Business News Turkey February 2024
Business
M&A deal volume decreases
For 2023, business consultancy Deloitte has reported a 30% decrease in the volume of M&As in Turkey over the previous year, down to USD 8.0 bn. In total there were 403 mergers and acquisitions, with the transaction volume of foreign investors amounting to USD 5.2 bn. European investors dominated the deal volume with a share of 48%, followed by Gulf investors with 29%. The largest among the foreign investor deals was venture capital investors providing USD 500 mn in new funds to the e-commerce giant Getir. Russian Tatneft’s investment into the fuel company Aytemiz came second, with USD 336 mn.
Jan. 18, 2024
48.1% decrease in housing sales to foreigners
Last year, a total of 1,225,926 housing units were sold in Turkey, 17.5% less than 2022. At the same time, the number of housing units sold to foreigners decreased by 48.1% to 35,005. Only 14.5% of sales were mortgaged sales. With 16.2%, Istanbul accounted for the largest share in sales. The top nationalities among foreign buyers were Russia, Iran, Iraq, Ukraine, and Kazakhstan, in that order.
Jan. 19, 2024
Automotive market gains in 2023
In 2023, automotive production in Turkey grew by 8.6%, to 1,468,393 vehicles, whereas domestic sales increased by as high as 55.2%, to 1,283,952 vehicles. Exports and imports increased by 5.0% and 79.6%, respectively. As of December 2023, the total number of road motor vehicles registered to traffic reached 28.7 million, 53.0% thereof being passenger cars. The average age of all registered cars is now 14.1 years.
Jan. 23, 2024
White goods production contracts despite growth in domestic sales
In 2023, the domestic sales volume of Turkey’s white goods producers increased by 14% compared to the year before. On the other hand, exports decreased by 10% in this period. Total sales of the producers, consisting of exports and domestic sales, amounted to approximately 33 million units, a minus of 4%. The production total also decreased by 1%. On the other hand, imports almost doubled, exceeding 533,000 units. With an annual production capacity of 32.3 million units and an export capacity of 23 million units, Turkey is the largest production base for white goods in Europe, and the second-largest in the world.
Jan. 24, 2024
EBRD continues to allocate highest funding to Turkey
The European Bank for Reconstruction and Development (EBRD) has invested EUR 2.5 bn in projects in Turkey in 2023, a volume higher than in any other country. The resources provided to companies and individuals in the earthquake region constituted more than 30 per cent of total investments. Arvid Tuerkner, EBRD Turkey Director, said that the EBRD will continue to be a key supporter in Turkey’s journey towards a greener, more resilient, and more inclusive economy.
Jan. 25, 2024
TCL Electronics opens its Istanbul office
TCL Electronics, a leading Chinese electronics manufacturer, has officially commenced its operations in the Turkish market by announcing the opening of its Istanbul office. The company also announced that it has started to produce 98-inch large screen models in Turkey. According to Timo Xu, TCL Electronics Turkey General Manager, they aim to become a leader in the Turkish TV market by 2028.
Jan. 30, 2024
Turkish tourism revenues continue to grow in 2023
Turkey’s tourism income increased 16.9% in 2023 to reach USD 54.3 bn. The number of departing visitors increased by 11.1% to 57.1 million. Furthermore, their average expenditure per capita increased to USD 952, up from USD 905 in 2022.
Jan. 31, 2024
Accor to open 50 new hotels
French hospitality company Accor, which already operates 68 hotels in Turkey, has been continuing the construction of 16 more hotels. Emphasizing that Turkey is a market with serious growth potential, Maya Ziadeh, Chief Development Officer at Accor, stated that they plan to open 50 hotels in 5 years. Ziadeh added that Turkey has been experiencing a significant growth in tourism with a continuous increase in the number of visitors, and that the future of the tourism sector looks positive in 2024.
Feb. 1, 2024
Politics
Erdoğan receives Raisi in Ankara
President Recep Tayyip Erdoğan welcomed Iranian President Ebrahim Raisi with an official ceremony in Ankara. Emphasizing that Turkey and Iran have common views on Palestine, Raisi said, “We agree with President Erdoğan on the Palestinian cause and the rights of the Palestinian people.” Erdoğan stated that the two countries touched on the importance of further strengthening cooperation against terrorist organizations, adding that they aim to increase the trade volume between the two countries to USD 30 bn. Following the meeting, ten new agreements were concluded between Ankara and Tehran.
