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Business News Turkey May 2024


THY builds strategic partnership with Airbus and Rolls-Royce

Turkish Airlines (THY), which plans to add 600 new aircraft to its fleet by 2033, has also signed a strategic cooperation agreement with Airbus and Rolls Royce. The agreement is expected to strengthen both primary and secondary supply from Turkey. While the programme, which sets out a 15-year strategy, is geared towards making Turkey a global base in aviation, it is also expected to open the door to offset with a total value of USD 20 bn.

Apr. 30, 2024


Chicken meat exports restricted

The Turkish Ministry of Trade has imposed restrictions on exports of chicken meat, whether whole poultry or parts, from May 1, 2024, to December 31, 2024. While the sector had exported around 40,000 tonnes per month on average, with the implementation of the new decision, this amount shall be limited to 10,000 tonnes on a monthly basis, and 80,000 tonnes in total by year’s end. The purpose of the measure is to counter the rising prices for chicken meat.

May 1, 2024


Metro Turkey introduces new brand BonVeno

Metro Turkey, a subsidiary of German Metro AG that has been operating in the Turkish retail sector for 35 years, has introduced its new investment, the BonVeno brand. This new brand offers grocery products, fresh food and beverage solutions together, and is being implemented for the first time in Turkey. The initiative, which is planned to achieve a total investment of TRY 350 mn by the end of 2024, aims to encompass 1,000 stores in five years.

May 1, 2024


Mercedes-Benz commissions new logistics centre

Mercedes-Benz has opened a parts logistics centre in the Gebze district of Kocaeli province, having invested TRY 210 mn. With this investment, Turkey has become the third country in the world using the high-tech warehouse management system developed specifically for Mercedes-Benz. The centre, which will supply parts to the brand’s agencies in Turkey, will create 100 additional jobs. Comprising a closed storage area of 15,000 square meters, the centre has been designed to produce its own electricity.

May 3, 2024


Turkey has the 18th largest industrial robot stock

According to findings by the Strategic Research Center of the Istanbul Chamber of Commerce (İTOSAM), the number of Turkey-based companies developing artificial intelligence products has increased from 5 in the year 2000 to 1,012 in 2023, and to 1,195 in 2024. Data from the 20 countries with the largest robot stocks show that there were 3.9 million installed industrial robots worldwide in 2022. Turkey ranked 18th in the world as to robot stock, with 22,735 robots.

May 8, 2024


VARTA to cooperate with Pomega on energy storage

VARTA Storage GmbH, an affiliate of German VARTA AG, and Pomega, a subsidiary of Turkish Kontrolmatik Teknoloji, have signed a memorandum of understanding for comprehensive cooperation in the field of energy storage, including the establishment of a new enterprise as partnership of the two companies. The aim of the new enterprise is to transfer the energy storage solutions to be developed using Pomega products to the Balkans and Turkey with financing from Europe, and to provide investors with the opportunity to use European export credit funds. The cooperation is also intended to produce residential and mobility storage solutions in Pomega’s facilities in Polatlı (Ankara province), and to market them globally.

May 9, 2024



Turkey and Tanzania sign six memoranda of understanding

Turkish President Recep Tayyip Erdoğan has received Samia Suluhu Hassan, the President of Tanzania, in Ankara. On this occasion, Erdoğan pointed out that Tanzania is one of Turkey’s most important partners in East Africa. Six memoranda of understanding were signed between the two countries on various topics, including investment promotion, education, and diaspora policy.

Apr. 19, 2024


Turkey halts trade with Israel

The Turkish Ministry of Trade has declared that exports and imports of all products to and from Israel have been stopped until the Israeli Government allows an uninterrupted and sufficient flow of humanitarian aid to Gaza. The ministry had already restricted exports to Israel on April 9 with regard to 54 product groups.

