TİM Chairman Gültepe: The Industrial Sector Must Not Be Overlooked in the Fight Against Inflation
TİM Chairman Mustafa Gültepe, noting that the economic administration is conducting a rigorous anti-inflation program, stated, “We have provided every possible support in this regard and will continue to do so. We all desire a reduction in inflation, bringing it down to single digits.”
While in Moscow for the Collection Premiere Moscow (CPM) Fair, TİM Chairman Mustafa Gültepe offered insights into current developments in production and exports. He emphasized the urgent need for the economic administration to promptly implement policies prioritizing production and exports.
“We have experienced market losses alongside our waning competitiveness”
Highlighting their expectations for a more accelerated reduction in interest rates by the Central Bank, Gültepe stressed that, as indicated in the Central Bank's latest report, the primary focus in the upcoming period will remain combating inflation, and continued as follows:
“The economic administration is executing a rigorous anti-inflation program. We have provided every possible support in this regard and will continue to do so. We all desire a reduction in inflation, bringing it down to single digits. However, we must not neglect the industrial sector. For two years, industrialists have operated under 45-50 percent interest rates to reach this point. Yet, as our competitiveness weakened, we experienced market losses. There have been business closures, a surge in concordat declarations, firms relocating their production abroad, and employment losses. The limited increase in our exports should not mislead us. Unless we succeed in broadening the growth dominated by automotive, chemicals, and defense industries across all sectors, we cannot achieve sustainable export growth. Thus, we must establish a framework that can elicit contributions from all sectors. Unless new and distinct approaches, supported by incentive and support mechanisms that enhance the competitiveness of the industrial sector and prioritize production and exports, are implemented, the loss will only intensify. In this context, we believe the Central Bank should expedite interest rate cuts.”
“We must safeguard the ready-to-wear sector with utmost care”
Mustafa Gültepe emphasized that the “high interest, low exchange rate” policy implemented over the past two years has particularly eroded the competitiveness of labor-intensive sectors such as ready-to-wear. He recalled that the ready-to-wear and apparel sector, which for years led Türkiye's exports, has recently fallen to fifth place, and continued, “In ready-to-wear, we closed 2022 with exports of 21.2 billion dollars. In 2024, we managed only 17.9 billion dollars. This year, in the first seven months, ready-to-wear exports are down by 6.2 percent compared to the same period last year. In other words, the sector continues to bleed. Yet, we must safeguard this sector with utmost care, as it retains its strategic significance for the Turkish economy through value-added production, its contribution to employment, and its export performance. With this awareness, we are preparing the sector for the future. By leveraging high technology, incorporating more design, advancing branding, evolving, and transforming, we can once again strengthen our position in ready-to-wear. However, we must first find a solution to stem the decline that has persisted for the past three years.”
125 companies from Türkiye participate in CPM
TİM Chairman Mustafa Gültepe drew attention to their optimism for the future despite prevailing challenges, noting that they regard trade fairs as among the most significant platforms for showcasing the strength of the fashion industry in production, design, and branding on a global scale.
Gültepe stated that, as TİM, they will conclude 2025 with nearly 400 fairs and delegation programs in total, and noted that ready-to-wear is among the sectors organizing the most fairs and delegation events.
Gültepe said, “Between August 20-22, we organized the eighth edition of IFCO, Europe's largest ready-to-wear and fashion fair, in Istanbul. Simultaneously, our companies were present at Magic Las Vegas in the USA. This time, we are in Moscow for the CPM Fair. With 125 companies, including 118 participating nationally, we have taken our place at CPM. Russia is one of our key markets in ready-to-wear and apparel. Our ready-to-wear brands are also representing our fashion industry with distinction through hundreds of stores and sales points across Russia. I am confident that we will initiate significant collaborations at CPM, now in its 44th season.”