Economy
Trump says won’t use ‘force’ but wants ‘immediate’ Greenland talks
President Donald Trump reiterated his controversial intention to “get Greenland, including right, title and ownership,” but stressed he wouldn’t employ “force,” using his Davos address on Wednesday to repeatedly mock European allies and argue that NATO should not obstruct U.S. expansionist aims.
“What I’m asking for is a piece of ice, cold and poorly located,” Trump told the annual World Economic Forum (WEF) in Switzerland, declaring of NATO: “It’s a very small ask compared to what we have given them for many, many decades.”
Trump has spent weeks saying that the U.S. will get control of Greenland no matter what it takes, but his comments at the gathering of global elites were startling in how much further he went on just how he plans to do it.
He urged NATO, which has held firm since the dawn of the Cold War but now is facing an unprecedented test given Trump’s demands, to allow the U.S. to take Greenland from Denmark. The Republican president even added an extraordinary warning, saying alliance members can say yes, “and we’ll be very appreciative. Or you can say, ‘No,’ and we will remember.”
Despite that, Trump acknowledged, “We probably won’t get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable. But, I won’t do that. OK?”
“I don’t have to use force,” he said. “I don’t want to use force. I won’t use force.”
Instead, he called for opening “immediate negotiations” for the U.S. to acquire Greenland.
“This enormous unsecured island is actually part of North America,” Trump said. “That’s our territory.”
Europe ‘not heading in right direction’
He also argued that the U.S. is booming compared with Europe and its economy.
Trump tried to focus on his efforts to tame inflation and spur the economy back home. But his appearance focused more on his gripes with other countries.
“I love Europe, and I want to see Europe go good, but it’s not heading in the right direction,” Trump said. He added, “We want strong allies, not seriously weakened ones.”
He also said of European countries, “When America booms the whole world booms,” and, “You all follow us down, and you follow us up.”
Trump turning the Davos gathering upside down began even before he got there. His arrival in the Swiss Alps community of Davos was delayed after a minor electrical problem on Air Force One had forced a return to Washington to switch aircraft.
As Trump’s motorcade headed down a narrow road to the speech site, onlookers, including some skiers, lined the route. Some made obscene gestures, and one held up a paper cursing the president.
Billionaires and business leaders nonetheless sought seats inside the forum’s Congress Hall, which had a capacity of around 1,000, to hear Trump. By the time he began, it was standing room only. Attendees can use headsets to listen to the speech in six languages besides English. Attendees mostly stood and offered applause, some merely polite, as Trump took the stage.
Trump was also expected to have around five bilateral meetings with foreign leaders, though further details weren’t provided. There are more than 60 other heads of state attending the forum.
Tariff threat looms large
Trump came to the international forum on the heels of threatening steep U.S. import taxes on Denmark and seven other allies unless they negotiate a transfer of the semi-autonomous territory – a concession the European leaders indicated they won’t make.
Trump said the tariffs would start at 10% next month and climb to 25% in June, rates that would be high enough to increase costs and slow growth, potentially hurting Trump’s efforts to tamp down the high cost of living.
The president, in a text message that circulated among European officials this week, also linked his aggressive stance on Greenland to last year’s decision not to award him the Nobel Peace Prize. In the message, he told Norway’s prime minister, Jonas Gahr Store, that he no longer felt “an obligation to think purely of Peace.”
His designs on Greenland could tear relations with European allies apart. Before Trump spoke, British Prime Minister Keir Starmer vowed during his weekly questioning in the House of Commons, “Britain will not yield on our principles and values about the future of Greenland under threats of tariffs, and that is my clear position.”
French President Emmanuel Macron, in his address to the forum, made no direct mention of Trump but urged fellow leaders to reject acceptance of “the law of the strongest.”
“It’s clear that we are reaching a time of instability, of imbalances, both from the security and defense point of view, and economic point of view,” Macron said.
European Commission President Ursula von der Leyen warned that should Trump move forward with the tariffs, the bloc’s response “will be unflinching, united and proportional.” She pointedly suggested that Trump’s new tariff threat could also undercut a U.S.-EU trade framework reached this summer that the Trump administration worked hard to seal.