Jan. 24, 2024
Turkish parliament ratifies Sweden’s NATO accession
The bill to approve Sweden’s NATO accession protocol has been passed by the Turkish Grand National Assembly. Of the 346 deputies participating in the voting, 287 voted ‘accept’, 55 voted ‘no’, while 4 deputies abstained. Subsequently, the law has also been signed by President Erdoğan. While Ankara had approved Finland’s membership last year, it kept Sweden waiting until Stockholm passed a new anti-terrorism law that makes it illegal to be a member of a terrorist organization.
Jan. 25, 2024
Economy
Turkish Central Bank raises interest rate
The Central Bank of the Republic of Turkey has raised its policy rate (the one-week repo auction rate) from 42.50% to 45.00%. The bank stated that “the current level of the policy rate will be maintained until there is a significant decline in the underlying trend of monthly inflation and until inflation expectations converge to the projected forecast range.”
Jan. 25, 2024
Foreign trade stagnates in 2023
In 2023, Turkish exports increased by a mere 0.6% over the previous year to USD 255.8 bn, whereas imports were USD 361.8 bn, with a decrease of 0.5%. In December 2023, the exports of the Turkish economy increased by 0.4% to USD 23.0 bn, while imports were down 11.0% YOY, decreasing to USD 29.0 bn. The annual trade deficit decreased by 3.2%, down to USD 106.0 bn. In 2023, Turkey’s main export partner was Germany (USD 21.1 bn), ahead of the USA (USD 14.8 bn), and Iraq (USD 12.8 bn). Russia was the country where the most imports came from (USD 45.6 bn), followed by China (USD 45.0 bn), and Germany (USD 28.7 bn).
Jan. 31, 2024
Inflation continues to rise
In January 2024, consumer prices in Turkey were 6.70% higher than in the previous month, with a CPI increase of 64.86% YOY. The biggest monthly price hike occurred in health (17.68%), followed by hotels, cafés, and restaurants (12.17%). The only decrease among the main product groups was recorded in clothing and footwear (-1.61%). As before, the highest annual price increase was in hotels, cafés, and restaurants (92.27%). The domestic producer price index (D-PPI) increased by 4.14% monthly, and by 44.20% YOY.
Feb. 5, 2024
Central Bank President replaced again
The fifth change in the presidency of the Central Bank of the Republic of Turkey in the last five years has occurred. Hafize Gaye Erkan quit the presidency she had assumed only eight months earlier, and Fatih Karahan, one of her vice presidents, was appointed in her place. Unlike the previous ones, this change has not caused concern among market actors as it is not seen as associated with a policy change. In his first statement, Karahan said that the inflation outlook will not be allowed to deteriorate.
Feb. 5, 2024
Population growth rate decreases
According to data announced by the Turkish Statistical Institute, the population of Turkey has risen to 85,372,377 as of Dec. 31, 2023. The population growth rate in 2023 decreased to 1.1 per thousand, from 7.1 per thousand in 2022. The official population of Istanbul decreased to 15,655,924, while the second-most populated city was Ankara with 5,803,482 inhabitants.
Feb. 6, 2024
Industrial production grows slowly
In December, Turkey’s industrial production index increased by 1.6% YOY, with the manufacturing industry recording a plus of 2.1%. The largest increases in the manufacturing industry category were reported in the product groups “computers, electronic and optical products” (18.9%), “repair and installation of machinery and equipment” (16.9%), and “basic metals” (14.4%) while the highest decreases occurred in the product groups “leather and related products” (-17.4%), “printing and reproduction of recorded media” (-13.3%), and “furniture” (-13.2%).
Feb. 9, 2024
Unemployment decreases
In December 2023, approximately 3,098,000 people in Turkey aged 15 and older were officially out of work. The seasonally adjusted unemployment rate of 8.8% was 0.1 points down from the previous month, and 1.5 points down YOY. The labour force participation rate registered as 53.5% in total, and 36.3% for females.
Feb. 12, 2024
Overview of Monthly Data
Growth Rates
Inflation
