Economy
Turkish economy expanded by 2% in Q1
Türkiye’s economy registered a moderate growth in the first quarter of the year, official data showed on Friday, amid a tight domestic monetary policy.
The gross domestic product (GDP) expanded by 2% in the January-March period compared to a year ago, the Turkish Statistical Institute (TurkStat) said.
Compared to the previous quarter, the economy grew 1.0% on a seasonally and calendar-adjusted basis, the data showed.
Estimates in market surveys for the annual growth ranged from 2.17% to 2.3%.
Treasury and Finance Minister Mehmet Şimşek said disinflation remained on track while the economy showed moderate growth, with a balanced outlook between consumption and investment.
“Preliminary indicators for the second quarter suggest economic activity is continuing at a moderate pace” Şimşek wrote on the social media platform X.
“We are rapidly deploying a comprehensive set of measures to mitigate potential adverse effects in the disinflation process while supporting growth, employment and exports,” he later said in a statement.
GDP at current prices soared 36.7% to TL 12.12 trillion ($335.5 billion) in January-March compared to the same period last year, TurkStat said.
Türkiye’s economy had grown 3.0% year-over-year in the fourth quarter of 2024, bringing full-year growth to 3.2% and exceeding forecasts despite the burden of high interest rates.
Economists forecast an expansion of 3% in 2025 as a whole, slightly lower than last year, reflecting the effects of monetary tightening.
In December, the Central Bank of the Republic of Türkiye (CBRT) started an easing cycle after having kept the main policy rate steady at 50% for eight months.
Inflation has dipped to below 38% from as high as 75% last May.
In April, the central bank hiked its policy rate by 350 basis points and raised the lending rate to 49% in response to market volatility following the arrest of Istanbul Mayor Ekrem Imamoğlu.
Imamoğlu was arrested in late March on corruption charges, pending a trial.
Private consumption
Data from TurkStat showed a 7.3% growth in the construction field, 6.1% in information and communication and 4.7% in other service activities.
In a note evaluating the growth data, Bürümcekçi Research and Consultancy said private consumption continued to provide the main contribution to growth.
“According to the expenditure‐based GDP data, in Q1 private consumption, investment and stock accumulation pushed growth up, while net external demand weighed it down,” it said.
“When we look at the near-term outlook for growth, leading signals indicate a moderate loss of momentum in GDP growth in the second quarter,” it added.
Stocks have been experiencing significant volatility in recent weeks due to the Trump administration’s erratic tariff decisions and the broader global uncertainty stemming from U.S. trade policies.
Separately, the central bank said on Friday that the recent tightening of its monetary stance and declining inflation had a positive impact on interest in Turkish lira-denominated assets.
The measures taken amid recent market turbulence have limited impact on Türkiye’s sovereign risk premium, the bank said in its biannual Financial Stability Report.
Despite tightening financial conditions, the bank said the deterioration in banks’ asset quality had been limited. It said banks’ balance sheets remained resilient against potential financial risks.
CBRT Governor Fatih Karahan said recent developments in financial markets and a rise in funding costs were expected to have a limited impact on banks’ balance sheets and profitability outlook.
U.S. video game and electronics retailer GameStop made a bold takeover bid on Sunday to acquire eBay for about $55.5 billion in an attempt to turn the online marketplace into a competitor to e-commerce giant Amazon.
Gamestop is offering $125 per share in a combination of stock and cash, a 46% premium over the average stock price since it began acquiring shares in eBay on Feb. 4, it said in a release.
“EBay should be worth – and will be worth – a lot more money,” GameStop CEO Ryan Cohen said in an interview with the Wall Street Journal (WSJ) published Sunday.
“I’m thinking about turning eBay into something worth hundreds of billions of dollars,” he said.
“It could be a legit competitor to Amazon.”
GameStop confirmed it had received a letter of commitment from TD Bank, an American subsidiary of the Canadian TD Bank Group, for approximately $20 billion in financing through a debt issuance.
In the press release, the company also said it had about $9.4 billion in cash reserves as of Jan. 31.
It stated it could generate $2 billion in annualized cost reductions within 12 months of the transaction’s completion.
These cost reductions alone would boost eBay’s comparable-store earnings per share from $4.26 to $7.79 in the first year, the release said.
But if eBay’s management is not receptive to his offer, Cohen told the Journal he will not hesitate to approach shareholders.
EBay’s next annual general meeting is scheduled for June, but the deadline for submitting resolutions has passed, the WSJ pointed out.
At Friday’s close, GameStop’s market capitalization stood at some $11.89 billion, while eBay’s was at $46.21 billion.
