Finance Turkey’s economy grow 3.8% on strong household spend Turkey’s economy grew by a more-than-expected 3.8 percent in the second quarter due to strong household spending, data showed on Thursday, but activity should slow through year-end as election-related stimulus fades and big rate hikes weigh. On a quarterly basis, gross domestic product (GDP) expanded 3.5 percent on a seasonally and calendar-adjusted basis, also outstripping […] September 1, 2023
Trade Turkish deals help UAE hit non-oil foreign trade record Bilateral trade between the UAE and Turkey recorded one of the highest growth rates in the first half of 2023, rising 87.4 percent annually. The massive growth helped the UAE’s non-oil foreign trade reach a record high of AED1.239 trillion ($337.33 billion) in H1 2023, an increase of 14.4 percent year on year, the Ministry […] August 31, 2023
Transport DP World signs partnership with Turkish port operator Global port operator DP World has signed a partnership deal to strengthen its position in Turkey. The equity agreement between DP World Yarimca Port and Turkey’s Evyap Group will secure supply chain services in the critical Marmara gateway market. The transaction remains subject to regulatory approvals. Once complete, DP World will own 58 percent of […] August 29, 2023
Finance Isbank to free up subsidiaries for future listings Turkish lender Isbank is demerging to free up its subsidiaries to be listed in the future – the plan allows the bank to use its equity more effectively, chief financial official Gamze Yalcin said on Monday. The bank’s shares soared more than 8 percent to a record high after it earlier announced it would transfer […] August 29, 2023
Leisure & Hospitality Foreign tourist arrivals in Turkey surge 16% to 27m Foreign arrivals in Turkey surged 16.22 percent year on year in the first seven months of 2023, the culture and tourism ministry data showed. The country received 26.76 million foreign tourists between January and July, compared to 23.03 million a year ago. In July, 7.14 million visitors arrived in Turkey, up of 7.25 percent year […] August 27, 2023
Economy Turkish minister to meet US investors next month Turkish finance minister Mehmet Simsek, who is leading the country’s economic U-turn toward orthodox policies, will hold his first meeting abroad with foreign investors on September 19 in New York, according to an invitation to the event. Simsek will give a speech and answer investors’ questions at Goldman Sachs headquarters, marking the first such overseas […] August 27, 2023
Economy Turkey’s interest rate hike to 25% sparks lira rally Turkey’s central bank hiked its key interest rate by a larger-than-expected 750 basis points (bps) to 25 percent on Thursday, sparking a rare lira rally and signalling a new determination to address rebounding inflation as part of a broader policy U-turn. The surprise move leaves the policy rate at its highest level since 2019, and […] August 25, 2023
Leisure & Hospitality Turkish food delivery company to cut 2,500 jobs Turkish food delivery company Getir announced a global restructuring on Tuesday, saying it plans to cut 2,500 jobs across five countries, or 10.9 percent of its total workforce. Getir last month announced its exit from Italy, Spain, and Portugal, but it will continue to operate in Turkey, the UK, Germany, the Netherlands and the US, […] August 23, 2023
Oil & Gas Iraq begins talks with Turkey to resume oil exports Iraq’s oil minister Hayan Abdel-Ghani will visit Turkey to discuss issues including the resumption of oil exports through the Ceyhan oil terminal. Iraqi oil minister will meet his Turkish counterpart to discuss energy issues, on top of which is the resumption of Iraq’s northern oil exports via Turkey’s Ceyhan port, said an oil official. Turkey […] August 22, 2023
Finance Turkey’s central bank likely to hike policy rate to 20% Turkey’s central bank is expected to raise its policy rate to 20 percent this week, a Reuters poll showed on Monday, though some economists expect a smaller increase after hikes in previous months remained below expectations. The central bank embarked on a tightening cycle in June, after President Tayyip Erdoğan appointed former Wall Street banker […] August 22, 2023
Construction Construction activity up in Turkey due to earthquakes The number of construction workers in Turkey increased by 28,000 in the second quarter of the year compared to Q1, as building activity continues at pace following February’s earthquakes. The latest figures from the Turkish Statistical Institute revealed the number of people employed in the country’s construction sector hit 1.973 million between April and June […] August 21, 2023
