Friday September 15 2017
Turkey Jobless Rate Steady at 10.2%
Turkstat | Joana Taborda | joana.taborda@tradingeconomics.com

The unemployment rate in Turkey was unchanged at 10.2 percent in June of 2017, the same as in July of 2016. Non-farm unemployment was also steady at 12.2 percent. Among those aged 15 to 24 years old, the jobless rate increased to 20.6 percent from 19.4 percent.

The number of unemployed persons went up by 124 thousand to 3.251 million and employment rose by 1.05 million to 28.7 million. The employment rate increased to 48 percent from 47.1 percent and the labour increase reached 53.4 percent (52.4 percent in June of 2016). There were 27.9 million people detached form the labour force, barely unchanged from 27.908 a year earlier. 

Employment increased in construction (0.1 percentage point) and services (0.5 percentage point) but fell in agriculture (-0.1 percentage point) and in industry (-0.5 percentage point). According to the distribution of employment by sector; 20.1 percent was employed in agriculture; 18.8 percent in industry; 7.6 percent in construction and 53.6 percent in services. 

On a seasonally adjusted basis, the unemployment rate fell to 11.1 percent in June from 11.3 percent in May. 




Thursday September 14 2017
Turkey Keeps Rates Steady in September
Central Bank of Turkey |Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The Central Bank of Turkey held its benchmark one-week repo rate at 8 percent on September 14th as widely expected. Policymakers said the economic recovery has gained strength boosted by domestic and external demand from the EU countries while high inflation continues to pose risks. As a result, a tight stance in monetary policy will be maintained until the inflation outlook improves significantly.

Also, the central bank left its overnight lending rate unchanged at 9.25 percent; its overnight borrowing rate at 7.25 percent and its late liquidity window rate at 12.25 percent.

Statement by the Central Bank of the Republic of Turkey:

Recently released data indicate that the recovery in the economic activity has gained strength. Domestic demand conditions keep improving and demand from the European Union economies continues to contribute positively to exports. The Committee assesses that the implementation of the structural reforms would contribute to the potential growth significantly.

Current elevated levels of inflation and developments in core inflation indicators pose risks on the pricing behavior. Accordingly, the Committee decided to maintain the tight stance of monetary policy.

The Central Bank will continue to use all available instruments in pursuit of the price stability objective. Tight stance in monetary policy will be maintained until inflation outlook displays a significant improvement. Inflation expectations, pricing behavior and other factors affecting inflation will be closely monitored and, if needed, further monetary tightening will be delivered.

It should be emphasized that any new data or information may lead the Committee to revise its stance.




Monday September 11 2017
Turkey GDP Growth Below Expectations in Q2
Turkstat | Joana Taborda | joana.taborda@tradingeconomics.com

The Turkish economy advanced 5.1 percent year-on-year in the second quarter of 2017, easing slightly from an upwardly revised 5.2 percent expansion in the previous three months and below market expectations of 5.3 percent. Household consumption and exports slowed and public spending declined. The 2016 growth was revised up to 3.2 percent from 2.9 percent.

Household spending  rose at a softer pace (3.2 percent compared to 3.6 percent in Q1) while government consumption fell (-4.3 percent compared to 9.7 percent in Q1). Exports increased 10.5 percent (10.9 percent in Q1) while imports went up 2.3 percent (0.7 percent in Q1). On the other hand, gross fixed capital formation jumped 9.5 percent (3 percent in Q1).

On the production side, a slowdown was reported for services (5.7 percent compared to 6.3 percent in Q1) and industry (6.3 percent compared to 6.7 percent in Q1) while agriculture (4.7 percent compared to 1.7 percent) and construction (6.8 percent compared to 6 percent in Q1) increased at a faster pace. 

On a quarterly basis, the economy expanded 2.1 percent, above a downwardly revised 1.3 percent in the previous period. 




Tuesday September 05 2017
Turkish Inflation Rate Rises to 10.68% in August
Turkish Statistical Institute l Chusnul Ch Manan | chusnul@tradingeconomics.com

Consumer prices in Turkey increased 10.68 percent year-on-year in August of 2017, above a 9.79 percent rise in July and market expectations of 9.9 percent. Cost roe at a faster pace for: food and non-alcoholic beverages; housing, and transportation.

Year-on-year, prices rose at a faster pace for : food and non-alcoholic beverages (10.68 percent compared to 10.07 percent in July); transportation (17.38 percent compared to 15.24 percent); housing and utilities (7.76 percent compared to 7.50 percent); hotels, cafes and restaurants (11.07 percent compared to 10.84 percent); clothing and footwear (5.65 percent compared to 3.92 percent); furnishing and utilities ( 8.73 percent compared to 7.24 percent), and education ( 10.30 percent compared to 10.11 percent).
 
