What matters on Wednesday, November 30

The European Union (EU) has agreed upon penal measures to be taken against persons, entities, and countries that don’t abide by the sanctions on Russia following Russia’s invasion of Ukraine. The draft law, which is expected to be submitted by the European Commission this week, will be finalized after discussion by the EU member states and the European Parliament. However, foreign policy specialists told daily EKONOMI that this process, which some are concerned will adversely affect Turkey, won’t proceed quickly. They also said the process may stall as EU members have different opinions about sanctions.

Black Friday, which is the biggest campaign period of the year in terms retail trade, faced the obstacle of inflation in Turkey. Although the turnover of brands, which kept discounts limited due to increasing costs, increased compared to last year, sales dropped by 5% to 15% on a unit basis. Sector representatives told daily EKONOMI that consumers backdated their shopping needs due to concerns over more price hikes. They also said discounts will reduce November inflation.

Corporate real estate investors are hesitant to buy residences while they mainly invest in commercial real estate such as logistics, according to a report prepared jointly by PwC and ULI. PwC Turkey Real Estate Industry Leader Ersun Bayraktaroglu, who interpreted the report, said investment expectations declined for Istanbul, especially after the limitations introduced for renting in FX. Bayraktaroglu also noted that this situation adversely affects international investors.

Turkey is seeing high numbers in the tourism industry despite the fallout from the pandemic, according to President Recep Tayyip Erdogan. Speaking at the 7th General Assembly of the Turkish Hoteliers Federation (TUROFED) in Ankara, President Erdogan said Turkey is experiencing a peak in terms of both the number of tourists and tourism revenues, though tourism was paused during the pandemic. Stressing that Turkey rose to fourth place in the world in terms of the number of tourists in 2021 and eighth place in terms of tourism revenues, Erdogan added: “This is a sign that the country will reach an even better position this year. Turkey will experience the development and growth of the tourism sector in all its regions and cities. In a period where our competitors in tourism have lost momentum due to the effects of the global crisis, our path to world leadership is clear, we will work much harder. Turkey aims to avoid missing out on opportunities by placing the country at the center of a reshaping global, political, and economic architecture.”


The Turkish economy grew by 3.9% in the third quarter (Q3), as compared to Q3 2021, according to the Turkish Statistical Institute (TurkStat). The national economy contracted by 0.1% in Q3, compared to the previous quarter.


>> The banking sector’s net profits jumped 408% to TRY 335.92bn in January-October, year-over-year, according to the Banking Regulation and Supervision Agency (BDDK). The sector’s net profit soared by 443.9% to TRY 49.74bn in October, compared to the previous month.

>> The Health Ministry’s expenses totaled TRY 122.2bn in January-October, according to daily EKONOMI. The share of the Ministry’s external service procurements reached 30% of its total expenditures.

>> The portfolio management company Re-Pire Portfoy invested USD 400,000 in the integrated video communication platform Vimesoft. Thus, the startup has completed its first founding round that aimed for the seed investment process at a valuation of USD 7m.


>> Interest burden on domestic debt climbing

Our Eco Analysis Columnist Alaattin Aktas examines the interest rate burden on domestic debt.

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