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Turkish Economy - News & Updates

What is the driving force behind Turkish Economic problem?

  • The on going Trump attack on Turkish Economy

    Votes: 29 19.9%
  • Jewish Agenda to weaken adjacent countries to Israel

    Votes: 36 24.7%
  • Internal Turkish economic problems

    Votes: 50 34.2%
  • Falling Exports for Turkey

    Votes: 5 3.4%
  • Loss of Tourism income for Turkey

    Votes: 1 0.7%
  • External Loans or Debt impacting Economy

    Votes: 25 17.1%

  • Total voters
    146
Survey expects 5.2% growth in Turkish economy in Q1
Economists' growth forecasts vary between 4.4% and 5.8% for January-March period
Murat Aslan |27.05.2020

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ISTANBUL

The Turkish economy is projected to have expanded 5.2% year-on-year in the first quarter of 2020, an Anadolu Agency survey revealed Wednesday.

On Friday, the country's statistical authority TurkStat will release gross domestic product figures (GDP) for the January-March period this year.

A panel of 16 economists forecast an average of 5.2% growth year-on-year in the first quarter, hovering between 4.4% and 5.8%.

The economists also predicted that Turkey's annual GDP in 2020 would narrow 1.5% on average -- the highest at minus 0.9%, the lowest at minus 5%.

According to TurkStat, the country's economy grew 0.9% last year while it had expanded 7.4% in 2018.

Turkey reentered the road to growth in the third quarter of 2019 after three weak quarters.

The country's GDP expanded 6% in the last quarter of 2019, 0.9% in the third quarter after contracting 2.3% in the first quarter and 1.6% in the second on an annual basis.

*Tuba Sahin contributed to this report from Ankara.


https://www.aa.com.tr/en/economy/survey-expects-52-growth-in-turkish-economy-in-q1/1855021

Economic confidence in Turkey surges by over 20% in May amid normalization
BY DAILY SABAH WITH AA
ISTANBUL ECONOMY
MAY 28, 2020 12:09 PM GMT+3

People wearing face masks shop for food at a market during the coronavirus outbreak, Ankara, Turkey, April 21, 2020. (AP Photo)



Turkey's economic confidence index improved sharply to 61.7 in May, the country's statistical authority said on Thursday.

The May figure jumped 20.4% amid Turkey's normalization from the waning coronavirus pandemic, Turkish Statistical Institute (TurkStat) data showed.

The index had plunged 44.1% month-on-month in April to 51.3 points as it felt the impact of the outbreak.

The month-on-month rise in May was driven by improvements in the consumer, real sector, services, retail trade and construction confidence indices.

The construction confidence index surged the most from last month, at 31.1%.





The service and consumer confidence indices followed with 10.8% and 8.5% rises, respectively.

The retail trade confidence index also saw a 5% increase.

Commenting on the data, Erhan Aslanoğlu, an economy professor at Istanbul-based Piri Reis University, said these indices saw sharp decreases in the last two months due to the high level of uncertainties created by COVID-19.

In May there has been a decline in the number of cases and deaths, creating a relatively positive atmosphere compared to previous months.

These developments, along with the base effect, have led to rises in the confidence indices, he said, adding that the figures could go up or down suddenly depending on the pandemic's course.

The economic confidence index is a composite index that encapsulates consumers' and producers' evaluations, expectations and tendencies about the general economic situation, according to TurkStat.

It indicates an optimistic outlook about the general economic situation when the index is above 100, while it shows a pessimistic outlook when below 100.


https://www.dailysabah.com/business...y-surges-by-over-20-in-may-amid-normalization


Turkey backs firms in their digital transformation
ANKARA
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Turkey will back and support firms financially in their move toward digital transformation, thus preparing the economy for further digitalization amid the coronavirus pandemic, Turkey’s trade minister said on May 27.

In order to encourage our companies to e-export, the government will bear their membership expenses with e-commerce platforms by 80% in 2020, and 60% in the following years, Ruhsar Pekcan said on Twitter.

She added that expenditures of parent organizations representing the Turkish business world for participation in virtual fairs and delegations will also be supported by 50%.

Noting that the practice of doing business during the virus outbreak has changed radically, she emphasized that the government has developed a new support mechanism to make its businesses more resistant to calamities, and increase e-exports, the practice of receiving and processing orders online from customers in foreign countries.

Turkey is working to facilitate access to digital technologies and to expand the smart industry, supporting the companies with incentives and grants in their digital transformation.


https://www.hurriyetdailynews.com/turkey-backs-firms-in-their-digital-transformation-155125
 
Quick recovery expected for local businesses as reopening starts in Turkey
BY DAILY SABAH WITH AA
ISTANBUL ECONOMY
MAY 31, 2020 1:24 PM GMT+3

People walk on Istiklal Street in Taksim, Istanbul, Wednesday, May 27, 2020. (AA Photo)



The Turkish government expects economic activities to return to pre-coronavirus levels soon and local businesses to recover quickly as the country prepares to reopen the economy from June 1 after more than two months of coronavirus-induced lockdown, Trade Minister Ruhsar Pekcan said Sunday.

