Finance European bank ups Turkey’s GDP growth to 3.5% in 2023 The European Bank for Reconstruction and Development (EBRD) has raised its 2023 GDP growth forecast for Turkey to 3.5 percent, up from a previous estimation of 2.5 percent. The upward revision is driven by the fiscal stimulus in the run-up to the May elections and the shift in the economic policymaking post-election, according to the […] September 28, 2023
Finance Turkey begins rolling back ‘costly’ lira protection scheme Turkey’s central bank has begun rolling back a costly scheme that protects lira deposits from FX depreciation by removing minimum interest rates, according to a document sent to banks and seen by two bankers. Last week the central bank raised its interest rate to 30 percent, which would have been the new minimum rate for […] September 26, 2023
Tech Elon Musk’s Starlink applies for Turkey licence SpaceX’s satellite internet venture Starlink has applied for a licence in Turkey after a meeting in the US between its founder Elon Musk and President Recep Tayyip Erdoğan. Ömer Fatih Sayan, Turkey’s deputy transport and infrastructure minister, confirmed that the application has been filed. “Starlink, which offers low Earth orbit satellite services, expressed their desire to operate […] September 25, 2023
Finance Turkey hikes rates to 30% to strengthen hawkish turn Turkey’s central bank raised its key interest rate by a lofty 500 basis points to 30 percent on Thursday, marking a second month of aggressive tightening after President Tayyip Erdogan set aside his long opposition to tight policy. The bank reiterated it is ready to raise rates further as needed to rein in inflation that […] September 22, 2023
Industry EU sets deadline for Arcelik and Whirlpool deal European Union (EU) antitrust regulators will decide by October 23 whether to clear Turkish domestic appliances maker Arcelik’s proposed purchase of Whirlpool’s European domestic appliances business, an European Commission filing showed on Thursday. Under the deal announced in January, the companies will set up a new entity made up of Arcelik’s European units such as […] September 22, 2023
Tech Mena companies can tap $1bn HSBC climate tech fund HSBC has set aside $1 billion to help finance early-stage climate tech companies around the world, and “transformative investment opportunities” exist in the Middle East and Turkey, according to its regional chief. “The Middle East has a key role to play in the transition to a net zero global economy,” said Patricia Gomes, regional head […] September 21, 2023
Transport Erdoğan lauds $17bn link between Turkey and Iraq Turkish president Recep Tayyip Erdoğan has lauded plans for a $17 billion infrastructure and transportation project linking southern Iraq to Turkey as an opportunity to “build a new world”. The Development Road project will link Grand Faw Port, a commodities port in Iraq, by rail and road to the border with Turkey. It will transform […] September 20, 2023
Finance China’s Alibaba plans $2bn investment in Turkey China’s e-commerce major Alibaba Group is planning to invest around $2 billion in Turkey, according to a local media report. The plan was shared by Alibaba president Michael Evans during a meeting with President Recep Tayyip Erdoğan, Daily Sabah newspaper reported, citing a statement from the company’s Turkish unit. No timeframe was given but the […] September 19, 2023
Industry Musk terms Tesla’s Saudi factory talks ‘utterly false’ Billionaire Elon Musk has termed a media report about Tesla Inc. being in talks with Saudi Arabia to set up a production facility in the kingdom as “utterly false”. The Wall Street Journal (WSJ) reported on Monday, citing informed sources, that the kingdom is in early talks with US electric vehicle (EV) maker Tesla. “Yet […] September 19, 2023
Industry Erdoğan asks Elon Musk to build Tesla factory in Turkey Turkish President Recep Tayyip Erdoğan asked Tesla CEO Elon Musk to build a Tesla factory in Turkey, Anadolu Agency posted on social media platform X – formerly Twitter – on Sunday. Erdoğan asked Musk during a meeting at Turkish House, a skyscraper near the United Nations in New York, the Turkish state-owned news agency said. […] September 18, 2023
Renewable Energy Solar energy shines in global survey beating fossil fuels More than two-thirds of the world’s population favours solar energy, five times more than public support for fossil fuels, a global poll has found. The survey, conducted by Glocalities in collaboration with advocacy groups Global Citizen and The Fossil Fuel Non-Proliferation Treaty Initiative, was based on interviews with more than 21,000 people in 21 countries […] September 17, 2023