“The European Union and the United States have agreed to a trade deal last July,” von der Leyen said in Davos. “And in politics as in business – a deal is a deal. And when friends shake hands, it must mean something.”
The White House had insisted Trump was supposed to focus on how to lower housing prices in the U.S., part of a large fight to bring down the cost of living, which continues to rise and threatens to become a major liability for the White House and Republicans ahead of November’s midterm elections.
Greenland instead carried the day, with Trump lashing at Denmark for being “ungrateful” for the U.S. protection of the Arctic island during World War II, and continued to make his case that the U.S. needs to control the island for the sake of national security.
He also kept mistakenly saying Iceland when he meant Greenland, mixing up the two countries four times during his speech and for the fifth time since Tuesday.
When he finally did mention housing, meanwhile, Trump suggested he didn’t support a measure to encourage affordability. He said bringing down rising home prices hurts property values and makes homeowners who once felt wealthy because of the equity in their houses feel poorer.
Meanwhile, Trump’s Greenland tariff threat could disrupt the U.S. economy if it blows up the trade truce reached last year between the U.S. and the EU, said Scott Lincicome, a tariff critic and vice president on economic issues at the Cato Institute, a libertarian think tank.
“Significantly undermining investors’ confidence in the U.S. economy in the longer term would likely increase interest rates and thus make homes less affordable,” Lincicome said.
U.S. home sales are at a 30-year low, with rising prices and elevated mortgage rates keeping many prospective buyers out of the market. So far, Trump has announced plans to buy $200 billion in mortgage securities to help lower interest rates on home loans, and he has called for a ban on large financial companies buying houses.
Promoting the ‘Board of Peace’
On Thursday, Trump plans to talk about the “Board of Peace,” meant to oversee the end of Israel’s genocidal war on Gaza, and possibly take on a broader mandate, potentially rivaling the United Nations.
Fewer than 10 leaders have accepted invitations to join the group so far. Several of America’s main European partners have declined or been noncommittal, including Britain, France and Germany.
Trump on Tuesday told reporters that his peace board “might” eventually make the U.N. obsolete but insisted he wants to see the international body stick around.
“I believe you got to let the U.N. continue, because the potential is so great,” he said.
The International Monetary Fund (IMF) said Friday that Türkiye’s efforts to curb inflation are yielding results, while economic growth continues at a stable pace under the current policy framework.
The IMF Executive Board completed the 2025 Article IV consultation with Türkiye, it said in a statement.
“Since the 2024 Article IV, Türkiye’s disinflation program has shown successes,” said the fund. “Inflation fell from 49.4% (y/y) in September 2024 to 30.9% in December 2025 on the back of strong fiscal consolidation, prudent income policies, and a tight monetary policy stance.”
It noted that following a temporary deceleration in mid-2024, GDP growth has remained strong, with a forecast at 4.1% in 2025. “Turkish Lira demand has strengthened, bolstering international reserves, and the current account deficit remains adequately financed,” it added.
Tight monetary policy expected
“Tight monetary policy, moderate wage growth, and broadly neutral fiscal policy are expected to support gradual disinflation,” it said, emphasizing that the current policy mix continues to balance disinflation with steady growth.
The statement said end-2026 inflation is expected at 23%, as domestic demand remains strong, and boosted by further policy rate cuts and rising confidence, growth is expected at 4.2% for 2026.
It also noted that the current account deficit would “remain adequately financed, while depositor confidence and strong gold prices would allow reserves to stay at around 80 percent of the IMF’s adequacy metric.”
While growth should remain solid and inflation will fall, the IMF said the approach bears risks and costs, noting that external risks remain elevated due to persistent global trade uncertainty and regional conflicts.
“The materialization of an adverse shock, like an increase of energy prices or a negative weather event, could further extend the period of still-high inflation. Moreover, the gradual approach to disinflation has weighed on the financial sector and slowed productivity growth,” the statement said.
Call for ambitious structural reforms
The statement included the executive board’s assessment, praising authorities for significant achievements under the disinflation program, which reduced macroeconomic imbalances, strengthened confidence and preserved strong growth.
