Turkey News August 2022
Business
Turkish executive to become Rolls-Royce’s CEO
Tufan Erbilgiç, former CEO of BP’s downstream business, has been appointed as CEO and an executive director of Rolls-Royce Holdings plc. He is set to take office in January 2023, succeeding Warren East.
July 26, 2022
Letgo partners with Pilot Garage
Otoplus, the used car business unit of New York-headquartered e-commerce giant Letgo, has acquired a 25% stake in Turkish automobile expertise service company Pilot Garage. Letgo CEO Johan Nel announced that they will continue investing in the Turkish second-hand vehicle market, which he described as extremely dynamic and large.
July 28, 2022
Türk Telekom and Korea Telecom agree on strategic cooperation
Turkish and South Korean telecommunication companies Türk Telekom and Korea Telecom have signed a strategic cooperation agreement including various topics, such R&D in 5G, joint investment in start-ups, and media content exchange. The two companies had signed a memorandum of understanding for cooperation at the Mobile World Congress in March.
Aug. 6, 2022
Hoshizaki increases stake in Öztiryakiler
Japanese Hoskizaki Corporation has increased its stake in the Turkish industrial kitchen manufacturer Öztiryakiler to 39%. Hoshizaki had acquired 29% of the company’s shares in 2019. Following the partnership, Öztiryakiler built a new plant which was commissioned in May. The well-established company, founded in 1958, has 1,400 employees and exports its products to more than 130 countries.
Aug. 8, 2022
IHC buys half of Kalyon Enerji
Abu Dhabi-based International Holding Company (IHC) has acquired 50% of Turkish renewable energy generation company Kalyon Enerji for AED 1.8 bn (USD 490 mn). Kalyon Enerji owns a 1,000 MW solar plant in Karapınar/Konya, which has been partially put into operation, as well as solar and hydroelectric power plants in other provinces of Turkey.
Aug. 12, 2022
Politics
Leaders of Iran, Turkey and Russia- meet in Tehran
Iran’s President Ebrahim Raisi has received his Turkish and Russian counterparts, Recep Tayyip Erdoğan and Vladimir Putin, in Tehran. In their joint declaration, the three leaders emphasized the territorial integrity of Syria and condemned the activities of terrorist organizations as well as Israel’s military attacks in Syria.
July 20, 2022
Grain coordination centre commissioned
Following the agreement of Turkey, Russia, Ukraine and the United Nations, the Joint Coordination Centre has been commissioned in Istanbul. The Centre will work on the safe transportation of grain from Ukrainian ports to the world market.
July 27, 2022
Erdoğan hosts President of Slovenia
President Erdoğan has hosted Borut Pahor, President of Slovenia, in Ankara. Following their meeting, an agreement regarding cooperation in the fields of science and technology was signed.
Aug. 10, 2022
Turkey and Ukraine sign infrastructure agreement
Volodymyr Zelenskyy, the President of Ukraine, Turkish President Erdoğan and António Guterres, Secretary-General of the United Nations, have met in Lviv, Ukraine. Erdoğan voiced his concerns about the armed conflicts around the Zaporizhzhia Nuclear Power Plant. Turkey and Ukraine also reached an agreement regarding the reconstruction of the country’s infrastructure destroyed by the war.
Aug. 19, 2022
Economy
39.7% import hike in June
In June 2022, the exports of the Turkish economy increased by 18.7%, while imports were up 39.7% compared to the same month of the previous year (YOY). With exports of USD 23.4 bn, and imports of USD 31.6 bn, the trade deficit increased by 184.5% to USD 8.2 bn. In June, Germany was again Turkey’s primary export partner (USD 1.9 bn), leading the USA (USD 1.6 bn) and the UK (USD 1.2 bn). Russia remained the country accounting for the most imports to Turkey (USD 5.1 bn), ahead of China (USD 3.7 bn) and Germany (USD 2.0 bn).
July 29, 2022
Inflation keeps rising
In July 2022, consumer prices in Turkey increased by 2.37% in comparison to the previous month, and the CPI went up by 79.60% YOY. The highest monthly increment took place in health (6.98%), followed by alcoholic beverages and tobacco (6.85%). The only decrease among the main product groups occurred in transportation (-0.85%). The biggest annual price increase was in transportation (119.11%). The domestic producer price index (D-PPI) rose by 5.17% monthly, and by 144.61% YOY.
Aug. 3, 2022
Unemployment drops to 9.7% in June
In June 2022, some 3,364,000 people in Turkey aged 15 and older were officially out of work. The non-seasonally adjusted unemployment rate decreased by 0.7 points YOY to 9.7%. The labour force participation rate increased to 53.8% in total, and to 35.3% for females.
Aug. 10, 2022
Industrial production continues to grow
In June, Turkey’s industrial production index went up by 8.5% YOY, with the manufacturing industry recording an increment of 10.0%. The highest increases in the manufacturing industry category occurred in the product groups “leather and related products” (49.8%), “wearing apparel” (41.4%), and “basic pharmaceutical products and pharmaceutical preparations” (37.2%). The only decrease was reported in the product group “basic metals” (-5.3%).
Aug. 12, 2022
Moody’s lowers Turkey’s rating
The credit rating agency Moody’s has lowered Turkey’s credit rating to non-investment grade B3 while changing the country’s outlook from negative to stable. The agency emphasized rising pressures on Turkey’s balance of payments and increasingly unorthodox measures taken by the authorities to stabilize the currency and restore foreign-currency buffers.
Aug. 12, 2022
Turkish Central Bank reduces interest rate
The Central Bank of the Republic of Turkey has reduced its policy rate (the one-week repo auction rate) from 14.00% to 13.00%. The bank stated that it “expects the disinflation process to start on the back of measures taken and decisively implemented for strengthening sustainable price and financial stability along with the resolution of the ongoing regional conflict.”
Aug. 18, 2022
Overview of Monthly Data
Growth Rates
Inflation