Speaking to Anadolu Agency (AA) Sunday, Minister Pekcan said the government is assisting more than 2 million craftspeople and artisans to cope with the economic fallout of the virus through the TL 260 billion ($38 billion) Economic Stability Shield package unveiled this March.

She noted that the pandemic reaffirmed the vital role tradespeople and craftsmen play in the daily economy and said protecting them from bankruptcy during the crisis is crucial to ensure the continuity of economic activity.

Pekcan said the country had to employ two-pronged strategies to fight both the medical and economic impacts of the pandemic and stated that it has performed well compared to other countries in the world.

The Turkish economy reported one of the fastest expansion rates among its peers in the first quarter of 2020 with a 4.5% year-on-year growth, the Turkish Statistical Institute (TurkStat) announced Friday. The economy was expected to grow 5% in 2020 before the onset of the outbreak, as laid out in the country's new economic program announced last September.





To slow the spread of the coronavirus, Turkey in March closed its borders, halted flights and imposed weekend lockdowns, all of which led to declines in trade, tourism and domestic demand. Some factories also temporarily halted production. However, the restrictions imposed in the country were less severe than many other countries, including hard-hit Italy and Spain, and were introduced within the first days after the first case was confirmed.

The virus has as of Sunday claimed more than 4,500 lives in Turkey, with more than 163,000 infections. However, the country has less than 40,000 active cases as more than 70% of the patients have recovered.

'Quick recovery expected for local businesses'

Pekcan said the economic activity will begin its recovery process from Monday, when nearly all businesses, including restaurants, cafes, parks and sports facilities, reopen.

"We are expecting local businesses to recover financially and the economic activity to return back to pre-virus levels as people get back to their consumption habits," Pekcan said, noting that the government has continued to actively support businesses during the recovery.

However, she noted that the reopening will be a gradual process and urged businesses to pay maximum attention to new safety measures.

"I have no doubt that our shop owners will follow the simple 'mask, social distance and disinfection' rule announced by the president."

Pekcan said the government has taken extensive measures to protect small and medium enterprises (SMEs), including delaying credit payments of craftspeople and artisans to state lender Halkbank for three months without interest.

"In addition to that, the government provided other types of assistance such as an SME relief package, short-term employment allowance, postponement of premium payments."

Pekcan said a total of 606,545 craftspeople and artisans received up to TL 15.3 billion credit as part of the Craftspeople Relief Package unveiled by Halkbank.

"These credit loans provided a lifeline to businesses which were forced to shut down during this struggling period," the minister said.

She noted that Halkbank restructured and delayed around TL 3.5 billion credit payments of artisans and craftspeople that were due during the pandemic.


https://www.dailysabah.com/business...ocal-businesses-as-reopening-starts-in-turkey
 
Turkey to ‘become caravan-friendly in two years’
TRABZON
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A “Caravan Park” project was prepared in the Black Sea province of Trabzon for enthusiasts of caravans, which have been preferred during the COVID-19 outbreak in Turkey.

Tourism routes will be created for caravan parks to be established at highlands in the city and on the beaches.

Accommodation points will be created in Trabzon, which is selected as a pilot province in the project supported by the Culture and Tourism Ministry.

Tourism routes will also be created for caravan parks to be established at highlands in the city and on the beaches.

In the project, which will be planned in an area of 20 decares, infrastructure services such as social reinforcement areas, electricity and water will be provided, picnic and walking areas will be built.

The project is expected to expand to 34 provinces across the country in two years.

Noting that the understanding of tourism has changed after the COVID-19 outbreak, the project manager, Ali Kaan, stated that Turkey should also benefit from alternative tourism types such as journeys on caravans.

“There are about six million caravans in Europe. Our country cannot even get 1 percent of it. We want to realize the project within two years and offer Turkey as a caravan route to European tourists,” Kaan added.

Ayhan Aksoy, who settled in the United States 19 years ago and eventually realized his dream by buying a caravan after returning to the country, touched on the problems of caravan owners in Turkey.

Aksoy complained that there are not enough caravan parking places in the country and that the roads and the travel conditions are not enough.


https://www.hurriyetdailynews.com/t...an-friendly-in-two-years-155223&utm_term=post
 
COVID-19 to boost demand for Turkish products globally
BY ANADOLU AGENCY
ISTANBUL ECONOMY
JUN 01, 2020 2:33 PM GMT+3
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Turkish conglomerate Fiba Holding head and chairman of Foreign Economic Relations Board's (DEİK) Turkey-Netherlands Business Council Murat Özyeğin.


The demand for Turkish goods will continue to grow globally, day after day during the pandemic, Murat Özyeğin, the head of Turkish conglomerate Fiba Holding, said Monday.

European countries will turn to closer-distance alternatives and reliable countries such as Turkey, said Özyeğin, also the chairman of the Foreign Economic Relations Board's (DEİK) Turkey-Netherlands Business Council.

"As in many countries of the world, as a result of this (pandemic) process, the trend of diversifying supplier countries will also rise in the Netherlands," he noted.

