Economy
Türkiye aims to advance cooperation, investments with Kazakhstan
Türkiye eyes advancing its economic cooperation with Kazakhstan in all areas, Vice President Cevdet Yılmaz said on Wednesday during the visit to Astana, where he attended several high-level meetings and business talks.
“Kazakhstan’s growth last year was roughly double that of the global growth. While the world grew by about 3%, Kazakhstan grew by 6.5%. Hopefully, with these growth rates, Kazakhstan will rise to a much different position in the world. We will develop our cooperation with Kazakhstan in every field,” he said during a roundtable meeting also attended by Kazakh Prime Minister Oljas Bektenov.
Speaking here, Yılmaz underscored that relations between Türkiye and Kazakhstan are based on a multifaceted foundation of brotherhood, nourished by deep historical ties and a shared civilizational memory.
He also suggested that despite all the geopolitical tensions and the circle of fire in the region encountered in recent years, Türkiye continues on its path of being “an island of stability and a safe haven.”
Referring to the growth of the Turkish economy, he also touched upon the investment potential, calling on both sides and the private sector to evaluate further investment opportunities to excel in trade.
“There are over $2 billion in investments from Kazakhstan to Türkiye, and nearly a thousand Kazakh companies have invested in Türkiye. We need to further increase the number, quantity, and quality of these investments so that the infrastructure of our trade is strengthened,” he said, according to remarks published by Anadolu Agency (AA).
“The more these investments increase, the healthier and stronger our trade will be. In this sense, we invite mutual investment. We invite the Turkish business world to invest more in Kazakhstan, and the Kazakh business world to invest more in Türkiye. We wholeheartedly believe that we will all benefit,” he added.
Moreover, while in Astana, Yılmaz held a one-on-one meeting with Bektenov and inter-delegation meetings.
After the meetings, under the chairpersonship of Yılmaz and Bektenov, the 14th Session of the Kazakhstan-Türkiye Joint Economic Commission (KEK) Inter-Delegation Meeting was held.
Following the meeting, the 14th Session KEK Protocol and a 67-item action plan were signed.
“To further consolidate this strategic partnership, we will hold the 6th Meeting of the High-Level Strategic Cooperation Council in May,” Yılmaz noted.
Advancing cooperation
He also expressed that bilateral relations have “evolved beyond sympathy and have turned into a multidimensional cooperation architecture in areas such as trade, investment, transportation, energy, contracting, industry, agriculture, logistics and finance.”
Here, too, he highlighted the belief that two respective “growing economies need to cooperate more.”
“Our foreign trade reached $10 billion last year, renewing a record. Our goal is to achieve the $15 billion trade volume set by our presidents. At this point, accelerating customs and logistics processes is one of our top priorities. In addition, increasing our mutual investments is extremely important,” he suggested.
Among others, he also pointed to the appeal in the finance sector and said that the Istanbul Financial Center (IFC), established on the way to making Türkiye first a regional and then a global financial center and opened in 2023, stands out with its strong legal infrastructure and tax advantages.
“Taking into account the recent developments in our region, we are working on new initiatives during this period. In the upcoming period, we will take steps to make Türkiye a much more attractive country in terms of finance. We aim to make Istanbul a stronger financial center,” he said.
Middle Corridor ‘mandatory choice’
Also, evaluating the work of the Turkish contractors abroad, Yılmaz mentioned the disruptions in supply chains and described the Middle Corridor route as “a mandatory choice.”
“The Northern Corridor has become unpredictable due to geopolitical tensions. The southern route is pushing the limits of its capacity. This situation has made the Middle Corridor not an alternative but a mandatory choice, with Türkiye and Kazakhstan at the center of this route,” he said.
The Middle Corridor is a long route stretching from China toward Europe via roads and railways, bypassing the conflict-ridden areas.
“In this sense, the Middle Corridor is a line that will carry not only the load of two countries but also of all Eurasia, and the stronger this line is, the more permanent the jointly built prosperity on this line will be,” according to Yılmaz.
The vice president also highlighted the potential in the energy sector, as well as strong education and cultural ties between the two countries.
Türkiye’s exports to Africa surged notably to hit some $13.3 billion in the first seven months of the year, led by expanding logistics networks and construction projects, alongside ongoing diplomatic and trade efforts based on the “win-win” principle.
The export volume jumped 12.6% compared with the same period last year, according to data compiled by Anadolu Agency (AA).
Turkish exports to Africa rose 16.3% in July alone, reaching $2.3 billion, the report said.
