Business News Turkey April 2024
Business
Turkish FMCG market records 6% volume growth in 2023
NielsenIQ Turkey General Manager Didem Sekerel Erdoğan has announced that the Turkish fast-moving consumer goods market, excluding cigarettes and alcohol, recorded a turnover growth of 81% in 2023. She stated that during this period, there was 6% volume growth and a 71% price change. Personal care recorded a volume growth of 8%, paper products 10%, household cleaning products 6%, and food categories excluding alcohol 5%. Erdoğan reported that the three categories that increased their turnover share the most were nuts (+0.4 points), carbonated drinks (+0.3 points), and ice cream (+0.3 points). She also shared that the three categories that recorded the highest growth rate in terms of volume were iced coffee (54%), mustard (32%) and men’s perfume (31%).
Apr. 16, 2024
Istanbul Technical University commissions 5G technology campus
A “5G Technology Campus” has been commissioned within the Ayazağa Campus of Istanbul Technical University with the technology support of Turkish GSM operator Turkcell and Swedish telecommunications giant Ericsson. The 5G test network, built on Turkcell’s fibre infrastructure, will provide services integrated with Turkcell’s network management systems with hardware such as the core network and new generation smart antennas provided by Ericsson. Işıl Yalçın, Ericsson Turkey General Manager, stated that they are determined to continue the development of the local R&D ecosystem in Turkey, and that the campus is a step of their joint efforts to build a more connected digital future using emerging technologies.
Apr. 16, 2024
Taxes on goods and medicines brought from the EU increased
The single and cut off tax rate to be applied on goods with a value not exceeding EUR 150, which do not have a commercial quantity or nature, and on pharmaceutical goods whose value does not exceed EUR 1500, which are sent to a natural person via postal or fast cargo transportation directly from the EU countries, has been increased from 18% to 20% by a presidential decree. The regulation will come into force in 15 days.
Apr. 20, 2024
Midas receives investment of USD 45 mn
Turkish Midas, the financial application that offers the opportunity to invest in U.S. stock markets and Borsa Istanbul with low commission rates, has completed the “Series A” investment round, receiving an investment of USD 45 mn. Canadian-based Portage Ventures led the investment tour, with IFC, the investment arm of the World Bank, being the other new investor. In addition, Midas’ existing investors Spark Capital, Earlybird Digital East Fund, and Revo Capital also repeated their investments in this round. Prior to this, Midas had received an investment of USD 11 mn from these three investors in 2022. Portage Ventures Founding Partner Paul Desmarais III expressed the conviction that Midas is ready to lead transformation and innovation in a region open to new financial technologies.
Apr. 22, 2024
Politics
Opposition does well in local elections
Turkey has gone to the polls to elect local administrators who will serve for 5 years. Nationwide, the main opposition party Republican People’s Party (CHP) came first with 37.77% of the votes, relegating the ruling Justice and Development Party (AKP) to second place with 35.49%. The CHP now provides the Lord Mayor of the country’s 5 largest cities, retaining power in Istanbul, Ankara, Izmir, and Antalya, and gaining Bursa. In his post-election speech, President Recep Tayyip Erdoğan said that regardless of the results, the winner of this election is primarily Turkey’s democracy, the national will, and all 85 million people, regardless of their political views. Mehmet Şimşek, Minister of Treasury and Finance, has emphasized that they will strengthen the current economic program and continue to implement it with determination.
Apr. 1, 2024
Turkey restricts exports to Israel
The Turkish Ministry of Trade has announced restrictions on the export of some products to Israel as of April 9, 2024. These restrictions are to remain in effect until Israel declares a ceasefire in Gaza, and allows a sufficient and uninterrupted flow of humanitarian aid to the Gaza Strip. The export restrictions cover 54 product groups, including metal, cement, cables, chemical compounds, mineral oil, jet fuel, and cranes.
