All News on Economics in Turkey

Private firms concerned over minimum wage rise

The annual cost of a 30 percent increase in the minimum wage, an election promise by the Justice and Development Party (AKP), will cost the private sector 16 billion Turkish Liras, according to the head of the Istanbul Chamber of Commerce (?TO). 

New cabinet ministers will be clues for economic reforms

New data on industry production required a downward revision of third quarter growth estimates. Economists started to revise downward even the recently revised 3 percent growth figure.   

Will the renewed government be able to attract foreign capital?

There is an important economic agenda for the Justice and Development Party (AKP), which came to power again with a quite surprising 49 percent of the vote in the Nov. 1 election. At the center of this agenda is the increase of foreign capital inflow. This requirement is very important both for growth targets and also to be able to rollover the debt burden we are face-to-face with. 

Turkish Central Bank keeps rates on hold as election looms

Turkey's Central Bank left interest rates unchanged on Oct. 21, shying away from a hike ahead of a Nov. 1 election and waiting to take its cue from an expected tightening by the U.S. Federal Reserve (Fed). 

Hiding statistics won't prevent a crisis

If I lived in a ?normal? country, I would have devoted this column to Angus Deaton, who won the Nobel Prize in Economics on Oct. 12. But I don?t, and so I need to cover the ?normally boring? Medium-Term Economic Program (MTEP), which was published in the Official Gazette on Oct. 11, instead.

Turkey's current account gap sees 6-year lows

Turkey?s current account deficit narrowed to the lowest level of the last six years in August to $163 million amid a slowing down in the economy and a sharp decrease in the foreign trade gap. 

The country?s foreign trade deficit was announced as $4.9 billion in August, a decrease of around 40 percent from the same month in 2014 due to a plunge in oil and a rise in car exports. 

Protectionism 'hurting performance' of Turkish exports

Rising protectionism is hurting the performance of Turkish exporters, head of Turkish Exporters Assembly (T?M) said on Oct. 5.

In a speech at the G-20 in Istanbul, T?M?s Mehmet Büyükek?i said, ?Protectionism is increasing in every market around the world and it is affecting not only Turkish exports, but also Foreign Direct Investment [FDI] in Turkey.?

Turkey's current account gap at $3.15 billion, below forecasts

Turkey?s current account deficit totaled $3.15 billion in July, below forecasts, data from the Central Bank revealed Sept. 10. 

The 12-month deficit was announced at $45.03 billion. 

The deficit increased by 32 percent in July year on year due to rising domestic demand and decreasing exports, despite the positive effects of the oil plunge on the current account deficit. 

China's economic earthquake also shakes Turkey

Competing with a powerful China, which has joined capitalism as a ?unique? actor, will be more difficult for Turkey, but more importantly competing with Chinese goods in the local market will also be tough China is a huge country accommodating almost 20 percent of the world population. It is a country that has been occupying the world?s agenda in recent years. 

Foreign direct investment in Turkey falls in the first half

Foreign direct investment (FDI) in Turkey reached $6.3 billion in the first half of the year, marking a drop of 9.6 percent compared the same period last year when the figure was $7 billion, the Economy Ministry stated on Aug. 21.

The energy sector took in the largest amount of FDI at $1.27 billion and the manufacturing sector followed at just over $1 billion.

Turkey: Foreign investment falls 9.6 pct in first half

Foreign direct investment (FDI) in Turkey reached $6.3 billion in the first half of the year, the Turkish Economy Ministry said in a statement on Aug. 21.
      
FDI decreased by 9.6 percent compared with the $7 billion invested in the same period last year, the statement said.
      

Whatever happened to the Turkish Lira?

Turks are now acting as if it came as a surprise. The Turkish Lira has lost around 9 percent of its value against the dollar in a single month. If you take January of this year as the starting point, the lira has lost around 27 percent of its value. Why?

Turkey's current account deficit narrows in June

Turkey?s current account deficit narrowed in June to $3.36 billion from $4.44 billion in May, the Turkish Central Bank said on Aug. 11, helped by a slowdown in the foreign trade deficit and a fall in oil prices, which cut the cost of energy imports. 

A Reuters poll had forecasted a deficit of $3 billion.

IMF warns Turkey of low net int'l reserves, high short-term debt stocks

Turkey?s external position was weaker than the level consistent with medium-term fundamentals and given large financing needs and short-term nature of capital inflows, Turkey remains vulnerable to capital flow reversal, said the International Fund on July 28 in an analysis about countries? external sector report for 2015. 

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