Turkish traders will sink under weight of 50% interest rates: Exporters president

Türkiye is on the verge of financial collapse, and high interest rates are not helping Turkish traders, according to the president of the Turkish Exporters Assembly (TIM), Mustafa Gultepe.

Gultepe recently assessed Türkiye’s latest export figures and while he highlighted growth in various sectors, he cautioned that financial struggles remain in some industries, with challenges expected to intensify in highly competitive fields.

However, “no country can increase its investment and employment with 50% interest rates,” Gultepe remarked in an interview with CNBC-e.

‘Turkish central bank needs to be radical’

“We’re witnessing labor force losses in production and employment. Key sectors like ready-to-wear clothing, construction, furniture, machinery and automotive are finding it increasingly difficult to stay competitive,” he said.

Addressing the broader economic outlook, Gultepe maintained: “A country with 50% interest has no chance to survive. The central bank needs to be radical and implement new strategies. We must find alternative methods to reduce inflation.”

Despite these issues, Gultepe remains cautiously optimistic, hoping that essential measures will be enacted before 2025. On the topic of minimum wage, he stressed that any increase should reflect Türkiye’s current economic climate.

“I expect an adjustment that will support people’s livelihoods while boosting our competitiveness,” he added.

Looking to 2025, Gultepe expressed concern about Türkiye’s ability to retain its market position. “The biggest challenge in 2025 will be sustaining our strength in current markets,” he said, underscoring the need for timely interventions.

He also expects a reduction in interest rates by year-end to help stabilize the economy and help Turkish traders.