Business News Turkey November 2024
Business
Kaspi.kz acquires majority stake in Hepsiburada
Kazakh fintech company Kaspi.kz has announced the signing of a binding agreement with the Doğan family for the acquisition of 65.4% of the shares of Turkish e-commerce platform Hepsiburada for USD 1.13 bn. The share transfer is expected to take place in the first quarter of 2025 after having obtained the official permits. Hepsiburada has approximately 10,000 employees, 101,000 business partners and 12 million active customers.
Oct. 19, 2024
IFC makes record investments in Turkey
The IFC (International Finance Corporation), as the private-sector arm of the World Bank Group, has approved and activated USD 3.6 bn in financing in Turkey in the fiscal year between July 1, 2023, and June 30, 2024. Hela Cheikhrouhou, IFC Regional Vice President, announced this to be a new record, making Turkey the third-largest country in which her organisation operates, after India and Brazil.
Nov. 1, 2024
Turkcell and Huawei enter into a strategic cooperation
Turkish GSM operator Turkcell has signed strategic cooperation agreements with China-headquartered telecommunications equipment giant Huawei in Shenzhen to develop joint work in the field of next-generation network technologies such as 5.5G and DWDM (Dense Wavelength Division Multiplexing) as well as artificial intelligence. The two companies aim to deepen existing cooperation in the fields of smart network analysis and operation, AI software, cloud technologies and digital transformation, while exploring new business opportunities in digitalisation for individuals and industries. Local manufacturers will have a say in the emergence of innovative solutions by being involved in the product and service projects to be developed through joint studies.
Nov. 1, 2024
Two hydropower plants to be privatised
The Turkish Privatisation Administration has issued a tender for the privatisation of the Seyhan 2 and Yüreğir Hydroelectric Power Stations in Adana, operated by state-owned electricity generation company Elektrik Üretim A.Ş. (EÜAŞ), to be accomplished through the transfer of operating rights. A bid bond of TRY 8 mn has been set for each of the power plants. Bids for this tender can be submitted until December 18.
Nov. 1, 2024
TOFAŞ signs production agreement with Stellantis Europe
TOFAŞ, the joint venture of Turkish Koç Holding and the multinational automotive group Stellantis, has announced the signing of a production agreement with Stellantis Europe. According to the agreement, 1 million FIAT, Opel, Citroën and Peugeot brand vehicles are to be produced under licence in Bursa between 2024 and 2032. A total of EUR 232 mn is to be invested for this purpose, the majority of which will be completed this year.
Nov. 4, 2024
Politics
Erdoğan attends BRICS summit
Turkish President Recep Tayyip Erdoğan has attended the BRICS summit in Kazan, the capital of the Republic of Tatarstan, where he met with his Russian counterpart Vladimir Putin. With Erdoğan stating that bilateral relations between Ankara and Moscow have been growing stronger, Putin pointed out that the volume of trade between the two countries has reached USD 55.4 bn last year and that Russia continues to be a reliable supplier of natural gas to Turkey. Turkey is the first and only NATO member seeking to join the BRICS alliance.
Oct. 24, 2024
PKK attacks Turkish defence company
A terrorist attack was carried out on the facilities of TUSAŞ-Turkish Aerospace Industries, Turkey’s national aerospace manufacturer, in Ankara, killing 5 and injuring 22 people. The PKK (Kurdistan Workers’ Party) terrorist organisation has claimed responsibility for the attack. UN Secretary General António Guterres and NATO Secretary General Mark Rutte condemned the attack.
Oct. 24-25, 2024
President of Senegal pays visit to Turkey
Following the meeting of President Erdoğan with the President of Senegal, Bassirou Diomaye Faye, in Ankara, 5 agreements were signed between the two countries. The agreements cover the fields of strategic cooperation, urbanisation, energy and hydrocarbons, agricultural mechanisation, and higher education.
Nov. 1, 2024
Turkey and Maldives conclude PTA
A Preferential Trade Agreement between Turkey and the Maldives has been signed in Istanbul by Turkish Trade Minister Ömer Bolat and Maldivian Minister of Economic Development and Trade, Mohamed Saeed. Bolat said that within the scope of the agreement, the Maldives will open its market to Turkey through tariff quotas that eliminate or reduce the customs duties on numerous goods, from cosmetics to electrical machinery and equipment, and from furniture to iron and steel products.
Nov. 4, 2024
Erdoğan visits Kyrgyzstan
President Erdoğan has attended the 11th Summit of the Organisation of Turkic States in Bishkek. Following his meeting with Kyrgyz President Sadyr Japarov, 19 agreements were signed between the two countries in various fields, including trade, migration, defence, energy, and debt cancellation.
Nov. 5, 2024
Erdoğan speaks at EPC Summit
Turkey’s President has addressed the General Session of the Fifth Summit of the European Political Community in Budapest, Hungary. Erdoğan stressed that Turkey should be fully included in the EU’s defence efforts and that Turkey’s support is essential to finding solutions to the large-scale problems affecting Europe and beyond. During the summit, he met with EU leaders among them French President Emmanuel Macron, Dutch Prime Minister Dick Schoof, Danish Prime Minister Mette Frederiksen, and European Commission President Ursula von der Leyen.
Nov. 8, 2024
Economy
Both exports and imports decrease in September
In September 2024, both the exports and the imports of the Turkish economy decreased, by 1.9% and 1.4%, respectively, over the same month of the previous year (YOY). With exports amounting to USD 22.0 bn and imports to USD 27.1 bn, the trade deficit slightly increased (by 0.7%) to USD 5.1 bn in the same period. In September, Germany remained Turkey’s primary export partner with USD 1.7 bn, leading the United Kingdom (USD 1.4 bn), and the USA (USD 1.3 bn). China remained the country with the most imports to Turkey (USD 3.7 bn), followed by the Russian Federation (USD 3.3 bn), and Germany (USD 2.5 bn).
Oct. 31, 2024
S&P raises Turkey’s rating for the second time in 2024
The credit rating agency Standard & Poor’s has increased Turkey’s sovereign credit rating from B+ to BB- and reported the country’s outlook as “stable.” The agency stated that “the Central Bank’s tight monetary stance has enabled the Turkish authorities to stabilise the lira, bring down inflation, rebuild reserves, and de-dollarise the financial system.”
Nov. 1, 2024
Rate of inflation decline slows
In October 2024, consumer prices in Turkey rose by 2.88% month-on-month, with a CPI increase of 48.58% YOY. The biggest monthly price hike was in clothing & footwear (14.32%), followed by food & non-alcoholic beverages (4.33%). Decreases among the main product groups occurred in transportation (-0.54%) and alcoholic beverages & tobacco (-0.04%). The highest annual price increase was in education (93.66%). The domestic producer price index (D-PPI) went up 1.29% on a monthly basis, and 32.24% YOY.
Nov. 4, 2024
Industrial production continues to decrease
In September, Turkey’s industrial production index decreased by 2.4% YOY, with the manufacturing sector recording a minus of 2.5%. The largest increases in the manufacturing sector category were reported in the product groups “repair and installation of machinery and equipment” (9.7%), “wearing apparel” (7.3%), and “fabricated metal products (except machinery and equipment)” (6.3%) while the highest decreases occurred in the product groups “other transport equipment” (-30.2%), “coke and refined petroleum products” (-20.6%), and “computer, electronic and optical products” (-17.3%).
Nov. 11, 2024
Unemployment rate unchanged
In September 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%, the same as in the previous month, and 0.5 point lower than a year ago. The labour force participation rate increased to 54.4% overall, and to 37.0% for females.
Nov. 11, 2024
Overview of Monthly Data
Growth Rates