TRADERS WİLL FACE HİGHER COSTS İN ACCESSİNG FİNANCE

ETO President Metin Güler stated that both traders and citizens are struggling due to inflation in 2023, and that the tight monetary policy will make it even more costly for traders to access finance in the coming year.

In a written assessment, Güler evaluated the developments in the economy for 2023 and shared expectations for 2024. He emphasized that the biggest problem in the economy this year has been inflation. Noting that inflation has been a constant topic in Turkey's agenda for the past 20 years, Güler pointed out that the effects of the post-pandemic period, rising commodity prices globally, and high foreign currency exchange rates have caused inflation to spike in 2023.

Increased Revenue but Decreased Profitability for Businesses

Güler highlighted that both citizens and traders’ budget balances have been disrupted due to inflation, characterizing 2023 as a year lacking price stability. He noted that while business revenues have increased, profitability has decreased due to rising costs, particularly in rent and energy. High inflation has also adversely affected housing production, leading to supply issues in the construction sector, and the high mortgage interest rates have slowed down housing sales.

Increasing Domestic Intermediate Goods Production is Crucial

Looking ahead to the second half of 2023, Güler acknowledged that promising steps have been taken by economic management but mentioned that reducing inflation to single digits will take time. He expects employment to rise in 2024 and noted that both Turkey’s and Eskişehir’s exports are strengthening, but it’s essential to remember that the country is still dependent on imports for exports. Güler stressed the need to increase and promote the production of domestic raw materials and intermediate goods, which would help reduce foreign dependency and the current account deficit.

Five Fairs Will Contribute to the City’s Economy

Identifying the high costs of accessing finance as one of the biggest challenges for traders and industrialists in 2024, Güler stated that businesses will struggle to obtain financing due to high interest rates or may have to take on more debt to do so. He announced that the Eskişehir Chamber of Commerce will continue its efforts to develop the city’s service sector and increase trade for its members in 2024 by organizing five fairs focused on furniture, books, construction, agriculture, and industry at the Eskişehir Fair Congress Center. Güler noted that during these fair periods, the city’s service sector, especially businesses in hospitality, restaurants, and advertising, will experience increased activity, contributing to the local economy.

We Will Continue to Support Our Members

Güler highlighted that the chamber will continue to work on developing e-commerce and e-export for its members in 2024. He assured that Eskişehir firms will receive free technical support and consultancy through the E-Commerce Working Group and the Eskişehir E-Commerce Center to boost their e-commerce activities. He reiterated the commitment of ETO to stand by its members, continue addressing the issues faced by traders and industrialists, and work with professional committees, the assembly, and the board to find solutions while facilitating their business operations through the chamber’s service units.