BORUSAN HOLDING CEO AGAH UĞUR EVALUATES THE DAVOS SUMMIT!
Attending the World Economic Forum in Davos, Switzerland, Borusan Holding CEO Agah Uğur joined CNN Türk’s live broadcast, offering his impressions of the forum and explaining his expectations for 2013.
Joining the TV program while in Davos, Agah Uğur noted that those who manage the world economy are finally returning to a more optimistic view. When asked about his impressions of the European economy in Davos, Uğur said that the last European crisis has now been overcome, but that there are still doubts and discussions about how Europe will grow. Highlighting the rigid rules, rigid values and disorganization in political decision-making in Europe, Uğur said the following;
“Of course, Europeans are returning from the brink of a major crisis, so rule makers and policy makers are very happy about their actions over the past year. However, for me, this does not mean that growth will occur for sure. Because societies need to sacrifice more for growth to happen. Sacrificing is a change of social understanding, and societies cannot sacrifice without coming to the end. Greece, Spain, and Italy have begun to make these sacrifices, but it seems that countries like France have to make sacrifices as well. So I think growth will be very slow and change will be slow too.”
In the publication, Agah Uğur was asked about the general evaluation of the year 2013 and the priorities for this year. Uğur responded as follows;
“I project 2013 as being a very calm year that won’t be particularly memorable in five years’ time or so. There’s no crisis on the horizon. Everyone, companies and countries alike, are facing problems with growth. Since the mid-2000s, large capacities have been created in every sector, including Turkey. Fulfilling these capacities is not a problem in the years when there is a rapid increase in demand. However, the surplus in capacity in the years when demand stops increasing sticks out like a sore thumb. In other words, you get less profit with the same turnover and work volume. Because you grow your business, costs and expenses in order to grow yourself and then you try to manage a bigger expense with a lower profit margin when the growth stops and your competitors decrease their prices. Therefore, I don’t think there will be losses or a financial crisis. But managing costs and cash flow well and making investments more carefully will be the this year’s priority issues. By 2014, I think we’ll see growth accelerating. Even if we start slow in the beginning, I think we will enter 2014 with a lot of hope.”