Cybersecurity Turkey aims for higher level of cybersecurity Turkey has outlined plans for a new cybersecurity directorate to encourage private sector research and new startups. Vice President Cevdet Yılmaz said last week that the directorate would be established in the autumn as part of a campaign to strengthen the state’s defences against all forms of cyber attack. “We have more or less completed […] October 1, 2024
Economy Turkey U-turns on taxing crypto and stock market earnings Turkey’s government has scrapped plans to tax profits from trading in cryptocurrency and on the stock market. Vice President Cevdet Yılmaz said on September 24 that the proposal to impose a levy on stock market and crypto trading profits had been shelved. “The stock market tax is not on our agenda. It was discussed for […] September 25, 2024
Analysis Tech Ankara’s twin tech challenge to woo foreign experts and keep its own Turkey wants to persuade foreign tech entrepreneurs and innovators to move to the country with a scheme providing a fast-tracked business permit and residency visa, as it seeks to position itself as a leading international technology hub. Ankara has already made a call to tech-savvy travellers through a programme launched in April offering an easy […] September 19, 2024
Manufacturing Turkey’s automotive sector is decelerating sharply Output in Turkey’s powerful automotive sector decelerated sharply in August, in a year-long trend that has seen domestic production fall and exports slow. Local manufacturers say they are facing competition from imports and grappling with sky-high interest rates. Total vehicle production in August was 53,000, down 27 percent compared to the same month last year, […] September 17, 2024
Tech Shortage of IT specialists slows Turkish business growth A shortage of trained IT specialists is slowing Turkish companies’ growth and their development of artificial intelligence applications, according to a new report. The report, issued by Turkey’s state statistics agency Turkstat, found some sectors had a strong uptake of ecommerce sales and services. Almost half of all accommodation and food service providers took advantage […] September 17, 2024
Analysis Economy Hard-pressed Turks must wait longer for inflation to drop Turkey’s main inflation rate may have fallen from the 75 percent-plus high seen earlier this year, but the latest forecasts suggest Turks will have to live with a rising cost of living for some time to come, maintaining pressure on consumers and producers alike. On September 5, the Turkish government released revised medium-term economic projections, […] September 16, 2024
Retail Turkish ecommerce growing faster than wider economy Turks are embracing online life in ever growing numbers, both as users and as service providers, with ecommerce gaining a strong foothold in the domestic economy and scaling up in overseas markets. Turkish ecommerce is expanding at a rate far faster than the general economy, Ömer Bolat, the trade minister, told delegates at a summit […] September 10, 2024
Trade Turkey and Egypt mend relationship with state visit Turkey and Egypt have moved closer to rapprochement after a decade of strained ties. Turkey’s president Recep Tayyip Erdoğan and Egypt’s president Abdel Fattah Al-Sisi signed 17 memorandums of understanding during the latter’s one-day visit to Ankara on Wednesday. Among the agreements signed were commitments to boost cooperation in finance, energy, defence and tourism. Ties […] September 5, 2024
Trade Doubts grow over Turkey’s Brics application A report that Turkey has formally applied to join the non-Western aligned Brics bloc is looking premature, with a Turkish government spokesman refusing to confirm the claim. Bloomberg reported that Turkey had submitted its application to join the bloc that consists of Brazil, Russia, India, China and South Africa, plus more recent members, the United […] September 4, 2024
Manufacturing Cooling inflation little help for Turkey’s struggling manufacturers Although Turkey’s consumer inflation slowed in August to the lowest rate for nearly a year, analysts say it was not enough to help the country’s struggling manufacturing sector. Consumer inflation in Turkey dropped almost 10 percentage points to an annualised 52 percent in August, the smallest figure since mid-2023, state statistics agency Turkstat said on […] September 4, 2024
Trade Services upturn eases Turkey’s trade deficit woe Exports by Turkey’s services sector are helping trim the country’s trade deficit, with growth in overseas sales the best in the G20 and far outstripping other segments of the economy. Though narrowing, Turkey still has a wide trade deficit, with imports totalling almost $199 billion for the first seven months of 2024, against exports of […] September 3, 2024