Osman Aksoy, coordinator and chair of the Foreign Economic Relations Board’s (DEIK) Türkiye-Africa Business Council, said that the export performance has been “the most concrete proof of the solid foundation of the multidimensional economic ties between Türkiye and Africa.”
Looking at countries, Turkish exports to Egypt surged 49.3% to $426.2 million in July and 26.1% to $2.3 billion in January-July.
Exports to South Africa climbed 8.3% in July to $66.9 million and 31.3% over the seven months to $479 million.
At the same time, exports to Nigeria increased 7.5% last month to $60.2 million and 52.1% to $453.2 million in January-July.
Meanwhile, Türkiye’s exports to Libya surged 22.4% to $289 million in July and 2.3% over the seven months to $1.59 billion.
Exports to Tunisia also rose 0.3% to $101 million and 9.9% in January-July to over $720 million.
At the same time, exports to Niger surged 80.5% in July to $255 million and 8% over the seven months, surpassing $302 million.
Exports to Morocco and Algeria, two of Türkiye’s key export markets on the continent, fell 24.8% to $277.5 million and declined 5.8% to $142.5 million in July, respectively.
Exports to Morocco jumped 11.7% to $2.43 billion while falling 18.8% to $1.09 billion in Algeria during the seven months.
“The momentum in the African market is the result of the commercial diplomacy we pursued for many years based on a win-win approach,” Aksoy told AA.
“Turkish Airlines’ flights to over 60 destinations across the continent and the diversification of maritime container routes boosted our export deliveries, while the massive contracting sector projects we have undertaken on the continent with roads, ports, public housing, and airports contributed to the export performance,” he noted.
Aksoy stated that Türkiye’s machinery and equipment, electrical and electronics, automotive, chemicals, iron and steel, textiles, food, and construction materials sectors played prominent roles in this success.
He suggested developing local production, joint investments, strong distributor networks, and flexible financing models to take advantage of the surging exports to Egypt, South Africa, and Nigeria, the continent’s largest markets, especially through opportunities via the African Continental Free Trade Area (AfCFTA).
“The positive diplomatic climate between Türkiye and Egypt, and the existing Free Trade Agreement, are advantages, but selling goods isn’t enough for sustainable success,” he said, urging increased investments through the Turkish Organized Industrial Zone in the Suez Canal region and efforts to reach previously untapped areas of the continent via joint production through Egypt’s Common Market for Eastern and Southern Africa (COMESA) advantages.
“We can establish a lasting presence in South Africa in high-value-added industrial equipment, electronics, and renewable energy solutions, while Nigeria offers immense potential with its population but struggles with currency fluctuations, so we must focus on local currency trade, bartering, and the direct supply of industrial and food-processing machinery to ensure sustainable growth,” he added.
Aksoy stated that Turkish firms could focus on a sector- and project-focused approach specially tailored to each country’s dynamics.
“Libya’s energy, infrastructure, construction, electricity, health care, agriculture, and food industries, Tunisia’s textiles, automotive supply industry, machinery, chemicals, and technology, and Niger and the Sahel region’s energy, agriculture, food security, irrigation, mining and infrastructure sectors present massive potential,” he said.
Germany’s economy, once the engine of European growth, has barely expanded since 2020, raising concerns over the future outlook, mainly due to weakening industrial performance and the automotive sector crisis.
Although Germany emerged from two years of recession in 2025, gross domestic product (GDP) grew 0.2%, too little to offset the preceding downturn.
The GDP rebounded 3.7% in 2021 and 1.4% in 2022 following the 4.1% pandemic contraction in 2020. Output then fell 0.9% in 2023 and 0.5% in 2024.
The economy grew 0.4% quarter-over-quarter in the first three months of 2026 and 0.2% in the second quarter.
Investment declined in April-June, showing the expansion was not broad-based.
The European Commission expects growth of just 0.6% in 2026 and 0.9% in 2027, while the Bundesbank projects 0.5% this year.
Industrial decline at heart of stagnation
Germany’s economic model was built on manufacturing that transformed inexpensive imported energy into high-value vehicles, machinery and chemicals.
That model is under pressure from the loss of cheap Russian pipeline gas, elevated energy and labor costs, weak investment and Chinese competition in world markets.
Industrial production rose only 0.2% month-over-month in June, following years of declining production.
Manufacturing employed 5.29 million people at the end of the first half, down 144,100, or 2.7%, year-over-year.
Employment fell 3.8% in fabricated metal products, 3.7% in basic metals, 3.6% in chemicals and 3.4% in electrical equipment. Mechanical engineering reduced its workforce by 2.7%.
