Top business group warns Erdoğan about economic policy – report

Turkey’s leading business group warned the government of President Recep Tayyip Erdoğan about its economic policy, saying high growth and high inflation can’t go hand-in-hand.

The concept doesn’t exist in economic text books and it’s time the government dealt with price stability by moving away from policies that stimulate domestic demand, Erol Bilecik, head of TÜSİAD, said in a speech in Istanbul, Cumhuriyet newspaper reported.

It is wrong to say that Europe, Turkey’s largest export market, is finished economically and Turkey should take advantage of the opportunity presented by resurgent economic growth on the continent, he said. In 2018, a credit guarantee fund introduced by the government to help businesses will have less effect on growth, as will bank lending, which won't expand at the pace that some people expect, he said.

Bilecik said the government has also presented politicians opposing Turkey’s European Union membership with a “trump card” after a decision by the Constitutional Court that released imprisoned journalists from long-term detention on terrorism charges was not respected.

The state of emergency, in place since the coup attempt of July 2016, should also be lifted, he said, repeating an earlier call.