Analysis Economy IMF says Turkey is making progress on inflation Turkey is on the right track to curb inflation and realign the economy for growth, the International Monetary Fund says in a report issued late last week. However, the IMF says even more stringent measures are needed. The IMF acknowledges the Turkish government’s tightening of fiscal policy, but says it should do more to meet disinflation […] September 2, 2024
Markets Economic woes force investors to dump Turkish stocks The Borsa Istanbul was the worst performing stock exchange globally in August, with investors large and small heading for the exit as Turkey’s economy slows and returns wither. After hitting an all-time high of 11,173 points on July 22, the exchange’s key BIST100 index has dropped steadily. It fell 13 percent to 9,724 at one […] August 30, 2024
Trade Turkish trade gap narrows as imports drop A sharp drop in imports, combined with a solid rise in outbound shipments, led Turkey’s trade deficit to narrow in July This aligned with government efforts to curb domestic demand while looking to exports to sustain growth. Turkey’s exports jumped 13.8 percent in July to a total value of $22.5 billion, according to data issued […] August 29, 2024
Construction Turkey’s construction sector battles costs and credit A tightening credit environment and higher costs have weakened demand in Turkey’s construction sector, causing a fall in new building licences and completion permits in the residential segment. The number of new permits for buildings issued fell by 22.7 percent to 24,082 in the second quarter of 2024 compared to the same period last year, […] August 23, 2024
Agriculture Turkey’s hazelnut growers expect good season despite climate fears Turkey’s hazelnut growers are hopeful for higher production this year, but they are increasingly fearful of the effect of climate change on their crops. Harvesting of one of Turkey’s key agricultural export products recently began, as experts forecast higher yields than last year. But concerns are mounting over the sector’s longer-term prospects. The country accounts […] August 22, 2024
Markets Turkey’s courting of carry traders risks leaving it exposed While fund managers are still moving into the Turkish carry trade market, there are rising concerns these flows could reverse, leaving the economy exposed. In this instance, carry trading involves borrowing currency in low-yield foreign economies to convert into the lira to reap rewards from Turkey’s high interest rate environment. Turkey became very attractive to […] August 15, 2024
Agriculture Climate change drying up Turkish agricultural production Drought conditions across much of Turkey have led to authorities in one prime agricultural region banning new crop plantings. There are rising concerns across local government, academia and the farming industry that climate-driven water shortages are dramatically weakening food security in the country. In late July, agricultural authorities in the Seyhan region of the southern […] August 14, 2024
Manufacturing Turkish industrial output hamstrung by falling demand Output from Turkey’s factories plunged in June, with many of the country’s main industries scaling back production due to high input costs and weakening demand. Industrial output dropped 2 percent month-on-month in June and by 5 percent year-on-year, according to data issued by Turkstat, the state statistics agency, on August 9. The annualised fall was […] August 9, 2024
Retail Turkey hikes customs duties on overseas ecommerce sales Turkey is raising customs duties on goods bought online from international retailers as it seeks to defend local retailers against the global ecommerce giants. Under regulations announced on August 6 and due to come into force on August 21, items valued at up to €30 ($32.75) ordered online from a European Union vendor and delivered by […] August 8, 2024
Media & Advertising Turkey’s Instagram ban hits $57m-a-day ecommerce trade For four days and counting, Instagram has been blocked in Turkey – not only putting a dent in the social lives of millions of users but also placing additional pressure on an economy under strain. Turkish regulators gave no reason when they imposed a ban on the Meta-owned platform on August 2. However, the shutdown […] August 6, 2024
Manufacturing Outlook cools again for Turkey’s manufacturers Softening domestic demand, slowing export orders and rising costs all hit Turkey’s manufacturing sector in July, leading to reductions in the workforce and a scaling back of production. Although consumer inflation has begun to fall in Turkey, analysts were not optimistic about a respite for manufacturers in the second half of the year. The Purchasing […] August 6, 2024
