Turkey News August 2023
Business
Rönesans and TotalEnergies partner in renewable energy
Turkish Rönesans Energy and French energy company TotalEnergies have entered into a partnership for new investments in renewable energy. 50 per cent of Rönesans Energy, a subsidiary of Rönesans Holding, has been purchased by TotalEnergies. The partnership plans to build a 1,000 MW wind and solar power plant capacity in three years. Stéphane Michel, TotalEnergies Gas, Renewables & Power President, stated that in view of the perspective of the Turkish market and the quality of the existing renewable sites in the country, they are convinced that this new partnership will be a further step towards developing their integrated power activity profitably.
July 22, 2023
DHL Group acquires MNG Kargo
German DHL Group has signed an agreement to buy 100 per cent shares of MNG Kargo. Founded in 2003, the company MNG Kargo is one of the leading players in the Turkish cargo sector with 27 transfer centres, more than 800 branches, and approximately 10,000 employees.
July 26, 2023
Hilton and Torunlar REIC sign agreement
World-renowned accommodation company Hilton and Turkish Torunlar REIC have signed a franchise agreement for the “Embassy Suites by Hilton” brand. Offering a high standard accommodation experience with a suite hotel concept, Embassy Suites by Hilton Torun Center will feature a total of 110 rooms. As Simon Vincent, Executive Vice President & President Europe, Middle East & Africa, stated, Hilton has been operating in Turkey for 65 years, where it currently has over 100 hotels, making Turkey the fourth largest market for Hilton worldwide. Vincent added that with the Embassy Suites by Hilton brand, they aim to make a successful entry into both Turkey and Europe with Torunlar REIC.
July 28, 2023
Politics
Erdoğan completes his visits in the Gulf Region
Turkish President Recep Tayyip Erdoğan has met with Crown Prince Mohammed bin Salman in Saudi Arabia, the first stop of his Gulf tour to hold talks. Cooperation agreements were signed between the two countries in the fields of direct investments, communication, defence, and energy. Erdoğan then continued to Qatar, where he met with the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, and finally to the United Arab Emirates to meet with President Sheikh Mohamed bin Zayed Al Nahyan. As a result, 13 agreements with a total volume of USD 50.7 bn were signed between Turkey and the UAE in different areas.
July 18-19, 2023
Economy
Turkish Central Bank raises interest rate again
The Central Bank of the Republic of Turkey under its new leadership has again increased its policy rate (the one-week repo auction rate) – from 15.00% to 17.50%. 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.”
July 20, 2023
Both exports and imports decrease in June
In June 2023, the exports and imports of the Turkish economy decreased by 10.5% and 17.5%, respectively, compared to the same month of the previous year (YOY). With exports of USD 20.9 bn and imports of USD 26.1 bn, the trade deficit decreased by a full 37.3% to USD 5.2 bn during the same period. In June, Germany remained Turkey’s number one export partner (USD 1.8 bn), leading the USA (USD 1.3 bn) and the UK (USD 1.1 bn). China became the country accounting for the most imports to Turkey (USD 3.8 bn), replacing the Russian Federation (USD 2.9 bn), and followed by Germany (USD 2.0 bn).
July 28, 2023
Inflation starts to increase
In July 2023, consumer prices in Turkey increased by 9.49% over the previous month, while the CPI went up by 47.83% YOY. The highest monthly price hike took place in transportation (17.75%), followed by health (13.61%). No price decrease occurred among the main product groups. The biggest annual price increment was in hotels, cafés and restaurants (82.62%). The domestic producer price index (D-PPI) increased by 8.23% monthly, and by 44.50% YOY.
Aug. 3, 2023
Seasonally adjusted unemployment announced as 9.6%
In June 2023, some 3,337,000 people in Turkey aged 15 and older were officially out of work. The seasonally adjusted unemployment rate of 9.6% was 0.1 points higher than in the previous month, and 0.8 points lower YOY. The labour force participation rate was 52.9% in total, and 35.5% for females.
Aug. 10, 2023
Industrial production increases slightly
In June, Turkey’s industrial production index increased by 0.6% YOY, and the manufacturing industry by 2.1%. The biggest increases in the manufacturing industry category occurred in the product groups “other transport equipment” (61.4%), “computer, electronic and optical products” (52.0%), and “repair and installation of machinery and equipment” (22.2%). The highest decreases were reported in the product groups “printing and reproduction of recorded media” (-15.4%), “textiles” (-13.4%), and “beverages” (-12.9%).
Aug. 10, 2023
Overview of Monthly Data
Growth Rates
Inflation