Inflation remains well above the target and the economy is highly vulnerable to shocks, the IMF said, underscoring the need for a tighter macroeconomic policy mix and ambitious structural reforms to entrench disinflation, strengthen external buffers and support inclusive medium-term growth.
Authorities were commended for strong fiscal efforts last year, with the IMF urging continued fiscal tightening to reinforce disinflation.
“Directors emphasized the role of measures to broaden the tax base and improve compliance, together with further efforts to streamline expenditures through phasing out energy subsidies,” the statement said.
Directors also called for carefully sequenced and well communicated measures “to minimize second-round inflationary impacts while mitigating the impact on vulnerable households.”
“As fiscal space expands, additional resources could be redirected to social priorities. Directors also supported full alignment of wage policies with inflation targets, as well as stronger oversight of PPPs and SOEs,” the IMF said.
Financial sector remains robust
Directors stressed that the financial sector “remains robust,” supported by the authorities’ swift and effective response to market stress.
They generally urged tighter monetary policy to secure durable disinflation, while emphasizing the need for policy rate decisions should remain data-dependent and mindful of macro-financial effects.
“To bolster policy credibility and strengthen transmission, Directors emphasized the importance of a simplified monetary policy framework firmly centered on the policy rate, with enhanced central bank independence and communication,” the statement noted.
Directors also stressed that continued vigilance is warranted, particularly for still high FX liquidity risks, and supported ongoing efforts to strengthen the supervisory and resolution frameworks along with enhanced oversight, including of crypto assets.
The statement underlined that the directors urged structural reforms to foster productivity, resilience and medium-term growth, with top priorities including “improvements in labor, education, and governance and legal frameworks, support for SMEs, and raising the share of renewables in the energy mix.”
Economic indicators
According to IMF projections, Türkiye’s economy is expected to grow 4.1% in 2027 and 4% annually between 2028 and 2031.
The unemployment rate is forecast at 8.3% in 2026, 8.7% in 2027, and 9.1% during 2028-2031.
Inflation is projected to fall to 19% next year and then ease to 15% through 2031. The current account deficit is expected to equal 1.4% of GDP in 2026-2028 and 1.5% in 2029-2031.
Türkiye is seeking to meet high global expectations as it prepares to host COP31, with Environment, Urbanization and Climate Change Minister Murat Kurum saying Ankara is determined to steer this year’s U.N. climate summit toward concrete, results-driven outcomes through dialogue, consensus and coordinated international action.
Speaking at a press conference in Istanbul alongside Simon Stiell, the executive secretary of U.N. Climate Change, Kurum, who is set to chair COP31, described Türkiye as the “natural center” of the global fight against climate change. Andre Correa do Lago, president of COP30, also attended the briefing.
Fully known as the 2026 United Nations Climate Change Conference, or Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), the event is set to take place from Nov. 9 to Nov. 20 in Türkiye’s coastal city of Antalya.
Türkiye, in partnership with Australia, secured a bid to host the summit at the last climate talks in Brazil’s Belem.
As a first-time host and current president of the event, Türkiye will also organize a two-day World Leaders’ Summit. It will also be responsible for preparing official communications for the COP31 conference, overseeing operational and logistical arrangements, and appointing the U.N. High-Level Climate Champion, among other duties.
Australia, on the other hand, is assigned to “leading the negotiations agenda.” Moreover, building on the efforts of the COP30 Brazilian Presidency, Türkiye and Australia will work together, and with Pacific island countries, to strengthen and elevate the action agenda.
Speaking on Thursday, Kurum said they aim to carry out the COP31 process with a results-oriented approach. “We truly want COP31 to be successful,” he stressed.
He started his speech by noting that COP meetings “are very critical and valuable,” as “we are experiencing the devastating effects of the climate crisis more severely by each passing day.”
High expectations
“As Türkiye and Australia, we will work as one body with an understanding based on consultation and cooperation. We are all aware that the world’s expectations from COP31 are high,” he said.
“Our responsibility is to read these expectations correctly, to build trust among the parties and to produce results.”
“There is something we always say. We do not see COP31 merely as a conference, and no one should see it that way,” he maintained.
According to Kurum, Türkiye’s approach to COP31 is “clear.”
