Economy Turkey’s GDP grows 5.9% on strong household spending Turkey’s economy grew by 5.9 percent in the third quarter of 2023 – the highest since the second quarter of last year – driven by strong household spending. Gross domestic product (GDP) reached 7.68 trillion liras ($295.82 billion) at current prices, data from the Turkish Statistical Institute revealed. The construction and industrial sectors rose by […] December 1, 2023
Finance Turkey says interest rate hikes ‘cooled’ inflation Turkey’s interest rate hikes have helped lower inflation expectations and improved visibility on prices, attracting Western fund inflows that have boosted depleted FX reserves, central bank governor Hafize Gaye Erkan said on Wednesday. Interest in Turkish lira deposit accounts and assets has increased since June, Erkan told the Istanbul Chamber of Industry, after years of […] November 30, 2023
Finance Turkey’s total reserves hit record high $137bn The Turkish central bank’s total reserves rose $2 billion last week to a record of $136.5 billion, five bankers’ calculations showed on Tuesday, sustaining an uptrend after it adopted more orthodox monetary policy since June. The central bank has raised interest rates by 3,150 basis points since June, when President Tayyip Erdogan appointed former Wall […] November 29, 2023
Finance European fund Amundi dips toe back into Turkey’s lira Amundi, Europe’s largest asset manager and among the top 10 in the world, has started dipping its toe back into the Turkish lira having been impressed by the country’s turnaround efforts since its mid-year elections. The Paris-based firm, which has $2 trillion worth of assets under management, is yet to go all in given the […] November 29, 2023
Tourism Turkey’s foreign tourist arrivals rise 12% to 44m Foreign visitors arriving in Turkey rose 11.58 percent year on year in the first 10 months of 2023, according to a local media report. Arrivals reached 44.2 million in the year to October compared to 39.6 million a year ago, Daily Sabah newspaper reported, citing tourism minister Mehmet Nuri Ersoy. The overseas visitor number more […] November 27, 2023
Transport Turkish Airlines low-cost carrier to launch flights in 2024 Turkish Airlines said on Friday its budget carrier AnadoluJet will begin operating next year under the name of AJet and compete in the global low-cost aviation industry. AnadoluJet will conduct its operations under the name “AJet Air Transportation Inc” as a wholly-owned subsidiary of Turkish Airlines, starting at the end of March 2024, it said […] November 27, 2023
Economy Turkey’s central bank hikes interest rate to 40% Turkey’s central bank has increased its policy rate by 500 basis points to 40 percent and said the pace of monetary tightening will slow down shortly. “The committee assessed that the current level of monetary tightness is significantly close to the level required to establish the disinflation course,” the bank said in a statement following […] November 24, 2023
Finance Turkish deposit rates to rise as liquidity tightens Turkish banks’ deposit rates, already above 45 percent, are expected to continue rising for the remainder of 2023 as the central bank takes additional steps to tighten liquidity and lenders spruce up their year-end balance sheets. Central bank data shows the average return on three-month lira deposits rose to near 46 percent by November 10 […] November 23, 2023
Finance JPMorgan backs bounce in Turkey’s lira as key 2024 bet Investment bank JPMorgan on Tuesday backed a bounce in Turkey’s lira as one of its key emerging market bets for 2024. The value of Turkey’s currency has plummeted in recent years, but a screeching 180-degree change of policy direction following President Tayyip Erdogan’s re-election win this year has seen interest rates hiked significantly, creating more […] November 23, 2023
Energy Turkey extends LNG deal with Algeria for three years Turkish state energy company Botas has signed a deal with Algerian state oil and gas company Sonatrach to extend their existing gas supply contract for three years, Turkey’s energy minister said on Tuesday. Under the deal signed during an official visit to Algiers by Turkish President Tayyip Erdogan, Turkey will continue to acquire 4.4 billion […] November 22, 2023
Real Estate Turkish house sales drop 14% as prices double House sales in Turkey during the first 10 months of 2023 were down by 14.3 percent year on year to just under 1 million, according to data from the Turkish Statistical Institute. Pressure on Turkey’s housing market has been exacerbated by the ongoing cost-of-living crisis, high inflation and an influx of displaced people from the […] November 21, 2023
