Business News Turkey October 2024

Business

Airbus supplier opens new plant in the European Free Zone

German Mubea Aviation, one of Airbus’ major parts suppliers, has started production in its second factory in the European Free Zone in Ergene (Tekirda? province) following a EUR 44 mn investment. Stefan Koch, Mubea Aviation Chairman, said that they have gained very good experience on account of Turkey’s favourable working conditions and the availability of a qualified and highly motivated workforce. The company aims to create more than 250 new jobs and reach a turnover of EUR 40 mn as of next year with its new production facility, which offers 17,000 square meters of production space and 2,000 square meters of office space.

Sep. 12, 2024

43 Turkish companies listed among top 250 international contractors by ENR

The Top 250 International Contractors 2024 list compiled by U.S. trade magazine Engineering News-Record (ENR) includes 43 Turkish companies, exceeding the previous year’s figure of 40. However, the share of Turkish companies in global revenues decreased from 4.4% to 3.7%, with USD 18.5 bn in revenue generated. In terms of the number of companies, Turkey ranked second after China, which headed the list with 81 companies.

Sep. 16, 2024

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Turkey’s Tech Visa Program launched

Mehmet Fatih Kac?r, Minister of Industry and Technology, and Vedat I??khan, Minister of Labor and Social Security, have introduced the Türkiye Tech Visa Program, which aims to attract foreign tech-startups and individuals with superior technological talent to Turkey. The program provides foreign technology entrepreneurs with a three-year work permit in Turkey, an accelerated work permit process, six months of free legal, financial and technical consultancy, as well as access to health services.

Sep. 17, 2024

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BP Turkey’s fuel operations change hands

The Turkish Competition Authority has approved the takeover of BP Turkey and its subsidiaries by Petrol Ofisi Group, on the condition that it divests 115 fuel stations, the vast majority of which will occur within two years. Petrol Ofisi, Turkey’s leading fuel and lubricant company, is owned by Dutch energy trading giant Vitol. The value of the transaction has not been disclosed. Operating in Turkey since 1912, BP currently maintains more than 700 petrol stations in this country.

Sep. 19, 2024

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Abu Dhabi investor acquires Odeabank

Abu Dhabi Developmental Holding Company (ADQ) has reached an agreement with the consortium of shareholders to acquire 96% shares of Istanbul-headquartered Odeabank. According to the agreement, in addition to the 76.4% share of Bank Audi, the sale of the shares of the European Bank for Reconstruction and Development (8.0%), the International Finance Corporation (6.4%), IFC FIG Investment Company (3.4%) and Mohammad Hassan Zeidan (1.8%) to ADQ has been agreed upon.

Oct. 15, 2024

Politics

Erdo?an addresses UN General Assembly

In his address to the United Nations General Assembly in New York, Turkish President Recep Tayyip Erdo?an called for no longer remaining silent about the massacres committed by Israel in Gaza, for an immediate ceasefire and an end to the war, and for those responsible for the atrocities to be punished. Erdo?an also asserted that the UN had fallen short in fulfilling its founding mission. During his visit to the U.S., Erdo?an met with leaders of numerous countries, including Germany, Italy, Iran, Serbia, Ukraine, Greece, and Armenia.

Sep. 26, 2024

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Erdo?an receives Scholz in Istanbul

President Erdo?an, in a joint press conference with German Chancellor Olaf Scholz at the Dolmabah?e Office of the Presidency, highlighted the 100th anniversary of the friendship agreement between the two countries. Erdo?an pointed out that the bilateral trade has reached USD 50 bn, stating that their goal is to achieve USD 60 bn. Scholz on his part said that they want to strengthen relations with Turkey. He stated that while they agree with Turkey on the Russia-Ukraine issue, they think differently on the Israel-Palestine conflict, emphasizing that the State of Israel has the right to defend itself.

Oct. 19, 2024

Economy

Slight increase of exports in August

In August 2024, the exports of the Turkish economy increased by 2.3%, whereas imports decreased by 10.7% over the same month of the previous year (YOY). With exports amounting to USD 22.1 bn and imports to USD 27.0 bn, the trade deficit was reduced by 42.7% during the same period, down to USD 5.0 bn. In August, Germany remained Turkey’s primary export partner with USD 1.7 bn, leading the USA (USD 1.3 bn), and the UK (USD 1.2 bn). China continued to be the country with the most imports to Turkey (USD 4.0 bn), followed by the Russian Federation (USD 3.4 bn), and Germany (USD 2.1 bn).

Sep. 27, 2024

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Inflation drops below 50%

In September 2024, consumer prices in Turkey rose by 2.97% over the previous month, with a CPI increase of 49.38% YOY. The biggest monthly price hike was in education (14.21%), followed by alcoholic beverages and tobacco (4.16%). The only decrease among the main product groups occurred in communication (-0.88%). The highest annual price increase was in housing (97.87%). The domestic producer price index (D-PPI) went up 1.37% on a monthly basis, and 33.09% YOY.

Oct. 3, 2024

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Further decline of industrial production

In August, Turkey’s industrial production index decreased by 5.3% YOY, with the manufacturing industry recording a minus of 5.4%. The largest increases in the manufacturing industry category were reported in the product groups “basic metals” (3.7%), “printing and reproduction of recorded media” (2.7%), and “other manufacturing” (2.0%) while the highest decreases occurred in the product groups “motor vehicles, trailers and semi-trailers” (-20.5%), “other transport equipment” (-18.2%), and “computers, electronic and optical products” (-13.5%).

Oct. 10, 2024

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Unemployment continues to decrease

In August 2024, around 3,055,000 people in Turkey aged 15 and older were officially out of work. The seasonally adjusted unemployment rate was 8.5%, 0.3 points lower than in the previous month, and 0.7 points down YOY. The labour force participation rate amounted to 54.3% in total, and 36.8% for females.

Oct. 10, 2024

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Turkish Central Bank keeps interest rate constant

The Central Bank of the Republic of Turkey has opted to maintain its policy rate (the one-week repo auction rate) of currently 50.00%. The bank stated that “the tight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed, and inflation expectations converge to the projected forecast range.”

Oct. 17, 2024

Overview of Monthly Data

Growth Rates

Inflation