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Turkey News October 2022


Blue Water Shipping enters Turkish market
Denmark-headquartered international logistics company Blue Water Shipping has entered the Turkish market, opening offices in Istanbul and Izmir. Blue Water Shipping Global Director Palle Kamstrup explained that this decision was based on the increasing demand for high-quality logistics services and solutions in this country.
Sep. 20, 2022

Kuwait Investment Authority acquires shares of Zorlu Enerji
Wren House Infrastructure LP (WH), an affiliate of the Kuwait Investment Authority, has acquired shares of Turkish Zorlu Enerji and its subsidiary ZES, an electric vehicle charging station company. The total acquisition value has been quoted as USD 88 mn in the press. According to the agreement, Zorlu Enerji’s investments in electric vehicle charging stations and energy efficiency will be managed by a new company to be established abroad.
Sep. 28, 2022

Fraunhofer Institute to cooperate with Kalyon Enerji
Germany-based Fraunhofer Institute for Solar Energy Systems, one of Europe’s largest research institutes, has signed a cooperation agreement with Turkish Kalyon Enerji to develop solar energy technologies. The institute’s director, Prof. Dr. Hans-Martin Henning, declared that the solar energy industry in Turkey is already well positioned, and they will develop innovative PV technologies together with Kalyon Enerji.
Oct. 12, 2022



Turkey and Libya sign Memorandum of Understanding
Mevlüt Çavuşoğlu, Turkish Minister of Foreign Affairs, and Libyan Foreign Minister Najla Mangoush have met in Tripoli. A memorandum of understanding on hydrocarbon was signed between the two countries. Çavuşoğlu expressed his country’s desire to strengthen both its military and its commercial relations with Libya.
Oct. 3, 2022

EU presents latest Turkey Report
The European Commission has adopted its 2022 Enlargement Package, including an assessment of Turkey on its path towards the European Union. The report states that “there are serious deficiencies in the functioning of Turkey’s democratic institutions, and serious backsliding regarding civil society issues continued… Regarding the economic criteria, the Turkish economy is well advanced, but made no progress over the reporting period.”
Oct. 12, 2022

Erdoğan and Putin meet again
A meeting between Turkish President Recep Tayyip Erdoğan and Russian President Vladimir Putin has taken place in Astana, Kazakhstan. Putin reiterated his proposal that Turkey becomes a distribution centre for delivering Russian natural gas to Europe. Prior to conferring with Putin, Erdoğan had met with Kassym-Jomart Tokayev, the President of Kazakhstan. Six agreements between Turkey and Kazakhstan were signed in the presence of the two leaders on several topics, including healthcare and food security.
Oct. 14, 2022

Erdoğan receives the Emir of Qatar
Turkish President Recep Tayyip Erdoğan has received the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, in Istanbul. In the presence of the two leaders, eleven agreements in various areas such as media, industrial property rights, food security, and culture, were signed between Turkey and Qatar.
Oct. 14, 2022



Turkish Central Bank further reduces interest rate
The Central Bank of the Republic of Turkey has reduced its policy rate (the one-week repo auction rate) from 13.00% to 12.00%. The bank stated that “it is important that financial conditions remain supportive to preserve the growth momentum in industrial production and the positive trend in employment in a period of increasing uncertainties regarding global growth as well as escalating geopolitical risk.”
Sep. 22, 2022

40.4% import hike in August
In August 2022, the exports of the Turkish economy increased by 13.1%, while imports were up 40.4% over the same month of the previous year (YOY). With exports of USD 21.3 bn, and imports of USD 32.5 bn, the trade deficit increased by 159.9% to USD 11.2 bn. In August, Germany continued to be Turkey’s primary export partner (USD 1.7 bn), leading the USA (USD 1.5 bn) and Iraq (USD 1.3 bn). Russia remained the country accounting for the most imports to Turkey (USD 6.3 bn), well ahead of China (USD 4.2 bn) and Germany (USD 2.1 bn).
Sep. 30, 2022

S&P downgrades Turkey’s rating
Credit rating agency Standard & Poor’s has reduced Turkey’s sovereign credit rating to B, down from B+, and changed the country’s outlook from “negative” to “stable”. The reasons given for this decision were the country’s loose monetary and fiscal policy, low net foreign exchange reserves, and the fragility of the Turkish lira.
Sep. 30, 2022

Inflation keeps rising
In September 2022, consumer prices in Turkey increased by 3.08% in comparison to the previous month, and the CPI went up by 83.45% YOY. The highest monthly increment took place in housing (9.99%), followed by education (6.99%). No decrease occurred among the main product groups. The biggest annual price increase was in transportation (117.66%). The domestic producer price index (D-PPI) rose by 4.78% monthly, and by a full 151.50% YOY.
Oct. 3, 2022

Unemployment continues to decrease
In August 2022, some 3,415,000 people in Turkey aged 15 and older were officially out of work. The non-seasonally adjusted unemployment rate decreased by 2.2 points YOY to 9.8%. The labour force participation rate increased to 53.6% in total, and to 35.6% for females.
Oct. 10, 2022

Industrial production continues to slow down
In August, Turkey’s industrial production index was only able to increase by 1.0% YOY, with the manufacturing industry recording an increment of 2.2%. The highest increases in the manufacturing industry category took place in the product groups “leather and related products” (36.1%), “basic pharmaceutical products and pharmaceutical preparations” (29.8%), and “wearing apparel” (27.3%). The highest decreases were reported in the product groups “basic metals” (-14.6%), “beverages” (-11.1%), and “textiles” (-10.6%).
Oct. 12, 2022

Overview of Monthly Data

turkey economy graph october 2022-1

Growth Rates

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