Aydin Dede discussed inflation and financial performance of SMEs on Turkiye's Endustri Radyo
Aydin Dede, Executive Chairman of Itimat Bagimsiz Denetim Ve YMM A.S (FinExpertiza Global member company), joined the hosts of Turkiye's leading business radio Endustri Radyo in the studio to discuss the financial performance of small and medium-sized companies with a focus on their coping strategies in times of financial turmoil.
"Turkey has been living with high inflation for a long time. High inflation was one of Turkey's most important problems. However, this time the situation is a little different. We were sure that the Turkish Statistical Institute (TUIK), which is responsible for measuring inflation in Turkey, measured inflation correctly and published the parameters it used in these measurements in a transparent manner. Unfortunately, we can no longer be sure. There are currently three different institutions that measure inflation in Turkey, in addition to TUIK, the Istanbul Chamber of Commerce and the Inflation Research Group (ENAG), a civil initiative. The measurements of TUIK and ENAG are vastly different from each other. ENAG shares the parameters it uses in its measurements with the public in a transparent manner. In this case, it is not possible for small and medium-sized enterprises (SMEs) in particular to see the future and make the right financial decisions," shared Aydin Dede.
"Despite high inflation, the Turkish lira has become very valuable due to the suppressed exchange rates. Ironically, while worker wages are very low in Turkey, they have become higher in dollar terms than the countries we compete with. This means that Turkish companies cannot compete abroad. Companies in sectors such as textiles and white goods sub-industry in particular have started to flee to countries like Egypt. Data from the last two months confirms signs of stagnation in the Turkish economy. The failure to reduce inflation to the desired level despite the high interest rate policy seems to cause many businesses in Turkey to face the risk of closure. Indeed, news of debt postponements before bankruptcy has begun to intensify in the market. The expectation that the implemented economic program will yield positive results is giving way to pessimism," added the expert.
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