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Macroprudential measures can’t replace monetary policy: TUSIAD

Macroprudential measures can’t replace monetary policy: TUSIAD

BY YENER KARADENIZ Turkish Industry and Business Association (TUSIAD) President Orhan Turan stated that the decrease in inflation due to the base effect should be considered as an opportunity, but that macro-prudential measures cannot be a substitute for the monetary policy in reducing inflation. “From this point, it is necessary to formulate the monetary policy...

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Startups receive USD 1.6bn funding in 2022

Startups receive USD 1.6bn funding in 2022

BY SELENAY YAGCI The funding interest in the Turkish startup ecosystem increasingly continues after investments reached a billion-dollar level in 2021. USD 1.59bn invested in startups with the seed, early stage, and venture capital (VC) financing levels through 300 deals in 2022, according to the startup ecosystem intelligence platform startups. watch. The figure totaled USD...

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Izmir to hold an economy congress for the second century of the republic

Izmir to hold an economy congress for the second century of the republic

BY IPEK YEZDANI As the Turkish economy struggles with the currency crisis and high inflation, the Izmir Metropolitan Municipality is set to hold a one-week-long comprehensive economy congress between February 15-21. “Apart from leaders of the six-party opposition roundtable, international experts such as (Francis) Fukuyama, Timothy Ash, and songwriter and political activist Bob Geldof will...

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Economy to retract in 1H, recover in 2H

Economy to retract in 1H, recover in 2H

Representatives of 10 sectors that accounted for 64% of Turkey’s exports of USD 231bn in January-November 2022 expect an economic contraction in the first half of 2023 (1H) and recovery in the second half of 2023 (2H). The Russia-Ukraine war, inflationist pressure, and the recession are the biggest risks to the global economy, while uncertainty...

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Disengagement from agriculture feeds food inflation

Disengagement from agriculture feeds food inflation

BY TALIP AKTAS Turkey, which is the 10th largest agricultural producer in the world, ranks fourth in terms of the highest food inflation after Zimbabwe, Lebanon, and Venezuela, according to the FAO’s (the United Nations Food and Agriculture Organization) Food Price Index. The share of agriculture in the Gross Domestic Product (GDP) decreased from 10.2%...

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86% of stocks are held by 3.6% of investors

86% of stocks are held by 3.6% of investors

BY TALIP AKTAS Borsa Istanbul’s BIST 100 Index jumped 180% from 1,800 points to 5,000 points in 12 months. The return is good for a period when the deposit interest rate (IR) rose by 27%, bond IR increased by 10-11%, pressured USD/TRY surged by 50%, and gold climbed by 35% compared to TurkStat’s inflation of...

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Tourism is CAD lifeline, but investment is poor

Tourism is CAD lifeline, but investment is poor

BY ISMET OZKUL Investments rose by 7.4% while public investments increased by 2.56% and private sector investments surged by 7.95% in 2021, according to the data from the Strategy and Budget Presidency. Despite the overall growth, public investments declined in the transportation, housing, energy, manufacturing, health, and tourism industries. The mining sector topped with the...

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Globally high food inflation

Globally high food inflation

BY TALIP AKTAS Turkey, the 10th largest agricultural economy in the world, was among the top five countries with the highest food inflation in November, according to the World Bank. Turkey rose from fifth place to fourth place in October, and its ranking didn’t change in November, according to the Food and Agriculture Organization of...

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Real sector debt accelerates faster than its equities

Real sector debt accelerates faster than its equities

BY ISMET OZKUL We’ll examine the 12-year change in companies’ equity, debt, revenue, profit, and financing expenditures from 2009-2022, according to the Central Bank’s company balance sheet data. As the number of firms changes over years, we’ll see how the average figures change per company. ►The 12-year average equity hike per company is 196% and...

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To regrade

To regrade

BY FATIH OZATAY Mistakes in forecasting have increased recently. For instance, look at the International Monetary Fund’s (IMF) forecasts. Inflation is forecasted to hover around 2% in developed countries in 2022, according to the World Economic Outlook (WEO) report published in January 2021. A similar estimation was included in the April 2021 WEO report. This...