Energy Iraq and Turkey oil pipeline to resume operations soon Iraq’s northern oil export route through Turkey will soon be ready to resume operation after checks on pipeline maintenance and repairs to flood damage, the Turkish energy minister said. A survey of the oil pipeline is complete and it will soon be “technically” ready for operation, Alparslan Bayraktar said. Turkey halted flows on Iraq’s northern […] September 17, 2023
Finance Erdogan says Turkey could ‘part ways’ with EU Turkish President Tayyip Erdogan said on Saturday that Ankara could “part ways” with the European Union (EU) if necessary when asked about the contents of a European Parliament report on Turkey. The report, adopted earlier this week, said Turkey’s accession process with the 27-member bloc cannot resume under current circumstances and called for the EU […] September 17, 2023
Finance World Bank says Turkey’s economy on the right path The World Bank’s Turkey director said on Thursday that the economy was heading in the right direction but there was more to do, a week after the bank said it would double its exposure to Turkey to $35 billion over three years. In an interview with Reuters, Humberto Lopez said that of the additional $18 […] September 15, 2023
Economy Goldman Sachs ups Turkey’s deficit forecast to $43bn Goldman Sachs raised its forecast on Tuesday for Turkey’s 2023 current account deficit to $43 billion from a previous $38 billion, after it said it “deteriorated sharply” in July. “(I)ncorporating higher oil prices, we now expect Turkey’s current account deficit to reach $43 billion (previously $38 billion) for 2023 as a whole,” the Wall Street […] September 13, 2023
Finance Fitch upgrades Turkey’s outlook to ‘stable’ Global ratings agency Fitch on Friday upgraded Turkey’s foreign currency outlook to “stable” and affirmed its rating at “B,” saying its change in economic policy could reduce financial instability in the near term. Turkey has been struggling with inflation for a while and is now at the heels of a policy U-turn after President Tayyip […] September 10, 2023
Finance Turkish minister plans to meet Middle East investors Turkey’s finance minister Mehmet Simsek said on Thursday that he planned investor meetings in Germany, financial hubs New York and London, and cities in Asia and the Middle East. Turkey’s economic programme had President Tayyip Erdogan’s full support, a day after the government hiked its forecasts for inflation and cut its economic growth outlook, he […] September 8, 2023
Finance Turkey’s shift policies ‘clearly’ positive for credit rating Moody’s has signalled that Turkey’s re-embrace of conventional economic policymaking since Tayyip Erdoğan’s May election win could soon start paying dividends in terms of a stronger credit rating, as long as it sticks with it. Ankara’s credit score, which affects how much the government pays to borrow on capital markets, has been in decline for […] September 8, 2023
Finance Turkey plans big interest rate hikes as inflation to hit 65% Turkey jacked up its inflation forecasts and cut those of economic growth on Wednesday, as President Tayyip Erdoğan appeared to endorse the big interest rate hikes that are driving a turnaround toward more orthodox policies. Since the policy U-turn began in June, analysts have applauded what they said was a more realistic effort to address […] September 7, 2023
Energy Iraq’s oil flow to Turkey may resume after October Iraqi oil flows to Turkey are not expected to resume before October, when Turkish President Tayyip Erdogan will likely visit Baghdad, sources said, after the trip originally scheduled for August was postponed. Turkey halted Iraqi northern oil export flows on March 25 after an arbitration ruling by the International Chamber of Commerce (ICC) ordered Ankara […] September 6, 2023
Finance Erdoğan says Black Sea grain deal can be restored soon Turkish President Tayyip Erdoğan said after talks with Russia’s Vladimir Putin that it would soon be possible to revive the grain deal that the United Nations says helped to ease a food crisis by getting Ukrainian grain to market. Russia quit the deal in July – a year after it was brokered by the UN […] September 5, 2023
Finance Turkey depositors convert lira deposits to dollars Turkish depositors mostly converted funds back to dollars last month when they withdrew from state depreciation-protected accounts, according to initial data and senior bankers, as Ankara begins winding down the scheme in a broad policy U-turn. Since President Tayyip Erdogan won re-election in May, authorities have raised interest rates sharply under the U-turn and set […] September 5, 2023
