (CBRT) is waiting for the Fed to act. "Our perspective has not changed. The CBRT will increase the interest rate in parallel with the Fed's decision. I do not think the bank has much to do about exchange rates. Due to the rise of exchange rates, inflation cannot be controlled," he added. Pointing to the necessity of structural reforms, Dinçer said: "Structural reforms are necessary no matter which political party forms the government. Competitiveness must be increased and an investment environment should be stimulated." Dinçer stressed that the number of outlets of one of Sabancı Holding's main brands in Turkey, CarrefourSA, will reach 800 by the end of this year, and said the company did not make a move to slow down operations. "We open new shops and invest in e-trade. The insurance sector continuously grows and we are investing in human resources," he said.
