MKALE1
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i spent 330 euro per person for one week Mallorca(spain) vacation everything inclusive, from Germany.
Turkish Economy - News & Updates
- Thread starter Zulkarneyn
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what
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Okay, but the average tourist there spends way more, in Turkey we barely make 600€ out of a tourist and countries such as Spain closer to 1k €. Countries like Spain or France attract many tourist that go to cultural sites and spend money in local places instead of staying in a hotel 24/7 all-inclusive. We need more of that. More Cappadocia, less Antalya - if you know what I mean.
Turkish economy grew by five percent in fourth quarter, minister says
SİVAS
Treasury and Finance Minister Berat Albayrak has predicted that the Turkish economy grew by 5 percent in the fourth quarter of 2019.
“Our performance in 2019 was beyond expectations. The full-year growth will come in at 0.5 percent,” Albayrak said yesterday at a gathering with businesspeople in the Central Anatolian province of Sivas.
The Turkish economy entered 2020 on a stronger footing, the minister said, adding that Turkey needs to have an economic structure and complete a transformation which help its economy weather fluctuations in the global economy.
In the third quarter of 2019, Turkey’s gross domestic product (GDP) increased by 0.9 percent on an annual basis, after contracting 1.6 percent and 2.3 percent in the second and first quarters of 2019.
The government targets 5 percent economic growth each year between 2020 and 2022, according to the new economic program released in September last year.
On a related note, the World Bank has kept its GDP growth forecasts for the Turkish economy for this year and next unchanged in the latest edition of its Global Economic Prospects unveiled on Jan. 8.
According to the World Bank, the Turkish economy will grow by 3 percent in 2020 while the country’s GDP growth rate will pick up to 4 percent in 2021. The bank’s growth forecast for 2022 is also 4 percent.
“Industrial production and manufacturing data suggest that the economy began to stabilize in late 2019, following the disruptions from acute financial market pressures in the previous year,” the bank said in the report.
Growth is projected to recover to 3 percent in 2020, as investment and imports recover from a deep contraction in 2019, it added.
“Gradual improvement in domestic demand is expected to support growth over the forecast horizon. This outlook assumes that fiscal and monetary policy remain steady.”
Singe-digit inflation
At the meeting with businesspeople in Sivas, Albayrak said that inflation will decline and stabilize at single digits in 2020.
The annual inflation was 11.84 percent last year. In December alone, consumer prices increased by 0.74 percent on a monthly basis, the latest official data from the statistics institute (TÜİK) showed.
The government targets 8.5 percent inflation this year. Its predictions suggest that the annual inflation rate will ease to 6 percent next year and further down to 4.9 percent in 2022.
The minister also said interest rates, too, will come down to single digits this year.
Farmers who are having problems repaying their debt to state-owned Ziraat Bankası will be allowed repay debt in five years with an annual interest rate of 9 percent, Albayrak announced.
http://www.hurriyetdailynews.com/tu...ercent-in-fourth-quarter-minister-says-150786
SİVAS
Treasury and Finance Minister Berat Albayrak has predicted that the Turkish economy grew by 5 percent in the fourth quarter of 2019.
“Our performance in 2019 was beyond expectations. The full-year growth will come in at 0.5 percent,” Albayrak said yesterday at a gathering with businesspeople in the Central Anatolian province of Sivas.
The Turkish economy entered 2020 on a stronger footing, the minister said, adding that Turkey needs to have an economic structure and complete a transformation which help its economy weather fluctuations in the global economy.
In the third quarter of 2019, Turkey’s gross domestic product (GDP) increased by 0.9 percent on an annual basis, after contracting 1.6 percent and 2.3 percent in the second and first quarters of 2019.
The government targets 5 percent economic growth each year between 2020 and 2022, according to the new economic program released in September last year.
On a related note, the World Bank has kept its GDP growth forecasts for the Turkish economy for this year and next unchanged in the latest edition of its Global Economic Prospects unveiled on Jan. 8.
