Turkish Press Digest - Nov 7, 2022

Wheat prices, which rose after Russia announced that it was suspending the Black Sea agreement, fell rapidly as Russia returned to the grain agreement after Turkey's diplomatic attempts – BloombergHT

In October, annual inflation exceeded 85 percent. According to the data of the Turkish Statistical Institute (TUIK), the consumer price index increased by 85.51 percent in October compared to the same month of the previous year. Monthly inflation was 3.54 percent. Thus, inflation reached its highest level in 24 years – Dünya

The Central Bank of the Republic of Turkey announced the real effective exchange rate for October. The real effective exchange rate index rose to 55.70 on the basis of CPI. The PPI-based real effective exchange rate index also reached its highest level since 2017 – BloombergHT

According to the data of the Central Bank of the Republic of Turkey, the net foreign exchange position gap of non-financial firms decreased by $2.02 billion month-on-month to $89.1 billion in August. The real sector foreign exchange deficit fell below $90 billion for the first time since 2010 – BloombergHT

The credit volume of the banking sector increased by 108 billion 183 million liras last week and reached 7 trillion 17 billion 723 million liras. In the said period, the amount of commercial loans with installments increased by 6 billion 844 million liras and reached 896 billion 423 million liras, while the interest rates fell to 18.3 percent – BloombergHT

The revaluation rate to be applied for 2023 was announced as 122.9 percent. The revaluation rate for 2022 was 36.2 percent. [The revaluation rate is applied to many goods and services and tax levels, and it is up to the President if the determined rate is applied without change or a lower rate will apply. - GC] – Dünya

The tax brackets will increase as the revaluation rate rises to 122.9 percent, nearly three times last year. If it is applied unchanged, the income limit for the lowest tax of 15 percent will increase from 2,666 TL to 5,916 TL per month, and the limit for the 20 percent tax will increase from 5,833 TL to 12,916 TL per month – BloombergHT

President Erdogan: Work is being done for the 3rd nuclear power plant, we will do it too – BloombergHT

According to the foreign trade statistics of October announced by the Minister of Trade Mehmet Muş, exports increased by 3 percent compared to the same month of the previous year and reached 21.3 billion dollars. Imports amounted to 29.3 billion dollars. The foreign trade deficit increased by 430.4 percent to 8 billion dollars in October – BloombergHT

ISO Turkey Manufacturing PMI index decreased to 46.4 in October. The index remained below the threshold value of 50 for the eighth month in a row, pointing to a sharp slowdown in the sector's performance. Thus, the manufacturing PMI fell to the lowest level since the pandemic. [Because of some weird calibration issues, the 0 percent growth threshold corresponds to 48 instead of 50 in our analyses, something to keep in mind. – GC] – Dünya

Bloomberg HT Consumer Confidence Index increased by 8.77 percent to 70.31 in October compared to the previous month. This was the highest level since January 2021 – BloombergHT

Cardboard Packaging Manufacturers Association (KASAD) President Alican Duran stated that the paper-cardboard packaging industry has faced significant challenges both in export markets and in the domestic market. Duran stated that the export orders of the sector are delayed by 2-3 months, while the demand in the domestic market has shrunk by 15 percent - Dünya

The Minister of Environment, Urbanization and, Climate Change, Kurum said, "We want to start a campaign that includes 100 thousand houses and covers all our cities, in this way, we will also activate the beginnings of new projects. We will announce it this month." – Anadolu Agency

Alfa Solar Energy’s IPO was approved. The company produces solar panels – BloombergHT

Turkey's automotive industry exported $2.65 billion worth of products in October – BloombergHT

According to the traditional guest satisfaction survey results of Tatilsepeti, 81% of 3219 participants stated that they took a vacation in 2022, while 98% stated that they planned a vacation for 2023. Moreover, 71% of the participants said that they will benefit from early booking opportunities in 2023 - Dünya

THY’s third quarter revenue reached 6.1 billion dollars, exceeding its total revenues in the same period of 2019 by 52 percent. In the third quarter, the net profit reached 1.5 billion dollars [THY met increasing passenger demand successfully, rising after the pandemic. - GC] – Anadolu Agency