Economy
Erdoğan calls for stronger transport integration among OIC nations
President Recep Tayyip Erdoğan on Thursday called for stronger transport integration among members of the Organisation of Islamic Cooperation (OIC), suggesting that effective and reliable networks are essential to unlocking the Islamic world’s economic potential.
In a video message to an OIC transport ministers meeting held in Istanbul, Erdoğan said that Muslim countries span a vast geography stretching from Asia to Africa and Europe to the Middle East, commanding natural corridors, a dynamic young population and fast-growing markets.
“However, to fully realize this great potential and transform geographical advantages into strategic power, we need efficient, reliable and integrated transport networks,” he said.
Erdoğan said stronger links among highways, railways, ports and airports would boost not only trade but also social and cultural interaction among member states.
Highlighting Türkiye’s recent large-scale infrastructure projects, such as the Marmaray, Eurasia Tunnel and major bridges, he said the country has reinforced global trade routes and expanded its rail, maritime and aviation capacity.
Moreover, the president also said that through Türkiye’s support for the Trans-Caspian East-West Middle Corridor Project, the country has revived the historic Silk Road with a modern vision.
“However, we do not evaluate these investments solely within a national framework,” he said. “Our goal is to strengthen integration with member states of the Organization of Islamic Cooperation, develop cross-border corridors, and generate added value through joint projects.”
Erdoğan noted that constructive negotiations held during the conference had led to significant steps.
“We have made important decisions to create a road map that will strengthen transport links among member states, increase solidarity on international platforms, and prepare a transport connectivity strategy document under Türkiye’s (OIC) term presidency,” the president said.
“Undoubtedly, in order for these decisions to be implemented effectively, it is important that technical meetings are not disrupted and that monitoring mechanisms are operated meticulously.”
“We believe that the will we have demonstrated today will pave the way for this,” he added.
The 2nd Conference of Ministers of Transport of the OIC, to which Erdoğan sent a video message, was held under the chairmanship of Transport and Infrastructure Minister Abdulkadir Uraloğlu, with the participation of ministers from OIC member states.
Speaking at the conference, Uraloğlu stated that they were holding the conference in Istanbul after a 40-year hiatus and expressed his hope that the meeting would yield beneficial results for member countries and the entire Islamic world.
Noting that the world economy, trade routes, production centers, and transportation technologies have undergone a deep transformation in the nearly 40 years that have passed, Uraloğlu noted that this transformation has made cooperation in the field of transportation “more strategic than ever.”
“This cooperation, which we are carrying out under the umbrella of the OIC, represents an important foundation that strengthens solidarity and mutual trust among member countries,” he said.
The Turkish central bank lifted its year-end inflation forecast to the 15%-21% range, while keeping its interim target at the same level of 16%, its governor announced on Thursday, while emphasizing the monetary authority’s tight stance to ensure the continuation of the disinflation process.
Central Bank of the Republic of Türkiye (CBRT) Governor Fatih Karahan said in the first inflation report this year that developments show that the bank has to maintain a tight stance and that the bank was ready to use all policy tools for disinflation.
The bank lifted the forecast range for this year from the earlier announced 13% to 19%. It also left its end-2027 interim target at 9%, in a forecast range of 6%-12%. Meanwhile, it set the end-2028 interim target at 8%.
Last August, the CBRT for the first time introduced the interim targets. The bank appears to be seeking to avoid adjusting its targets, even as forecasts can change.
Presenting the central bank’s quarterly inflation report in Istanbul, Karahan said the adjustment to the range was caused by a change in data calculations, energy prices and food prices.
Food prices impact
It also comes after a jump in monthly inflation in January due to price adjustments at the start of the year. Karahan, in his presentation, particularly highlighted the impact of food prices, specifically vegetable prices, on the reading.
Last month, consumer price inflation surged nearly 5% month-over-month, while on an annual basis, it eased to 30.65%, marking the lowest since late 2021.
“As you know, food prices are significantly affected by supply-side developments related to weather conditions. In January, developments in vegetable prices were particularly noteworthy in this regard,” he said.
“Vegetable prices, which had fallen sharply in November due to temperatures exceeding seasonal averages, rose significantly in January following unfavorable weather conditions,” he added.