According to the World Bank, the Turkish economy will grow by 3 percent in 2020 while the country’s GDP growth rate will pick up to 4 percent in 2021. The bank’s growth forecast for 2022 is also 4 percent.
“Industrial production and manufacturing data suggest that the economy began to stabilize in late 2019, following the disruptions from acute financial market pressures in the previous year,” the bank said in the report.
Growth is projected to recover to 3 percent in 2020, as investment and imports recover from a deep contraction in 2019, it added.
“Gradual improvement in domestic demand is expected to support growth over the forecast horizon. This outlook assumes that fiscal and monetary policy remain steady.”
Singe-digit inflation
At the meeting with businesspeople in Sivas, Albayrak said that inflation will decline and stabilize at single digits in 2020.
The annual inflation was 11.84 percent last year. In December alone, consumer prices increased by 0.74 percent on a monthly basis, the latest official data from the statistics institute (TÜİK) showed.
The government targets 8.5 percent inflation this year. Its predictions suggest that the annual inflation rate will ease to 6 percent next year and further down to 4.9 percent in 2022.
The minister also said interest rates, too, will come down to single digits this year.
Farmers who are having problems repaying their debt to state-owned Ziraat Bankası will be allowed repay debt in five years with an annual interest rate of 9 percent, Albayrak announced.
http://www.hurriyetdailynews.com/tu...ercent-in-fourth-quarter-minister-says-150786
Mr.NiceGuy
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5% growth bullshiiiiiittt.....
Turkey targets to reach exports of $190B in 2020
ISTANBUL-Anadolu Agency
Turkey’s exports in January exhibited a 5 percent increase from the same month of 2019 according to the current figures, İsmail Gülle, the head of the Turkish Exporters’ Assembly (TİM), has said.
Data from TİM show that the country’s shipments stood at $13.2 billion in January last year.
Gülle noted that Turkey is targeting $190 billion worth of exports in 2020, after the country’s shipments hit a historic high of $180.5 billion last year.
“I’m confident that we’ll close out this year with a record in exports,” Gülle said in an interview with state-run Anadolu Agency on Jan. 9, adding that they are working toward this goal.
The government’s new economic program, released in September last year, forecasts that the country’s export revenues will further climb to $202 billion next year.
The government expects exports to reach $202 billion in 2021 and rise to $213 billion in 2022.
Some 17,544 Turkish firms carried out exports for the first time, with exports totaling $4.5 billion, Gülle also noted.
Mentioning U.S. restrictions on steel imports and the narrowing EU car market, Gülle said these two factors cost Turkey $10 billion in 2019.
Touching on the ongoing Brexit process, he predicted that the Brexit deal will cause no significant problems for Turkish trade.
“There may be opportunities in Brexit. The U.K. decision will determine Turkey’s position. It’s important for us to manage this process well,” he added.
http://www.hurriyetdailynews.com/turkey-targets-to-reach-exports-of-190b-in-2020-150757
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World Bank: Turkey recovering 'faster than expected'
ANKARA-Anadolu Agency
A World Bank report released late on Jan. 8 projected the Turkish economy would grow 3 percent in 2020 and 4 percent in 2021, rebounding from earlier financial turmoil at a faster pace than expected as domestic demand improves.
The bank revised its previous forecast that Turkey would contract 1 percent in June 2019 to 0 percent in its latest Global Economic Prospects report.
"In Turkey, activity is rebounding from earlier financial turmoil at a faster-than-expected pace as domestic demand improves; however, the pickup remains fragile amid subdued confidence and investment." the report said.
Global growth is projected to reach 2.5 percent in 2020, slightly faster than the post-crisis low registered last year, it noted, adding that while growth could further strengthen if risks dampened with an easing in global trade tensions and sustained reduction in uncertainty.
In terms of emerging markets and developing economies (EMDEs), the report forecasted that EMDE growth would accelerate this year to 4.1 percent.
