The Presidency released a circular letter about the preparation of the 2023-2025 Investment Program. The circular letter reiterated that the 11th Development Plan has been implemented for the 2019-2023 period to protect macroeconomic stability and increase production and the welfare of the society. It also emphasized the primary objectives as follows: to make savings in public expenditures, protect price stability by reducing inflation, increase domestic savings, decrease current account deficit, strengthen public fiscal balances and fiscal discipline, and therefore protect financial stability. Within the framework of these objectives and priorities, the circular also pointed out the basic principle that the allocation and efficient usage of the resources allocated for public investments in order to increase the pace and quality of public services in a way that will contribute to the targeted policies for the upcoming period.
Fitch Ratings lowered its global economic growth estimates but raised the growth forecast for the Turkish economy, according to its Global Economic Outlook September 2022 report. The Turkish economy is forecast to expand by 5.2% in 2022 and 2.9% in 2023. The recent estimate for 2022 is an upward revision from the previous figure, which had anticipated the Turkish economy to grow by 4.5% in 2022. Fitch noted that the Turkish economy showed strong growth in the second quarter with gains in consumption and exports. The global economy, on the other hand, is anticipated to grow 1.7% in 2023 — down a percentage point from the previous forecast of 2.7%.
Environment, Urbanization, and Climate Change Minister Murat Kurum tweeted that 507,937 applications were made in the first of the newly announced social housing project application rounds, including 439,375 applications through E-government and 68,562 applications to banks. The application period for the social housing project will end on October 31 while plots and workplace applications will start by October 10.
Turkey’s benchmark stock index ended yesterday at 3,446.96 points, up 0.59% from the previous close. Borsa Istanbul’s BIST 100 index gained 20.08 points from Tuesday’s close of 3,426.88 points with a daily trading volume of TRY 72.9bn. Expectations that central banks will continue historic interest rate hikes due to inflationist concerns have strengthened, according to analysts. They stated that the volatility may continue in the markets until the Federal Reserve meeting is held next week. Analysts also said the recovery in the BIST 100 index, which has positively differentiated from the global markets for a while now, will be monitored, stressing that investors should play it safe. They also emphasized that 3,300 and 3,340 points will be the support level and 3,500 points will be the resistance level for the BIST 100 index, in technical terms.
Mevlut Cavusoglu announced that he will travel to London next Monday as Turkey’s official representative at the state funeral of Queen Elizabeth II.
DAILY AGENDA
House sales dropped by 12.7% to 123,491 units in August, compared to the same month of the previous year, according to the Turkish Statistical Institute (TurkStat).
The Producer Price Index of Agricultural Products (Agriculture-PPI) jumped 142.42% in August, compared to the same month last year, according to TurkStat. Agriculture-PPI decreased by 4.34% on a monthly basis.
The private sector’s outstanding loans received abroad declined by USD 7bn to USD 162bn in July, compared to the end of 2021, according to the Central Bank.
Meanwhile…
>> The share of discount markets has quadrupled to 79% of the market over the past 10 years, according to Omer Duzgun, Chairman of the Turkish Retailers Federation (TPF). Duzgun said 42,000 national and discount markets operate in the country, adding that their share will rise to 85% in the next five years.
>> Foreigners’ real estate investments rose by 41.9% to USD 3.79bn in January-July, compared to the same period of the previous year, according to daily DUNYA.
>> Following the decision by Turkey and Israel to normalize relations, Foreign Minister Mevlut Cavusoglu said a new draft decree on ambassadors is ready to be presented to the president.
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>> Relations with the West: One step forward, two steps back
Our Foreign Policy Columnist Zeynep Gurcanli examines Turkey’s latest foreign relations with the West.