“The impact of this development will extend into February,” Karahan suggested, pointing out, however, that with the supply conditions normalizing in the second quarter, they expected these effects “to reverse to a certain extent.”
Starting his speech, he said that tight monetary policy “gradually yielded results in 2025,” while also evaluating the global and domestic economic outlook.
Global developments
On the global side, he mentioned that they continued to monitor developments related to precious metal prices, adding that non-energy commodity prices “maintained their upward trend despite recent volatility.”
He also suggested that developed countries’ monetary policies are closely monitored due to their wide-ranging effects.
“The Fed is expected to keep cutting rates in 2026, but the amount and timing of these cuts are still uncertain. On the other hand, markets are pricing a tighter monetary policy by the Bank of Japan,” he noted.
Domestic outlook
Moreover, addressing the domestic picture, he once again underscored the impact of services inflation on the headline inflation, reiterating that “the high level of services inflation was driven by rents and education in 2025.”
Pointing to the price adjustment regulations in education, he said that the regulation-implied figures for 2026 indicate that there is “a certain room for disinflation on the education side.”
Moreover, he said that the contribution of consumption to growth receded significantly in the first three quarters of 2025 compared to the same period of 2023, while the contribution of investment increased.
“While the contribution of net exports turned negative during this period amid global trade uncertainties of 2025, there is a more balanced picture compared to the pre-tightening period,” he added.
The governor also said that demand conditions “continue to support the disinflation process, albeit to a lesser extent,” and that they expected this disinflationary outlook to last in 2026.
Monetary stance
“We stand ready to tighten our monetary policy stance in case of a significant deviation in the inflation outlook from the interim targets,” Karahan also said in his closely followed speech.
Last month, the central bank lowered its key interest rate by a less-than-expected 100 basis points to 37%, citing firming inflation, pricing behavior and expectations that threaten the disinflation process. It was the fifth consecutive easing move since last summer.
On Thursday, Karahan said that they reviewed the step size and delivered a limited cut of 100 basis points, bringing the policy rate to 37%.
He suggested that they take into account “the aspects, which are temporary or outside the scope of the monetary policy, as second-round effects from the expectations channel.”
He appeared firm in delivering the message that disinflation would continue in spite of temporary fluctuations.
“Therefore, we are decisively maintaining our tight monetary policy stance to ensure the continuation of the disinflation process in line with targets,” he added.
“We have always reiterated that during the disinflation process, we will maintain our tight monetary policy stance to achieve our interim targets,” he also said as part of his remarks.
Britain’s economy barely expanded in the final quarter of 2025 as activity fared worse than initially estimated during the run-up to Treasury chief Rachel Reeves’ budget, official figures showed on Thursday.
Gross domestic product (GDP) grew by a mere 0.1% in the October-to-December period, the same slow pace as in the third quarter, the Office for National Statistics (ONS) said.
Economists polled by Reuters, as well as the Bank of England (BoE), had forecast 0.2% fourth-quarter growth compared with the previous three months.
The period was marked by rampant speculation about tax increases ahead of Reeves’ budget on Nov. 26. The ONS revised down monthly GDP data for the three months to November to show a 0.1% contraction rather than 0.1% growth.
Some more recent data have suggested that uncertainty has lifted for consumers and businesses.
“Looking at various surveys, there were some tentative signs that sentiment turned a corner and started to improve after the budget last year, which could help deliver a pick-up in activity this year,” Luke Bartholomew, deputy chief economist at Aberdeen, said.
‘Political uncertainty’
“However, recent political uncertainty may see that sentiment bounce reverse.”
Prime Minister Keir Starmer has had to fight to keep his grip on Downing Street this week due to fallout from the Jeffrey Epstein scandal.
Thursday’s figures underscored why investors think that the Bank of England is more likely than not to cut interest rates again in March.
The monthly GDP data showed a sharp downward revision to growth.
The data suggested hesitancy on the part of businesses during the fourth quarter as their investment fell by almost 3% – the biggest quarter-on-quarter drop since early 2021, driven largely by volatile transport investment.
Economist Thomas Pugh at tax and consultancy firm RSM said the overall weakness in business investment suggested budget uncertainty held back investment and spending.