May 3, 2024


Erdoğan hosts monarch of Kuwait

President Erdoğan has met with Kuwaiti Emir Mishal Al-Ahmad Al-Jaber Al-Sabah in Ankara. 6 memoranda of understanding were signed between the two countries, including the topics of investment promotion, free zones, housing welfare and infrastructure, and defence industry supply contracts.

May 7, 2024


Erdoğan confers with Mitsotakis

President Erdoğan has hosted Greek Prime Minister Kyriakos Mitsotakis in Ankara. Reminding of the target to increase bilateral trade to USD 10 bn, Erdoğan stated that Turkey’s consensus with Greece on the fight against terrorism is getting stronger. However, Erdoğan emphasized that unlike Mitsotakis he does not view Hamas as a terrorist organization. With both leaders underlining the importance of finding a fair and permanent solution to the Cyprus problem, Mitsotakis reiterated Greece’s support for Turkey’s EU membership.

May 14, 2024


Both exports and imports decrease in March

In March 2024, the Turkish economy registered a decrease of both exports and imports, by 4.1% and 6.3%, respectively, over the same month of the previous year (YOY). With exports amounting to USD 22.6 bn and imports of USD 29.9 bn, the trade deficit diminished by 12.4% to USD 7.3 bn during the same period. In March, Germany continued to be Turkey’s largest export partner (USD 1.8 bn), followed by Italy (USD 1.3 bn), and the USA (USD 1.3 bn). China was the country with the most imports to Turkey (USD 3.9 bn), ahead of the Russian Federation (USD 3.6 bn), and Germany (USD 2.2 bn).

Apr. 30, 2024


Inflation continues to rise

In April 2024, consumer prices in Turkey were up 3.18% from the previous month, with a CPI increase of 69.80% YOY. The biggest monthly price increase was in alcoholic beverages and tobacco (9.56%), followed by hotels, cafés and restaurants (4.69%). No decrease occurred among the main product groups. The highest annual price increase was in education (103.86%). The domestic producer price index (D-PPI) went up 3.60% on a monthly basis, and 55.66% YOY.

May 3, 2024


S&P raises Turkey’s rating

Credit rating agency Standard & Poor’s has increased Turkey’s sovereign credit rating from B to B+, keeping the country’s outlook as “positive.” The agency emphasized that the coordination between monetary, fiscal, and income policies is set to improve, with the effect of external rebalancing.

May 4, 2024


Industrial production continues to increase

In March, Turkey’s industrial production index increased by 4.3% YOY, with the manufacturing industry recording a plus of 4.0%. The biggest increases in the manufacturing industry category were reported in the product groups “computer, electronic and optical products” (37.3%), “repair and installation of machinery and equipment” (17.9%), and “tobacco products” (16.1%) while the highest decreases occurred in the product groups “leather and related products” (-15.7%), “wearing apparel” (-10.6%), and “furniture” (-3.8%).

May 10, 2024


Unemployment keeps falling

In March 2024, approximately 3,057,000 people in Turkey aged 15 and older were officially out of work. The seasonally adjusted unemployment rate was 8.6%, 0.1 points down from the previous month, and 1.4 points down YOY. The labour force participation rate registered as 54.2% in total, and 36.9% for females.

May 10, 2024


Public sector savings package announced

Vice President Cevdet Yılmaz and Treasury and Finance Minister Mehmet Şimşek have announced a public sector savings package. In broad outline, this provides for only essential new projects to be included in the investment programme, as well as a 10% cut in goods and services purchase allocations, and a 15% cut in investment allocations other than for disaster relief and compulsory spending. Projects whose physical progress is already over 75%, and investment projects to mitigate the earthquake risk will be prioritized. Furthermore, new acquisitions of vehicles, buildings, furniture, and fixtures in the public sector will be stopped for three years. The savings package will be applicable to all public institutions and organizations as well as local administrations.

May 14, 2024


Overview of Monthly Data

TR Overview May 24

Growth Rates

TR Growth Rate May 24


TR Inflation May 24