Economic crises

The pace of monthly and annual increases in retail prices in Istanbul slowed last month, according to data from the city's Chamber of Commerce (İTO).

Retail prices advanced 3.07 percent in November month-on-month, down from a monthly increase of 3.64 percent in October

The annual increase in retail prices eased from 59.1 percent to 57.99 percent.

The decline in inflation is expected to continue in the coming period, Vice President Cevdet Yılmaz has said, noting that annual inflation has fallen by 27 points in the past four months.

"In mid-2025 or in the fall, we won't be talking about inflation anymore," Yılmaz said in a speech at a gathering with businesspeople in the province of Denizli.

The Turkish government has allocated funds to the tune of 43 billion Turkish Liras ($1.3 billion) in its draft 2025 budget aimed at helping companies diversify their markets abroad and boost exports.

The International Monetary Fund (IMF) agreed to loan Pakistan $7 billion to bolster its faltering economy, approving a relief package the government said would not have been possible without the support of China.

The government is keeping its targets for the number of visitors and tourism revenues unchanged for 2024, Vice President Cevdet Yılmaz has said.

"We still expect 60 million tourists to visit Türkiye this year, while aiming for $60 billion in tourism revenues," Yılmaz said in a speech in the province of Bilecik.

Türkiye has seen its ratings upgraded by major rating agencies in 2024 thanks to the government's economic program, Finance Minister Mehmet Şimşek said, hailing Fitch's decision to lift the country's rating.

"With our medium-term program, we will make permanent the gains we have achieved in the last year and further increase confidence in our economy," Şimşek wrote on X.

Credit rating agency Fitch upgraded Türkiye's Long-Term Foreign-Currency Issuer Default Rating (IDR) from B+ to BB- on Friday.

The total value of projects implemented by the Turkish contracting sector abroad in eight months of this year has amounted to $11.2 billion.

According to Trade Ministry data, the Turkish contracting sector has continued its successful performance abroad despite risks such as the COVID-19 pandemic and the Russia-Ukraine war in recent years.

Türkiye's foreign trade deficit continued to decline in August, narrowing 43.4 percent year-on-year to $4.93 billion last month, according to the Trade Ministry on Sept. 2.

This marked the lowest level of foreign trade deficit in 34 months.

The budget deficit is expected to fall below 5 percent of the gross domestic product (GDP) at the end of 2024, Vice President Cevdet Yılmaz has said.

In the medium-term program, the government predicted that the central government budget would be 2.65 trillion Turkish Liras or 6.4 percent of the estimated GDP.