Economy
Türkiye’s economic council vows ‘necessary measures’ amid Iran war
Turkish authorities pledged to continue taking necessary measures in strong coordination to limit the possible effects of global uncertainties and geopolitical tensions on the country’s economy, while also pursuing the inflation fight, according to a written statement shared by the Economic Coordination Council (EKK) on Tuesday.
The council held the meeting under the chairmanship of Vice President Cevdet Yılmaz and was attended by other top officials, including Treasury and Finance Minister Mehmet Şimşek and the governor of the Turkish central bank, Fatih Karahan.
In the written statement issued after the meeting, it was noted that the global economy “is going through a period of increased uncertainty and geopolitical tension.”
“In this conjuncture, the Turkish economy maintains its resilience to shocks, thanks to its strong macroeconomic fundamentals,” the statement read.
“With the program we are implementing, financial stability has been strengthened, and macroeconomic balances have improved significantly,” it added.
The Turkish government has been pursuing an economic program aimed at lowering inflation while focusing on sustainable growth. Since 2023, the authorities have adopted tighter monetary and fiscal policies, and inflation has regressed notably to around 30%.
The statement further emphasized that the Turkish economy “stands out positively” compared to many countries with its low public debt and budget deficit, strong reserve position, decreasing current account deficit, increasing inflow of external resources, and solid banking sector.
However, Türkiye, which shares a land border with Iran, also warned earlier that a prolonged conflict may weigh on the current account balance and inflation.
The conflict launched by the U.S. and Israel against Iran has resulted in higher oil prices and major disruptions in the Gulf region, which also risks supplies of fertilizers and thus poses a direct threat to global food prices and global inflation as well.
“On the other hand, the possible effects of geopolitical developments in our region and rising oil prices on the current account balance and inflation are being closely monitored,” the EKK statement also said.
Moreover, it also recalled that the so-called “sliding-scale pricing system” has been temporarily implemented to limit the impact of rising oil prices on inflation.
“In addition, through measures taken to ensure the supply of agricultural inputs and strategic stock management, the strong structure of agricultural production is being maintained,” it added.
On the side of energy, the statement noted that investments in domestic and renewable energy, which have been prioritized to reduce external dependence on energy and to permanently lower the current account deficit, “are being accelerated.”
“In this way, it is aimed both to strengthen energy supply security and to increase competitiveness,” it added.
Similarly, citing the rising uncertainties and protectionist trends in global trade, the statement suggested that this necessitates “the reshaping of external trade strategies.”
“In this context, efforts to update the customs union and adapt to green transformation policies with our most important trading partner, the European Union, are continuing.”
‘Necessary measures’
In this context, the statement reported that the Economic Coordination Council meeting evaluated macroeconomic developments, considered the potential effects of the U.S.-Israel-Iran war on the global economy and Türkiye, and discussed recent developments in Türkiye’s trade relations with the EU.
“To limit the possible effects of global uncertainties and geopolitical tensions on our economy, we will continue to take necessary measures in strong coordination,” EKK said.
“We will resolutely pursue our fight against inflation until permanent price stability is achieved. We will continue to take steps to protect our competitiveness and production capacity in the face of changing global trade conditions.”
U.S. President Donald Trump, who has said he wants the term “super intelligence” to replace artificial intelligence, said Thursday that anyone who does not heed his wishes will be treated as “THE ENEMY,” without saying what the consequences would be.
“The White House considers anyone that uses the term, ‘Artificial Intelligence,’ as opposed to the highly accepted new and more accurate term, ‘Super Intelligence,’ THE ENEMY!” Trump said in a post on his Truth Social network.
Trump mentioned his proposed name change in a speech before the U.N. General Assembly last month, saying his new term “sounds much better.”
Then in late September, Trump signed an executive order, imposing the use of “super intelligence” across the U.S. government.
That same obligation does not affect the private sector, but some there are already adopting it, including Mark Zuckerberg’s Meta group.
Trump ally Elon Musk is using “super intelligence” in his posts on his social media network X.
Musk has already announced plans to rename his AI company SpaceXAI to SpaceXSI.
