Yavuz IŞIK
THBB Yönetim Kurulu Başkanı
President
International credit rating agency Moody's revised its outlook upwards in line with expectations, while it did not change Turkey's credit rating from B3. It has been stated that the main reason for the change in the outlook towards "positive" is the decisive change in economic policy, particularly the return to conventional monetary policy. Its assessment of "This, if sustained, would significantly increase the likelihood of reducing Turkey's significant macroeconomic imbalances" is important for us.
In housing sales, Turkey closed 2023 with a serious decline compared to the previous year. The 20% decline in November was 15% for the entire year. In particular, the 33% decrease in mortgaged, that is, bank-financed sales appears to have a substantial impact on it. The access problem experienced in all types of loans in almost the entirety of 2023 regressed housing sales. At the same time, it is an undeniable fact that construction costs, which increased in line with inflation by 67% on an annual basis, also decreased the demand for housing.
Following the local elections that will take place in our country in less than 2,5 months’ time, there will be no election in the near term. This is an important opportunity, particularly in terms of addressing the structural problems of the country. We think that the steps to be taken to solve the existing problems are important to prevent inflation from becoming chronic.