Economy Turkish trade deficit surges 162% to $11.3bn in August Turkey’s trade deficit jumped 161.8 percent year-on-year in August 2022 to $11.277 billion, the Trade Ministry said on Friday, as surging energy import costs continue to widen the shortfall. Turkey’s exports rose 13.2 percent to $21.341 billion in August, while imports jumped 40.8 percent to $32.618 billion, the data showed. In a speech, Trade Minister […] September 4, 2022
Economy Goldman Sachs raises Turkey 2022 GDP growth to 5.5% Goldman Sachs said on Thursday it had raised its forecast for Turkey’s 2022 GDP growth to 5.5 percent from 3.5 percent, while lifting its 2022 current account deficit forecast to $45 billion from $36 billion. It said the Turkish Central Bank’s forex reserves had risen sharply since the third week of June and that, with […] September 2, 2022
Economy Turkey’s economy grew 7.6% in Q2 driven by domestic demand Turkey’s economy grew 7.6 percent year-on-year in the second quarter as expected, extending a hot streak on strong domestic demand and exports, according to data on Wednesday, though economic activity was seen slowing through year end as demand cools. Gross domestic product (GDP) expanded 2.1 percent compared with the previous quarter on a seasonally and […] September 1, 2022
Retail Russia’s Ozon opens Turkish office to help cross-border orders Russian e-commerce firm Ozon said on Tuesday it would open a local office in Turkey and make it easier for consumers to make cross-border orders, helping Russian shoppers to buy goods directly from Turkish sellers on its platform. As Western sanctions have rained down on Russia over its actions in Ukraine, commercial ties between Moscow […] August 31, 2022
Banking & Finance Fugitive Turkish crypto fraud suspect arrested in Albania resort Albanian police on Tuesday arrested the fugitive Turkish founder of crypto-exchange Thodex, wanted by Interpol for suspected crypto fraud and at large for a year, police and media said. Albanian and Turkish media identified the suspect as Faruk Fatih Ozer. The Turkish interior ministry said authorities had launched extradition proceedings. Police referred to the suspect […] August 31, 2022
Analysis Banking & Finance Gulf banks take $950m hit on Turkish economic woes The exposure of GCC banks to Turkey through their subsidiaries is increasingly credit-negative due to deteriorating operating conditions in the country, according to analysts. But Gulf-based banks are unlikely to exit Turkey despite the challenging conditions, mainly because of the lack of potential buyers, said Fitch Ratings in a new research note released on Tuesday. […] August 30, 2022
Economy Turkish trade deficit jumps 147% to $10.7bn in July Turkey’s foreign trade deficit surged 147 percent year-on-year to $10.69 billion in July, with imports surging 41.4 percent, data from the Turkish Statistical Institute showed on Monday. Imports stood at $29.24 billion, while exports rose 13.4 percent to $18.55 billion, the data showed. Under an economic programme unveiled last year, Turkey aims to shift to […] August 30, 2022
Tourism Turks frustrated by ‘deliberate’ visa rejection by European nations Turkish sports presenter Sinem Okten was surprised to see her visa application to Europe’s Schengen area rejected twice, having visited often to cover matches and interview figures like Italian keeper Gianluigi Buffon and Liverpool’s Juergen Klopp. “I applied first to Germany then to France. Both rejected my application,” she said. “I’ve travelled abroad numerous times […] August 29, 2022
Banking & Finance Turkey dismisses ‘meaningless’ concerns over US warnings Turkey’s Finance Minister on Friday dismissed as “meaningless” concerns among Turkish businesses over a US Treasury warning that they risked being penalised if they maintained commercial ties with Russians under sanctions. NATO-member Turkey has sought to strike a balance between Moscow and Kyiv by criticising Russia’s invasion and sending arms to Ukraine, while opposing the […] August 29, 2022
Economy Israeli diplomat in Turkey expects ambassador appointment in weeks The Israeli charge d’affaires in Turkey said on Friday the re-appointment of an ambassador to Ankara could happen within weeks, while repeating Israel’s expectation that the Hamas office in Istanbul be closed down. In a roundtable meeting with journalists, Israel’s current top representative in Ankara Irit Lillian said the process of re-appointing an ambassador to […] August 28, 2022
