Inflation continued to decline in March for the fifth consecutive month at 50.51% year on year while consumer prices rose 2.29% month on month. The slowdown in recent months can be explained by favorable base effects, particularly in energy, as prices continued to increase month after month, but less strongly than a year earlier.
The economy thus remains resilient, with growth expectations still robust this year despite inflation and the consequences of the earthquakes. The World Bank has raised its 2023 growth forecast for Turkey from 2.7% to 3.2% and expects 4.3% in 2024 and 4.1% in 2025.
In addition, March was marked by two major events at the height of the centenary anniversary of the founding of the Republic of Turkey:
The inauguration of the Istanbul Finance Center (IFC), intended to join the list of the world's largest stock exchanges, alongside New York, London, Hong Kong and Tokyo. IFC stands out as a new business center with office buildings equipped with state-of-the-art technology.
The first deliveries of Turkish gas; a historic step towards energy independence for Turkey which is heavily dependent on imports from Russia, Azerbaijan and Iran. Once full capacity is reached, the Sakarya field discovered three years ago will meet 30% of the country's gas needs. Turkey's offshore gas reserves in the Black Sea are estimated at 710 billion m3, which is enough to meet domestic demand for 35 years.
Finally, Turkish voters will go to the polls on 14th May to elect their President and their representatives to Parliament for the next five years one month ahead of the date initially planned. Four candidates will present themselves in the first round. If none of them obtains 50% of the votes, a second round will decide between the two best on May 28. The new president elected will be presented to you in our next newsletter.
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