After the economic stagnation and the devaluation decision taken in China, in the explanations of Yaşar Küçükçalık who is the President of The Association of Turkish Home Textile Industrialists and Businessmen (TETSIAD) warned about Turkish economy. Küçükçalık who took attention to the devaluations in China which is one of the world’s biggest economies, focused on that industry and export are needed to support as Turkish economy has to achieve sustainable and a powerful structure. Küçükçalık underlined that Turkey needs to revise all its growth targets as China did and to reach these targets, all precautions need to be taken.
The Solution of Economic Problems is Industry
Yaşar Küçükçalık who stated that the countries which don’t have a powerful industry have economic breakings and economic problems in which many European countries occurred especially İn Greece were due to the fact that they didn’t have a powerful industry and employment. Küçükçalık who stated that in all powerful economies of the world, industry are at the forefront, also said ‘’ When we look in the sense of our country, increasing of the available production power and protecting it carry great importance. Positive steps to be taken to develop domestic industry have great importance as well. China attempted to protect its own manufacturer by carrying out a devaluation at about 4, 6%. And in our country, any kind of precaution needs to be taken to protect domestic industry and develop it. To reach sustainable and a powerful structure, industry and export need to be support. By looking at the 7% of growth speed of China which China determined for its economy, all required precautions need to be taken to achieve these targets by determining new and powerful growth rate in our country’’.
What China Did?
When not reaching the expected export and growth numbers, Chinese Central Bank applied devaluation first at the rate of 1,9%, the next day at the rate of 1,6% and then at the rate of 1,1% on Yuan. Devaluations which devalued Yuan against Dollar was the biggest one which was carried out in last 20 years. Although this decision created an uneasiness in Asian markets, the Minister of Commerce of China, Gao Hucheng stated that the devaluation would support the export which was in difficult situation.
According to the July data with annual base, export rate in China fell down more than %8, and this fall increased the worries about China as it was going towards to the economic stagnation which is one of the world’s biggest economies. Andin July, the less growth of industry production with 0,8% triggered worries when compared to the previous year. And the investments of Real Estate took place at the lowest level since 2000.