Türkiye’s annual inflation rate edged up to 32.37% in April, quickening from 30.9% in March and exceeding economists’ expectations, official data showed on Monday.
Monthly, consumer prices climbed 4.18%, accelerating from 1.9% in March, driven mainly by increases in housing, water, electricity, gas and other fuels, according to the Turkish Statistical Institute (TurkStat).
In a Reuters poll, monthly inflation was forecast to be 3.28%, with the annual rate seen at 31.25%, as the Iran war drives a sharp rise in fuel prices and expectations of a slower-than-anticipated disinflation trend.
The biggest monthly price rises in April were shown by the clothing and footwear sector, with 8.94% inflation, and the housing sector at 7.99%, while key transport sector prices were up 4.29% and food and drinks sector prices were up 3.7%.
The data also showed the domestic producer index rose 3.17% month-on-month in April for an annual increase of 28.59%.
The central bank flagged rising inflation risks in its monetary policy committee statement last month, when it kept main interest rates steady, saying it was closely monitoring fallout from the Iran war and potential second-round effects.
Thanks to its strong design capability and high quality standards in the shipbuilding, and the yacht and maritime services sectors, Türkiye is reaping the benefits in the international market, and as a result has risen to second place in the world in mega yacht production.
According to information compiled by Anadolu Agency (AA) from Türkiye Exporters Assembly (TIM) and shared on Sunday, the ship, yacht, and maritime services sector has shown a steady growth performance in recent years.
Exports, which were close to $1 billion in 2018 and 2019, gained momentum in 2022 by exceeding $1.45 billion.
The momentum continued further and the sector’s exports, which stood at some $1.91 billion in 2024, reached an all-time high of $2.24 billion last year.
Similarly, the trend appears to have strengthened as the exports from the sector more than doubled in the first four months of the year.
Accordingly, Türkiye’s ship and yacht sector exports in the January-April period surged by a whopping 103.8% compared to the same period last year, rising from around $457.4 million to nearly $932.4 million.
The positive performance is attributed to the increasing experience of manufacturers and especially their design capability in custom yacht projects, which have helped Türkiye stand out in international competition in this sector.
Consequently, Türkiye has overtaken the Netherlands in mega yacht production and now ranks second in the world after Italy, the AA report said.
At the same time, the sector’s export growth has been supported by demand from the European market and projects delivered with high quality and on time. Technological investments in recent years and strengthened production infrastructure have also accelerated growth.
Hüseyin Akduman, the chairperson of the Boat Manufacturers and Suppliers Solidarity Association, told AA that Istanbul’s Tuzla has specialized in mega yacht production and stands out in the 40-70 meter segment.
Akduman noted that new mega yacht facilities have recently been launched in Yalova, while in Izmir, Bursa, and Antalya, production under 24 meters has intensified, accounting for about 60% of the market.
He stated that government support has significantly contributed to the sector, and that companies are expanding into new markets with new designs and models, increasing export potential through feedback from these markets and winning tenders in previously untapped countries.
Second in mega yacht production
Emphasizing the sector’s successful export performance, Akduman went on to say that one of the biggest factors in export success is local production and manufacturers’ efforts to improve themselves.
“We are now able to produce accessories that are not even manufactured in Europe and market our yachts worldwide,” he maintained.
“This continuously increases our market share. Our country has reached second place in mega yacht production in the world. From design to components, from aesthetic details to functionality, we have surpassed Europe. This is increasing both exports and market share,” he explained.
He also pointed out that the lack of specialization in technical and vocational schools is a key problem for the sector, and said that improvements in this area could meet the need for skilled labor. He added that the sector could reach $3.5 billion in exports within two years.
Merve Nur Karakaya, sales and marketing manager of Izmir-based yacht manufacturer Ege Sancak, said they produce around 150 boats per year and export to 15 countries.
She noted that exports in the sector are growing rapidly, and that manufacturers have reached European-level production standards by improving their technical knowledge.
Stressing that Turkish yachts are attracting strong interest from Europeans, Karakaya said: “We carry out timely, successful, and problem-free deliveries. Therefore, both the number and share of exports have increased significantly.”
They shared their assessment at a major sectoral fair, held in Izmir between April 29 and May 3.
Turkish exports recorded their strongest April performance on record and their second-best monthly result overall, despite challenges from energy supply disruptions and price shocks, a senior official said on Saturday.
Exports soared by 22.3% year-over-year to $25.4 billion (TL 1.15 trillion), and imports rose 3.1% to $33.91 billion in April, Trade Minister Ömer Bolat said, announcing the preliminary trade data in the northern province of Ordu.