The security pledge signed by major AI companies at the White House at the end of September also used the term “super intelligence.”
Industry heavyweights OpenAI and Anthropic, meanwhile, continue to use the well-known term “artificial intelligence” widely.
Even on Truth Social, a link to the platform’s own search function – “Truth Search AI” – remains visible alongside Trump’s post.
The semantic debate is primarily a political one: the U.S. president, who has stridently defended the use of AI, is trying to put a positive spin on it in the face of mounting worries about AI security and anger over the proliferation of data centers in the U.S.
More generally, Trump is a fan of renaming things or creating nicknames: he now calls the Gulf of Mexico the “Gulf of America” and has converted Lake Ontario into “Lake America.”
Lufthansa Group and three Indian airlines said Thursday they would suspend flights to Riyadh, as Yemen’s Iran-aligned Houthis renewed threats against carriers after claiming an attack on the Saudi capital’s airport.
A Lufthansa spokesperson told Reuters the German group’s airlines would suspend flights to Riyadh through Oct. 16 due to “current developments in the Middle East.”
India’s largest airline IndiGo said it had canceled all flights to and from Riyadh until Oct. 9.
Air India and Akasa Air also told Reuters they had canceled all flights to and from the Saudi capital until Oct. 10.
Air India added that a flight from Delhi to Riyadh returned to the Indian capital on Thursday, while Akasa Air canceled two scheduled services.
Smoke was seen rising from a stationary aircraft at Riyadh airport earlier on Thursday, according to a witness and three people briefed on the matter.
Houthis said they had struck King Khalid International Airport in Riyadh with a ballistic missile, although there was no immediate confirmation from Saudi authorities.
Saudi authorities said on Wednesday that three people had been killed this week in strikes on Riyadh airport and Abha airport in the southwest.
Several dozen international flights bound for Riyadh on Thursday evening have been canceled, data from global flight tracker FlightRadar24 showed.
Data compiled by aviation analytics firm Cirium showed 49.7% of departures from Riyadh airport had been canceled by 1500 GMT, with a further 31 cancelations expected across Saudi airports on Friday.
Türkiye has doubled its share of global manufacturing value added (MVA) over the past two decades, according to Industry and Technology Minister Mehmet Fatih Kacır, who tied it to the country’s bolstering its infrastructure and industrial transformation in the same period.
Speaking at the ACE BPSC 2026 conference in Istanbul on Wednesday, Kacır said engagement with American businesses was an important component of bilateral relations.
Held under the auspices of the Trade Ministry and hosted by the Turkish-American Business Association (TABA-AmCham), the ACE BPSC 2026 summit brought together officials and industry leaders in Istanbul from Oct. 7-9, with the aim of shaping the new direction of global trade.
“We have doubled our share of global manufacturing value added thanks to the strong production infrastructure we have built over the past 20 years,” Kacır said.
Annual goods exports have risen from $36 billion in 2002 to $283 billion, he added, also highlighting Türkiye’s role in European value chains.
The minister also recalled that under Presidents Recep Tayyip Erdoğan and Donald Trump, Türkiye and the U.S. share the political will to deepen economic ties and advance toward their $100 billion bilateral trade target.
Innovation, industrial transformation
Türkiye has more than 1,700 R&D and design centers and over 13,000 companies operating in 115 technology parks, Kacır said.
He also said that its R&D workforce has increased from 29,000 in the early 2000s to 311,000.
Moreover, he highlighted advances in defense manufacturing and electric vehicle brand Togg, saying Türkiye aimed to move higher in global technology value chains.
Cooperation with the World Bank has provided more than $1 billion for industrial companies, smaller businesses and green technology startups, he said, adding that work with the European Bank for Reconstruction and Development (EBRD) has also advanced efforts to secure 5 billion euros ($5.59 billion) for green transformation investments.
Data centers, space ambitions
At the same time, the minister said Türkiye aims to expand data center capacity to 1 gigawatt (GW) by 2030 and mobilize at least $10 billion in private investment in AI, cloud technologies and digital infrastructure.
He said assembly and integration of Türkiye’s lunar spacecraft had been completed, with launch planned for early 2027.
