
Business News Turkey January 2025
Business
IFC invests in Turkish textile company
The International Finance Corporation (IFC) has decided to invest USD 50 mn in Turkish textile manufacturer Küçükçalık Tekstil. The investment, which is expected to create around 700 new jobs, is aimed at increasing the long-established company’s production capacity and improving its sustainability practices. According to Wiebke Schloemer, IFC’s Director for Turkey and Central Asia, this investment will enhance Turkey’s competitiveness in the synthetic fabrics manufacturing sector. IFC has already invested more than USD 20 bn in Turkey over the past decade.
Dec. 16, 2024
WEG to build new factory in Manisa
Brazilian industrial equipment manufacturer WEG S.A. has announced its intention to invest approximately EUR 28 mn to establish a gearbox factory in the city of Manisa. The investment is expected to be completed by 2027 and will increase WEG’s gearbox production outside Brazil. WEG currently employs 750 people in Turkey and anticipates adding 150 new jobs with the new investment.
Dec. 20, 2024
Dardanel transfers shares to Luxembourg-based investor
Turkish food products manufacturer Dardanel has transferred 17.06% of its shares to Crescent Securitisations Lux Sàrl for a nominal price of TRY 100 mn. Niyazi Önen Holding, which continues to hold the majority of the company’s shares, will retain control over the decisions of the board of directors.
Dec. 20, 2024
Turkish steel flask maker partners with Chinese company
Şanlıurfa-based thermos manufacturer Termosan Çelik has established Termomug Çelik in partnership with Zhejiang Yongheng Household Co. from China. The new facility, which will be built with an investment of USD 25 mn and will start production in May 2025, is designed to produce 40,000 steel thermos bottles per day. Termomug chairman Mehmet Nuri Yılmaz said that they will be targeting mega customers looking for alternatives outside of China, primarily in the US, Europe and Asia-Pacific regions, and that they have been in talks with leading thermos brands such as Stanley and Yeti.
Dec. 23, 2024
Korean game developer acquires Turkish studio
Paxie Games, one of Turkey’s leading mobile game studios, has reached an agreement with South Korean DoubleU Games Co. The Turkish company’s initial 60% stake has been acquired by the S. Korean company for USD 27 mn. Founded in 2021 in Biruni Teknopark in Istanbul, Paxie Games has reached more than 25 million users with its game “Merge Studio: Fashion Makeover”.
Dec. 27, 2024
SOCAR to invest USD 7 bn in Turkey
Azerbaijan’s state oil and gas company SOCAR has announced that it plans to invest USD 7 bn to expand the capacity of its petrochemical facilities in Aliağa, Izmir. Following feasibility studies, construction activities are to begin in 2027, with production at the new facilities to commence in 2031 at the earliest. The new investment will involve building an ethylene facility with an annual capacity of 1.2 million tonnes, a polypropylene facility with a capacity of 550,000 tonnes, and an HDPE/LLDPE facility with a capacity of 827,000 tonnes. SOCAR has invested a total of USD 18.5 bn over the course of 17 years, making it Turkey’s largest foreign investor.
Jan. 7, 2025
Politics
EU allocates an additional EUR 1 bn to Turkey for Syrian refugees
European Commission President Ursula von der Leyen has met with President Recep Tayyip Erdoğan in Ankara. The meeting’s focus was on the latest developments in Syria. Speaking at the press conference held after the meeting, von der Leyen said that Turkey’s legitimate security concerns must be met in Syria. She added that Turkey has been a key partner on migration, and that an additional EUR 1 bn has currently been allocated for 2024 within the scope of the resources provided by the EU to be spent on Syrian refugees in Turkey.
Dec. 18, 2024
Erdoğan attends D-8 summit in Cairo
Speaking at the 11th summit of the Developing Eight Organisation for Economic Cooperation (D-8) held in the Egyptian capital Cairo, Turkish President Erdoğan emphasized the importance of developing programs for SMEs to benefit from preferential trade practices, one of the most important initiatives of the D-8. Erdoğan said that with Egypt’s approval of the preferential trade agreement, it will now be possible to implement the agreement within a much broader framework. The Summit also agreed to allow Azerbaijan to join the D-8.
Dec. 20, 2024
Turkish Foreign Minister visits Damascus
Turkish Foreign Minister Hakan Fidan has delivered statements at a joint press conference in Damascus with the leader of the new interim Syrian government, Ahmed al-Sharaa. Emphasizing the importance of Syria’s territorial integrity, Fidan stated that the necessary preparations for the reconstruction of Syria should begin as soon as possible, this being the only way to create an environment that will enable the voluntary and safe return of Syrians to their country.
Dec. 22, 2024
Economy
Minimum wage increased by 30%
The relevant commission has agreed on a regular increase of the minimum wage, as from January 2025, by 30% compared to 2024. The statutory minimum wage now amounts to TRY 26,005.50 gross – translating into TRY 22,104.67 net – with the cost to the employer being TRY 30,621.48. This minimum wage will be valid for the full year until December.
Dec. 26, 2024
Turkish Central Bank cuts policy rate for the first time in 22 months
The Central Bank of the Republic of Turkey has decided to lower its policy rate (the one-week repo auction rate) from 50.00% to 47.50%, the first reduction since February 2023. The bank stated that “the decisiveness regarding tight monetary stance is bringing down the underlying trend of monthly inflation and strengthening the disinflation process through moderation in domestic demand, real appreciation in Turkish lira, and improvement in inflation expectations.”
Dec. 26, 2024
More imports in November
In November 2024, the exports of the Turkish economy decreased by 3.1%, whereas the imports increased by 2.7%, over the same month of the previous year (YOY). With exports amounting to USD 22.3 bn and imports to USD 29.8 bn, the trade deficit increased by 24.9% to USD 7.5 bn in the same period. In November, Germany continued to be Turkey’s primary export partner with USD 1.7 bn, leading the USA (USD 1.5 bn), and the United Kingdom (USD 1.4 bn). The Russian Federation has become the country with the most imports to Turkey (USD 4.0 bn), followed by China (USD 3.6 bn), and Germany (USD 2.3 bn).
Dec. 31, 2024
Inflation continues to decline
In December 2024, consumer prices in Turkey were 1.03% higher than in the previous month, with a CPI increase of 44.38% YOY. Thus, annual inflation continued to decline this month. The biggest monthly price hike occurred in furnishings and household equipment (2.78%), followed by communication (1.82%). Decreases among the main product groups were recorded in clothing and footwear (-0.67%) and transportation (-0.42%). The highest annual price increase was in education (91.64%). The domestic producer price index (D-PPI) increased by 0.40% monthly, and by 28.52% YOY.
Jan. 3, 2025
Industrial production increases
In November, Turkey’s industrial production index has ended its downward trend and increased by 1.5% YOY, with the manufacturing sector recording a plus of 1.2%. The largest increases in the manufacturing sector category were reported in the product groups “other transport equipment” (23.7%), “fabricated metal products (except machinery and equipment)” (14.8%), and “wearing apparel” (11.1%) while the highest decreases occurred in the product groups “computer, electronic and optical products” (-22.4%), “motor vehicles, trailers and semi-trailers” (-13.6%), and “machinery and equipment n.e.c.” (-8.8%).
Jan. 10, 2025
Unemployment rate drops slightly
In November 2024, some 3.1 million people aged 15 and older were officially out of work in Turkey. The seasonally adjusted unemployment rate was 8.6%, 0.1 points lower than in the previous month, and 0.4 points lower than a year ago. The labour force participation rate was 54.2% overall, and 36.7% for females.
Jan. 10, 2025