The country’s foreign trade deficit thus dropped by 29.8% on an annual basis to $8.5 billion in April, the data revealed.
Exports were once again driven by the automotive industry, which, as the historic leader, shipped goods worth some $3.9 billion last month.
From January through April, Türkiye’s foreign trade deficit climbed 7.4% to nearly $37.2 billion, data showed.
“After a very difficult 2025, and in 2026 as well, where wars have been intensively taking place in our region, where energy supply and price shocks have caused major fluctuations in the global economy, and where serious disruptions in world trade and a slowdown resembling stagnation have had negative effects, we announced a 22.5% increase in goods exports for April,” Bolat said.
“We announced $25.4 billion, the highest April export figure in history and the second highest export figure in the 102.5 years, or 1230 months, of our republic,” he added.
Recalling previous records, including the one of $26.4 billion last August, the minister pointed out that losses seen in the first quarter have been compensated.
“Thus, after a very volatile period in the first three months, we compensated for the losses of the first and third months of the year in the fourth month and increased our exports by 3.3% in the first four months,” he noted.
“In March, our foreign trade deficit was $11.2 billion, and we managed to reduce it to $8.5 billion on a monthly basis,” he further noted.
Moreover, he also suggested that the export-to-import ratio also increased “by a full 11 percentage points to 75%.”
“Thus, the summary of the first four months shows a 3% increase in exports to $88.5 billion, a 4.3% increase in imports to $126 billion in the first four months, and our deficit in the first four months was $37.2 billion. The coverage ratio was 70.5%,” he informed.
Commenting on the data, Treasury and Finance Minister Mehmet Şimşek said that the rise in imports was “limited” while also pointing to the potential for trade fluctuations in the second quarter due to geopolitical risks.
“Exports rose by 22.3% year-on-year in April, also aided by calendar effects, while import growth was limited to 3.1%,” Şimşek wrote in a post on X.
“Annualized exports reached the highest level in our history at $275.8 billion. In the second quarter, where geopolitical tensions continue, there will be periodic fluctuations in the foreign trade outlook due to calendar effects,” he further said.
“In this period when global conditions are challenging, we continue to support the sectors that bring foreign exchange to our country and the transformation in production, and to take structural steps that increase our competitiveness,” he added.
“We continue to produce and export with all our might. Despite all the difficulties, I believe we will finish 2026 above the target of $282 billion,” said Mustafa Gültepe, the head of the Türkiye Exporters Assembly (TIM), referring to the official targets for goods’ exports.
“Looking at our top five sectors, the automotive sector maintained its lead with $3.9 billion. Chemicals followed with $3.1 billion, electrical and electronics with $1.8 billion, ready-made clothing with $1.451 billion, and the steel sector with $1.438 billion, sharing the top 5 spots,” he said.
He also said that according to TIM data, 61 provinces have boosted their exports last month.
“When we look at the provinces with the highest export figures, we see that they are ranked as follows: Istanbul, Kocaeli, Bursa, Ankara, and Izmir,” Gültepe suggested.
Emirati energy group, The Abu Dhabi National Oil Company (ADNOC) pledged on Sunday to spend $55 billion on new projects over the next two years, just days after the surprise decision of the United Arab Emirates (UAE) to exit the OPEC oil cartel.
The move to ditch the Organization of the Petroleum Exporting Countries (OPEC) and the expanded OPEC+ group will allow the UAE to produce as much or as little crude as it wishes after decades of following a quota system instituted by the cartel, potentially providing a windfall of cash to the country.
“ADNOC today confirmed it is accelerating growth and delivery of its strategy with AED 200 billion ($55 billion) in new project awards for 2026-2028,” read a statement released by the company.
The move comes as the Gulf has been rattled by the U.S. and Israel’s war with Iran, which has seen the Strait of Hormuz choke off massive amounts of energy exports and attacks by Tehran damaging infrastructure across the region.
Before Iran’s blockade of Hormuz disrupted oil flows, the UAE was OPEC+’s fourth-largest producer and accounted for nearly 13% of OPEC production.
The UAE has long been frustrated with the Saudi-led OPEC’s quotas, which sought to cap Emirati production at 3.4 million barrels a day (bpd) to maintain prices.
Abu Dhabi aims to expand its production capacity to 5 million barrels a day by 2027.
“The planned project awards span ADNOC’s upstream and downstream operations and usher in a new phase of project delivery that will supercharge the UAE’s manufacturing capacity, strengthen industrial resilience, deepen the impact of the company’s plans to boost spending and production in the UAE,” ADNOC added.