He also recalled that Türkiye has joined the Artemis Accords and is developing a spaceport in Somalia.
Among others, he highlighted the Zangezur Corridor, Development Road and Northern Marmara Railway as projects strengthening trade connections.
Inviting U.S. investors to participate, Kacır called for concrete projects, stronger investment flows, deeper technology cooperation and lasting commercial partnerships.
Growing U.S. trade
Also addressing the event, Trade Minister Ömer Bolat emphasized that the U.S. is an important partner for Türkiye and said that the total trade volume between the two countries was $38.6 billion last year and that the U.S. had a trade surplus of $6 billion.
Bolat pointed out that Türkiye-U.S. trade has nearly doubled in the past 10 years, with trade volume rising from about $21 billion in 2015 to $38.6 billion.
“In terms of tourism, 1.6 million American tourists come to Türkiye annually, and from Türkiye around 260,000 people travel to America each year,” he said.
He also said that Turkish Airlines flies to 14 cities in the U.S., with 23 daily flights.
Delivering the opening address at the summit, TABA-AmCham President Süleyman Ecevit Sanlı, for his part, highlighted that this was the first time the American Chambers of Commerce in Europe (ACE) had gathered in Istanbul.
“Our role as TABA-AmCham is very simple: to connect people with great opportunities and to keep doors open for the business world,” he said.
He also underscored several priorities and expectations when looking forward, including the need to modernize the Customs Union between Türkiye and the European Union, to lift transit quotas, and “to remove all bans and eliminate visa and transit barriers so that our businesspeople can travel freely within both the European Union and the United States.”
The export climate for Turkish manufacturers continued to improve in September, rising further from an already positive reading a month earlier, a survey showed on Thursday.
The Manufacturing Sector Export Markets Climate Index, which tracks the performance of Türkiye’s top export markets, rose to 53.2 in September, the Istanbul Chamber of Industry (ISO) said in a bulletin.
This marked the improvement from 52.7 recorded in August and was the highest reading in 52 months, or more than four years.
Any reading above the index’s threshold of 50 indicates an improvement in the export climate, while readings below 50 indicate deterioration.
The reading indicated that the improvement in demand conditions across export markets accelerated for the fifth consecutive month. The index has remained above the 50 threshold every month since January 2024.
In September, production increased in nine of Türkiye’s 10 largest export markets, except for Poland, ISO said.
In the U.S., economic activity “increased strongly,” with growth accelerating to its fastest pace in more than five years, according to the chamber.
Meanwhile, signs of improvement continued across European economies as well.
Production continued to increase in Germany, the U.K., Italy, Spain, Romania and the Netherlands. In France, economic activity increased for the first time in more than two years, albeit only modestly. Exports to these European economies account for 34% of Türkiye’s total manufacturing exports.
Strongest increase recorded in UAE
Among all the economies covered by the survey, the United Arab Emirates (UAE) recorded the strongest increase in production. Growth in the UAE reached its fastest pace since February, just before the start of the war in the Middle East.
In addition to the UAE, economic activity in several other Middle Eastern countries also ended the third quarter on a positive note.
Saudi Arabia, Kuwait and Lebanon recorded growth. In contrast, production continued to decline in Qatar, while Egypt experienced a significant contraction. The decline in Egypt was the sharpest among all the economies monitored in the survey in September.
Commenting on the results, Andrew Harker, Economics Director at S&P Global Market Intelligence, said: “The acceleration in global economic activity seen throughout the third quarter continued in September.”
“The strong increase in economic activity in the U.S., with growth reaching its fastest pace in more than five years, was a major factor behind this acceleration. The improvement in operating conditions was not limited to the U.S. The number of European economies recording expansion increased, while the UAE led the way in terms of growth. Manufacturers hope that the recent improvement in export demand will continue throughout the remainder of 2026,” he added.
The Atlantic puffin, barn owl, buff-tailed bumblebee and European hedgehog will feature on the next series of banknotes, the Bank of England has announced.
The first denomination from the new series will be launched over the next few years, the bank said.