Banking and Finance Turkey bank reserves hit highest level since 2014 at $135bn The Turkish central bank’s total reserves rose $6 billion last week to $134.5 billion, the highest since September 2014, Reuters reported, citing calculations from four bankers. President Tayyip Erdoğan appointed a former Wall Street banker, Hafize Gaye Erkan, as governor of the country’s central bank in June. Since then, the bank has embarked on a […] November 21, 2023
Finance Turkish bank backs exporters with $34bn in funding The state-owned Türk Eximbank, Turkey’s largest export credit and credit insurance institution, has provided financing worth $33.6 billion to exporters in the first 10 months of 2023, as the country’s trade with Gulf countries continues to grow. Turkey’s trade minister, Ömer Bolat said in a post on the social messaging platform X (formerly Twitter) that the […] November 21, 2023
Employment Turkey’s unemployment rate falls for third straight quarter The unemployment rate in Turkey has continued to fall in the third quarter of 2023 to 9.2 percent, down 0.5 percentage points quarter on quarter, the country’s statistical authority said. The unemployment rate stood at 10 percent in the same quarter last year, Daily Sabah newspaper reported, citing Turkish Statistical Institute (TurkStat) data. The number […] November 20, 2023
Energy Vitol Turkish unit buys BP’s gas station network The Turkish subsidiary of Vitol, the world’s largest independent oil trader, has signed an agreement to buy BP Plc’s gas station operations in Turkey. The agreement includes the sale of BP Turkey Refining Limited and BP Petrolleri AS to Turkish oil distribution company Petrol Ofisi Group. The value of the deal was not disclosed. On […] November 17, 2023
Finance Turkey to regulate crypto market to get off ‘grey list’ Turkey’s new rules to regulate the crypto market are likely to focus on licensing and taxation, sector officials say, as the world’s fourth-biggest crypto-trading country seeks to get off an international financial crime watchdog’s grey list. Ankara promised the regulations last month amid a years-long boom in crypto trading, as soaring inflation and a plunging […] November 15, 2023
Finance Deutsche sees Turkish among top emerging bond market Turkey’s domestic sovereign bonds are set to be one of the top trades in emerging market fixed income next year, Deutsche Bank said in an outlook note. Despite a sharp recent repricing offering much better entry levels into Turkish government bonds, it was still a bit too early to re-enter the market in general, though […] November 14, 2023
Finance Turkey’s trade with GCC soars 11-fold in two decades Turkey’s bilateral trade with the Gulf Cooperation Council (GCC) countries surged to $22.7 billion in 2022 from $2.1 billion in 2002. “There is an 11-fold increase in our trade,” Daily Sabah newspaper reported, citing Turkey’s trade minister Ömer Bolat’s speech at the GCC-Turkey Economic Forum in Istanbul. Bolat said that Turkey’s exports to the GCC […] November 13, 2023
Energy Turkish energy operator expands to South Africa Turkey’s Karpowership, which has the world’s largest fleet of floating power stations, expects to start producing 450 megawatts (MW) of electricity in South Africa in 2024 to curb the power shortage there, chief commercial officer Zeynep Harezi said. The company expects to sign a financial deal by the end of this year, after it received […] November 13, 2023
DUBAI AIRSHOW Transport Turkish Airlines in talks with Airbus for 355 jets Turkish Airlines (THY) has held talks with European airline manufacturer Airbus on a potential order of 355 new aircraft, state-run Anadolu news agency said. During the meeting in Istanbul, executives from Turkish Airlines discussed buying 75 wide-body A350-900, 15 wide-body A350-1000 aircraft, 250 narrow-body A321neo aircraft and five A350F cargo aircraft, in addition to 10 […] November 12, 2023
Finance Turkish banks seek inflation-adjusted accounting rules Turkish banks plan to urge treasury authorities to allow them to use inflation-adjusted accounting, rather than exempting them and ramping up taxes for the sector as the government currently plans, three senior bankers told Reuters. Last week, finance minister Mehmet Simsek said Turkey would move to the inflation-adjusted accounting method for companies, but that financial […] November 9, 2023
Finance European bank offers $100m for Turkey’s quake recovery The European Bank for Reconstruction and Development (EBRD) will offer $100 million (€93.58) in financing to Türkiye İş Bankası (İşbank), the largest private bank in Turkey, to support earthquake reconstruction efforts and women-led small and medium enterprises (SMEs). The facility will invest in rated bonds issued under İşbank’s existing diversified payment rights programme. Nearly $80 […] November 8, 2023
