Newsletters & Press

November 2023

Thursday, November 23, the Central Bank of Turkey raised its key rate for the 6th consecutive month, setting it at 40%. This new rate hike maneuver is a continuation of the country's effort since last May to counter inflation, which reached 61% in October. Over the next three years, the government aims to reduce inflation to 33% in 2024 and 15% in 2025. In 2026, the aim is to reduce it to a single digit at 8%.

Despite this surge in prices, Turkey has managed to maintain the stability of its growth and budget deficit policy. Growth data, revised to 3.9% for the first two quarters of 2023, is expected to approach 5% in the last two quarters of the year.

For some foreign investors, this is a commercial or industrial opportunity. Indeed, although Turkey is also experiencing a drop in foreign investments (-33% in H1 2023), this is less than that experienced by EU countries (-86%), OECD countries. (-42%) or the G20 countries (-38%).

93 new investment projects arrived in the first 9 months of this year with strong demand in the transportation and storage sector and industrial equipment. Software and IT, agrifood, chemicals, automotive equipment, ceramics and glass, plastics and business services were the other main sought-after sectors. The United States, Germany, France, Italy, China (including Hong Kong), Japan, the Netherlands and the United Arab Emirates were among the main investing countries.

The various economic, political, diplomatic crises that the country is going through have in fact not slowed down foreign investments over the last 20 years. While around 5,600 international companies were operating on Turkish market in 2002, this figure exceeds 80,000 in 2023.

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