The World Bank revised the economic growth forecasts for Turkey. The institution, which estimates the cost of the February 6 earthquakes at USD 34.2bn or 4.0% of the 2021 GDP, touched that damage may double. It said the Turkish economy is expected to grow by 3.2% this year with the impact of the quakes. The economy is estimated to expand by 4.2% with the impact of reconstruction activities in the quake-hit region in 2024-2025. Ivailo Izvorsk, the Chief Economist for the Europe and Central Asia region at the World Bank pointed out the importance of inflation for Turkey. “Inflation erodes people’s real incomes and high inflation affects the poorest segment more than the richest segment,” Izvorks said. The poorest 10% of the population feel inflation 2% higher than the richest 10% of the population in Turkey, according to the World Bank. In other words, the poor are affected by inflation 2% higher than the rich.

Source: TRMonitor

The banking sector’s total loan volume surged by TRY 143.89bn to TRY 8.21tr and its total deposits rose by TRY 14.9bn to TRY 10.22tr in the week ending on March 31, compared to the previous week. Furthermore, the amount of consumer loans rose from TRY 1.22tr to TRY 1.27tr and the amount of non-performing loans declined from TRY 159.2bn to TRY 158.6bn, in the week ending on March 31, compared to the previous week, according to the Banking Regulation and Supervision Agency (BDDK).

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The liquidity problem caused by the suppression of FX (foreign exchange) rates and interest rates and the strict surveillance for transactions with FX has made Istanbul’s Grand Bazaar an important hub where the cash FX demand is met. Companies, which have difficulties in meeting their FX need, have become loyal customers of exchange offices at Grand Bazaar while the Central Bank has also provided a higher amount of FX at the same place, according to sources familiar with the matter. They told daily EKONOMI that the Central Bank has started to buy FX corresponding to TRY 5bn in cash daily in the recent period. Stressing that FX is collected physically with metal boxes for the first time in the Grand Bazaar’s history, they also said the difference in the price of FX sales gradually increased in favor of the Grand Bazaar due to the supply issues and increase in physical demand.

Source: Ekonomi

26 business people from Turkiye entered Forbes’ 37th Annual World’s Billionaires List. Erdemoglu Holding’s Chairman Ibrahim Erdemoglu, who ranked 516th with a fortune of USD 5.1bn, has become the richest businessperson in Turkey this year. Erdemoglu was followed by Yildiz Holding Board Member Murat Ulker, who entered the list from 530th place with a fortune of USD 5.1bn as well. Erdemoglu Holding Board Member Ali Erdemoglu ranked 610th with USD 4.5bn fortune, followed by Koc Holding Board Member Semahat Sevim Arsel, who took 1,049th place with a USD 2.8bn fortune. Dogus Group Chairman Ferit Faik Sahenk ranked 1,065th with a fortune of USD 2.8bn. 2,640 billionaires made the list this year. Almost half of the billionaires are poorer (!) this year than last year. The total billionaires’ fortune fell by USD 500bn to USD 12.2tr this year, compared to the previous year. Bernard Arnault topped the list with a USD 211bn fortune. Arnault was followed by Elon Musk, who topped the list last year, with a wealth of USD 180bn, and Jeff Bezos with a fortune of USD 114bn. The wealth of Musk and Bezos fell by USD 39bn and USD 57bn, respectively this year, as compared to the previous year.

Source: TRMonitor

The glass company Sisecam, a world industry leader based in Tuzla, has decided to invest in a port operation in the US for the potential logistics needs of the ongoing natural soda ash production plant project, which is jointly implemented with Ciner Group. “We acquired the Italian refractory manufacturer Refel in 2022 to ensure sustainability in our investments. We take a similar step with our port operation investment to guarantee our growth plans in the U.S.,” said Prof. Dr. Ahmet Kirman, Executive Director, and Chairman of the Board of Directors of Sisecam. Sisecam Chemicals USA, the subsidiary of Sisecam based in the U.S., will partner with Denmar Holdings LLC’s affiliate Denmar US LLC, which will undertake the Stockton Port Operation project with an annual capacity of 5 million tons. “A 50% share will be acquired in Denmar US LLC for USD 12m through capital increase by Sisecam Chemicals USA,” Kirman added. The Stockton Port Operation (CA) will enter into service in 2027 in line with Sisecam’s soda ash production plant, which will gradually become operational until 2028.

Source: TRMonitor

The solar energy company OzEnergy based in Izmir, has inked a partnership deal with the Germany-based Exide Group to cooperate in large-scale energy storage solutions towards engineering, supply, installation, and after-sales services. The two companies will work together in the energy storage processes in Turkey and many European countries. “We played an active role in solar energy installations of around 350 megawatts in Turkey and Europe,” said Fatih Serkan Albayrak, Board Member of OzEnergy. As part of the agreement, Exide Technologies will operate as a solution provider in energy storage while OzEnergy will act as an engineering, control, sales, and project management partner. “We aim for this collaboration, which will start with know-how, to crown with an investment in Turkey. The primary goal is to see the demand and market,” said Ozgur Sarpdag, Board Member of OzEnergy. “This investment can be made in Aliaga Izmir due to developed logistics advantages including the port and airport” Sarpdag added.

THE LOGISTICS platform ShipEntegra, which enables e-export products to be delivered to more than 220 countries quickly and economically by integrating all marketplaces on a single platform, has become the logistics partner of Amazon after Etsy. ShipEntegra, which is also the solution partner of eBay, prepares to become its logistics partner now.  ShipEntegra Founder Ali Ceylan stated that they facilitate operation, management, and stock control by integrating all marketplaces on a single platform, and they also offer the entire process of logistics to users with the software they have developed. “The number of transfers totaled 2.38 million units in 2022. This figure corresponds to 200,000 packages per month on average,” Ceylan noted. The platform had 60,000 users last year. 80% of sales are made via Ship Entegra on Etsy, according to the ShipEntegra Founder. “We’ve recently started logistics-technology partnerships with Amazon. One of the advantages of our partnership with Amazon is that e-exporters can use all ShipEntegra services,” Ali Ceylan said, stressing that they aim to increase partnerships with global marketplaces to enhance the competitive power of Turkish sellers.  The company, which currently has branches in Istanbul, Ankara, Antalya, Izmir, Kayseri, and Bursa, plans to open new branches in Denizli and Gaziantep this year. ShipEntegra has also added investments to its agenda that will enable its customers to sell under more competitive conditions with road, air, and maritime logistics services options. The platform also has storage in New Jersey, Florida, Texas, and California in the U.S. Thus, it offers services for shipments from the U.S. to the world. The cargo reimbursement processes are also managed at these warehouses.

Source: TRMonitor