July 2024
On the eve of the summer period, July was marked by a series of significant foreign investments in Türkiye. This month notably saw the strategic decision of the world leader in electric vehicles, BYD, to build a factory in Türkiye. This initiative represents a crucial step for Türkiye in the race for know-how in the vehicles of the future.
In parallel, another notable investment is that of ZF Friedrichshafen, another major player in the automotive sector, which has decided to transfer its production to Türkiye, motivated by the lower costs, the proximity to Europe and the exemption from EU legislation. These factors make Türkiye particularly attractive for the German company, thus underlining the country’s growing appeal for international investors.
On the macroeconomic front, the big news was Moody’s decision to increase its credit rating by two notches in one go, from B3 to B1. This notable improvement has led the IMF to revise upwards its growth forecast for Türkiye in 2024, from 3.1% to 3.6%. These adjustments reflect increased confidence in the Turkish economy and its growth prospects.
Furthermore, these decisions come at a time when Türkiye has been removed from the Financial Action Task Force (FATF) grey list. This removal should have positive repercussions on the country, improving its reputation, attracting more foreign capital flows, facilitating international financial transactions and supporting economic and monetary stability.
On a completely different note, as the Paris Olympic Games are in full swing, we wish all the athletes a great competition and hope that the Turkish and French athletes will win as many medals as possible.
Finally, we would like to inform you that our offices will be closed from this week until August 30 inclusive. We will be back on Monday, September 2, but we will of course remain available in case of emergency.
We wish you all a very nice and relaxing holiday.
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