Graft probe worries CEOs in Turkey for new year

Graft probe worries CEOs in Turkey for new year

Graft probe worries CEOs in Turkey for new year

Around 71 percent of 132 CEOs in Turkey have said the ongoing corruption probe would have affect economy, a magazine survey has showed.

CEOs in Turkey are worried about the repercussions of the ongoing graft investigation on the economy in 2014, a local magazine’s survey has shown.

More than 71 percent of 132 CEOs working at some of largest companies operating in Turkey have said the ongoing bribery and corruption probe would have a serious impact on the economy, according to a poll conducted by Ekonomist magazine.

The survey results indicate that particularly foreign partners of Turkish companies are concerned about the course of political stability in the country in the wake of recently erupted political tension.
The answers also showed that the reoccurrence of public demonstrations and the progress of the Kurdish issue resolution efforts were also concerns for overseas investors.

Grade decrease expected

Indicating their pessimism about the Turkish economy’s outlook in 2014, a majority of CEOs predicted Turkey’s rating grade would be slashed this year.

Already under pressure of U.S. Federal Reserve’s plans to taper bond purchases,
Turkish markets have been having hard times in diminishing the damage of political tension into the economy.

According to the poll, the CEOs also did not predict the Turkish Lira would return to its stronger days against the US dollar, using 2 to 2.1 dollar/lira ratio as the basis for their answers.

The businesspeople’s growth forecasts were also in line with the Turkish government’s, as around 42 percent said it would grow by 3 to 4 percent this year. A quarter of them, meanwhile, stated the growth would come at between 2 and 3 percent.