Automotive industry bears brunt of crisis
Germany’s automotive industry provides the clearest evidence of the structural downturn.
Sector employment fell by 42,300, or 5.8%, to 691,500 at the end of the first half, its lowest level since 2005 and the largest decline among major industrial sectors.
Employment among vehicle and engine manufacturers dropped 6.1% to 429,200, while parts and accessories suppliers recorded a 7.6% decline to 219,500.
Revenue at Volkswagen Group was almost unchanged at 158.1 billion euros ($184 billion), while operating profit declined 11.6% to 5.9 billion euros and its margin narrowed to 3.8%.
BMW’s pretax profit fell 29.4% to about 4 billion euros. Net profit declined 28.5% to 2.87 billion euros, and its automotive margin dropped to 3.6% from 6.2%.
Adjusted operating profit at Mercedes-Benz Group fell 10% to 4.07 billion euros, net profit dropped 6% to 2.52 billion euros and industrial free cash flow contracted 30% to about 3 billion euros.
Porsche’s revenue also fell 5.1% to 17.23 billion euros.
Profitability remained below earlier levels amid tariffs, restructuring costs and weak Chinese demand.
The results show the downturn extends beyond suppliers. Flagship automakers are selling fewer vehicles and operating with narrower margins as competition, tariffs and domestic costs erode earnings.
The electric-vehicle transition adds pressure because electric models require fewer mechanical components, threatening suppliers dependent on engines, transmissions and exhaust systems.
Export model loses strength
Germany has traditionally relied on trade surpluses to compensate for weak domestic demand, but that source of growth is becoming less dependable.
Exports fell 0.3% in 2025, their third consecutive annual decline, reflecting weaker foreign demand, U.S. tariffs and Chinese competition.
Exports improved 3.7% year-over-year in the first half of 2026, but imports rose faster at 4.4%.
In June, exports increased 0.9% to 139.3 billion euros, while imports surged 4.4% to 123.9 billion euros, narrowing the monthly trade surplus to 15.4 billion euros.
The commission expects exports to stagnate and the current-account surplus to fall from 4.7% of GDP in 2025 to 3.1% in 2027.
Labor market begins to weaken
Germany’s labor market initially resisted the downturn as companies retained skilled workers and employment grew in public services. That resilience is also fading.
Unemployment rose by 71,000 to 3.007 million in July, taking the rate to 6.4%, according to the Federal Employment Agency. Seasonally adjusted unemployment increased by 6,000.
Employment declined by 23,000 in June and was 225,000 lower than a year earlier. The agency said labor demand remained weak.
Business insolvencies remain elevated
Corporate insolvencies have risen as companies struggle with weak demand, high financing and energy costs, and the withdrawal of pandemic support.
Courts recorded 1,995 business insolvencies in May, 2% fewer than a year earlier. However, insolvencies increased 4.9% to 10,546 in January-May.
Germany registered 24,064 corporate insolvencies in 2025, the highest total since 2014, following increases of more than 20% in both 2023 and 2024.
Germany plans higher infrastructure and defense spending, but bureaucracy, labor shortages and slow planning could limit the effect.
The country is no longer technically in recession, but marginal growth conceals deeper weaknesses. Industrial employment is falling, automakers face shrinking margins, exports have lost momentum and insolvencies remain elevated.
Economic anxiety spreads among Germans
The economic deterioration is increasingly shaping public sentiment, according to the ARD-DeutschlandTREND survey for July.
More than three-quarters of Germans said they were worried about the country’s economic competitiveness, with concern greater than last autumn.
Almost one in four employed respondents feared losing their job, while more than half of workers worried they could face financial difficulties in retirement.
The economic concerns have also weighed on the government.
Only 13% of eligible voters said they were satisfied with its performance, while Chancellor Friedrich Merz’s approval fell to 13%, according to the representative survey commissioned by ARD, and public confidence continues to deteriorate further.
U.S. President Donald Trump announced on Wednesday what he called unprecedented “economic warfare” against Iran and pledged isolation as well as “consequences” for any country that gives it a “lifeline” amid stalled negotiations with Tehran.
“No one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me,” Trump wrote on his Truth Social platform, adding that Tehran had “failed to take it.”
“Therefore, today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY!” Trump wrote.
“This will be Economic Warfare and Isolation on an unprecedented scale,” he added.
Any country that allows its financial institutions, businesses, airports or government entities to provide “any type of lifeline to Iran” would itself face “TREMENDOUS Economic Consequences,” Trump wrote.
