Turkey News December 2021
Covid-19 Status
(as at December 15, 2021)
Business
Malaysian DIY chain invests in Turkey
Malaysian-owned MR.D.I.Y., one of Asia’s largest home improvement retailers, has entered the Turkish market, opening its first store in Ümraniye, Istanbul. The company intends to open 40 to 50 DIY markets in Turkey by 2022 year-end.
Nov. 22, 2021
Yarımca Container Port operator to continue investing in 2022
Kris Adams, CEO of DP World Yarımca, has announced his company’s plans to invest USD 10 mn in 2022. The port management company has so far invested USD 600 mn in Turkey, and the container port has reached a capacity of 1.3 mn TEU.
Nov. 23, 2021
Victoria PLC acquires Graniser
London-based Victoria PLC, one of world’s oldest carpet, ceramic, and tiles producers, has acquired the Izmir-based ceramic tiles manufacturer Graniser from the investment company Bancroft Private Equity LLP. Victoria PLC shall pay EUR 8.4 mn for the acquisition, additionally assuming Graniser’s net debt of EUR 39.8 mn. Philippe Hamers, Group Chief Executive of Victoria, stated “The low-cost manufacturing environment that Graniser offers will give Victoria the ability to leverage its manufacturing expertise and brand strength to further drive operating margins.”
Nov. 24, 2021
Schott establishes a new plant in Turkey
German glass manufacturer Schott is to open its second plant in Turkey, located in the city of Bolu, in January 2022, following an investment of TRY 100 mn. The new plant is expected to add at least 300 new jobs to Schott Turkey’s current employee figure of 700. The plant is to manufacture glass for the white goods sector and to export 60% of its production.
Dec. 1, 2021
Renault establishes new subsidiary in Turkey
French automotive giant Renault has announced that it will form a new company in Turkey to be active in the field of new mobility within the scope of its “Renaulution” plan. The company name shall be Renault Group Otomotiv A.Ş., to be owned 100% by Renault Group.
Dec. 2, 2021
Politics
Turkey makes commitments at COP26
At the COP26 UN Climate Change Conference in Glasgow, Turkey signed four out of more than thirty commitments. These four commitments are about zero emission vehicles, forests and land use, the Breakthrough Agenda, and the international aviation climate ambition coalition.
Nov. 17, 2021
Turkey and the UAE sign agreements
Turkish President Recep Tayyip Erdoğan has met with Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed Al Nahyan in Ankara. Nine agreements have been signed between the two countries regarding investments in different sectors in Turkey, including energy, healthcare, agriculture, and finance. In addition, a memorandum of understanding for the cooperation between the two countries’ central banks has been signed. Mohammed Hasan Al Suwaidi, CEO of Abu Dhabi Development Holding Company, has stated that they have allocated USD 10 bn for their investments in Turkey.
Nov. 25, 2021
Turkish Finance Minister resigns
President Erdoğan has accepted the resignation of Lütfi Elvan, the Minister of Treasury and Finance, appointing Nureddin Nebati to replace him. Elvan had taken office just over a year ago. The new minister is known to be a strong supporter of the low interest rate policy of the country’s leader.
Dec. 3, 2021
Deepening of cooperation between Qatar and Turkey
Sheikh Tamim bin Hamad Al Thani, the Emir of Qatar, has received his Turkish counterpart Erdoğan in the country’s capital city, Doha. 15 bilateral agreements were signed following their meeting, aiming to further develop the cooperation between the ministries and institutions of the two countries.
Dec. 7, 2021
Economy
Exports rise 20.1% in October
In October 2021, the exports of the Turkish economy increased by 20.1%, while imports were up 12.8% compared to the same month of the previous year (YOY). With exports of USD 20.8 bn, and imports of USD 22.2 bn, the trade deficit dropped 40.1% to USD 1.4 bn. In October, Germany remained Turkey’s primary export partner (USD 1.7 bn), leading the USA (USD 1.3 bn) and the UK (USD 1.2 bn). China continued to be the country accounting for the most imports to Turkey (USD 2.5 bn), ahead of Russia (USD 2.4 bn) and Germany (USD 1.5 bn).
Nov. 29, 2021
7.4% economic growth in Q3 2021
Turkey’s GDP in the third quarter of 2021 increased by 7.4% over the same period of the previous year. The quarterly GDP at current prices reached TRY 1,915.5 bn, and USD 225.5 bn in dollar terms. The services sector grew by 20.7%, and the manufacturing industry by 9.4%, whereas the construction industry and agriculture contracted by 6.7% and 5.9%, respectively.
Nov. 30, 2021
Fitch revises Turkey’s outlook to negative
Fitch Ratings has kept Turkey’s Long-Term Issuer Default Rating at non-investment grade BB-, whereas the country’s outlook has been downgraded to negative. The agency pointed out that the Turkish Central Bank’s monetary policy has led to a deterioration in domestic confidence.
Dec. 2, 2021
Inflation increase continues
In November 2021, consumer prices in Turkey rose by 3.51% in comparison to the previous month, with the CPI going up by 21.31% YOY. The highest monthly rise was registered in transportation (6.31%), followed by miscellaneous goods & services (5.36%). No decrease occurred among the main product groups. The biggest annual price increase was in hotels, cafés & restaurants (28.90%). The domestic producer price index (D-PPI) rose by 9.99% monthly, and by 54.62% YOY.
Dec. 3, 2021
Unemployment announced as 10.7% in October
In October 2021, some 3,623,000 people in Turkey aged 15 and older were officially out of work. The non-seasonally adjusted unemployment rate decreased by 2.1 points YOY to 10.7%. The labour force participation rate was up 52.9% in total, and 34.6% for females. The distribution of the labour force according to sectors was: services 55.5%, industry 21.1%, agriculture 17.1%, and construction 6.3%.
Dec. 10, 2021
Industrial production gains 8.5%
Turkey’s industrial production index in October went up by 8.5% YOY, with the manufacturing industry recording an increment of 9.2%. The highest increases in the manufacturing industry category occurred in the product groups “printing and reproduction of recorded media” (29.1%), “leather and related products” (26.0%), and “other manufacturing” (25.6%). Decreases were reported in “motor vehicles, trailers & semi-trailers” (-10.2%), “basic pharmaceutical products & pharmaceutical preparations” (-9.0%), and “electrical equipment” (-0.4%).
Dec. 13, 2021
Turkish Central Bank reduces interest rate further
The Central Bank of the Republic of Turkey has again reduced its policy rate (the one-week repo auction rate), to 14.00%, down from 15.00%. The bank stated that it has decided “to complete the use of the limited room implied by transitory effects of supply-side factors and other factors beyond monetary policy’s control on price increases.”
Dec. 16, 2021
Overview of Monthly Data
Growth Rates
Inflation