After the COVID-19 pandemic, which first appeared in China last December, several sectors were affected by measures to stem the spread of the virus. Several manufacturing firms in the developed countries faced supply shortages due to the closed factories in China.

"The pandemic showed that the dependence on one country, China, within the global supply chain poses severe risks," Özyeğin stressed.





He reminded that Turkey and the Netherlands' bilateral trade volume has been expanding every year. In the first four months of 2020, Turkey's exports to the country amounted to $1.7 billion while imports from the Netherlands totaled $1.2 billion.

Last year, the bilateral trade was around $9 billion – $5.8 billion exports and $3.2 billion imports, official figures showed.

The Netherlands is one of the largest investor countries in Turkey, with 16% or $25.5 billion of the total $160.6 billion foreign direct investments in the last 18 years. Turkey's foreign investments in the Netherlands totaled $13.8 billion over the same period.

Among the largest 20 world economies, in terms of gross domestic product (GDP), the Netherlands is 17th and Turkey is 18th, Özyeğin recalled. Increasing cooperation with the Netherlands will be beneficial for both the countries, he noted.

https://www.dailysabah.com/business/economy/covid-19-to-boost-demand-for-turkish-products-globally

Turkey's drug agency becomes ICH regulatory member
BY DAILY SABAH
ISTANBUL BUSINESS
JUN 02, 2020 2:44 PM GMT+3

A researcher works in the laboratory of the Amsterdam UMC, in Amsterdam, the Netherlands, May 28, 2020. (AFP Photo)



Turkey officially became a regulatory member of the International Council for Harmonization of Technical Requirements for Pharmaceuticals for Human Use (ICH) by a unanimous vote in May, the country’s Health Ministry announced.

According to a statement released by the ministry Tuesday, Turkey’s Drug and Medical Device Agency (TITCK) has been admitted as the group’s 17th regulatory member by a unanimous vote held on May 27, three years after having an observer role.

Other members include the European Commission, the U.S. Food and Drug Administration (FDA), Japan’s Pharmaceuticals and Medical Devices Agency (PMDA), South Korean Ministry of Food and Drug Safety, and China’s Food and Drug Administration (CFDA).

The ministry also expects the membership to have a positive impact on the country’s medical exports.

The statement said the ICH admission meant Turkey would play a greater role in drug development and production processes and in the global pharmaceutical industry. Being a regulatory member of the ICH also demonstrates that licensed medical and pharmaceutical products developed in Turkey meet the global standards, the statement said.





Founded in 1990, the ICH is a platform bringing European, Japanese and American regulatory authorities and pharmaceutical industries together to set drug regulatory guidelines and global standards for drug reviews.


https://www.dailysabah.com/business/turkeys-drug-agency-becomes-ich-regulatory-member/news



Turkey's exports hit $10B in May
Turkey leaving worst behind as recovery begins, says trade minister
Tuba Şahin |02.06.2020

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ANKARA

Turkey's exports hit $10 billion this May in the shadow of the coronavirus pandemic, down 40.9% from the same month last year, according to preliminary Trade Ministry data released Tuesday.

Commenting on the figures, Trade Minister Ruhsar Pekcan said Turkish exports in May rose 10.8% month-on-month while falling on an annual basis due to lower external demand, high-base effects in 2019, and bank holidays.

"Turkey left the worst behind with the May export figures, recovery begins," Pekcan said on Twitter.

The country's imports also narrowed by 27.7% to $13.4 billion in the same period, the data showed.

She stressed that intermediate and investment goods imports constituted 91.2% of the total, pointing to a rise in production and exports for the coming period.

Pekcan said that the export/import coverage ratio climbed to 74.3%, up from 66.3% in May 2019.

Turkey last month saw a nearly 34% annual decline in the foreign trade volume to $23.4 billion, according to the data.

May's foreign trade deficit was more than double the deficit in the same month last year, reaching $3.4 billion.

"Our exports on a working-day basis in May surged 28.5% compared to April, hitting $540.5 million," Pekcan added.

Exports to the EU, the country's main export market, soared 17.3% on a monthly basis in May, she noted.

Stating that the economy's main locomotive sectors saw a revival in exports compared to a month earlier, Pekcan said automotive exports jumped 95.5%, ready-wear exports rose 45.5%, and textile and defense exports climbed 35.5% and 33.9%, respectively.



https://www.aa.com.tr/en/economy/turkeys-exports-hit-10b-in-may/1861874
 
TOGG received the EIA (Environmental Impact Assessment) report, which is required for the construction of the Gemlik factory, positively. - Annual production capacity of 175 thousand units. - 5 different models, all naturally 100 percent electric. - Employment for 4 thousand people. Turkey us get better!
 

Ouch this guy is really giving it. AKP and RTE are printing money like mad giving credit and whatnot.
 
TOGG received the EIA (Environmental Impact Assessment) report, which is required for the construction of the Gemlik factory, positively. - Annual production capacity of 175 thousand units. - 5 different models, all naturally 100 percent electric. - Employment for 4 thousand people. Turkey us get better!

Who will produce the motors and batteries of these cars?
 
I remember reading that the batteries would be produced in Turkey. That’s was before the economic crises though.
 
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