On the other hand, prices rose less for : alcoholic beverages and tobacco (10.40 percent compared to 14.14 percent); miscellaneous goods and services (10.89 percent compared to 10.91 percent); communication (1.77 percent compared to 1.80 percent); health (11.66 compared to 11.89 percent), and recreation and culture (11.19 percent compared to 11.22 percent).
 
On a monthly basis, consumer prices went up 0.52 percent, following a 0.15 percent rise in July and above market expectations of 0.15 percent rise. The highest increases were recorded for cost of transportation (2.05 percent), education (2.79 percent), and furnishing and household equipment (1.65 percent). Food prices fell 0.22 percent.
 
 
 
 
 
 




Tuesday August 29 2017
Turkey Posts Largest Trade Gap Since 2013
Turkish Statistical Institute lLuisa Carvalho | luisa.carvalho@tradingeconomics.com

Turkey's trade deficit increased markedly by 82.5 percent to USD 8.8 billion in July 2017 from a USD 4.8 billion shortfall in the same month a year ago. It is the biggest trade gap since December of 2013, as imports jumped 46.2 percent, the strongest rise since February 2011, driven by intermediate goods. Exports rose at a slower 28.3 percent, the largest gain since August 2011, led by manufacturing.

Year-on-year, imports jumped 46.2 percent to USD 21.5 billion, driven by higher purchases of intermediate goods (62.3 percent); consumption goods (19.3 percent) and capital goods (6.6 percent). China was the main import partner (9.9 percent share), followed by Germany (8.5 percent), Russia (8.4 percent), the USA (6.4 percent) and Switzerland (5.6 percent).

Exports advanced 28.3 percent to USD 12.6 billion, mainly boosted by sales of manufacturing (28.4 percent); mining and quarrying (44.6 percent) and agriculture, hunting and forestry (11.7 percent). Germany was the main export partner (26.1 percent share), followed by UAE (8.7 percent), the United Kingdom (6.4 percent), Iraq (6.1 percent), Italy (5.5 percent) and the USA (5.1 percent).

Considering the January to July period, the trade deficit widened 20.7 percent to USD 39.7 billion from USD 32.9 billion in the same period of 2016, as exports rose 10.3 percent and imports surged 13.5 percent.




Tuesday August 15 2017
Turkish Unemployment Rate Rises to 10.2% in May
Turkstat | Joana Ferreira | joana.ferreira@tradingeconomics.com

Turkish jobless rate increased to 10.2 percent in May 2017 from 9.4 percent in the corresponding month a year earlier. It was the highest rate for a May month since 2010 when unemployment was recorded at 10.3 percent. The number of unemployed rose by 330 thousand from the previous year to 3.225 million while the number of employed went up by 621 thousand to 28.488 million.

The number of unemployed persons rose by 330 thousand to 3.225 million in May, bringing the unemployment rate to a seven-year high of 10.2 percent for a May month. Also, the non-agricultural jobless rate went up to 12.2 percent from 11.3 percent a year earlier, and the youth unemployment rate rose to 19.8 percent from 17.4 percent in May 2016.

Employment increased by 621 thousand to 28.488 million in May, as the non-agricultural sector added 584 thousand jobs and the farm sector added 32 thousand jobs. Employment increased in services (0.9 percent) but fell in agriculture (-0.3 percent), in industry (-0.4 percent) and in construction (-0.2 percent). The overall employment rate rose to 47.7 percent from 47.5 percent in May 2016. The labour force went up by 950 thousand to 31.713 million, bringing the activity rate to 53 percent from 52.5 percent a year ago, while those detached from it increased by 209 thousand to 28.068 million.

On a seasonally adjusted basis, the unemployment rate stood at 11.3 percent, unchanged from the previous month.


Thursday August 03 2017
Turkey Inflation Rate Falls to 6-Month Low of 9.79%
Turkstat | Joana Taborda | joana.taborda@tradingeconomics.com

Consumer prices in Turkey increased 9.79 percent year-on-year in July of 2017, below a 10.9 percent rise in June and market expectations of 9.9 percent. It is the lowest inflation rate since January amid a slowdown in food cost.

Year-on-year, prices rose at a slower pace for food and non-alcoholic beverages (10.07 percent compared to 14.34 percent in June); alcoholic beverages and tobacco (14.14 percent compared to 21.7 percent); miscellaneous goods and services (10.91 percent compared to 11.84 percent) and communication (1.8 percent compared to 3.07 percent). 

On the other hand, prices rose more for transportation (15.24 percent compared to 14.07 percent); housing and utilities (7.5 percent compared to 7.39 percent); hotels, cafes and restaurants (10.84 percent compared to 10.26 percent) and clothing and footwear (3.92 percent compared to 3.24 percent).

On a monthly basis, consumer prices went up 0.15 percent, following a 0.27 percent drop in June and in line with market expectations. The highest increases were recorded for cost of recreation and culture (1.36 percent), transportation (1.13 percent), education (1.05 percent) and furnishing and household equipment (0.63 percent). Food prices fell 0.71 percent. 


