Turkey News August 2021
Covid-19 Status
(as of August 15, 2021)
Business
Green Deal Action Plan issued
The Turkish government has issued an action plan to determine the road map for the European Green Deal. According to the Ministry of Trade, the action plan is aimed at keeping the Turkish exports competitive in line with the transformation envisaged by the Green Deal, deepening the ties with the EU, strengthening the integration with the global supply chain, and attracting green investments to Turkey.
July 16, 2021
Tax relief measures extended
Within the scope of the coronavirus mitigation measures implemented by the Turkish government, the withholding tax reduction for commercial property rentals (from 20% to 10%), the VAT reduction for office rentals (from 18% to 8%), and the VAT reductions in several sectors, including accommodation, refreshments and passenger transportation, have been extended for another two months, until September 30.
July 30, 2021
Turkish e-scooter company bought up
Dubai-headquartered micromobility start-up Fenix has acquired Turkish e-scooter company Palm, established in 2019, for USD 5 mn. As Fenix CEO Jaideep Dhanoa pointed out, 75% of the population in Turkey lives in cities, and there is a good number of cities with more than 1 million inhabitants. He added that another important factor in their investment decision was that Turkey has an advanced e-scooter regulatory framework.
Aug. 3, 2021
Vinmar acquires Alfa Kimya
U.S. chemicals giant Vinmar has acquired Turkish textile chemicals manufacturer Alfa Kimya. This is the second investment of Vinmar in Turkey following the acquisition of chemicals trading company Veser. The Turkish Competition Authority has approved the transaction.
July 16-Aug. 7, 2021
Karsan to produce Renault Mégane cars
Turkish automotive producers Oyak Renault and Karsan have signed an agreement for the production of Mégane Sedan cars by Karsan for five years from the end of 2022. The deal is anticipated to generate an annual production volume of 55,000 cars. Karsan plans to make an investment of TRY 210 mn and hire 800 new employees for the project.
Aug. 9, 2021
Politics
Forest fires in the Aegean and Mediterranean region
Since July 28, there have been 240 forest fires in Turkey’s Aegean and Mediterranean regions, of which 235 have been brought under control as of August 10. Several villages and hotels had to be evacuated due to the imminent threat. The Turkish government has provided monetary aid to citizens most afflicted by the fires, and tax and social security debts in the affected regions have been postponed.
Aug. 10, 2021
Economy
Imports increase by 38.7% in June
In June 2021, the exports of the Turkish economy rose by 46.9%, whereas imports were up 38.7% over the same month of the previous year (YOY). With exports increasing to USD 19.8 bn, and imports to USD 22.6 bn, the trade deficit decreased by 0.2% to USD 2.9 bn. In June, the main partner for exports continued to be Germany (USD 1.7 bn), ahead of the USA (USD 1.3 bn), and the UK (USD 1.3 bn). China was again the country where the most imports to Turkey came from (USD 2.9 bn), followed by Russia (USD 2.3 bn) and Germany (USD 1.9 bn).
July 30, 2021
Inflation increases
In July 2021, consumer prices in Turkey rose by 1.80% in comparison to the previous month, with the CPI going up by 18.95% YOY. The highest monthly rise was registered in housing (5.07%), ahead of food & non-alcoholic beverages (2.77%). Decreases occurred in clothing & footwear (-2.13%), and furnishings & household equipment (-0.06%). The biggest annual price increase was in food & non-alcoholic beverages (24.92%). The domestic producer price index (D-PPI) rose by 2.46% monthly, and by 44.92% YOY.
Aug. 3, 2021
Unemployment drops to 10.4% in June
In June 2021, some 3,380,000 people in Turkey aged 15 and older were officially out of work. The non-seasonally adjusted unemployment rate was 10.4%, a 2.6-point decrease YOY. The labour force participation rate increased to 51.2% in total, and to 32.3% for females. Of those with employment in this period, 54.0% were employed in the service sector, 21.3% in industry, 18.0% in agriculture, and 6.6% in construction.
Aug. 10, 2021
Industrial production gains 23.9%
Turkey’s industrial production index in June went up by as high as 23.9% YOY, with the manufacturing industry recording an increment of 24.8%. The highest increases in the manufacturing industry category took place in the product groups “other transport equipment” (44.5%), “machinery & equipment n.e.c.” (41.1%), and “leather & related products” (33.1%). The only decreases were reported in “tobacco products” (-10.1%) and “basic pharmaceutical products & pharmaceutical preparations” (-1.2%).
Aug. 12, 2021
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 19.00%. The bank decided to maintain its tight monetary policy considering the continuously high levels of inflation and the inflation expectations.
Aug. 12, 2021
Overview of Monthly Data
Growth Rates
Inflation
