Business News Turkey September 2024

Business

Livzym secures investment from Lallemand

Livzym Biotechnologies, a Turkish startup that develops and produces sustainable enzymes utilised in various industries, has received an investment of USD 11 mn. Consequently, the company’s valuation has increased to USD 60 mn. Canada-based global fermentation leader Lallemand led the USD 11 mn investment round, in which Evyap Holding, Türk Telekom Ventures and Startup?st Ventures took part. Livzym Biotechnologies stated that it plans to use this investment to expand its production facility.

Aug. 6, 2024

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?ukurova International Airport opened

?ukurova International Airport has been opened in the Tarsus district of Mersin province with a ceremony attended by President Recep Tayyip Erdo?an. The President stated that the airport, with a capacity of 9 million passengers, will be integrated into the Mersin-Adana-Gaziantep high-speed train line. The airport, built with a total investment of EUR 608.5 mn according to the Build-Operate-Transfer model, has a terminal area of 110 thousand square meters.

Aug. 10, 2024

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USD 587 mn investment to Turkish startups

According to the Turkey Startup Ecosystem Investment Report prepared by StartupCentrum, in the first 6 months of 2024, a total of USD 586.8 mn has been invested in startups in 254 investment rounds. This amount surpasses the total investment amount of 2023, with the startup receiving the highest investment being e-commerce giant Getir with USD 250 mn.

Aug. 13, 2024

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Ganfeng Lithium and Yi?it Akü to establish battery factory

A Strategic Cooperation Framework Agreement has been signed between Turkish Yi?it Akü and China-based Ganfeng Lithium Group to establish a joint venture in the field of energy storage in Turkey. According to the agreement, the companies aim to build a lithium battery production factory with an annual capacity of 5 GWh as well as an R&D centre through an investment of USD 500 mn. The total equipment investment is expected to be USD 202.1 mn, and the number of personnel approximately 400.

Aug. 16, 2024

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Two major Turkish container ports merge

Last year, UAE-based DP World and Turkish Evyap Group had agreed to establish a strategic capital partnership for their container ports DP World Yar?mca Port and Evyapport. The merger process has now been completed following the approval by the Competition Authority. Accordingly, DP World will hold a stake of 58% in Evyapport, while Evyap will have a share of 42% in DP World Yar?mca. The partnership aims to develop container ports and trade infrastructure in the Marmara Region. The two terminals at the Sea of Marmara, to be called “DP World Evyap Yar?mca” and “DP World Evyap Gulf,” shall provide services with a combined berthing area of 2,088 meters and a structure suitable for simultaneous berthing of multiple large container ships. The total annual container handling capacity shall be 2 million TEU.

Aug. 21, 2024

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Details of the HIT-30 program clarified

The details of the HIT-30 program, designed to reach a competitive scale in advanced technologies as outlined by President Recep Tayyip Erdo?an in July, have been clarified. Significant incentives ranging from free land to public procurement guarantees and 50% energy-cost support will be provided for 30+ priority investments under eight headings, including semiconductors, mobility, green energy, advanced manufacturing and digital technologies. Within this scope, USD 19.7 bn in support will be provided for electric vehicles, battery, chip, solar, wind and R&D investments until 2030. The total support budget shall reach USD 30 bn with subsequent calls.

Sep. 9, 2024

Politics

Abbas addresses Turkish parliament

Turkish President Recep Tayyip Erdo?an has met with Palestinian President Mahmoud Abbas, who came to Ankara to address the Turkish Grand National Assembly. During the meeting with his counterpart, Erdo?an stated that Turkey shall continue to support Palestine’s just cause, as well as to work to stop Israel. In his speech before the parliament, Abbas expressed appreciation for Turkey’s decision to get involved in the case filed against Israel by the Republic of South Africa at the International Court of Justice, and to stop trade with this country.

