Economic impact of the COVID-19 pandemic

The consumer confidence index declined by 0.4 percent month-on-month in January after rising 1.9 percent the previous month, the Turkish Statistical Institute (TÜİK) said on Jan. 23.

The gauge of consumer sentiment fell to 81 in January. Any figure above the 100 mark indicates an optimistic outlook among consumers.

Turkey's inflation rate for December 2024 was reported at 44.38 percent year-on-year, according to national statistics from the TurkStat agency. In comparison to the previous month, consumer prices rose by 1.03 percent.

For the entirety of 2024, Turkey's inflation averaged 58.51 percent. This marked a significant increase in the country's cost of living compared to the previous year.

The Turkish economy still has a growth potential and may join high-income countries within a year or two, Finance Minister Mehmet Şimşek has said, adding that disinflation has begun and is continuing.

"We are converging to European Union countries in terms of per capita income," the minister said, speaking at an energy conference in Istanbul.

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.

Confidence in the Turkish economy improved, while inflation expectations declined in October, separate surveys from the Central Bank and the statistics authority have shown.

The economic confidence index rose for a second month in raw, rising 3.2 percent in October from September, the Turkish Statistical Institute (TÜİK) said on Oct. 30.

China's central bank on Monday cut two key interest rates to historic lows, in the latest move by Beijing to boost sluggish spending and kickstart the world's second-largest economy.

The cuts come just days after the country posted its slowest quarterly growth in a year and a half, underlining the deep economic woes the country faces.

Inflation is likely to exceed the target at the end of 2024 but will decline to 27 percent in April next year, Finance Minister Mehmet Şimşek has said.

Inflation expectations for the end of 2024 increased from 43.1 percent in August to 44.1 percent in September, a Central Bank survey has shown.

The 12-month ahead inflation expectations, however, fell from 27.5 percent to 27.4 percent, according to the monthly survey of market participants.

The 24-month ahead inflation forecasts eased from 18.38 percent to 18.08 percent.

Annual decline in industrial production accelerated, but the unemployment rate fell for a second month in a row in August, separate data from the Turkish Statistical Institute (TÜİK) showed on Oct. 10.

Output in the key industry sector dropped by 5.3 percent year-on-year, after contracting 5 percent annually in July.

Fears of another possible energy nightmare, which will again test fragile economies, are looming across Europe after the escalation of hostilities in the Middle East.