Turkey News April 2023
Xometry acquires Tridi
Turkish production platform Tridi has been acquired by US-based Xometry, an artificial intelligence-supported marketplace for on-demand production. Following the acquisition, Tridi will continue its activities as a subsidiary of Xometry Europe under the name ‘Xometry Turkey’. Randy Altschuler, CEO of Xometry, said that the Tridi acquisition will enable them to provide their European customers with more options for meeting their production needs.
Mar. 3, 2023
Tesla obtains charging network operator license in Turkey
The Turkish subsidiary of electric vehicle manufacturer Tesla has been licensed to operate a charging network. This brings the total number of companies holding charging network operator licenses in Turkey to 119.
Mar. 11, 2023
TOGG delivery starts
The first 20,000 units of Turkey’s “national automobile” TOGG have started to be delivered to the buyers who had pre-ordered and qualified in a drawing of lots. The first of the electric SUVs was delivered to the President’s wife, Emine Erdoğan. The base price of the TOGG T10X model is TRY 953,000, approximately EUR 45,000.
Apr. 4, 2023
Natural gas market to be liberalized
Legislative arrangements paving the way for liberalization of the natural gas market have been approved by the Turkish parliament. The new regulation gives the private sector an avenue to do business with the countries with which Turkey has gas import agreements. In addition to importing, the private sector will be able to sell the gas it brings to the domestic market, and to export it. With a presidential decree, it has become possible to split the state-owned BOTAŞ (Petroleum Pipeline Corporation) into different companies according to functions such as import, transmission, storage and distribution.
Apr. 6, 2023
Beyçelik Gestamp opens new factory in Kocaeli
Turkish-Spanish partnership Beyçelik Gestamp has opened its Yeniköy factory, its third investment in the province of Kocaeli. The factory, where the body components of Ford Otosan’s new vehicles will be manufactured, has been equipped with 160 robots and designed in accordance with the latest technologies. The new investment, covering an area of 25,000 square meters, is planned to create 550 new jobs.
Apr. 7, 2023
EUR 1 bn earthquake aid from the EU
Via live connection, Turkish President Recep Tayyip Erdoğan attended the International Donors’ Conference organized by the EU Commission together with Sweden, as current holder of the EU Council Presidency, to aid the earthquake-affected regions in Turkey and Syria. Erdoğan stated that the solidarity shown by the European Union, the United Nations and other international organizations in these difficult times will never be forgotten. Speaking at the conference, EC President Ursula von der Leyen announced that the European Commission will support Turkey with EUR 1 bn for post-earthquake reconstruction.
Mar. 21, 2023
Finland joins NATO following Turkey’s ratification
Finland has become the latest member of NATO following ratification by the national parliaments of the member states, including Turkey. On the other hand, Mevlüt Çavuşoğlu, Turkish Minister of Foreign Affairs, stated that in order to ratify Sweden’s membership, his country is waiting for steps to be taken in terms of cooperation in the fight against terrorism.
Apr. 4, 2023
Fitch affirms Turkey’s rating
Fitch Ratings has affirmed Turkey’s Long-Term Foreign Currency Issuer Default Rating as non-investment grade B while keeping the country’s outlook at negative. The agency stated that the “B rating reflects weak external finances, growing economic distortions due to increasingly interventionist and unconventional policies as well as political and geopolitical risks”.
Mar. 17, 2023
Turkish Central Bank keeps interest rate constant
The Central Bank of the Republic of Turkey has kept its policy rate (the one-week repo auction rate) constant at 8.50%. The bank stated that “the current monetary policy stance is adequate to support the necessary recovery in the aftermath of the earthquake by maintaining price stability and financial stability.”
Mar. 23, 2023
10.1% import hike in February
In February 2023, the exports of the Turkish economy decreased by 6.4%, while imports were up 10.1% compared to the same month of the previous year (YOY). With exports of USD 18.6 bn, and imports of USD 30.7 bn, the trade deficit rose by 51.4% to USD 12.1 bn during the same period. In February, Germany remained Turkey’s primary export partner (USD 1.7 bn), leading Italy and the USA (USD 1.1 bn each). Among the countries accounting for the most imports to Turkey, the ranking was unchanged: first Russia (USD 4.2 bn), then Switzerland (USD 3.5 bn), followed by China (USD 3.1 bn).
Mar. 31, 2023
S&P revises Turkey’s outlook to negative
Credit rating agency Standard & Poor’s has kept Turkey’s sovereign credit rating at B while downgrading the country’s outlook from “stable” to “negative”. The agency argued that “contingent liabilities from state banks and public enterprises are large and growing, while balance-of-payments and exchange-rate vulnerabilities remain elevated”.
Mar. 31, 2023
Inflation continues to decrease
In March 2023, consumer prices in Turkey increased by 2.29% over the previous month, and the CPI went up by 50.51% YOY. The highest monthly increase took place in education (6.30%), followed by hotels, cafés and restaurants (3.85%). The only decrease among the main product groups occurred in clothing and footwear (-1.92%). The biggest annual price increment was in hotels, cafés and restaurants (70.73%). The domestic producer price index (D-PPI) increased by 0.44% monthly and by 62.45% YOY.
Apr. 3, 2023
Non-seasonally adjusted unemployment announced as 10.7%
In February 2023, some 3,699,000 people in Turkey aged 15 and older were officially out of work. The non-seasonally adjusted unemployment rate of 10.7% was 0.4 points up from the previous month but 0.7 points lower YOY. The labour force participation rate was 53.2% in total, and increased to 36.1% for females.
Apr. 10, 2023
Industrial production decreases
In February, Turkey’s industrial production index decreased by 8.2% YOY, and the manufacturing industry recorded a decrease at the same rate, 8.2%. The biggest increases in the manufacturing industry category occurred in the product groups “computer, electronic and optical products” (36.4%), “leather and related products” (15.8%), and “repair and installation of machinery and equipment” (14.5%). The highest decreases were reported in the product groups “textiles” (-27.0%), “other transport equipment” (-25.3%), and “basic metals” (-24.7%).
Apr. 11, 2023
Overview of Monthly Data