"This rebound is not broad-based; instead, it assumes improved performance of a small group of large economies, some of which are emerging from a period of substantial weakness," the report said.
It highlighted that a third of EMDEs were projected to decelerate due to weaker-than-expected exports and investment.
"Instead, it is largely predicated on a rebound in a small group of large EMDEs, most of which are emerging from deep recessions or sharp slowdowns caused by earlier financial pressures," it noted.
About 90 percent of this pickup in the bank's EMDE growth forecast was accounted for by only eight countries representing just a third of the subset's GDP, being Argentina, Brazil, India, Mexico, Russia, Saudi Arabia and Turkey, it said.
"With growth in emerging and developing economies likely to remain slow, policymakers should seize the opportunity to undertake structural reforms that boost broad-based growth, which is essential to poverty reduction," said Ceyla Pazarbaşıoğlu, World Bank Group Vice President for Equitable Growth, Finance and Institutions.
She emphasized that steps to improve the business climate, rule of law, debt management and productivity could help achieve sustained growth.
Downside risks to global economy
Pazarbaşıoğlu also warned of downside risks to the global outlook.
These risks include the re-escalation of trade tensions and trade policy uncertainty, a sharper-than-expected downturn in major economies and financial turmoil in EMDEs.
Projections for Middle East and North Africa
The forecast suggested that regional growth was projected to pick up to 2.4 percent in 2020 and about 2.8 percent in 2021-2022, as infrastructure investment and business climate reforms proceeded.
Pointing to risks that it said are tilted firmly to the downside including geopolitical tensions, escalation of armed conflicts and slower-than-expected reforms, the bank said these effects could slow long-term productivity prospects.
Iran in spotlight
Last year, growth in the Middle East and North Africa region slowed to an estimated 0.1 percent in 2019, down from 0.8 percent the previous year. According to the bank, this reflects recent developments in Iran's economy.
It said the sharp growth contraction in Iran, following the tightening of U.S. sanctions, geopolitical tensions in the Strait of Hormuz and diplomatic
setbacks had had economic consequences.
Weakened global growth also weighed on demand for oil and other exports, further hindering activity in the region in general, added the report, which was written prior to rising tensions between the U.S. and Iran during the first week of January 2020.
http://www.hurriyetdailynews.com/world-bank-turkey-recovering-faster-than-expected-150797
ISTANBUL-Anadolu Agency
Turkey’s exports in January exhibited a 5 percent increase from the same month of 2019 according to the current figures, İsmail Gülle, the head of the Turkish Exporters’ Assembly (TİM), has said.
Data from TİM show that the country’s shipments stood at $13.2 billion in January last year.
Gülle noted that Turkey is targeting $190 billion worth of exports in 2020, after the country’s shipments hit a historic high of $180.5 billion last year.
“I’m confident that we’ll close out this year with a record in exports,” Gülle said in an interview with state-run Anadolu Agency on Jan. 9, adding that they are working toward this goal.
The government’s new economic program, released in September last year, forecasts that the country’s export revenues will further climb to $202 billion next year.
The government expects exports to reach $202 billion in 2021 and rise to $213 billion in 2022.
Some 17,544 Turkish firms carried out exports for the first time, with exports totaling $4.5 billion, Gülle also noted.
Mentioning U.S. restrictions on steel imports and the narrowing EU car market, Gülle said these two factors cost Turkey $10 billion in 2019.
Touching on the ongoing Brexit process, he predicted that the Brexit deal will cause no significant problems for Turkish trade.
“There may be opportunities in Brexit. The U.K. decision will determine Turkey’s position. It’s important for us to manage this process well,” he added.
http://www.hurriyetdailynews.com/turkey-targets-to-reach-exports-of-190b-in-2020-150757
--
World Bank: Turkey recovering 'faster than expected'
ANKARA-Anadolu Agency
A World Bank report released late on Jan. 8 projected the Turkish economy would grow 3 percent in 2020 and 4 percent in 2021, rebounding from earlier financial turmoil at a faster pace than expected as domestic demand improves.
