Media & Advertising Turkey’s Instagram ban hits $57m-a-day ecommerce trade For four days and counting, Instagram has been blocked in Turkey – not only putting a dent in the social lives of millions of users but also placing additional pressure on an economy under strain. Turkish regulators gave no reason when they imposed a ban on the Meta-owned platform on August 2. However, the shutdown […] August 6, 2024
Manufacturing Outlook cools again for Turkey’s manufacturers Softening domestic demand, slowing export orders and rising costs all hit Turkey’s manufacturing sector in July, leading to reductions in the workforce and a scaling back of production. Although consumer inflation has begun to fall in Turkey, analysts were not optimistic about a respite for manufacturers in the second half of the year. The Purchasing […] August 6, 2024
Economy Turkish car sales fall for fourth consecutive month Turkish vehicle sales slipped in July, as concerns over the economy, high costs of borrowing and car-sale taxes dented consumer sentiment. July car sales reached 94,000 units, according to a report released on August 2 by Turkey’s Automotive Distributors and Mobility Association (ODMD). The July figure represents a 17.5 percent year-on-year fall and marks the […] August 5, 2024
Trade Turkey narrows trade deficit in first half of year Turkey’s trade deficit fell 30.5 percent in the first six months of the year after a drop in imports and inbound trade. Turkish exports totalled just over $126 billion, up 2.6 percent on the same period in 2023, according to data issued by state statistics agency Turkstat on July 31. This compared to imports of […] August 1, 2024
Analysis Oil & Gas Turkey expands its energy search into troubled waters Turkey is stepping up its efforts to become a major player in hydrocarbons, preparing to conduct surveys off the coast of Somalia and working on an agreement with Libya to identify deposits in the Mediterranean. Alparslan Bayraktar, the energy minister in Ankara, announced last Friday that the seismic research vessel Oruç Reis would be dispatched […] July 31, 2024
Tech Turkey commits billions to domestic high tech funding Turkey has committed up to $30 billion to woo foreign tech investors and bolster its domestic technology sector. It is offering a mix of tax incentives and direct grant funding to kickstart sectors identified as crucial to the country’s industrial development. The country’s new High Technology Incentive Programme (HIT-30) aims to attract $20 billion in […] July 29, 2024
Tourism Rising costs and fewer visitors hit Turkey tourism Turkey’s tourism industry is contending with rising costs and a slowing of the domestic economy which is affecting the plans of local holidaymakers. There are also concerns that high prices could hit foreign arrivals as the country sheds its reputation as a cheap holiday destination. Some parts of the industry are nonetheless enjoying a strong […] July 23, 2024
Economy Moody’s upgrades Turkey’s credit rating by two notches Turkey’s efforts to improve its economic credentials and attract investment have been given a boost by the credit ratings agency Moody’s, after what the agency said was a return to a more balanced economic policy programme. In a statement on July 19, Moody’s said it had upgraded Turkey’s long-term foreign and domestic currency issuer and […] July 22, 2024
Construction Earthquake rebuild fuels rise in Turkish construction hires A sharp increase in hirings and orders point to a rebound in Turkey’s construction sector, although rising costs, high interest rates and weak demand for new residential properties remain big challenges to continued growth. Employment levels in the construction sector reached 80-month highs in May and more than 1.8 million workers were on the books, […] July 18, 2024
Finance Turkey targets business with steep taxes to raise revenue Multinational corporations operating in Turkey face a steep increase in their tax bills, thanks to one of the new revenue-raising measures outlined by the government in draft legislation aimed at narrowing the budget deficit. Under the new tax reforms, tabled before the parliament on July 16, multinationals with more than $817.6 million in annual consolidated […] July 17, 2024
Trade Turkey slashes current account gap by 84% Turkey has cut its current account gap by more than 80 percent in a year, with improved trade data and strong portfolio inflows. However, a slowing of foreign direct investment points to underlying caution by outsiders. The current account deficit for May was $1.2 billion, a report issued by the Turkish Central Bank on July […] July 16, 2024