Apr. 9, 2024
Erdoğan visits Iraq
During a visit to Iraq, Turkish President Recep Tayyip Erdoğan met with Iraqi President Abdul Latif Rashid and Prime Minister Mohammed Shia’ Al Sudani. A quadruple memorandum of understanding was entered into between Iraq, Turkey, Qatar, and the UAE regarding cooperation on the Development Road Project extending from the Middle East to Europe. This USD 17 bn project, which aims to strengthen Iraq’s position on the East-West trade route, is to connect the – Grand Faw Port, currently under construction in the Persian Gulf, to Turkey via highway. Energy, trade, and cooperation in the fight against the terrorist organization PKK were other topics discussed during the visit. Furthermore, a 10-year agreement was reached on the management of water resources. 24 additional cooperation agreements were signed between the two countries in different fields.
Apr. 23, 2024
Steinmeier in Turkey on 100th anniversary of Turkish-German relations
German President Frank-Walter Steinmeier has come to Turkey on the occasion of the 100th anniversary of the establishment of diplomatic relations between the two countries. On the first day of his trip, Steinmeier visited Istanbul Sirkeci Train Station, where thousands of Turkish “guest workers” had departed for Germany by train in the 1960s. At the reception held in the Tarabya Residence of the German Embassy, Steinmeier stated that Germany and Turkey have been closely connected to each other for 100 years, and that Germany has been Turkey’s most important trade partner in the EU Customs Union. On the second day of his trip, Steinmeier visited a shelter for earthquake victims, and a school whose construction has been supported by Germany in Gaziantep, and on the third day, he met with President Erdoğan in Ankara. At the final press conference, Erdoğan demanded the removal of the restrictions Turkey faces in the defence industry.
Apr. 24, 2024
Economy
Exports up by 13.6% in February
In February 2024, the Turkish economy registered an increase of exports by 13.6%, while imports decreased by 9.2% over the same month of the previous year (YOY). With exports amounting to USD 21.1 bn and imports of USD 27.9 bn, the trade deficit dropped by 44.2% to USD 6.8 bn during the same period. In February, Germany continued to be Turkey’s most important export partner (USD 1.7 bn), followed by the USA (USD 1.3 bn), and Italy (USD 1.2 bn). The Russian Federation was the country with the most imports to Turkey (USD 4.0 bn), ahead of China (USD 3.4 bn), and Germany (USD 2.2 bn).
Mar. 29, 2024
Inflation continues to rise
In March 2024, consumer prices in Turkey were 3.16% higher than in the previous month, with a CPI increase of 68.50% YOY. The biggest monthly price increase occurred in education (13.08%), followed by communication (5.65%). The only decrease among the main product groups, however small (-0.02%), occurred in alcoholic beverages and tobacco. The highest annual price increase was also in education (104.07%). The domestic producer price index (D-PPI) went up 3.29% on a monthly basis, and 51.47% YOY.
Apr. 3, 2024
Industrial production increases
In February, Turkey’s industrial production index increased by 11.5% YOY, with the manufacturing industry recording a plus of 11.9%. The largest increases in the manufacturing industry category were reported in the product groups “other transport equipment” (117.4%), “tobacco products” (31.4%), and “coke and refined petroleum products” (25.8%) while the highest decreases occurred in the product groups “computer, electronic and optical products” (-18.7%), “leather and related products” (-14.1%), and “wearing apparel” (-12.6%).
Apr. 8, 2024
Unemployment decreases to below 9 percent
In February 2024, approximately 3,078,000 people in Turkey aged 15 and older were officially out of work. The seasonally adjusted unemployment rate of 8.7% was 0.3 points down from the previous month and 1.3 points down YOY. The labour force participation rate registered as 54.0% in total, and 36.6% for females.
Apr. 15, 2024
Turkish Central Bank keeps interest rate constant
The Central Bank of the Republic of Turkey has decided to keep its policy rate (the one-week repo auction rate) constant at 50.00%, following the 500 basis points increase last month. The bank stated that “monetary policy stance will be tightened in case a significant and persistent deterioration in inflation is foreseen. The decisiveness regarding tight monetary stance will bring down the underlying trend of monthly inflation through moderation in domestic demand, real appreciation in Turkish lira, and improvement in inflation expectations.”
Apr. 25, 2024
Overview of Monthly Data
Growth Rates
Inflation