Trump said the U.S. needed the support of all its allies to isolate Iran and counter the threat posed by Tehran.
Iranian media, meanwhile, appeared unfazed by Trump’s threat, saying the U.S. president had repeatedly spoken in the past of Iran’s supposedly imminent collapse and of measures of historic proportions.
‘Psychological warfare’
His latest claims should be seen merely as the usual “psychological warfare and propaganda campaign,” the Iranian news agency Fars wrote on Telegram.
Iranian news agency Tasnim said the announcement was “not a new development, as the United States has been trying for years to block any financial and economic ties with Iran.”
Iran, however, had “learned how to circumvent these restrictions and has become very skilled at doing so,” Tasnim wrote on Telegram.
Around two and a half months before crucial U.S. midterm elections, Trump is under considerable domestic pressure, not least because he has been unable to point to any obvious successes in his war against Iran in recent weeks.
There appears to have been little progress either diplomatically or militarily.
Tehran has also remained unmoved by Trump’s repeated threats in negotiations over the reopening of the Strait of Hormuz, which commercial vessels were able to pass through unhindered before the war.
Trump has repeatedly stepped up his threats against the leadership of the Islamic Republic, and once again used stark language.
He spoke of “HISTORIC MEASURES” and compared his plan, laden with superlatives, to an “ECONOMIC D-DAY” for Iran.
D-Day on June 6, 1944, when Allied troops landed in Normandy, marked the beginning of the liberation of France and Western Europe from Nazi rule during World War II.
Sanctions
The U.S. has long imposed sanctions on Iran, and Trump now appears intent on expanding them further. “Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies – It all needs to stop NOW,” Trump wrote.
It initially remained unclear, however, how exactly the U.S. president intended to force Tehran to change course or what consequences would face countries that support Iran.
The warning could particularly affect countries such as Russia, India or China, which continue to buy Iranian oil. Oil exports are a key source of revenue for Tehran.
Trump said on Tuesday that Washington and Tehran were not currently holding negotiations following the expiry of a 60-day deadline for the two sides to reach a final peace agreement.
“There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran,” Trump wrote on Truth Social.
The statement came a day after Trump told Fox News that U.S. government representatives were in direct contact with Iran’s Islamic Revolutionary Guard Corps (IRGC).
Trump has repeatedly made claims about alleged talks or the status of negotiations with Iran that Tehran has subsequently denied.
The 60-day deadline, set out in a preliminary agreement reached in June, expired on Monday without a final peace deal. The two sides remain at odds over several issues, including Iran’s nuclear program.
The U.S. has imposed a naval blockade on Iranian shipping and ports, while Tehran has attacked commercial vessels in the Strait of Hormuz, the vital waterway between Iran and Oman through which about one-fifth of the world’s oil used to pass before the war erupted.
Meanwhile, the U.S. military has established a shipping corridor for vessels entering and leaving the Strait of Hormuz to facilitate the transport of several million barrels of oil per day, Axios reported, citing two U.S. officials.
Some 15 to 20 tankers have been using a southern route along Oman’s coast each night for several weeks, Axios reported.
About 10 million barrels of oil are reaching global energy markets each day through the route, roughly half the volume that passed through the strait before the war, according to the report.
Chinese court sentenced on Thursday the founder of embattled property giant Evergrande – largely blamed for the prolonged real estate crisis in the country – to life in prison and fined the company and an affiliate more than $2 billion after a high-profile default five years ago.
Evergrande Group was the face of Chinese real estate, surfing a decades-long property boom as it peddled home-ownership dreams, but its access to credit dramatically narrowed when the government introduced curbs on excessive borrowing and speculation.
The company defaulted in 2021 after struggling to repay creditors.
On Thursday, a court in south China fined the firm and its real estate arm a total of 15.82 billion yuan ($2.4 billion).
It sentenced founder Xu Jiayin, known as Hui Ka Yan in Cantonese, to life for a list of crimes including “large-scale financial fraud.”
“Xu Jiayin was sentenced for multiple crimes and fined, received a life sentence, with political rights revoked for life and all his personal property confiscated,” the Shenzhen Intermediate People’s Court in Guangdong province said in a post on its WeChat account.
Between 2016 and 2021, Evergrande and Xu, as boss, “violated national laws by engaging in continuous, large-scale financial fraud and other means to inflate assets and conceal liabilities,” the court said.
It added that the parties “gained control of financial institutions” through bribery, without naming the institutions.
