Turkey News December 2022
Theegarten-Pactec acquires MAKREV
German packaging systems manufacturer Theegarten-Pactec has acquired Turkish mechanical engineering company MAKREV. The acquisition will help the Dresden-based company to complement its product portfolio. In the words of Markus Rustler, the CEO of Theegarten-Pactec, “MAKREV machines are solidly constructed and produced to the highest quality. They have an impeccable reputation in the industry.” Established in 1998, MAKREV is specialized in manufacturing chocolate and candy wrapping machines.
Nov. 15, 2022
TÜV AUSTRIA enters Turkish boat survey sector
TÜV AUSTRIA, Austria’s leading testing, inspection, and certification service provider, has established a partnership, TÜV AUSTRIA Marine, with the Turkish company Bodrum Denizcilik to provide boat survey, test, and analysis services. After the Turkish market, the company aims to expand its services to Greece, Italy, and Croatia.
Nov. 18, 2022
World’s fifth tallest dam commissioned
Yusufeli Dam, Turkey’s tallest and the world’s fifth tallest arch dam at 275 meters height from foundation, has been commissioned after 10 years of construction. Speaking at the ceremony, President Recep Tayyip Erdoğan highlighted the investment volume of TRY 34 bn. Part of the Çoruh River Development Plan, the hydroelectric power plant with an installed power of 558 MW is to produce 1.9 bn kWh electricity per year.
Nov. 22, 2022
Daikin invests in R&D in Turkey
Japanese air conditioning systems manufacturer Daikin is going to invest EUR 3.5 mn in its R&D centre in Hendek, Sakarya province. The current centre will be enlarged from 2,700 to 6,000 sqm, and the investment is planned to be completed by April 2024.
Nov. 22, 2022
Tax bases for excise duty on new cars increased
The tax base limits for the special excise duty (ÖTV) for cars have been increased. The minimum limit for cars with engines up to 1600 cc has been raised from TRY 120,000 to 184,000. This is expected to lower the price of some models, thereby helping to stimulate sales.
Nov. 24, 2022
Prison sentence and ban from politics for Istanbul Mayor
Istanbul’s Mayor Ekrem İmamoğlu, one of the most popular opposition figures, has been sentenced to 2 years, 7 months and 15 days in prison and banned from politics for the accused offence of insulting public officials of the Supreme Election Council. The ruling, which is still subject to appeal, has been protested by many supporters in a gathering outside the city hall.
Dec. 14, 2022
Turkish Central Bank reduces interest rate to single digit
The Central Bank of the Republic of Turkey has reduced its policy rate (the one-week repo auction rate) from 10.50% to 9.00%. The bank stated that “considering the increasing risks regarding global demand, the Committee evaluated that the current policy rate is adequate, and decided to end the rate cut cycle that started in August.”
Nov. 24, 2022
31.4% import hike in October
In October 2022, the exports of the Turkish economy increased by merely 3.0%, while imports were up 31.4% compared to the same month of the previous year (YOY). With exports of USD 21.3 bn, and imports of USD 29.2 bn, the trade deficit surged 421.7% to USD 7.9 bn during the same period. In October, Germany remained Turkey’s primary export partner (USD 1.7 bn), leading Iraq (USD 1.4 bn) and the USA (USD 1.3 bn). Russia continued to be the country accounting for the most imports to Turkey (USD 5.0 bn), well ahead of China (USD 2.9 bn) and Switzerland (USD 2.4 bn).
Nov. 29, 2022
3.9% economic growth in Q3 2022
In the third quarter of 2022, Turkey’s GDP increased by 3.9% over the same period of the previous year. The quarterly GDP at current prices reached TRY 4,258.2 bn, and USD 241.5 bn in dollar terms. The services sector grew by 6.9%, the manufacturing industry by 1.7%, and agriculture by 1.1%, whereas the construction industry contracted by 14.1%.
Nov. 30, 2022
Inflation slows down
In November 2022, consumer prices in Turkey increased by 2.88% over the previous month, and the CPI went up by 84.39% YOY. The highest monthly increase took place in food and non-alcoholic beverages (5.75%), followed by alcoholic beverages and tobacco (3.19%). The only decrease occurred among the main product groups is clothing and footwear (-1.42%). The biggest annual price increment was in transportation (107.03%). The domestic producer price index (D-PPI) rose by 0.74% monthly, and by a full 136.02% YOY.
Dec. 5, 2022
Non-seasonally adjusted unemployment remains the same
In October 2022, some 3,458,000 people in Turkey aged 15 and older were officially out of work. The non-seasonally adjusted unemployment rate of 9.9% was the same as in the previous month but amounted to a decrease of 0.8 points YOY. The labour force participation rate increased to 54.0% in total, and to 36.2% for females.
Dec. 12, 2022
Industrial production increases by 2.5%
In October, Turkey’s industrial production index has increased by 2.5% YOY, with the manufacturing industry recording an increment of 3.7%. The highest increases in the manufacturing industry category occurred in the product groups “other transport equipment” (121.0%), “leather and related products” (36.0%), and “computer, electronic and optical products” (30.7%). The highest decreases were reported in the product groups “textiles” (-16.1%), “basic metals” (-14.2%), and “wood and products of wood and cork” (-4.6%).
Dec. 13, 2022
Overview of Monthly Data