“Labor loss and increasing unemployment oblige countries to the IMF”

“Labor loss and increasing unemployment oblige countries to the IMF”
07 May 2020

Many countries in the world are working to restore the economy that has been disrupted by the coronavirus outbreak. Countries apply to the IMF as a way out, especially with increasing unemployment figures and production disruption.

*** This release is originally published in Turkish.
Google Translate Application translates the content you see on this page.***

ISTANBUL (TR) - According to the International Labor Organization (ILO) data, the total or partial closure of the workplaces directly affected 2.7 billion people, as part of the measures taken to prevent the spread of the coronavirus pandemic in the world. Permanent employment losses are expected for those working in tourism, travel and real estate, one of the sectors most affected by coronavirus among 2.7 billion people, which corresponds to 81 percent of the total workforce in the world. Experts state that economic troubles that may trigger unemployment may also arise in countries that receive the majority of revenues from these sectors.

"Aid from the IMF deepens economic problems"

Stating that deadlocked countries will seek help from the International Monetary Fund (IMF) and this will deepen economic problems, Aziz Hatipağaoğlu said, “As we have been living a few times before, getting fund from the IMF does not mean anything other than watching the same movie several times. To date, there is no country that will cross the road with the IMF and create a success story with problems that are strengthened. As a matter of fact, we have seen that many countries also experience great problems under the imposition of the Washington Accord.”

"Turkey has the potential to minimize the shrinkage expectations"

The IMF estimates that the world economy will shrink by 3 percent and 5 percent in Turkey for 2020, Aziz Hatipağaoğlu said, “In order to achieve figures above expectations in Turkey, we have to strengthen employment. The sectors to be supported in the first phase should be re-identified and the characteristics of added value and job creation should be kept ahead. In particular, wide-ranging support should be provided to the enterprises that will produce decal goods. Because the supply chain is heavily dependent on foreign resources, it poses a serious security problem for our country's economy. Turkey can overcome all these problems with its potential and its young population.”

"Economic growth depends on the survival of the labor force in Turkey"

Stating that 95.5 percent of the working class directly affected by the crisis, Dr. Aziz Hatipağaoğlu said, “69.9 percent of the employed population is paid or casual employees, 8.7 percent is unpaid family workers. When 16.9 percent of tradesmen and craftsmen working on their own account are added; 95.5 percent of the 27.3 million employable population consists of these segments. It is this segment that is the most negatively affected in any crisis and loses a large part of its income. Therefore, these sections must be strong in order to keep our country alive and alive. Therefore, it is very important to solve the social and economic problems created by the coronavirus pandemic as quickly as possible.”

“Population growth and youth employment are vital for sustainable growth”

Stating that Turkey needs to take urgent steps towards growth with fiscal and monetary policies that will strongly support the economy, Aziz Hatipağaoğlu said, “Our country in this period must take at least 5 percent of the level of sustainable growth rate. Our population, which is 82.9 million by the end of 2019, is expected to reach 88.8 million by the end of 2025. These data show that the compound annual growth rate of our population will be 1.16 per cent over the next 6 years. In 2025, our young population dependency ratio will remain unchanged at 33.3 percent. This means that we have to create new employment opportunities for our growing population in the next 6 years. This is possible because we are on a sustainable growth path and growth comes from value-added sectors.”