Monday July 31 2017
Turkish Trade Deficit Narrows 9.1% In June
Turkish Statistical Institutel Chusnul Ch Manan| chusnul@tradingeconomics.com

Turkey's trade deficit narrowed by 9.1 percent to USD 6.01 billion in June 2017 from USD 6.61 billion in the same month a year earlier, as exports rose while imports decreased. Exports increased 2.3 percent to USD 13.17 billion, mainly driven by mining and quarrying, and manufacturing. Imports decreased 1.5 percent from the previous year to USD 19.18 billion, led by manufacturing. Considering the January-June period, the trade deficit widened by 10 percent to USD 30.87 billion from USD28.07 billion in the same period of 2016.

Year-on-year, exports went up by 2.3 percent to USD 13.17 billion, mainly boosted by sales of manufacturing (2.6 percent, 94.6 percent of total exports) and mining and quarrying (7.8 percent, 2.0 percent of exports). In contrast, sales fell for agriculture, hunting and forestry (-11.10 percent, 2.8 percent of total exports). Exports rose to Germany (6.3 percent); UAE (46.7 percent); the USA (41.3 percent), and Italy (2.9 percent).
 
Imports decreased by 1.5 percent to USD 19.18 billion, mainly due to a decrease in purchases of manufacturing (-4.1 percent, 84 percent of total imports). In contrast imports went up for both agriculture, hunting and forestry (33.1 percent, 4.3 percent of total imports) and mining and quarrying (20.4 percent, 9 percent of total imports).Imports went down from Germany (-27.7 percent); China ( -(26.1 percent); Russia (-6.3 percent) the USA (-38.7 percent), and Italy (-9.3 percent).
 
On a seasonally adjusted basis, exports increased 2.5 percent from the previous month while imports edged down 0.1 percent.
 
 


Thursday July 27 2017
Turkey Holds Key Interest Rate at 8%
Central Bank of Turkey | Joana Ferreira | joana.ferreira@tradingeconomics.com

The Central Bank of Turkey held its benchmark one-week repo rate at 8 percent on July 27th, as widely expected, saying current elevated levels of inflation pose risks on the pricing behavior while the economic activity is expected to maintain its strength boosted by both domestic and external demand.

Also, the central bank left its overnight lending rate unchanged at 9.25 percent; its overnight borrowing rate at 7.25 percent; and its late liquidity window rate at 12.25 percent.

Statement by the Central Bank of the Republic of Turkey:

Recently released data indicate an ongoing recovery in the economic activity. Domestic demand conditions have improved and demand from the European Union economies continues to contribute positively to exports. The economic activity is expected to maintain its strength due to the supportive measures and incentives provided recently. The Committee assesses that the implementation of the structural reforms would contribute to the potential growth significantly.

Although recent improvements in cost factors and expected partial correction in food prices will contribute to disinflation, current elevated levels of inflation pose risks on the pricing behavior. Accordingly, the Committee decided to maintain the tight stance of monetary policy.

The Central Bank will continue to use all available instruments in pursuit of the price stability objective. Tight stance in monetary policy will be maintained until inflation outlook displays a significant improvement. Inflation expectations, pricing behavior and other factors affecting inflation will be closely monitored and, if needed, further monetary tightening will be delivered.

It should be emphasized that any new data or information may lead the Committee to revise its stance.


Monday July 17 2017
Turkish Unemployment Rate Rises To 10.5% In April
Turkstat | Joana Ferreira | joana.ferreira@tradingeconomics.com

Turkish jobless rate increased to 10.5 percent in April 2017 from 9.3 percent in the corresponding month a year earlier. It was the highest rate for an April month since 2010 when unemployment was recorded at 11.3 percent. The number of unemployed rose by 463 thousand from the previous year to 3.287 million while the number of employed went up by 519 thousand to 28.157 million.

The number of unemployed persons rose by 463 thousand to 3.287 million, bringing the unemployment rate to a seven-year high of 10.5 percent for an April month. Also, the non-agricultural jobless rate went up to 12.4 percent from 11 percent a year earlier, and the youth unemployment rate rose to 19.8 percent from 16 percent in April 2016.

Employment increased by 519 thousand to 28.157 million, as the non-agricultural sector added 550 thousand jobs while 32 thousand jobs were lost in the farm sector. Employment increased in construction (0.3 percent) and services (0.7 percent) but fell in agriculture (-0.5 percent) and in industry (-0.4 percent). The overall employment rate stood at 47.2 percent, the same as in April 2016. The labour force went up by 982 thousand to 31.444 million, bringing the activity rate to 52.7 percent from 52 percent a year ago, while those detached from it increased by 168 thousand to 28.265 million.

On a seasonally adjusted basis, the unemployment rate fell to 11.3 percent from 11.5 percent in March.