Economy Turkey inflation dips to 58% but consumer prices rise Turkish annual inflation dipped to 57.68 percent in January, official data showed on Friday, but was well above forecasts despite a favourable base effect that is expected to carry on until President Tayyip Erdogan seeks re-election in May. Month-on-month, consumer prices rose 6.65 percent, the Turkish Statistical Institute said, nearly twice a Reuters poll forecast […] February 5, 2023
Banking & Finance Turkey said to keep interest rates low post-election Finance minister Nureddin Nebati said Turkey would keep interest rates low after elections expected in May and not reverse course on monetary policy, according to an interview published by Bloomberg. Contrary to some analyst expectations that President Tayyip Erdogan will roll back his stimulus programme after the vote, Nebati was quoted as saying the central […] February 3, 2023
Economy Turkey’s tourism revenue up 53% in 2022 but trade deficit widens Turkey’s tourism revenue hit a record $46.3 billion in 2022 even as its trade deficit swelled to more than $109 billion, as a fallout from war in nearby Ukraine brought a surge of Russian arrivals but also drove up energy-import costs. The two milestones for the big emerging market economy came as President Tayyip Erdogan […] February 1, 2023
Economy Turkish economic confidence tips towards ‘optimistic’ outlook Turkey’s economic confidence index rose 1.3 percent month-on-month in January to 99.3 points, nearly tipping toward an optimistic outlook, data from the Turkish Statistical Institute showed on Monday. The index, which points to an optimistic outlook when above 100 and pessimistic when below, hit a record low in 2020 before recovering as coronavirus measures were […] January 31, 2023
Development Turkey opens $500m facility to boost processing of gold reserves Turkey’s President Recep Tayyip Erdogan has opened the first phase of a $500 million gold mine facility that will process reserves found in the northwestern Bilecik province, Daily Sabah newspaper reported. Around 109 tons of gold was located in Bilecik’s Sogut district in December 2020 at an estimated value of around $6.38 billion. Erdogan said that the […] January 30, 2023
Banking & Finance Turkey received highest EBRD funding of $1.7bn in 2022 The European Bank for Reconstruction and Development (EBRD) invested €1.63 billion ($1.7 billion) in Turkey in 2022, the highest volume of annual investment in all the economies where the bank operates. EBRD’s cumulative investment in the country amounted to almost €17 billion, 85 percent of which has been in the private sector, the bank said […] January 27, 2023
Economy Turkey’s central bank sticks to forecast for inflation plunge Turkey’s central bank stuck to its forecasts for a sharp drop in inflation on Thursday, saying the increasing predictability of the lira’s exchange rate plus financing support meant there was no longer the basis for large price rises. Presenting a quarterly economic report, the bank’s governor Sahap Kavcioglu stood by previous year-end annual inflation forecasts […] January 27, 2023
Banking & Finance Turkey to provide 2% forex conversion support to firms Turkey’s central bank said on Thursday it will provide two percent foreign exchange conversion support to companies that bring forex into the country from abroad, sell it to the central bank and pledge not to buy forex for a period determined by the bank. After selling 40 percent of the forex they bring into the […] January 26, 2023
Logistics Turkey’s Tosyali and AD Ports eye investments in new port facilities Abu Dhabi’s AD Ports Group has signed a memorandum of understanding (MoU) with Tosyali Holding Company, which could see joint investment in new port facilities to support Turkey’s largest private steel producer’s export operations. The MoU will “establish the framework on a broad range of shipping, logistics, ports, and freight forwarding services”, AD Ports said in a […] January 26, 2023
Banking & Finance Turkey plans draft law for debt restructuring Turkey’s ruling AK Party is preparing a draft law to let people and companies restructure debt to public institutions, President Tayyip Erdogan said on Monday, one of a string of eye-catching measures promised ahead of elections. The changes would waive late payment fees incurred over unpaid tax bills, social security debt and other liabilities, Erdogan […] January 24, 2023
Travel & Hospitality Turkey opens fastest metro line to Europe’s busiest airport Turkey’s President Tayyip Erdogan has opened Istanbul’s new high-speed metro line connecting the city to the mega Istanbul Airport, known as “Europe’s busiest in 2022”, Daily Sabah newspaper reported. The 34-kilometre metro link marks the first railway connection with Turkey’s largest airport from the Kagıthane neighbourhood. Erdogan said that the Kagıthane-Istanbul Airport Metro Line will […] January 23, 2023