Banking & Finance Turkish central bank’s net forex reserves drop to $13.88bn The Turkish central bank’s net international reserves fell $1.8 billion to $13.88 billion in the week to August 19, central bank data showed on Thursday, after hitting their highest level since late April a week earlier. The exchange rate used by Reuters on Thursday was 17.9688. Last month, the net forex reserves dropped to $6.07 […] August 26, 2022
Banking & Finance Turkey lowers reference interest rate for September Turkey’s central bank lowered its reference interest rate to 15.34 percent for September, from 16.32 percent in August, according to an official document, in a move that is likely to lower interest rates on corporate loans. On Saturday, the central bank unveiled new required bond holdings for lenders meant to address the widening gap between […] August 25, 2022
Economy Turkey inflation to fall sharply in December says finance minister Turkey’s annual inflation rate will enter a sharp downward trend as of December due to favourable so-called base effects and the fall will continue throughout 2023, Finance Minister Nureddin Nebati said on Tuesday. Nebati was speaking in a televised interview with broadcaster NTV. Inflation hit nearly 80 percent in July. Turkey’s annual inflation jumped […] August 24, 2022
Tourism Foreign tourist arrivals to Turkey soar 53% in July Turkey’s foreign visitors jumped 53 percent in July from a year earlier, exceeding pre-pandemic levels and paving the way for $37 billion in tourism revenues sought by the government in support of President Tayyip Erdogan’s unorthodox economy policy. Foreign visitors to Turkey leapt to 6.67 million in July, mostly on the back of wealthy Russian […] August 23, 2022
Banking & Finance Bond yields tumble after Turkey unveils latest credit tweaks Turkish benchmark bond yields fell by around 300 basis points on Monday after the central bank adopted its latest regulations meant to boost certain types of corporate credit in the face of months of rising lending rates. On Saturday, the central bank unveiled new required bond holdings for lenders, boosting demand on Monday. The measures […] August 23, 2022
Manufacturing Turkish automotive output climbs 37.4% in July Production in Turkey’s automotive sector jumped 37.4 percent year-on-year in July to 93,659 vehicles, with exports climbing 16.2 percent to 59,596, the Automotive Manufacturers Association (OSD) said. Total automotive production rose five percent year-on-year in the first seven months of the year to 742,969 vehicles, while exports were up 2.7 percent to 526,601, the association […] August 22, 2022
Banking & Finance US warns Russia trying to bypass Western sanctions via Turkey US Deputy Treasury Secretary Wally Adeyemo told Turkish Deputy Finance Minister Yunus Elitas that Russian entities and individuals were attempting to use Turkey to bypass Western sanctions imposed over Moscow’s war in Ukraine, the Treasury Department said. In a phone call, the two also discussed ongoing efforts to implement and enforce the sanctions against Russia, […] August 21, 2022
Economy Turkey shocks markets by cutting interest rate, as inflation soars Turkey’s central bank shocked markets on Thursday by cutting its main interest rate by 100 basis points to 13 percent, saying it needed to keep driving economic growth despite inflation hitting nearly 80 percent and a monetary tightening trend among its peers worldwide. The lira dropped as much as 1.2 percent to 18.15 per dollar […] August 19, 2022
Economy Turkey to re-appoint ambassador to Israel Turkey and Israel will mutually re-appoint ambassadors, Turkish Foreign Minister Mevlut Cavusoglu said on Wednesday, marking a milestone in the two countries’ efforts to normalise ties. “Appointment of ambassadors was one of the steps for the normalisation of ties. Such a positive step came from Israel as a result of these efforts, and as Turkey, […] August 18, 2022
Tourism German airports hire Turkish workers to ease staff shortage Around 150 airport workers from Turkey will be deployed at German airports, according to an industry association, far fewer than initially expected despite staffing shortages that had caused travel chaos during the busy summer holiday season. In late June, the German government announced plans to fast-track work permits and visas for several thousand foreign airport […] August 17, 2022