It added that the process of designing, testing and printing banknotes to make sure they are high-quality, resilient and accessible takes years.
As the designs are only in very early stages, they will be unveiled closer to their launch.
The decision on which animals to include was made after nearly 500,000 people responded to a public consultation.
They chose from a shortlist of 18 options across three categories – mammals, birds, and amphibians, insects and fish – developed in collaboration with a panel of U.K. wildlife experts.
The bank used the feedback from the consultation to decide on the four animals. There will be one for each denomination of banknote.
The barn owl, buff-tailed bumblebee and European hedgehog were the most popular animals in their respective categories.
The bank said that the Atlantic puffin was selected because it was the most popular marine animal.
It said the inclusion of a marine animal will add variety to the series, making the denominations easier to distinguish and giving an opportunity to celebrate the British coastline.
The red fox, which was in the mammals category, received more nominations than the Atlantic puffin, with 244,651.
In the birds category, the common kingfisher also received more nominations than the Atlantic puffin, at 211,277 compared with 183,137 for the Atlantic puffin.
The bank has said previously it would not necessarily choose the four animals that receive the highest number of responses.
It said that is important the animals represent different environments from across the U.K.
The bank said the decision on which selected animal will feature on which denomination will be made in due course and announced closer to launch.
The animals selected will feature as the central imagery but the bank said other elements from nature will also be included.
Other shortlisted animals may also potentially be included to complete the designs, it added.
Historical figures who have helped shape thought, innovation, leadership and values have been showcased on Bank of England banknotes since 1970.
The first of the current series has been in circulation since 2016, when 5 pound banknotes featuring Winston Churchill were issued.
The current series of banknotes in circulation also features Jane Austen on the 10 pound banknote, JMW Turner on the 20 pound and Alan Turing on the 50 pound.
The rise in payment technologies such as contactless and mobile wallets has given people an increasing array of alternatives to banknotes and coins.
On June 3, the bank launched a consultation asking the public which animals they would prefer to see used as the central images on the next series of banknotes.
The consultation ran for a month and received 478,531 responses.
The bank said it is the most responses that it has ever received to a banknote imagery consultation.
Those responding placed 2,549,003 selections across the shortlist of 18 animals.
The next series of banknotes will also continue to include a portrait of the monarch.
Victoria Cleland, Bank of England chief cashier, said: “I am delighted that nearly half a million people responded to our wildlife imagery consultation, showing that cash still matters.
“I would like to thank everyone who engaged, including those who I met at our events.
“With their support, we have chosen four distinct and inspiring animals that not only showcase the great variety of wildlife we have in the U.K. but will also enhance the security of our banknotes.”
Rhys Phillips, the bank’s incoming chief cashier who will be responsible for delivering the new series of notes, said: “It’s fantastic to see how engaged the public have been in this choice.
“With these animals as the focus for the design, we can deliver a new series of banknotes that are secure and represent the U.K. at its best.
“We’ll now work to design, test and produce the banknotes, combining the imagery we’ve announced today with cutting-edge security features and materials science.”
The shortlisted animals for the 2026 wildlife imagery consultation are below, with the number of nominations they received in brackets:
Mammals
European hedgehog (259,665) Red fox (244,651) Brown hare (130,614) Grey seal (92,043) Pine marten (82,773) Bottlenose dolphin (48,847)
Birds
Barn owl (270,596) Common kingfisher (211,277) Atlantic puffin (183,137) Great-spotted woodpecker (86,839) White-tailed eagle (46,109) Eurasian curlew (44,521)
Amphibians, insects and fish
Buff-tailed bumblebee (360,399) Emperor dragonfly (143,894) Common frog (120,382) Marsh fritillary butterfly (108,467) Basking shark (69,699) Atlantic salmon (45,090)
Türkiye prioritizes macro-financial stability and a tight fiscal policy to cushion the impact of global headwinds, which have been observed recently, particularly due to wars and higher energy prices, Treasury and Finance Minister Mehmet Şimşek said on Thursday.
Addressing the opening of Istanbul Economic Forum, Şimşek said that the government maintained a tight fiscal policy to cushion the impact of shocks and prioritize macro-financial stability.