The bank revised its previous forecast that Turkey would contract 1 percent in June 2019 to 0 percent in its latest Global Economic Prospects report.
"In Turkey, activity is rebounding from earlier financial turmoil at a faster-than-expected pace as domestic demand improves; however, the pickup remains fragile amid subdued confidence and investment." the report said.
Global growth is projected to reach 2.5 percent in 2020, slightly faster than the post-crisis low registered last year, it noted, adding that while growth could further strengthen if risks dampened with an easing in global trade tensions and sustained reduction in uncertainty.
In terms of emerging markets and developing economies (EMDEs), the report forecasted that EMDE growth would accelerate this year to 4.1 percent.
"This rebound is not broad-based; instead, it assumes improved performance of a small group of large economies, some of which are emerging from a period of substantial weakness," the report said.
It highlighted that a third of EMDEs were projected to decelerate due to weaker-than-expected exports and investment.
"Instead, it is largely predicated on a rebound in a small group of large EMDEs, most of which are emerging from deep recessions or sharp slowdowns caused by earlier financial pressures," it noted.
About 90 percent of this pickup in the bank's EMDE growth forecast was accounted for by only eight countries representing just a third of the subset's GDP, being Argentina, Brazil, India, Mexico, Russia, Saudi Arabia and Turkey, it said.
"With growth in emerging and developing economies likely to remain slow, policymakers should seize the opportunity to undertake structural reforms that boost broad-based growth, which is essential to poverty reduction," said Ceyla Pazarbaşıoğlu, World Bank Group Vice President for Equitable Growth, Finance and Institutions.
She emphasized that steps to improve the business climate, rule of law, debt management and productivity could help achieve sustained growth.
Downside risks to global economy
Pazarbaşıoğlu also warned of downside risks to the global outlook.
These risks include the re-escalation of trade tensions and trade policy uncertainty, a sharper-than-expected downturn in major economies and financial turmoil in EMDEs.
Projections for Middle East and North Africa
The forecast suggested that regional growth was projected to pick up to 2.4 percent in 2020 and about 2.8 percent in 2021-2022, as infrastructure investment and business climate reforms proceeded.
Pointing to risks that it said are tilted firmly to the downside including geopolitical tensions, escalation of armed conflicts and slower-than-expected reforms, the bank said these effects could slow long-term productivity prospects.
Iran in spotlight
Last year, growth in the Middle East and North Africa region slowed to an estimated 0.1 percent in 2019, down from 0.8 percent the previous year. According to the bank, this reflects recent developments in Iran's economy.
It said the sharp growth contraction in Iran, following the tightening of U.S. sanctions, geopolitical tensions in the Strait of Hormuz and diplomatic
setbacks had had economic consequences.
Weakened global growth also weighed on demand for oil and other exports, further hindering activity in the region in general, added the report, which was written prior to rising tensions between the U.S. and Iran during the first week of January 2020.
http://www.hurriyetdailynews.com/world-bank-turkey-recovering-faster-than-expected-150797
Kitco
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Only shit is inside your underwears! Come with something informative to the topic or just F off
Mr.NiceGuy
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Well I use toilet for dumping my shiiit instead of my underwear but time to time i dump in mouths of akpean cockroaches...
In 2019 1.2 million people lost their jobs and joined the arm of unemployment....
Here I share a video and watch it untill the end. Then you will see how shity economy we had in 2019 and from that shity performance 5% growth ain't happen...
But you cockroaches can eat that shiit coz this is your nature...
Foreign trade gap narrows 45 pct
ISTANBUL-Anadolu Agency
Turkey reduced its foreign trade gap by 45 percent and reached $29 billion from $54 billion, said the country’s trade minister on Jan. 12.
Ruhsar Pekcan’s remarks came at the Commercial Diplomacy Award Ceremony of Turkey's Foreign Economic Relations Board (DEIK).