“We will not be a single voice but will engage in dialogue, we will act not with division but with consensus, and we will prefer action, not stagnation, in order to achieve results,” he said.
Emphasizing the understanding of responsibility that draws from the common memory of civilizations and reminds humanity of its ancient relationship with nature, the minister said they are approaching the talks with the idea and understanding that “they would hear, make heard and encourage everyone’s voice.”
Moreover, he described that climate change is no longer just an environmental crisis but instead “an existential issue,” which he said is affecting every aspect of human life, from trade and transportation to industry, food, energy and education.
At the same time, he suggested they would “respect countries’ development priorities,” while also pointing to the issue of financing, which is “of great importance in terms of advancing implementation.”
“Again, our local governments, our private sector, financial institutions and non-governmental organizations must continue to be the main actors of this process,” he further said.
Similarly, he underscored the significance of the Zero Waste Movement carried out under the auspices of first lady Emine Erdoğan. The initiative “has shown the entire world that climate action does not have to remain at the level of rhetoric, but can be carried into a results-oriented transformation framework,” according to Kurum.
Rebuilding trust in multilateralism
Emphasizing that as the COP31 presidency, they are determined to rebuild trust in multilateralism with “a strong vision focused on producing results,” the minister also drew attention to the nature and standing “with humanity.”
“At a time when climate change is sweeping across the entire world, Türkiye stands with humanity,” he proclaimed.
“The world is our common home, and we have nowhere else to go, no other home, no other shelter. With this awareness, we say that Türkiye is the natural center of the struggle to be waged against the global climate crisis,” he said.
Also expressing that Türkiye will be “a bridge” bringing together the north and the south, the east and the west, developed economies and developing societies, Kurum went on to say that “Türkiye is a country that has assumed the leadership of global climate justice, has proven and earned this claim by standing on the right side of humanity at all critical moments in history.”
“The future will take shape here, in Anatolia. A road map for a livable future for all humanity will be presented from here,” he added.
“We cannot stop, because those beautiful people on the Pacific islands that face the risk of being submerged are waiting for us.”
Climate action, investment
Stiell, for his part, said that one thing “is clear,” as he suggested that COP31 in Antalya will take place in extraordinary times, the times he described as “a new world disorder.”
“This is a period of instability and insecurity. Of strong arms and trade wars. The very concept of international cooperation is under attack. These challenges are real and serious,” he said.
“But climate action can deliver stability in an unstable world.”
“In the face of the current chaos, we can, and must, drive forward a new era of international climate cooperation,” he urged, referring to previous action and decisions and suggesting that “nations can deliver change on a major scale when they stand together.”
Stiell, in particular, addressed the investments in renewable energy. He cited that in the decade since the Paris Agreement, “clean energy investment is up tenfold.”
He said that in 2025, despite all the economic uncertainty and political headwinds, the global transition kept surging forward as the clean energy investment “kept growing strongly, and was more than double that of fossil fuels.”
“Renewables overtook coal as the world’s top electricity source,” he added.
“This is an era to speed up and scale up,” he also said.
“Climate action is indisputably in every nation’s self-interest.”
Türkiye’s current account balance registered a deficit of $7.25 billion (TL 317.11 billion) in December, lifting the annual gap to $25.2 billion, mainly driven by a foreign trade gap, official data showed on Friday.
Vice President Cevdet Yılmaz and Treasury and Finance Minister Mehmet Şimşek said the balance still maintained sustainable levels despite challenging global conditions.
The shortfall was more than double the deficit in 2024 and up from a gap of $4 billion in November, according to the Central Bank of the Republic of Türkiye (CBRT).
The deficit in December marked the highest level in eight months. Surveys had estimated a gap of around $5.2 billion in December and about $24 billion in 2025 as a whole.
Yılmaz said the 2025 shortfall was consistent with the government’s Medium-Term Program (MTP) forecasts.
“Our macrofinancial stability continues to strengthen with the current account deficit remaining at sustainable levels, the decreasing country risk premium, and the increasing sovereign credit rating outlook,” he wrote on the social media platform X.
The goods deficit, which constitutes a major part of the current account balance, amounted to $69.7 billion last year, while services recorded a net surplus of $63.5 billion.
