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Business News Turkey October 2023

Business

STILL ARSER opens operation centre in Çerkezköy
STILL ARSER, a partnership of German Kion Group AG, the largest manufacturer of forklift trucks and warehouse equipment in the EMEA region, and Turkish Arkas Holding, has commissioned its Çerkezköy Operation Centre, where innovative technologies will be used for the revision of second-hand vehicles. An investment of TRY 30 mn has been made for the centre, which will contribute to sustainability by renewing a minimum of 250 second-hand vehicles annually. Christophe Lautray, Executive Vice President Sales and Services of KION ITS EMEA, pointed out that Turkey is the 7th largest market of the EMEA region, therefore deserving special attention and investments.
Sep. 14, 2023

Coca-Cola commissions Digital Service Centre in Turkey
A new Digital Service Centre of Coca-Cola has been opened in Istanbul, which will serve the company’s Eurasia and Middle East Operations Unit consisting of 25 countries. Its task is to accelerate digital capability development and digital transformation, provide fast and automatic access to information on topics such as marketing, strategy, and finance, and increase business efficiency through data analysis applications. The centre has a team of 20 people, 13 of whom are Turkish.
Sep. 15, 2023

Danone invests in production of medical products
With its latest investment of more than TRY 450 mn in its facilities in Lüleburgaz (Kırklareli province), French food giant Danone has started the production in Turkey of medical products used for the treatment of malnutrition. The aim is to increase the production capacity of the facility, which also includes an R&D centre, by 50 percent within two years, as well as to triple exports, mainly to the UK, Hungary, Slovakia, and the Czech Republic.
Sep. 27, 2023

 

Politics

EP adopts Turkey report
The European Parliament has adopted the 2022 Turkey report prepared by Spanish rapporteur Nacho Sanchez Amor. 434 parliamentarians voted in favour, 18 against, and 152 members abstained. Among other things, the report says that “EU accession negotiations have been effective at a standstill since 2018, due to the deterioration of the rule of law and democracy in Türkiye.” The report concluded that “in the absence of a drastic change of course by the Turkish Government, Türkiye’s EU accession process cannot be resumed in the current circumstances”.
Sep. 13, 2023

Construction begins on new pipeline for Azeri gas
After the ground-breaking for the Iğdır-Nakhchivan Natural Gas Pipeline, accompanied by the signing of several agreements between the two countries in the fields of energy, transportation and logistics, Turkish President Recep Tayyip Erdoğan and Azerbaijani President Ilham Aliyev held a joint press conference. Erdoğan said that the pipeline will not only deepen Turkey’s partnership with Azerbaijan in the field of energy, but also contribute to the security of Europe’s energy supply.
Sep. 26, 2023

Austrian head of government visits Turkey
President Erdoğan and Austrian Chancellor Karl Nehammer, who paid an official visit to Turkey, met one-on-one in Ankara. After the meeting, President Erdoğan stated that his country would not accept any alternative other than full membership in the European Union Chancellor Nehammer, in turn, emphasized that Turkey is a reliable partner for Austria in every aspect, and that the country’s industry has advanced in terms of creativity and research.
Oct. 10, 2023

Economy

Turkish Central Bank raises interest rate yet again
The Central Bank of the Republic of Turkey has substantially increased its policy rate (the one-week repo auction rate) – from 25.00% to 30.00%. The bank stated that it has “decided to continue the monetary tightening process in order to establish the disinflation course as soon as possible, to anchor inflation expectations, and to control the deterioration in pricing behaviour.”
Sep. 21, 2023

S&P upgrades Turkey’s outlook to stable
Credit rating agency Standard & Poor’s has kept Turkey’s sovereign credit rating at B while upgrading the country’s outlook from “negative” to “stable”. The agency commented that Turkey’s new economic policy team has increased the policy interest rate in order to fight inflation and to reduce the exchange rate, while introducing a number of indirect taxes to balance the financial deterioration.
Sep. 29, 2023

Exports increase slightly in August
In August 2023, the exports of the Turkish economy increased by 1.6%, whereas imports decreased by 6.9% versus the same month last year (YOY). With exports of USD 21.6 bn and imports of USD 30.3 bn, the trade deficit was reduced by 23.1% to USD 8.7 bn during the same period. In August, Germany remained Turkey’s biggest export partner (USD 1.8 bn), leading the USA (USD 1.3 bn), and Iraq (USD 1.1 bn). China continued to be the country with the most imports to Turkey (USD 3.8 bn), followed by the Russian Federation (USD 3.3 bn), and Germany (USD 2.6 bn).
Sep. 29, 2023

Inflation continues to increase
In September 2023, consumer prices in Turkey increased by 4.75% over the previous month, while the CPI went up 61.53% YOY. The highest monthly price hike took place in education (30.27%), followed by alcoholic beverages and tobacco (10.03%). No price decrease occurred among the main product groups. The largest annual price increase was in hotels, cafés and restaurants (92.48%). The domestic producer price index (D-PPI) increased by 3.40% monthly, and by 47.44% YOY.
Oct. 3, 2023

Unemployment continues to decrease
In August 2023, approximately 3,223,000 people in Turkey aged 15 and older were officially out of work. The seasonally adjusted unemployment rate of 9.2% was 0.2 points lower than in the previous month, and 0.6 points lower YOY. The labour force participation rate amounted to 53.3% in total, and 36.0% for females.
Oct. 10, 2023

Industrial production increases
In August, Turkey’s industrial production index increased by 3.1% YOY, with a manufacturing industry growth of 1.8%. The biggest increases in the manufacturing industry category occurred in the product groups “other transport equipment” (64.7%), “repair and installation of machinery and equipment” (31.8%), and “computer, electronic and optical products” (22.3%). The highest decreases were reported in the product groups “printing and reproduction of recorded media” (-18.5%), “wearing apparel” (-11.7%), and “textiles” (-8.5%).
Oct. 10, 2023

 

Overview of Monthly Data

October Overview of Monthly Data

Growth Rates

October Growth Rates

Inflation

October Inflation