“The ratio of exports to imports rose to 85.8 percent this year,” she said.
“It is the highest rate seen in the last 62 years since 1957,” she added.
She underlined the difficulties Turkey has faced throughout the year and said while the export rate of the 50 most exporting countries decreased by 2.7 percent as of October 2019, Turkey’s export rate had increased 2.04 percent.
She also stressed that developing countries have started to get more shares from the global economy since 2000 and it triggered trade wars between the countries which affect the global economy.
Underlining DEIK’s importance for Turkey, she greeted the attendees for their contributions to the economy.
“We acted with a common mind, and as a whole, we found a synergy that opened up the horizon,” said Nail Olpak, head of the DEIK.
“We have brought our business councils from a region-based structure to a country-based structure,” he added.
The winners were awarded in different categories at the end of the ceremony.
http://www.hurriyetdailynews.com/foreign-trade-gap-narrows-45-pct-150867
ISTANBUL-Anadolu Agency
Turkey reduced its foreign trade gap by 45 percent and reached $29 billion from $54 billion, said the country’s trade minister on Jan. 12.
Ruhsar Pekcan’s remarks came at the Commercial Diplomacy Award Ceremony of Turkey's Foreign Economic Relations Board (DEIK).
“The ratio of exports to imports rose to 85.8 percent this year,” she said.
“It is the highest rate seen in the last 62 years since 1957,” she added.
She underlined the difficulties Turkey has faced throughout the year and said while the export rate of the 50 most exporting countries decreased by 2.7 percent as of October 2019, Turkey’s export rate had increased 2.04 percent.
She also stressed that developing countries have started to get more shares from the global economy since 2000 and it triggered trade wars between the countries which affect the global economy.
Underlining DEIK’s importance for Turkey, she greeted the attendees for their contributions to the economy.
“We acted with a common mind, and as a whole, we found a synergy that opened up the horizon,” said Nail Olpak, head of the DEIK.
“We have brought our business councils from a region-based structure to a country-based structure,” he added.
The winners were awarded in different categories at the end of the ceremony.
http://www.hurriyetdailynews.com/foreign-trade-gap-narrows-45-pct-150867
Mr.NiceGuy
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Foreign trade gap is narrowing coz the producing lines are stopped. Our industry based on imported row and intermediate goods.
We have been having a very deep economic crisis and that makes our companies to stop importing the goods to produce. That is the reason of narrowing the trade gap and increase of unemployment.
1.2 million of people lost their jobs and 500.000+ companies closed down in 2019.
So this ain't a success but failure....
We have been having a very deep economic crisis and that makes our companies to stop importing the goods to produce. That is the reason of narrowing the trade gap and increase of unemployment.
1.2 million of people lost their jobs and 500.000+ companies closed down in 2019.
So this ain't a success but failure....
Thats such a nonsense if the production has stopped why did Turkey export more then 180kkk $ worth of goods which was the highest amount ever exported!? Because ur reading to much bullshit but statistics etc. make it already clear that Turkey is back on growth and unemployment rate heavily decreasing again as well
https://think.ing.com/snaps/more-clear-downtrend-in-unemployment/
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Turkey's trade gap in machinery sector falls by half
Turkey exports machines worth $17.9B in 2019, according to an exporters group
Gokhan Ergocun |13.01.2020
ISTANBUL
With machinery exports hitting $17.9 billion in 2019, Turkey's foreign trade deficit in the sector was cut in half from $10 billion to $5 billion, the Machinery Exporters' Association (MAIB) said on Monday.
In 2019, the export/import coverage ratio was 76.3% in the Turkish machinery sector, one of the country's three largest export sectors, the group announced.
"Countries which don't want to lose their technological edge are buying fewer machines from abroad," said Kutlu Karavelioglu, head of the MAIB.
"In 2019 we exported 300,000 more tons of machines and managed to boost our export revenues by more than $720 million."
He added that Turkish machines' good reputation fueled the sector's success.