The primary and secondary income realized a net deficit of $18.5 billion and $528 million, respectively, the CBRT data showed.
On a monthly basis, the balance excluding gold and energy registered a deficit of $691 million in December.
The foreign trade posted a deficit of $7.44 billion, while services saw a surplus of $2.65 billion, with net travel income at $2.53 billion under this item.
Net outflows from direct investment amounted to $465 million, while portfolio investments posted a net inflow of $73 million. Official reserves decreased by $4.13 billion.
For the end of 2025, the government had revised down its current account deficit-to-GDP ratio expectation to 1.4%.
Şimşek said the annual deficit was expected to have amounted to 1.6% of gross domestic product in 2025. The gap had reached 5% of GDP in mid-2023, before declining to 0.8% in 2024.
Excluding gold, the balance posted an average deficit of 3% of GDP in the 2003-2023 period, Şimşek said X. He recalled a surplus of 0.2% in 2024 and said a limited deficit of around 0.3% was projected for 2025.
For 2026, Şimşek said the moderate course of energy prices, an improving outlook among main trading partners, and a supportive euro/dollar parity are expected to contribute positively to current account targets.
“We continue to implement structural steps that will make our gains in the current account balance permanent,” he said.
Yılmaz said the current account deficit is expected to maintain its “moderate” course throughout 2026 and “will continue to support the disinflation process, which we are reinforcing through structural reforms.”
One of the world’s largest logistics companies, DP World, announced on Friday a new chairperson, replacing the outgoing head following mounting pressure over his alleged ties to Jeffrey Epstein.
The announcement by the government’s Dubai Media Office did not specifically name Sultan Ahmed bin Sulayem. However, it said that Essa Kazim was named DP World’s chairperson and Yuvraj Narayan was named group CEO.
Those were positions held by bin Sulayem, one of the Middle East’s most prominent business figures. He’s among the highest-profile executives to face scrutiny and be removed from senior roles following the recent release of the Epstein files.
DP World has long been a pillar of the economy of the Middle Eastern city. It’s a logistics giant that runs the Jebel Ali port in Dubai and operates terminals in other ports around the world.
The announcement comes a day after financial groups in Canada and the United Kingdom said they’ve paused future ventures with DP World after newly released emails showed a yearslong friendship between bin Sulayem and Epstein.
The emails – some referencing sexual massages and escorts – surfaced in the cache of Epstein-related documents recently released by the U.S. Department of Justice.
Epstein killed himself in jail in 2019 after he was charged with sex trafficking. The emails do not appear to implicate bin Sulayem in Epstein’s alleged crimes. DP World did not respond to request for comment.
Bin Sulayem previously had a larger role as chair of the Dubai World conglomerate, which at the time included the property developer Nakheel. That company was behind the creation of human-made islands in the shape of palm trees and a map of the world that helped cement Dubai’s status as an up-and-coming global city.
The state-run WAM news agency also reported that Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, named a new head of the city-state’s Ports Customs and Free Zone Corporation. That also was a position held by bin Sulayem.
The topics in the emails between Epstein and bin Sulayem range widely, including President Donald Trump, sex and theology.
In one email from 2013, Epstein wrote to bin Sulayem that “you are one of my most trusted friends in very sense of the word, you have never let me down.”
In response, bin Sulayem said, “Thank you my friend I am off the sample a fresh 100% female Russian at my yacht.”
That same year, bin Sulayem sent Epstein an email showing a menu for a massage business which included sexual offerings. Two years later, bin Sulayem texted Epstein a link to a porn site, and, in 2017, Epstein sent bin Sulayem a link to an escort website.
Epstein e-mailed with bin Sulayem about Steve Bannon, the Trump acolyte, in 2018, saying “you will like him.” In another exchange, bin Sulayem asked Epstein about an event where it appeared Trump would be in attendance.
Foreign direct investment (FDI) into Türkiye increased by 12.2% year-over-year in 2025 despite a relatively stagnant global investment climate, official data showed on Friday.
The FDI inflow reached $13.1 billion (TL 572.99 billion) last year, according to data released by the Central Bank of the Republic of Türkiye (CBRT), bucking the broader trend seen in many developing economies.