Banking & Finance Turkey’s central bank holds interest rate at 9% Turkey’s central bank held interest rates at nine percent for a second straight month on Thursday, and analysts said it could return to easing in the run-up to May elections given inflation is expected to drift lower from 64 percent last month. The central bank (CBRT) said the inflation level and trend have improved due […] January 20, 2023
Real Estate Russians continue to splurge on real estate in Turkey Turkish home sales fell 8.2 percent year-on-year in December to 207,963 houses, with sales to foreigners dropping 18.6 percent, data from the Turkish Statistical Institute showed. Russians topped the list of foreigners with 2,403 houses purchased in December, reflecting how many have sought a financial haven in the wake of Moscow’s invasion of Ukraine and […] January 18, 2023
Banking & Finance Turkish firm acquires Whirlpool’s Middle East and Africa business US home appliances maker Whirlpool is folding its European business into a new company controlled by Turkish rival Arcelik, reducing its exposure to a market where it had warned attractive profit margins could be some way off. Whirlpool also said it had agreed to sell its Middle Eastern and African businesses to Arcelik, which the […] January 18, 2023
Banking & Finance Turkey cancels required reserves for longer maturity lira deposits Turkey’s central bank has cut the required reserves of Turkish lira deposits to zero percent with maturities longer than three months, from varying percentages between three and eight percent, the bank said on Sunday. “To encourage maturity extension of lira deposits, the bank has decided to set reserve requirement ratios for lira deposit accounts with […] January 15, 2023
Energy Libyan court suspends energy exploration deal with Turkey A Libyan court has suspended an energy exploration deal that the Tripoli government signed last year with Turkey, a judiciary source said, pausing an agreement that angered other Mediterranean powers and inflamed Libya’s own internal crisis. The agreement had included scope for oil and gas exploitation in waters that Ankara and Tripoli have declared as […] January 11, 2023
Banking & Finance Turkey’s Ziraat Bank says capital boost to help drive economy An expected capital increase will help Turkey’s Ziraat Bank to spearhead President Tayyip Erdogan’s drive to boost economic growth and tackle chronic current account deficits this year, the head of the country’s largest lender told Reuters. Chief executive Alpaslan Cakar, who is also chairman of the Turkish Banks Association, said state banks like Ziraat were […] January 10, 2023
Banking & Finance China’s Alibaba planning $1bn investment in Turkey Chinese e-commerce giant Alibaba Group Holding Ltd is planning a logistics hub at Istanbul Airport and a data centre near the Turkish capital Ankara with an investment of more than $1 billion, its president, Michael Evans, was cited as saying. Turkey’s Sabah newspaper reported Evans as saying in an interview that the company was looking […] January 9, 2023
Manufacturing Korean EV battery maker denies report it has scrapped Turkey plan South Korean electric vehicle battery maker SK has not decided whether to pursue a battery cell venture in Turkey with Ford Motor Co and Koc Holding, after signing a memorandum of understanding in March last year. The Dong-A Ilbo newspaper reported, citing an unidentified source, that SK plans to scrap the idea due to a […] January 9, 2023
Economy Turkish factory activity shrinks for first time since 2020 Turkey’s industrial production index is expected to have shrunk year-on-year for the first time since 2020 in November, a Reuters poll showed on Friday, as a slowdown in some of Turkey’s main trade partners hit factory activity. Industrial activity had bounced back strongly after the initial coronavirus wave in April 2020 and has been expanding […] January 8, 2023
Banking & Finance Turkish merger and acquisition deals hit $4.6bn in 2022 The total value of mergers and acquisitions (M&A) in Turkey amounted to 86.2 billion lira ($4.59 billion) in 2022, Daily Sabah newspaper reported, citing the Competition Authority. Most M&A deals took place in the electricity production and distribution sector, followed by the transportation sector, the report said. Privatisation deals were completed in the electricity production […] January 8, 2023
Real Estate Turkey to provide cheaper home loans for mid-income citizens Mortgages with lower rates and longer maturities will be offered to middle income Turks looking to buy new housing, Turkish finance minister Nureddin Nebati said on Wednesday. Nebati told a news conference the mortgage loans up to 5 million lira ($266,823), will have up to 15 years maturity and rates will start from 0.69 percent. […] January 5, 2023