Manufacturing was the biggest driver of the increase in output, despite the fact that car output was still recovering from September’s cyber attack on Jaguar Land Rover, while the dominant services sector was flat. Construction output contracted by 2.1%.
In 2025 as a whole, Britain’s economy grew by an annual average 1.3%, the Office for National Statistics said, compared with 0.9% in France, 0.7% in Italy and 0.4% in Germany.
British economic growth per head contracted by 0.1% for the second quarter, although it rose by 1.0% for 2025 as a whole.
In December alone, the economy grew by 0.1%, the ONS said, as expected in the Reuters poll. That left the size of the economy back at its level of June 2025.
Argentina edged closer on Thursday to approving labor reforms that have led to clashes between workers and police in the streets outside Congress.
The reforms, a pet project of budget-slashing President Javier Milei, would make it easier to hire and fire workers, reduce severance pay, limit the right to strike and restrict holiday rights.
Critics say the move will make jobs more precarious in a country where almost 40% of workers lack formal employment contracts.
The Senate voted 42-30 early Thursday to pass the reform, which will now head to the Chamber of Deputies for approval.
It came a day after demonstrators in the capital Buenos Aires hurled stones and bottle bombs at police who responded with tear gas and rubber bullets.
A few dozen people, many hooded and masked, clashed with police blocking access to the parliament, as lawmakers inside the building debated the plans.
Agence France-Presse (AFP) witnessed injuries to one police officer and one protester, though an official toll has yet to be made public. Media at the scene estimated that at least 20 people were arrested.
Milei has insisted that existing labor laws are too restrictive and discourage formal hiring. He wants the reforms adopted by March.
‘Exploitative’
“Today we are here to decide whether we remain trapped in a statist, corporate and patronage-based system that has driven away investment, destroyed jobs and impoverished millions of Argentinians,” Joaquin Benegas Lynch, a ruling party senator, told Wednesday’s debate.
But for protester Federico Pereira, a 35-year-old sociologist, “with this exploitative labor reform, they are only thinking about the wealthy. Those who benefit are the bosses.”
Since taking office in December 2023 with a plan to revitalize Argentina’s struggling economy, Milei has slashed government spending and spurred deregulation.
Opposition parties and unions dispute that the reforms will create new jobs.
They point out that the economy shows persistent signs of stagnation, marked by declining consumption and industrial activity.
Security Minister Alejandra Monteoliva vowed that those responsible for Wednesday’s violence “will be identified” and punished appropriately.
“They are dozens of members of leftist groups who acted in an organized manner, with premeditated violence and improvised weapons to… sow chaos. They will pay,” she said on X.
President Donald Trump is privately discussing the possibility of withdrawing from the U.S.-Mexico-Canada Agreement, Bloomberg reported Wednesday, citing officials familiar with the matter, a move that could inject fresh uncertainty into upcoming renegotiations of the trilateral trade deal.
Officials who spoke to the news organization on condition of anonymity about the internal discussions said the president has asked aides why he should not renounce the pact he made during his first term, but he has stopped short of signaling he would do so.
When questioned about the talks, a White House official characterized Trump as the final arbiter and someone who is constantly looking for a better bargain for the American people. Any discussion of possible action before the president made an announcement was nothing more than unfounded conjecture, according to the official.
A representative in U.S. Trade Representative Jamieson Greer’s office said the administration planned to keep Trump’s options open and engage in negotiations to resolve identified flaws, saying that approving the 2019 terms was not in the best interests of the country.
Speaking on condition of anonymity, both officials refrained from openly addressing whether Trump was considering leaving the trade agreement. Greer stated Tuesday that the administration would have separate discussions with Canada and Mexico, citing the more tense trade relations with Canada. He made no mention of Trump’s approval of an extension.
The USMCA took the place of the North American Free Trade Agreement (NAFTA), which governed commerce between the three nations since 1994 but was criticized by Trump during his initial presidential campaign. Trump vowed to withdraw from NAFTA before accepting the revised agreement, which included a sunset clause that required a renegotiation this summer and tighter regulations and increased U.S. car content standards.
On July 1, the USMCA will undergo a mandated review prior to a potential extension. The procedure, which was first anticipated to be routine, has turned into a heated negotiation. Trump has put pressure on Ottawa and Mexico City to address unrelated matters like defense, migration and drug trafficking, in addition to demanding additional trade concessions.