In 2019, exports were dominated by freezers, internal combustion engines and their parts, washers and dryers, construction and mining devices, pumps, and compressors.
Turkey's overall exports last year were nearly $180.5 billion.
https://www.aa.com.tr/en/economy/turkeys-trade-gap-in-machinery-sector-falls-by-half/1701354
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Turkey's Borsa Istanbul tops 120,000 points at close
BIST 100 gains nearly 1,600 points from previous close
Gökhan Ergöçün |13.01.2020
ISTANBUL
Turkey's benchmark stock index closed the day at 120,249.03 points on Tuesday, up 1.34% from the previous close.
Borsa Istanbul's BIST 100 index started the day at 119,595.16 points. As of the daily close, it gained 1,585.33 points from last week's close of 118,663.70 points.
During Monday's trading, the index bottomed out at 119,595.16 points and peaked at 120,899.69 points.
The total market value of the BIST 100 was around 823.6 billion Turkish liras ($140.27 billion) by market close, with a daily trading volume of 14.8 billion Turkish liras ($2.5 billion).
On the first transaction day of the week, 88 stocks on the index rose, 10 were down, and two were flat compared to Friday.
The highest trading volumes were posted by national flag carrier Turkish Airlines, chemical producer Petkim, and state lender Halkbank.
Real estate investment trusts firm Halk Gyo was the best performer, with its shares up 20%, while snack producer Ulker dropped the most, down 1.36%.
The price of one ounce of gold was unchanged at $1,550 by market close, versus the previous close, according to data from Borsa Istanbul's Precious Metals and Diamond Markets.
The price of Brent crude oil was around $64.3 per barrel as of 6 p.m. (1500GMT) on Monday.
Exchange Rates
Friday
Monday
USD/TRY 5.8780 5.8730
EUR/TRY 6.5200 6.5290
GBP/TRY 7.6980 7.6440
https://www.aa.com.tr/en/economy/turkeys-borsa-istanbul-tops-120-000-points-at-close/1701406
what
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Growth because: Lira devaluation, not only but also.
Decline in imports: because of the devaluation certain good are to expensive for the average citizen to buy or for the companies not lucrative to produce.
Has its advantages but also long term implications.
Decline in imports: because of the devaluation certain good are to expensive for the average citizen to buy or for the companies not lucrative to produce.
Has its advantages but also long term implications.
monitor
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Turkey excels in debt management, growth capacity among emerging markets
- ELIF ERŞEN, DAVOS, Switzerland
- Jan 23, 2020
Treasury and Finance Minister Berat Albayrak (second from left) speaks during the session titled “Shaping the Global Growth Agenda” at the 50th World Economic Forum, Davos, Switzerland, Jan. 23, 2020. (AA Photo)
Turkey’s financial aptitude to manage both the public and private debt stock, which has been on a soaring trend both in advanced and emerging economies, along with its ability to restore economic growth thanks to a strong base of production, export and population; give the country a competitive advantage compared with its peers, Treasury and Finance Minister Berat Albayrak said Thursday during the World Economic Forum.
The country’s public debt to gross domestic product stands at 32%, well below the Maastricht criteria and the EU average, which hovers around nearly 90%, Albayrak said during remarks at a session titled “Shaping the Global Growth Agenda” at the 50th annual forum in Davos, Switzerland. He emphasized that both the public and the private sector have a robust capability to manage the debt stock and strong balance sheet.
According to the latest data from the Treasury and Finance Ministry, the general government debt stock, defined in terms of European Union (EU) criteria, was nearly TL 1.3 trillion, corresponding to 32.1% of GDP at the end of December. The public net debt stock reached TL 643.1 billion or 15.7% of GDP during the same period. More than half of the debt stock is denominated in the local currency while 49.7% is in a foreign currency.
European Commission statistical body Eurostat’s data released Tuesday demonstrated that the government debt to GDP ratio in the euro area stood at 86.1%, compared with 86.4% at the end of the second quarter of 2019. In the EU-28, the ratio decreased from 80.4% to 80.1%.
