Business advisory giants confident in Turkish economy

By Muhammed Ali Gurtas

ANKARA (AA) - The heads of prominent international audit and consultancy firms in Turkey said Sunday that they expect the economy to progress without much difficulty in wake of the July 15 failed coup.

Mustafa Camlica, the chairman of Ernst & Young (EY) Turkey, said that Turkish economy’s potential would not be disturbed by the recent events and that the private sector is set to continue investments.

"The private sector's confidence in Turkey's economy is total. The private sector, which fights to the end to keep investment plans unchanged, will continue its projects on a normal course, with the help of the government’s commitment to the consistency of economic policies and absence of an effect which would further swell costs,” Camlica said.

Camlica said the upward trend in all industries of Turkey's economy in the first half of 2016 demonstrated the economy’s resilience and full confidence in its domestic market.

"Especially the automotive industry painted a successful picture in the first half. The Turkish automotive industry, which broke records in production, exports, and domestic market sales last year, increased exports by 14 percent in the first half of 2016," he said.

Camlica argued that Turkey’s dynamic and highly adaptable companies have helped economic activities and growth continue even in uncertain times.

On the crisis management of government and institutions relevant to the economy, Camlica said they showed an extraordinary and successful effort to calm down markets and foreign investors in the wake of the coup bid, especially with the July 20 decree of a state of emergency.

"The government's announcements about free market rules and the acceleration of economic reforms encouraged foreign investments,” Camlica said.

“I believe capital inflow to Turkey's economy, aided by the globally lower interest rates, will continue in the weeks and months to come," he added.

Camlica's remark came amid speculations that credit rating agencies Fitch and Moody's may cut Turkey's rating, which could pose financial challenges for Turkey due to capital outflows as the country has a relatively high current account deficit-to-GDP ratio.

Camlica said linking a possible economic crisis to rate cuts from credit rating agencies would far-fetched.

Haluk Yalcin, head of consultancy and audit giant PwC in Turkey, said that temporary problems could not undermine the confidence in Turkey’s economy and would not be a setback for Turkey thriving on its potential.

“Turkey is a high-potential country among other developing countries, and a very attractive market for both local and foreign investors. In our opinion, the next 10 years will be significant for our economy and our business,” he said.

Yalcin said that Turkish companies and their foreign partners have expressed positive expectations about economic activities and investments even in challenging times.

“I believe that Turkey’s economy and investments will resume as ever with the speedy completion of the normalization process, the implementation of economic reforms, and the restructuring of institutions,” Yalcin said.

Deloitte, EY, KPMG, and PwC, also known as the “Big Four,” are the world’s leading audit and advisory companies which offer professional audit, assurance, tax, consulting, advisory, actuarial, corporate finance, and legal services.