Stricter rules of origin for important industrial goods, improved cooperation on crucial minerals, worker safeguards and dumping are all areas of potential concern, an official stated, adding that Greer will suggest a renewal if a settlement integrating input from industry stakeholders can be reached.
The agreement would be in effect for an additional 16 years if the nations consented to a renewal. But if that does not occur, it can lead to yearly reviews for 10 years, until the agreement expires in 2036. Any nation could give six months’ notice before announcing its intention to leave.
The treaty covers almost $2 trillion in products and services, so such a move would rock the foundations of one of the biggest economic relationships in the world. Even the prospect of a U.S. withdrawal would make investors and world leaders more uneasy.
Retail sales growth in Türkiye accelerated in December to the highest level in seven months, ending the year on a high note after several months of robust performance, official data showed on Wednesday.
The volume of retail sales climbed 16.3% on a yearly basis in December, after also posting notable rises in November and October, according to the Turkish Statistical Institute (TurkStat).
This was the strongest growth since May, when retail sales had risen 17.7%, the data showed.
The annual sales growth in non-food products, except automotive fuel, was 20.3% in December, while that of food, drinks and tobacco stood at 9.6%.
Data also showed that automotive fuel sales logged an expansion of 8.3% on a yearly basis. Sales via mail orders or the internet grew 16.7% over the same period.
Meanwhile, on a monthly basis, retail sales increased at a stable rate of 1.7%.
At the same time, the broader trade sales volume, which is comprised of retail sales, wholesale and retail trade and repair of motor vehicles and motorcycles and wholesale trade jumped 3.8% on an annual basis in December.
In the same month, wholesale and retail trade and repair of motor vehicles and motorcycles sales volume surged by 3.0%, while wholesale trade sales decreased by 1.0%.
Month-over-month total trade sales volume increased by 2.1%, TurkStat said, compared to a 0.8% increase in November.
Retail sales and trade sales in general are a significant indicator of consumption and consumer behavior, and they contribute to gross domestic product (GDP).
The World Trade Organization (WTO) is in need of an urgent reform, its chief warned Wednesday, saying that she does not think “the status quo is an option.”
“We are meeting today at an inflection point, not just for the WTO, but … for the multilateral system,” WTO head Ngozi Okonjo-Iweala told reporters, saying that if the global trading system were allowed to lapse, it would be “chaos.”
“We need to change to fit with the times,” she said.
Reform will be at the heart of the WTO’s ministerial meeting in Cameroon next month.
The World Trade Organization regulates large swathes of global trade but is handicapped by a rule requiring full consensus among members, and a dispute settlement system crippled by the U.S.
The Geneva-based organization faced structural and geopolitical obstacles long before U.S. President Donald Trump returned to the White House last year and dramatically ratcheted up global trade tensions.
Speaking at the WTO’s headquarters, Okonjo-Iweala said that “the world is moving so fast … If you look at the speed at which technology is moving, and AI is moving and quantum technologies are moving.”
“If your organization doesn’t adapt, then you’ll be left behind,” she said.
“This organization provides stability and predictability,” she added, hailing that “in spite of all the knocks, it is still the bedrock for so much of world trade.”
“If we don’t have this system, what does it mean? I’ll be very honest with you: there’ll be chaos,” she said.
“It means a business will send goods somewhere without the knowledge of how those goods will be valued when it arrives at customs … you wouldn’t know how your goods will be valued before you’re tariffed. You wouldn’t know whether you’re going to make money or not.
“You’ll be confronted when your goods arrive with rules that you were never aware of,” she said.
Germany arrests 2 men with suspected ties to PKK terrorists
Turkish wrestler Kayaalp rebounds from setback with renewed hunger
Breaking news | Reaction from President Erdoğan to CHP: They exhibited all kinds of banditry and tyranny in the Parliament!
Germany arrests 2 men with suspected ties to PKK terrorists
Turkish wrestler Kayaalp rebounds from setback with renewed hunger
Breaking news | Reaction from President Erdoğan to CHP: They exhibited all kinds of banditry and tyranny in the Parliament!
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