The highest ratios of government debt to GDP at the end of the third quarter of 2019, in comparison to the same period of the previous year, were recorded in Greece with 178.2% and Italy with 137.3%. The surge in Portugal’s public debt stock was recorded at 120.5% while Belgium saw a 102.3% rise in the debt stock. The rise in France came at 100.5%.
Speaking of corporate and private debt, the minister underscored that the Turkish corporate debt level is better compared to other emerging markets and far below the corporate debt in advanced economies.
“Most of the Turkish private sector has accumulated profits and revenues thanks to the competitive export capacity. Most of their borrowing is in the local currency. This has enabled them to manage their borrowing capacity and ensure a strong balance sheet,” Albayrak explained.
According to the central bank data, the private sector's short-term external loans, excluding trade credits, totaled $10.2 billion, down $5.2 billion in November, compared with the end of the previous year. Some 49.6% of short-term credits were underwritten in U.S. dollars, while the rest were in euros, Turkish liras and other currencies with 29.6%, 20.3%, 0.5%, respectively.
On the long-term side, the private sector's overseas loans amounted to $193.5 billion in the same period, down $15.9 billion from the end of 2018. The U.S. dollar-dominated long-term loans with 60.9%, while the euro-borrowings accounted for 33.7% and the Turkish lira followed it with 3.8%.
Since the financial crisis of 2008, the global debt has been on the rise as the central banks have kept the interest rates low to spur global growth and manage the crisis. While the global debt stock was only $97 trillion in 2007 ahead of the meltdown, it hit an all-time-high of nearly $253 trillion in the third quarter of 2019, the data of the International Finance Institute (IIF) has recently shown. Total debt across the household, government, financial and non-financial corporate sectors soared some $9 trillion in the first three quarters of 2019, the report said. The IIF report also revealed that the debt in the emerging market rose more than two-fold since 2010 to $72 trillion. “The surge has been driven mainly by the sharp buildup in non-financial corporate debt to over $31 billion,” the institution said and added, “This is a contrast to mature markets, where the government sector has been the biggest driver.” Moreover, the global debt is estimated to exceed $257 billion in the first quarter of this year.
Unexpected growth performance
During his remarks at the Davos session, Albayrak also elaborated on Turkey’s growth performance last year and the trajectory for this year.
“No one would expect Turkey to recover from the currency crisis, but we have ensured currency stability and restored positive growth in 2019,” Albayrak said.
After a financially and economically turbulent period that kicked off in the second half of the year in 2018 and prolonged into the first half of 2019, the Turkish economy had been battered by currency volatility, high inflation and high interest rates, resulting in tumbling domestic demand by consumers and investors.
Turkey’s GDP entered a promising era of growth in the third quarter of 2019, breaking three consecutive quarters of contraction. The economy grew 0.9% year-on-year between July and September of this year, according to the Turkish Statistical Institute (TurkStat) data.
Compared with the second quarter, the Turkish economy expanded by a seasonally and calendar-adjusted 0.4%, its third positive quarter-on-quarter in a row, TurkStat data showed. In the first two quarters, the economy contracted 2.3% and 1.6%, respectively, on an annual basis. In 2018, the economy posted an annual growth rate of 2.8%, narrowing in the last quarter. The common market expectation for the fourth quarter estimates ranges from 4.5% to 5%.
While the government forecasts 0.5% annual growth for 2019, its New Economic Program (NEP) targets a 5% annual growth rate for each of the next three years.
“Following the 2008 financial crisis, Turkey’s exports shrank 30% in 2009. Yet our exports surpassed $180 billion last year after a year of economic turmoil,” Albayrak further indicated in a bid to emphasize the agility of the Turkish economy against shocks and turbulent times.