The Central Bank of the Republic of Türkiye (CBRT) organized the two-day forum to address global economic policy challenges by bringing together central bank governors and senior policymakers from around the world, including the U.S. and the U.K.
Şimşek noted that global structural headwinds included conflicts, trade protectionism, high indebtedness, unfavorable demographics, impending climate disasters and artificial intelligence.
He also underscored that while Türkiye is focusing on promoting peace, and despite living in the immediate neighborhood of the countries in conflict, the country plans to increase defense spending by 229% in the 2027 budget, against the central bank’s 21% inflation target for next year, to build deterrence.
He also said that the value of research and development (R&D) in defense projects exceeded $100 billion, with around 1,400 defense products and projects, moving the country toward becoming a top 10 exporter.
He said Türkiye ranked among the top three globally for official development assistance and diplomatic footprint.
Turkish Airlines flew to the most destinations compared with other carriers, he recalled.
He also said the government invested in an $8 billion railway project crossing the Bosphorus in Istanbul to connect Beijing to London.
The country also encouraged its neighbors to invest in additional corridors, such as the new development road, to improve connectivity and resilience.
The minister also pointed out that the nation invested in natural gas and oil pipelines to ensure the availability of energy supplies.
The nation boosted the share of renewables in electricity generation to almost 60% and set an ambitious 35% electrification target, up from 23%, as the COP31 host.
FTAs role
The government responded to global trade protectionism by expanding free trade agreements, holding 54 pacts, with three pending and ongoing negotiations with Japan, Indonesia, the Gulf Cooperation Council (GCC) and Canada.
He pointed out that tourism revenue jumped ninefold over the past quarter-century, placing Türkiye among the top five global tourist destinations.
Şimşek also mentioned that the country had over 50 internationally accredited healthcare facilities and attracted medical tourists for cosmetic treatments.
He said the nation became the world’s third-largest exporter of soap operas and ranked second to London in the gaming ecosystem for startups and unicorns.
The country ranked second to China in the global league of contractors and hoped to aid in regional reconstruction, which required at least $1 trillion over the next decade.
Moreover, Şimşek noted that the nation hosted the sixth-largest number of international students at its universities.
Relatively low debt levels
He underscored that total indebtedness remained at 91%, compared with a 230% average for emerging market peers, while public debt to GDP stood at 22%.
The government targeted a 3.1% deficit this year, keeping it well below the 5.8% average for global emerging markets, and reduced current expenditures from 4.6% of the budget to 2.9%.
The administration sought to strengthen its fiscal position by investing in public procurement, state-owned enterprise governance and tax reforms.
Şimşek said the working-age population would continue to grow over the next decade and the administration planned reforms to boost women’s low labor force participation rate.
He said the country invested in 5G+ technology, expanded fiber capacity and planned nuclear power plants, including small modular reactors (SMRs), to power AI.
The government also helped small and medium-sized enterprises boost productivity to capitalize on the positive potential of AI.
The administration invested in irrigation and climate-resilient agriculture to combat global warming.
Şimşek remarked that the country frequently tested its ability to recover quickly from difficulties and adapted its policies despite challenges in a tough neighborhood.
Price stability
He underscored that delivering price stability remained the primary goal of the medium-term economic program while maintaining fiscal discipline.
The minister added that external imbalances remained manageable even though they deteriorated this year because of the war.
He highlighted that real convergence continued as the economy grew slightly more than 3%, outpacing the 1.5% growth of trading partners, while historical growth over the last 25 years stood closer to 5.5%.
Şimşek noted that the central bank utilized quantitative and selective credit-tightening tools while the government was adjusting its fiscal policy to make support more selective and targeted.
He concluded that recent stress in the asset management sector remained contained and the country maintained plenty of policy space to respond in a shock-prone world.
Touching on the country’s disinflation process, the minister said the process had largely stalled this year because of the war, “but we’re not giving up.”
“This year’s deficit would have been actually closer to two and a half percent, had we not deployed fiscal space to cushion or to, to slow the pass-through from crudes to final products,” he added.
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