The business world is having difficulty in determining its budgets for the next year due to the uncertainties of inflation, foreign exchange (FX) rates, the course of interest rates and elections at home and energy, commodity prices, and the recession abroad. Some enterprises have started to prepare alternative budgets in line with different scenarios. Representatives of the business world said that predicting, especially for the second half of the next year, is very difficult after elections. They also noted that companies are trying to prepare their budgets with fiscal accounts which don’t reflect the real purchasing power as inflation accounting wasn’t shifted.
Thousands of people rallied in Turkey yesterday to oppose the conviction and political ban of Istanbul Mayor EkremImamoglu, according to Reuters. Late yesterday, media reports said the prosecutor in the case had launched a legal challenge to the verdict, seeking a longer jail sentence for Imamoglu. No further details were immediately available. A Turkish court on Wednesday sentenced Imamoglu to two years and seven months in prison, which, like the ban, must be confirmed by an appeals court. The verdict drew wide criticism at home and abroad as an abuse of democracy.
President Recep Tayyip Erdogan expressed willingness to collaborate with Syria and Russia in its counterterror efforts. “Currently, we want to take a step with Syria and Russia, as a trio. For this, first, our intelligence organizations should come together, then our defense ministers and, then our foreign ministers should meet,” President Erdogan told reporters aboard the presidential plane returning from his trip to Turkmenistan. Saying that leaders of Turkey, Russia, and Syria could also meet for talks after the meeting of intelligence, defense, and foreign officials, Erdogan said his Russian counterpart Vladimir Putin welcomed this proposal in their latest phone call.
Russian President Vladimir Putin reiterated Russia’s plan to build a new gas hub in Turkey in a televised meeting with officials. “Turkey’s gas infrastructure has serious potential. We plan to set up a gas hub in the coming years,” Putin said. “But if we are talking about setting up an electronic platform, then this can be done within the next few months. And it is there, to a large extent, that we will determine the final price for our European consumers,” he added.
DAILY AGENDA
The short-term external debt stock increased by 17.1% to USD 142.3bn in October, compared to the end of 2021, according to the Central Bank.
The Central Bank will release the Residential Property Price Index for October (2.30 p.m.).
Meanwhile…
>> The transaction volume of mergers and acquisitions increased by 8% to approach USD 11bn this year, the highest level since the pandemic, according to the report by Deloitte Turkey. The number of transactions hit an all-time high of over 400 in 2022.
>> The Central Bank’s international net reserves surged by USD 3.63bn to USD 26.75bn in the week ending on December 9, compared to the previous week, hitting a 13-month high. The bank’s total reserves rose by USD 3.77bn from USD 122.98bn to USD 128.76bn in the same period.
>> The banking sector’s total loan volume increased by TRY 62.47bn from TRY 7.28tr to TRY 7.34tr and its total deposits rose by TRY 53.94bn, or 0.6%, to TRY 8.63tr in the week ending on December 9, compared to the previous week, according to Banking Regulation and Supervision Agency (BDDK).
>> Turkey’s GDP (Gross Domestic Product) PPP (Purchasing Power Parity) per capita was 63 in 2021, 37% below the EU average, according to the Turkish Statistical Institute (TurkStat).