In an evaluation of how Turkish exporters and the private sector actors were able to increase their export performance and how the Turkish economy has managed to perform positive growth in 2019, the minister highlighted that the regional and domestic crises and problems have taught a lot to the Turkish public and private authorities.
“Turkey has a very strong record of fighting regional and local crises. Not only the public sector but also the private sector has learned a lot from the regional and domestic problems,” Albayrak said. “They expanded the capacity to integrate their operations to the changing circumstances.”
Central bank for financial stability
The treasury and finance minister also delved into the operations of the central bank. In addition to its primary goal to achieve price stability, Turkey’s central bank also implements policies to ensure financial stability to mitigate the risks of reducing financial shocks.
“In order to ensure the growth of Turkey, which has a gigantic base of production and population, the central bank also works to bring financial stability,” the minister emphasized.
The financial stability Turkey has managed to restore, Albayrak said, has led to a huge drop in the country’s credit default swaps (CDS). The country’s five-year CDS dropped to 237.69 points yesterday, from a record-level of 566.38 points on Sept. 4, 2018.
In a bid to manage price stability, the central bank along with the entire economy administration implemented a set of measures and reforms spanning throughout the year. Thus, 2019 was a year that saw inflation drop from around 20% to single digits, a transition from recession to growth again, all-time high numbers in exports and a year in which record-breaking current account surpluses were observed.
Inflation had become a pressing issue for the economy since the second half of 2018 when it surged to almost 25.24% in October as steep depreciation in the Turkish lira pushed up the price of imported goods. Since the beginning of 2019, inflation fell by 8.51 percentage points from 20.35% in January. It had eased to 9.26% in September when it hit single digits for the first time since July 2017 before dropping to 8.55% in October, its lowest since December 2016. The inflation rate in December came in at 11.84%. Albayrak also expressed that the inflation will be sustained at single-digits this year.
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How about exports if Turkiye can unleash its potential no doubt they can become a export player especially in the Islamic and Turkic World also the Balkans.
Im surprised how Turkish products are making their way into Australia our supermarkets like Coles has already started to sell Uludag and Ulker or Eti I think. Only selected stores but still its surprising. Because in the past only Turkish owned convienance stores would have these kind of products.
Mr.NiceGuy
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The worst economy of Turkish history causes Turkish society falls apart. People go suicide after losing their hopes for the future.
Everyday everything gets more expensive. Increase of prices challenged people's life daily.
This thing getting out of control. Meanwhile tayyip and his family living in palaces, anger of poor rising up against the government.
I see no good end of this story...
rajvoSa
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Turkish investments in Senegal to enhance ties with Africa
https://www.dailysabah.com/business...tments-in-senegal-to-enhance-ties-with-africa
Yes. Africa so much potential and many ppl of these countries and their goverments are fed up with their former colonial masters dominating their economy. Turkey doenst have that brutal colonial baggage in those regions... Africa has a lots of potential... Along with strategy to pivot more to the Asia and their markets, I think its the right move, to diversifiy turkey's economy and parnerst and be less dependend on the EU/US investments.
Also, I would like Turky to use colonial past and national sentiments in thiose countries. Burkina Faso for exmpl in other ways, like giving respect to Thomas Sankara, opening some school or something with his name, honoring him and ppl like him who fought and are very popular resistence figures in those Turkey-Africa summits.
https://www.dailysabah.com/business...tments-in-senegal-to-enhance-ties-with-africa
Yes. Africa so much potential and many ppl of these countries and their goverments are fed up with their former colonial masters dominating their economy. Turkey doenst have that brutal colonial baggage in those regions... Africa has a lots of potential... Along with strategy to pivot more to the Asia and their markets, I think its the right move, to diversifiy turkey's economy and parnerst and be less dependend on the EU/US investments.
Also, I would like Turky to use colonial past and national sentiments in thiose countries. Burkina Faso for exmpl in other ways, like giving respect to Thomas Sankara, opening some school or something with his name, honoring him and ppl like him who fought and are very popular resistence figures in those Turkey-Africa summits.
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