Manufacturing Turkish manufacturers struggle to regain momentum Turkey’s powerful manufacturing sector is still pessimistic about the country’s short-term economic prospects, with new orders slowing further and reduced employment levels, a closely watched survey of confidence has revealed. There were, however, some hopes that a softening of inflation could herald better sales later in the year, the survey found. The Istanbul Chamber of […] July 3, 2024
Banking & Finance Turkey moves out of FATF grey zone Turkey has been removed from an international watch list of countries with lax regulations on international money laundering and countering funding to illegal groups. The Financial Action Task Force (FATF) announced it was taking Turkey off its grey list at the watchdog’s plenary session in Singapore on Friday. It said the country had made significant […] June 28, 2024
Real Estate Turkey announces plans to drop cap on rent increases Turkey is set to remove a two-year-old cap on residential rental increases, but some analysts warn that the lifting of restrictions may spark a further rise in rents and feed into already high inflation. On May 20 treasury minister Mehmet Şimşek announced restrictions on rental increases would be abandoned at the beginning of July, saying […] June 25, 2024
Retail Turkish retailers’ confidence wavers as inflation bites Confidence is falling among Turkish retailers, according to a survey from the country’s statistics agency Turkstat. Shoppers have been scaling back on big-ticket purchases, spending instead on basic consumer goods as inflation piles pressure on household incomes. May’s business confidence report, released by Turkstat on June 24, showed sentiment in the retail sector at its […] June 24, 2024
Real Estate Foreigners turning back on Turkish real estate Foreign buyers are increasingly shunning the Turkish property market, wary of high prices, the expensive cost of living and a less welcoming environment for overseas real estate investors. There were only 2,064 residential units sold to foreign buyers in May, 35 percent down on the same month last year, data issued by the state statistics […] June 16, 2024
Employment Unemployment rate falls in Turkey but warnings persist Turkish unemployment levels fell to their lowest rate in more than 11 years in April, helped by strong first-quarter growth. However, troubling longer-term prospects could mean job queues lengthen again. Turkey’s headline unemployment rate, covering those aged 15 and over, fell to 8.5 percent in April, the lowest since November 2012 and down from 10 […] June 11, 2024
Economy Turkish court rules president cannot sack central bank chief A ruling by Turkey’s highest court striking down the president’s authority to dismiss the head of the central bank is being downplayed by Turkish officials. President Recep Tayyip Erdoğan has sacked the governor of the central bank five times in the past five years. Turkey’s justice minister has insisted the Constitutional Court’s decision did not invalidate […] June 6, 2024
Markets Turkey to tax crypto and stock market earnings Turkey is planning to tax income earned from cryptocurrency and stock market trades, as the government seeks new revenue streams to help shore up its public finances. The measures were part of a package unveiled by the finance minister Mehmet Şimşek at a gathering of senior officials of the ruling Justice and Development Party on […] June 5, 2024
Economy Slump in orders and exports cools Turkish PMI sentiment Turkish manufacturers are finding their operational environment increasingly difficult, a new survey has revealed. Tighter economic conditions led expectations to fall in May, although some relief came from the slight easing of inflationary pressures. The monthly Purchasing Managers’ Index (PMI) survey, conducted by the Istanbul Chamber of Commerce and S&P Global, fell further into negative […] June 3, 2024
Lifestyle Russians rush from Turkey as costs and restrictions bite Rising costs, increased difficulties in obtaining residency permits and tighter enforcement of restrictions on the number of foreign nationals who can live in popular regions are prompting an exodus of Russian citizens from Turkey. The number of Russian nationals holding Turkish residence permits has plunged to just over 96,000 as of May 16, down from […] May 24, 2024
Banking & Finance First Abu Dhabi Bank targets Turkish lender One of Turkey’s largest corporations has confirmed it is in talks with First Abu Dhabi Bank (FAB) over the sale of a majority holding in the Istanbul-headquartered lender Yapı Kredi, the country’s fourth largest private bank in terms of assets. A report by Reuters on May 21 said sources told it FAB was offering around […] May 21, 2024