The UAE has been an OPEC member through the emirate of Abu Dhabi since 1967, four years before the former British protectorate became an independent country.
It officially left the cartel on May 1.
As ADNOC announced the new lavish spending plans, the seven OPEC+ members announced a hike in oil-production quotas during their first meeting since the UAE’s departure.
As the closure of the Strait of Hormuz continues to drag the global economy, one German town has been scrambling to help make up the shortfall in fertilizer supplies.
Wittenberg, better known to many as a cradle of the Protestant Reformation, is also home to a chemical plant founded in 1915, in the midst of World War I.
At that time, the aim was to produce nitrogen for explosives and fertilizers to circumvent a blockade, which prevented certain raw materials being imported from Chile.
More than a century later, the closure of the Strait of Hormuz “shows that it’s still the same thing today – sea routes can collapse”, Christopher Profitlich, spokesperson for the SKW company, which took over the site in 1993, told Agence France-Presse (AFP).
A third of the world’s fertilizers normally pass through the Strait of Hormuz, and the World Trade Organization (WTO) has warned that the blockade there threatens global food security, particularly in Africa and South Asia.
“That’s why it makes so much sense to have production in Europe,” Profitlich said.
Domino effect
At SKW’s sprawling 220-hectare site, a 23-kilometer (14-mile) rail network transports urea, ammonia and finished fertilizers, destined for sites across Germany and elsewhere in Europe.
SKW is Germany’s largest producer of urea, an essential component of fertilizers. In one of its warehouses, a mountain of acrid-smelling white powder rises several metres high.
The plant has been running at full capacity to try to make up the shortfall in supply from the Hormuz blockade.
The company expects an increase in revenue this year of between 10% and 20%, but stresses this estimate remains uncertain because of market volatility.
SKW’s CEO Carsten Franzke says that the company is not a “war profiteer” and will probably just break even once soaring energy costs are also taken into account.
Around 80% of the company’s production is powered by gas, which has doubled in price since the conflict broke out on Feb. 28.
Like much of German industry, SKW had already been struggling with the energy crisis triggered by the Ukraine war, which starkly exposed the country’s reliance on Russian gas.
SKW posted losses three years in a row as the country strove to wean itself off cheap Russian energy supplies.
Today, the company imports natural gas from Norway, the Netherlands and the United States, but is suffering as prices rise on global markets due to a domino effect from the latest conflict.
“We can pass on the higher costs to the consumers of our products,” Franzke said.
“The problem is that our customer, the farmer, might not be able to pass these costs on,” he said.
Looming shortage
One such farmer struggling with the impact of the crisis is Gerhard Geywitz, who relies on nitrogen-based fertilizers at his farm in the southwestern state of Baden-Wuerttemberg.
Speaking to AFP in his cornfield, he said that since the war began, the price of fertilizer has jumped by 50%.
He explained that as cereal prices on the world market have remained stable, he has had to absorb the cost and can’t pass it on.
If the war drags on, Geywitz worries about “a fertilizer shortage by next year.”
“For this reason, we’ve decided to stock up now, before prices become exorbitant,” Geywitz said.
The German Fertilizer Producers’ Association (BVDM) pointed out that several European plants have closed in recent years due to costs, even before the current crisis.
“Without local producers and competitive farming, food security in Europe is seriously threatened,” the BVDM said in a statement to AFP.
“Dependence on international markets represents a certain risk,” it added.
The crisis has revived worries that European businesses in these sectors will struggle to compete with foreign rivals who face fewer constraints, particularly in terms of environmental standards.
Like many others in German industry, Franzke has called for a review of the EU’s carbon trading scheme in order to ease pressure on businesses.
The European Commission has said it is looking into the issue.
-
Daily Agenda15 hours agoReaction from Minister Göktaş to the Bosch advertisement targeting the institution of family: Motherhood is the carrier of a generation and a future
-
Politics3 days agoFM Fidan, Greek counterpart discuss Israeli attack on Gaza-bound flotilla
-
Politics3 days agoGaza aid flotilla activists land in Istanbul after Israeli interception
-
Refugees3 days agoAlex Fitzpatrick is in the mix at Doral’s Cadillac Championship
-
Daily Agenda3 days agoBREAKING NEWS… MHP Ordinary Congress will be held on March 7, 2027!
-
Sports3 days agoExiled Afghan players celebrate World Cup route, Olympics move
-
Politics3 days agoPresident Erdoğan, Bahçeli discuss ‘terror-free Türkiye’
-
Politics3 days agoTurks on Gaza aid flotilla to return to Istanbul after Israeli seizure