Xu pleaded guilty in April to charges that also included embezzlement and bribery, according to the court at the time.
Five other senior executives of Evergrande Group were also sentenced Thursday to prison terms ranging from six to 18 years for crimes including fraud, the Shenzhen court said.
The U.S. national debt has surged past $40 trillion for the first time, more than doubling in less than a decade as Washington’s mounting fiscal burden reaches another historic milestone, Treasury Department data showed.
Total public debt outstanding reached $40.047 trillion on Tuesday, rising from $39.987 trillion a day earlier, the Treasury’s Debt to the Penny dataset showed.
The total comprises $32.266 trillion in debt held by the public and $7.782 trillion in intragovernmental holdings.
The federal debt stood at approximately $19.95 trillion when President Donald Trump first took office in January 2017 and reached $27.75 trillion by the end of his first term.
It then climbed to roughly $36.22 trillion during former President Joe Biden’s four-year presidency before increasing by another $3.8 trillion since Trump returned to office.
Debt increased by approximately $11.6 trillion across Trump’s two terms and by about $8.5 trillion under Biden.
Persistent budget deficits, pandemic-related borrowing, tax cuts, growing social program expenditures and rising interest costs have contributed to the increase.
The milestone is expected to heighten concerns about U.S. fiscal sustainability as debt-servicing costs take up a growing share of federal revenues.
Kenya and Türkiye are seeking to strengthen their ties beyond the long-standing diplomatic relationship, targeting greater cooperation in trade, investment, aviation, defense and regional security, according to Kenya’s Foreign Ministry on Wednesday.
The discussions took place in Nairobi between Kenya’s Prime Cabinet Secretary and Foreign Minister Musalia Mudavadi and a visiting delegation from the Türkiye-Kenya Parliamentary Friendship Group.
“Stronger global partnerships should open doors for Kenyan businesses, create jobs and connect our people to bigger markets,” Mudavadi said after the meeting.
According to the ministry, Nairobi is seeking increased Turkish investment and greater bilateral trade, particularly in manufacturing, tourism and aviation, as Kenya looks to diversify its international economic partnerships and strengthen its position as a commercial gateway to East Africa.
The two sides also discussed closer cooperation between Kenya Airways and Turkish Airlines, with improved air links expected to facilitate tourism, investment and business travel between the two countries.
The Turkish delegation was led by Ismail Güneş, a lawmaker in the Parliament from the Uşak province and also co-chair of the Türkiye-Kenya Parliamentary Friendship Group.
Kenya’s delegation was led by lawmaker Adan Keynan Wehliye, chair of the Kenya-Türkiye Parliamentary Friendship Group.
Security cooperation featured prominently in the talks, with Türkiye offering to share its experience in counterterrorism and the development of a domestic defense industry.
The discussions also covered security in the Horn of Africa, where both countries have significant interests and have been involved in efforts to support stability in Somalia.
Türkiye has developed extensive political, military and economic ties with Somalia and operates a major military training facility in Mogadishu.
Kenya, which shares a long border with Somalia, has for years faced attacks by the al-Shabaab terrorist group and remains involved in regional efforts to combat it.
The Turkish delegation pointed to a defense industry agreement signed between Kenya and Türkiye in 2023 and a separate defense cooperation agreement concluded in May this year.
Both sides expressed hope that the agreements would advance through their respective legislative processes and provide a broader framework for security cooperation.
Mudavadi welcomed Türkiye’s role in international peace and security and encouraged Ankara to continue diplomatic and mediation efforts aimed at resolving conflicts.
He said wars and geopolitical tensions increasingly have consequences beyond the countries directly involved, including disruptions to global supply chains that affect African economies.
Health was also identified as an area for expanded cooperation, with Türkiye expressing readiness to work with Kenya on hospital infrastructure, medical training, health technology, specialized medical services and health system management.
Ankara has significantly expanded its diplomatic presence across Africa over the past two decades. Güneş said Türkiye now operates 44 embassies on the continent, compared with 12 previously, reflecting Ankara’s push for closer political and economic engagement with African countries.
Kenya and Türkiye have maintained diplomatic relations for decades, with cooperation expanding into infrastructure, trade, security and development.
Nairobi views Türkiye as an increasingly important economic partner as it seeks new investment and export markets, while Kenya offers Ankara access to one of East Africa’s largest economies and the wider regional market.
The Foreign Ministry said the latest talks were aimed at translating political goodwill into practical economic and strategic cooperation, including stronger commercial ties and closer coordination on regional security.
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