Turkey News September 2021
(as at September 12, 2021)
Trendyol becomes first Turkish decacorn
With a new funding round raising USD 1.5 bn, the value of Trendyol, one of Turkey’s leading e-commerce platforms, has reached USD 16.5 bn. Thus the company has become Turkey’s first “decacorn”, denoting a company value in excess of USD 10 bn. General Atlantic, SoftBank Vision Fund 2, Princeville Capital, ADQ and the Qatar Investment Authority have led the round.
Aug. 10, 2021
Tax bases for excise duties on new cars increased
The tax bases for the special excise duty (ÖTV) for cars with engines under 2000 cc have been increased, whereas the tax rates remained the same, varying between 45 and 80%. This is expected to lower the price of cars priced under TRY 320,000 by up to 16%, thus stimulating sales.
Aug. 13, 2021
Gallagher acquires majority stake in Brokers’ House
U.S. insurance brokerage company Arthur J. Gallagher (AJG) has acquired a majority stake in Turkish Brokers’ House, which had been AJG’s network partner since 2014. The Turkish founding partners shall remain in the management. Vyvienne Wade, chairwoman of Gallagher Global Broking in Europe, Middle East, & Asia, said: “Turkey is increasingly recognised as an important and growing economic powerhouse and this acquisition gives us a springboard to growth in the region, which is home to industry sectors that closely align with our specialties.”
Aug. 20, 2021
Deadline for tax amnesty applications extended
The deadline for submitting applications to benefit from the law on the restructuring of certain public receivables has been extended by one month to September 30. The law covers a variety of receivables, including tax and social security premium liabilities, motor vehicle tax, and customs duties.
Aug. 27, 2021
Elekta acquires its distributor Özyürek
The Swedish precision radiation medicine company Elekta has acquired Özyürek, its Turkish distributor for neurosurgery solutions. Habib Nehme, Executive Vice President Turkey, India, Middle East, Africa, APAC & Japan, commented: “We expect to now strengthen Elekta’s market position and continue our growth in the region through a closer relationship with our customers.” Özyürek’s employees will join Elekta Turkey’s existing team of 70 people.
Sep. 2, 2021
New Coronavirus measures announced
The Turkish government has announced new pandemic mitigation measures before the reopening of schools on September 6. Accordingly, teachers and other school staff who have not received the second dose of the vaccine need to submit a negative PCR test twice a week. To attend events such as concerts, cinema, and theatre, and to use mass transportation for intercity travel, a negative test result will be obligatory for those who have not completed their vaccination. Furthermore, according to the announcement by the Ministry of Labour and Social Security, companies are now entitled to request a PCR test once a week from their unvaccinated employees.
Aug. 31-Sep. 6, 2021
FDI increase by 37.6% in 2021 H1
The volume of foreign direct investments (FDI) in Turkey has increased by 37.6% to USD 4.4 bn in the first half of 2021 compared with the same period of the previous year. Out of this volume, the volume of the capital investments has increased by 16.1% to USD 2.0 bn, and real estate sales by 36.7% to USD 2.4 bn.
Aug. 19, 2021
Imports increase by 16.8% in July
In July 2021, the exports of the Turkish economy rose by 10.2%, whereas imports were up 16.8% over the same month of the previous year (YOY). With exports increasing to USD 16.4 bn, and imports to USD 20.7 bn, the trade deficit increased by 51.3% to USD 4.3 bn. In July, the main partner for exports continued to be Germany (USD 1.5 bn), ahead of the USA (USD 1.1 bn) and the UK (USD 983 mn). China was again the country where the most imports to Turkey came from (USD 2.7 bn), followed by Russia (USD 2.5 bn) and Germany (USD 1.6 bn).
Aug. 31, 2021
21.7% economic growth in Q2 2021
Turkey’s GDP in the second quarter of 2021 increased by as high as 21.7% compared with the same period of the previous year due to the base effect. The quarterly GDP at current prices reached TRY 1,581.1 bn, and USD 188.6 bn in dollar terms. The services sector grew by 45.8%, the manufacturing industry by 43.4%, the construction industry by 3.1%, and agriculture by 2.3%.
Sep. 1, 2021
In August 2021, consumer prices in Turkey rose by 1.12% in comparison to the previous month, with the CPI going up by 19.25% YOY. The highest monthly rise was registered in food & non-alcoholic beverages (3.18%), ahead of hotels, cafés and restaurants (2.27%). Decreases occurred in clothing & footwear (-3.08%), and transportation (-0.77%). The biggest annual price increase was in food & non-alcoholic beverages (29.00%). The domestic producer price index (D-PPI) rose by 2.77% monthly, and by 45.52% YOY.
Sep. 3, 2021
Medium-Term Programme announced
Finance Minister Lütfi Elvan has announced the government’s Medium-Term Programme for the years 2022 to 2024 following its approval by a presidential decree. Accordingly, the Turkish economy is expected to grow by 9.0% in 2021, 5.0% in 2022, and 5.5% in 2023 and 2024. The unemployment rate target for 2024 has been set at 10.9%, and the inflation rate target at 7.6%.
Sep. 6, 2021
Unemployment drops to 12.1% in July
In July 2021, some 4,003,000 people in Turkey aged 15 and older were officially out of work. The non-seasonally adjusted unemployment rate was 12.1%, a 2.5-point decrease YOY. The labour force participation rate increased to 52.1% in total, and to 34.0% for females. Of those with employment in this period, 55.5% were employed in the service sector, 20.4% in industry, 18.4% in agriculture, and 5.8% in construction.
Sep. 10, 2021
Industrial production gains 8.7%
Turkey’s industrial production index in July went up by 8.7% YOY, with the manufacturing industry recording an increment of 7.9%. The highest increases in the manufacturing industry category took place in the product groups “wood and products of wood and cork” (21.8%), “basic metals” (20.4%), and “beverages” (20.3%). The highest decreases were reported in “basic pharmaceutical products and pharmaceutical preparations” (-24.2%), “repair and installation of machinery and equipment” (-14.5%), and “tobacco products” (-13.1%).
Sep. 13, 2021
Overview of Monthly Data