Banking and Finance Turkey begins rolling back costly FX-protected deposits Turkey’s central bank has begun rolling back a costly scheme that protects lira deposits from FX depreciation, marking another move toward more orthodox policies following a shift toward interest rate hikes. The central bank said on Sunday that it lifted targets applied to banks for certain levels of conversions of foreign exchange deposits to the […] August 21, 2023
Banking and Finance Turkey gets $100m US loan for quake zone development Turkey’s Sekerbank has signed a $100 million loan agreement with the US International Development Finance Corporation (DFC) to develop the country’s earthquake-hit region. The bank will also allocate $33 million from its own resources to increase the total amount to $133 million. The seven-year loan will also finance women’s businesses and small and medium-sized enterprises […] August 20, 2023
Finance Turkey’s budget surplus hits $1.8bn on higher taxes Turkey has reported a budget surplus of $1.8 billion in July 2023 following the government’s move to increase taxes on certain goods. The country’s deficit stood at $8.13 billion in June, seven times the deficit a year earlier, Daily Sabah reported, citing official data. The government raised taxes on petrol and increased value added taxes […] August 16, 2023
Banking and Finance Cop28 tipped to feed appetite for green sukuk The Cop28 climate conference in the UAE is expected to boost interest in green sukuk as the market gathers momentum in the GCC, Malaysia and Turkey. Environmental, social, and governance (ESG) sukuk – sharia-compliant instruments used to fund renewable energy and other green projects – are set to be a central issuance theme for the remainder […] August 15, 2023
Finance Turkey to lower inflation after transition period Turkey aims to lower soaring inflation permanently after a transitional period where prices remain high, finance minister Mehmet Simsek said in an interview with the Yeni Safak newspaper. “Our goal is to bring down inflation permanently after a transitional period,” Simsek said. The sustained price pressure, driven by a drop in the lira currency and […] August 11, 2023
Banking and Finance Turkey’s FX reserves rise as policy U-turn continues Turkey’s net foreign exchange reserves surged nearly $5 billion last week, with total reserves up almost $2 billion, bankers’ calculations showed on Wednesday, resuming an uptrend since it adopted a more orthodox monetary policy following May elections. The rebuilding of the central bank’s currency buffer is seen as a gauge of authorities’ willingness to ease […] August 10, 2023
Finance Turkey introduces 20% extra tariff on gold imports Turkey has introduced a 20 percent additional charge for some gold imports. Gold imports originating from countries without a free trade agreement and that are not in the European Union (EU) will be charged an additional fee on top of the existing import and other duties, Reuters reported. Gold imports such as jewellery products and […] August 8, 2023
Finance EBRD extends $109m loan for Turkey’s quake-hit region The European Bank for Reconstruction and Development (EBRD) will provide $109 million to Turkey’s largest private bank to lend to businesses and individuals affected by earthquakes that devastated the country’s south-eastern region in February. The loan is part of the bank’s Turkey disaster response framework, launched in the aftermath of the earthquakes, which caused over […] August 6, 2023
Economy Turkey pledges hiking rates at global investor meet Turkey’s new-look economic team met for the first time with dozens of international investors on Friday and pledged to continue hiking interest rates, even as economic growth slows, to head off rebounding inflation, two sources said. According to the sources and a draft programme, the eight-hour meeting in Istanbul included finance minister Mehmet Simsek and […] August 6, 2023
Economy Turkey’s inflation rises to 48% after consumer prices jump Turkey’s annual inflation rate reached 47.83 percent in July, up from 38.2 percent in June, according to the Turkish Statistical Institute, as its economic woes continue to deepen. The rate of inflation has slowed after hitting a two-decade high of 85 percent in October 2022. Consumer prices jumped by 9.5 percent on a month-on-month basis, […] August 4, 2023
Economy Turkey restricts use of credit cards for foreign travel Turkey’s banking watchdog has stopped allowing credit card payments by instalment for foreign travel, such as flights, travel agency fees and accommodation, in a step seen dealing a blow to foreign travel operators. The move hit airline shares and was seen as curbing foreign currency outflows. It was one of two measures announced by the […] August 2, 2023
