A selection of current data and news from Turkey in the first quarter of 2023:
In January 2023, the Central Bank of Turkey bought 23 tons of gold, ranking first in the world. It is followed by China and Kazakhstan. According to the World Gold Council, Turkey now has the largest gold reserves – 565 tons. In 2022, the Central Bank of Turkey imported gold for $20.4 billion, and in January 2023 alone, a record $5.4 billion.
In the last quarter of 2022, the Turkish economy showed more growth than expected. GDP grew by 3.5% in October-December, with an annual growth of 5.6%.
According to the Moody’s report, the expected increase in the growth of the Turkish economy increased from 2 to 2.3%, and from 3 to 4% according to forecasts for 2024.
The UN also predicted a significant slowdown in inflation and economic growth: it was expected that by the end of 2023, inflation in Turkey would decrease to 42.4%. In general, the forecasts are encouraging, for the fourth month inflation has been steadily declining: in February, 55.2% compared to 57.7% in January, 64.3% in December and 85.5% in October.
World Bank Resident Representative in Turkey Humberto Lopez estimates damage caused by the earthquake at $34.2 billion. The UN estimates the damage as “in excess of $100 billion”. Türkiye lost more than 46,000 citizens as a result of the natural disaster.
At the beginning of 2023, the volume of bank deposits in lira, protected by currency, increased. The increase was 130 billion liras.
The Central Bank of Turkey lowered the interest rate from 9.0% to 8.5%. Gross reserves of the Central Bank of Turkey decreased by 7 billion dollars.
Shares posted an 11% gain in February despite the earthquake.
In February, exports fell by 6.4%, while earlier in January they grew by 10.4%.
After the earthquake, many countries support Turkey. Saudi Arabia plans to deposit $5 billion with the Central Bank of Turkey through the Saudi Development Fund. The Norwegian Wealth Fund has invested $1.2 billion in Turkish companies.
The tourism sector is recovering, hotels on the Mediterranean coast are selling tours and the season will start on time. The victims of the earthquake, who were accepted by hotels in the resort provinces, will be placed in housing facilities in different parts of Turkey. In January 2023 there were already 56.51% more tourists than a year earlier for the same period.
In March, gas prices for companies in Turkey were reduced by 20%, and for the population – by 16%.
The authorities report that the elections in Turkey will be held on May 14, as previously scheduled. The opposition chose Kemal Kılıçdaroglu as their candidate.