Among the top sources of FDI into Türkiye in 2025, the Netherlands ranked first with $2.86 billion, followed by Luxembourg with $1.16 billion and Kazakhstan with nearly $1.14 billion.
Other major investors included Germany, the United States, France, the United Arab Emirates (UAE), Switzerland, the United Kingdom and Ireland.
On a sectoral basis, the data pointed to a concentration of investment in production, trade and technology-oriented activities.
Wholesale and retail trade attracted the largest share of last year’s FDI, driven mainly by investments in e-commerce platforms. The sector accounted for 32% of total inflows, or $3.05 billion.
Manufacturing followed closely with a 31% share, totaling just over $3 billion, while the information and communications sector ranked third with a 14% share, or $1.31 billion.
According to the U.N. Trade and Development (UNCTAD) Global Investment Trends Monitor, global FDI flows showed only a cautious recovery in 2025. While inflows to developed economies and financial centers increased, investment into developing countries declined by about 2%.
Against this backdrop, Türkiye stood out with double-digit growth, outperforming global peers.
Türkiye’s performance is attributed to reforms aimed at improving the investment climate, including the launch of projects under the HIT-30 program, updates to the incentive system, the implementation of climate legislation and steps to advance digitalization.
Ahmet Burak Dağlıoğlu, head of the Investment and Finance Office of the Presidency of Türkiye, said Türkiye’s performance reflected its structural advantages and reform agenda at a time when global investment decisions remained cautious.
“Investments by global technology brands and funding directed to technology startups stood out in 2025. Investments in manufacturing and logistics also strengthened Türkiye’s position in global supply chains,” Dağlıoğlu said in a statement.
He added that Türkiye’s production capacity, skilled workforce and strategic location continue to enhance its appeal as “a global connectivity hub” for international investors.
Türkiye and the Turkish Republic of Northern Cyprus (TRNC) will continue to advance cooperation and finalize a new economic agreement by the end of March, Vice President Cevdet Yılmaz said on Thursday.
Yılmaz’s remarks came after meeting TRNC Prime Minister Ünal Üstel in Ankara. The vice president described the talks as productive and said work is underway on a new economic and financial cooperation framework.
“Our aim is clear. We want to carry the TRNC toward a more prosperous and stronger future,” Yılmaz said.
He stressed that ties between Türkiye and the TRNC are “not ordinary relations between two countries,” adding that Türkiye, as a guarantor state, “will continue to stand by the TRNC.”
Yılmaz said the current cooperation protocol has been implemented effectively and that both sides aim to complete negotiations on a new agreement by late March.
The Mediterranean island of Cyprus was divided in 1974 after a Greek Cypriot coup aimed at Greece’s annexation. This led to Türkiye’s military intervention as a guarantor power to protect Turkish Cypriots from persecution and violence.
The TRNC was founded in 1983. The country is fully recognized only by Türkiye, which does not recognize the Greek Cypriot administration in the south.
The island has seen an on-and-off peace process in recent years, including a failed 2017 initiative in Crans-Montana, Switzerland, under the auspices of the guarantor countries.
The Greek Cypriot administration joined the European Union in 2004, the same year that the Greek side rejected a United Nations plan to resolve the dispute in a referendum.
The Turkish side strictly adheres to a two-state solution based on sovereign equality. The Greek Cypriots are seeking a federal solution.
Yılmaz said any solution must be based on “the realities of the island,” including “two states and two peoples” and sovereign equality.
“Türkiye and the TRNC will continue on their path in a spirit of cooperation,” he said. “No matter what traps are set in our region, the realities of the region will render them ineffective.”
Speaking after the meeting, the TRNC’s Üstel also addressed recent regional developments, referring to a defense protocol signed between Greece, Israel and the Greek Cypriot administration.
Üstel said the three had entered what he described as an arms race following the signing of the defense agreement and accused them of showcasing new defense acquisitions in the media.
He said the Turkish Cypriots are “not alone,” stressing that Türkiye stands by the TRNC as its motherland.
“Whatever they do, we have no doubt that when the time comes, we will respond in the same manner and with the same determination,” Üstel said.
Üstel also reiterated that there are two peoples and two states on the island and said any solution must reflect this reality.
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