Covidien-19 Enhancing Turkey's Resistance Against Pandemic

In its last report, TSKB Economic Research shared the economic consequences of the COVID-19 outbreak worldwide and its evaluations for the upcoming period. "Covidien-19 Enhancing Turkey's Resistance Against the Epidemic" report, financial resources, including all the opportunities that draws attention to the importance of a flexible way to use, offers a fast economic recovery and a healthy financing solutions for the balance.

The COVID-19 outbreak, which started as a health issue, has evolved into a multidimensional global crisis with economic, financial and social aspects. The importance of the question of how to manage such a strong uncertainty is increasing day by day. Turkey's economy with the report by the road map issuers Industrial Development Bank of Turkey (TSKB), took up the Covidien-19 outbreak in its latest report. Prepared by the Economic Research department "Covidien-19 Enhancing Turkey's Resistance Against the Epidemic" report, revealing deepening economic impacts of the epidemic, sheds light on the future.

The study, prepared by Feridun Tur, Şakir Turan, Cem Avcıoğlu and Gül Yücel, reminded the report published by the International Monetary Fund (IMF) on April 14, which revealed the first damage, and expects that the national income will decrease in 2020 member countries in 170. draws attention.

Limitation of the risks with the appropriate funding opportunities possible for Turkey

According to the report; Turkey's economy, exports and tourism due to the Covidien-19 in parallel with the sensitivity to external developments, well down on the growth outlook and downside risks are growing. However, it is possible to strengthen financial channels with appropriate funding opportunities, thereby limiting risks.

The report also pointed out that in the coming period, companies will continue to face problems stemming from the deterioration in the global value chain as well as supply and demand-side problems: “Therefore, the protection of companies' existing labor and production will depend on their ability to meet their working capital needs at reasonable costs. . In times of financial crisis, companies try to reduce their external financing needs by improving their working capital management. However, the Covid-19 epidemic's fragile consumer confidence and its widespread negative impact on all sectors constitute an obstacle to the targets in working capital management. For this reason, companies seem likely to resort to external financing to solve liquidity problems until a tangible economic recovery takes place. ”

In the report, which pointed out the necessity of harmonizing the realities of the world before COVID-19 and the needs of the world after COVID-19, the three main areas that this method should be applied are as follows: “Protection of the value chain from the negative impact brought by the global shock, protection and support of the labor market and editing the transformation of the industry and services sectors. ”

In accordance with these listed areas, it is recommended that the following principles be included in the planning process:

• Supporting sustainable investment stance for every sector and sector player,
• Supporting the groups that need the most in the period they need most due to the inclusion principle,
• Taking steps to observe and improve gender balance,
• Planning proactively with a stance that takes into account climate risks.

Covidien-19 Enhancing Turkey's Resistance Against Epidemic other line heads featured in the report is as follows:

• In the face of the direct and indirect effects of a pandemic, the steps taken by governments to support companies can be grouped under three headings. In order to improve the cash flow of firms, 65% of governments went to relax in financial conditions, while 26% stimulated demand for firms' goods and services. 53% of governments announced support packages for employment and salaries, and reduced or canceled government payments.
• Numerous financing opportunities have been offered worldwide to reduce the effects of COVID-19. These opportunities focus on protecting and supporting the workforce in general and avoiding the negative effects of the deterioration in the global value chain.
• Turkey's economy, and increased sensitivity to external demand for tourism activities, Covidien-19 has significantly increased the downside risks on growth outlook of external developments. However, these risks can be limited by strengthening financial channels with appropriate funding opportunities.
• Turkey 5% of manufacturing value added is created with input from China. The share of EU countries in the manufacturing industry sector is around 6%. For this reason, it is seen that more than 10% of the manufacturing industry faces the risk of input supply due to the disruption in the supply chains in the coming period.
• UNCTAD (2020) case of any problems by supplying products from China will be the most affected sectors of Turkey's textile, clothing and be seen in the automotive industry.
• When the issue is evaluated from a climate responsible perspective, it can be seen that development banks may be more prominent in the construction of the post-COVID-19 period. The same perspective also points out that there is a need for reinvestment in line with the green path in many sectors with the cooperation of local and international development organizations.
• Transformation will be inevitable for the sectors in this period in which all economic players will review their way of doing business and decision making mechanisms. While considering this transformation, two points come first: Firms expand their range to adapt to the new era and transform their business practices to date.

Full report here you can reach