Aug. 15-16, 2024

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Erdo?an receives el-Sisi

President Erdo?an has received his Egyptian counterpart Abdel Fattah el-Sisi in Ankara. Erdo?an pointed out that Turkey has been among Egypt’s top five trade partners in the last 10 years, stating that their goal is to reach a trade volume of USD 15 bn in the next five years. President el-Sisi said that more intensive work is needed to ensure humanitarian aid reaches Gaza, and that they welcome the rapprochement between Turkey and Syria. The two countries signed 17 memorandums of understanding in seven different areas covering industry, transportation, agriculture, health, and education.

Sep. 5, 2024

Economy

Turkish Central Bank keeps interest rate constant

The Central Bank of the Republic of Turkey has decided 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.”

Aug. 20, 2024

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Exports increase in July

In July 2024, the exports of the Turkish economy increased by 13.8%, whereas imports decreased by 7.8% over the same month of the previous year (YOY). With exports amounting to USD 22.5 bn and imports to USD 29.8 bn, the trade deficit decreased by 41.8% during the same period, down to USD 7.3 bn. In July, Germany remained Turkey’s primary export partner with USD 1.8 bn, ahead of the UK (USD 1.6 bn), and the USA (USD 1.4 bn). China continued to be the country with the most imports to Turkey (USD 4.2 bn), followed by the Russian Federation (USD 3.8 bn), and Germany (USD 2.5 bn).

Aug. 28, 2024

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2.5% economic growth in Q2/24

In the second quarter of 2024, Turkey’s gross domestic product increased by 2.5% compared to the same period of the previous year. The quarterly GDP at current prices increased to TRY 9,949.8 bn, or USD 308.2 bn in dollar terms. The construction industry recorded 6.5% growth, the agriculture sector 3.7%, and the service industry 2.9%, whereas the manufacturing sector contracted by 2.9%. Furthermore, the annual GDP figure for 2023 has been revised upwards from 4.5% to 5.1%.

Sep. 2, 2024

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Inflation continues its downward trend

In August 2024, consumer prices in Turkey rose by 2.47% over the previous month, with a CPI increase of 51.97% YOY. The biggest monthly price hike was in education (11.34%), followed by housing (8.51%). The only decrease among the main product groups occurred in food and non-alcoholic beverages (-1.10%). The highest annual price increase was also in education (120.81%). The domestic producer price index (D-PPI) went up 1.68% on a monthly basis, and 35.75% YOY.

Sep. 3, 2024

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New Medium-Term Programme announced

The Turkish government has announced its Medium-Term Programme for the years 2025 to 2027. According to the projections, the Turkish economy is expected to grow by 3.5% in 2024 and 4.0% in 2025. The inflation rate target has been revised to 41.5% for 2024 and 17.5% for 2025. The unemployment rate is anticipated to be 9.3% in 2024 and 9.6% in 2025.

Sep. 6, 2024

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Fitch upgrades Turkey’s rating, for the second time in 2024

Fitch Ratings has raised Turkey’s Long-Term Foreign Currency Issuer Default Rating from B+ to BB-, while downgrading the country’s outlook from positive to stable. The agency emphasized that the reduced financial dollarisation and foreign exchange demand, capital inflows and increased access to external borrowing have lifted reserves, and improved depreciation expectations and attractive lira deposit real rates have led to a decline in financial dollarisation.

Sep. 6, 2024

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Industrial production continues to decrease

In July, Turkey’s industrial production index decreased by 3.9% YOY, with the manufacturing industry recording a minus of 5.1%. The highest increases in the manufacturing industry category were reported in the product groups “chemicals and chemical products” (6.6%), “electrical equipment” (5.4%), and “tobacco products” (4.6%) while the biggest decreases occurred in the product groups “basic pharmaceutical products and pharmaceutical preparations” (-23.3%), “computers, electronic and optical products” (-20.3%), and “wood and of products of wood and cork (except furniture)” (-18.2%).

Sep. 10, 2024

Unemployment rate decreases

In July 2024, around 3,167,000 people in Turkey aged 15 and older were officially out of work. The seasonally adjusted unemployment rate was 8.8%, 0.4 points lower than in the previous month, and 0.5 points down YOY. The labour force participation rate amounted to 54.4% in total, and 36.8% for females.

Sep. 10, 2024

Overview of Monthly Data

Growth Rates

Inflation