Compilation Of Turkey’s Covid-19 Outbreak Responses

Since its first impact on humanity, Covid-19 pandemic dramatically changed our lives, in almost every aspect of it. From the World’s major economies to small businesses, people are raging a war in the field of economy against the devestating effects of Covid-19.

Ever since the first case was detected in Turkey; government, private sector, and people have taken significant measures, yet the virus, surely, have been altering our ways of business. In this compilation, I collected several key actions taken by Turkish state to Covid-19 pandemic in economicial field.

• The Government announced construction of 2 field hospitals in İstanbul.
• The demand for disposable plastic bag has increased the production by 25%.
• The Government has created national fund to fight Covid outbreak. The fund is currently over 1.5 bn ₺.
• Özbaş (Vice President, The Central Bank of the Republic of Turkey) explained that the economy has met the challenge robust, thanks to the gains of “equilibrium process”. Considering the terms at January and Fabruary, we expect growth from the first quarter, he stated.
• With the demand boom, many corperate producers have altered their production lines to produce medical masks. Government has prohibited the export and sale of masks.
• Banking Regulation And Supervison Agency loosened the capital adequacy ratio to prevent the deepening of crisis.
• Vestel (Producer company, Household Appliances) announced continueing the production, by less amounts and with precautions.
• Import of intermediate goods has decreased 1.05% in March. Comparing to the same month last year, Turkey’s export decreased by 17.81%, yet its import increased by 3.13%.
• Gülle (Chairman, Turkish Exporters Assembly) claimed that Turkey will gain adventage from the circumstance, if the Covid-19 outbreak is controlled by May.
• As a result of closing land, sea, and air borders, exporters are now using railway and Turkish Cargo (a brand of Turkish Airlines for air transportation).
• ICI Turkey and Istanbul Manufacturing PMI (a significant indicator of growth) in March has dropped down to 48.1, under the treshhold value of 50.0. Apart from food products, and land&sea vehicles; the indicator is below 50 for the following sectors:

-Basic Metal Industry

-Chemicals, Plastic, and Rubber

-Textile

-Electronics

-Metal and Machinery

-Clothes and Leather Products

-Tree and Paper

-Non-Metallic Mineral

• Accourding to The Economic Policy Research Foundation of Turkey, weekly expences have decreased by 34%, at the begginning of April, compared to mid-March. The same research shows online shopping has increased by 24%.
• Aşkın (An Agricultural Consultant) explains that Potato farmers are still working, and it is not foreseen to have a scarcity until September. If the winter seeds are delivered on time, there will not be a problem for a long time, he claims. Marzıoğlu (Chairman, Marzıoğlu Trading) asks for a re-lending to prevent farmers going bankrupt.
• Accourding to Gültepe (Chairman, Istanbul Apparel Exporters’ Association), manufacturers of apparel can only survive with the help of both government and trading partners. He also send letters to head of Global Brands -that works with Turkish manufacturers- like Inditex Group, H&M, Marks and Spencer, Primark, Best Seller in order to better cooperate during the crisis.
• The Government announced support to the companies including partial work support. Many companies have promised to keep their employees and support the national effort.
• Varank (Minister of Industry and Technology) announced that 14 research projects on Covid-19 are supported with 18 mn ₺. He also stated that the pilot for respirator was successful, and the effort for mass production has begun.
• The World Bank has dropped the growth expactation of Turkey from 3% to 0.5%.

Consequently, Turkey’s efforts on fighting Covid-19 will continue to affect it economically. As long as the outbreak prolongs, economic powers will melt inevitably. On the other hand, food and health related sectors may endure the crisis –even grow during the crisis-, regarding the ability to control risks caused by weak links in their supply chain. The government will continue to support companies to prevent a social collapse as long as it can. Considering state’s duty in Turkish society, the government has to take part in solution actively.