TR Economy & Updates

[Rooxbar]

Round about 25%. You know what that means?

you're shifting the goalpost.

 

[Huelague]

you're shifting the goalpost.

The government doesn’t control the economy in the whole, like a digital system which we have in Germany for example. Every transaction is registered and send to tax office.
An example, a TV has VAT of 15% in Türkiye. Some one bought a TV somewhere. How can the tax office get their money of 15% VAT. The tax on oil is a different story, because the government has full control of BOTAS.

 

[what]

I think the tax evasion is one of the reasons why Simsek is pushing for more card payments, especially the higher the amount.
During my last vacation I have received receipts and could use the card terminal everywhere.

 

[UkroTurk]

I don't think Germans use bank cards for shopping more than us. In Germany there were a lot of shops without POS machines when i visited. I had to pay cash a lot of times.
Germans also like hiding their income from government.

Today you would not be able to save Turkiye's economy with just financial instruments and policies. If Türkish Central Bank were fully independent from government, The Bank would not save the economy and distribute welfare equally.

Turkish people work a lot but half of labours earn minimum wage . İt just shows , Turkish labor market quality.

We don't need just reduce unemployment or we don't need to create new jobs for everyone.


Turkish economy need to create renovation where labours are paid more. İt needs hefty amount of capital in order to reign high end technology.

 

[YeşilVatan]

I think the tax evasion is one of the reasons why Simsek is pushing for more card payments, especially the higher the amount.
During my last vacation I have received receipts and could use the card terminal everywhere.

I worked my uncle's tire shop for a while. I've seen the "barter" that goes on. You give them tires but don't take money, then you buy some other stuff from them and they nullify your debt. Small town businessman do things of this nature like you wouldn't believe. This essentially makes the business untaxable for the most part. I can't even begin to imagine what the big players do in larger cities.

I wouldn't be surprised if %20-40 of economy operates like this.

 

[UkroTurk]

I worked my uncle's tire shop for a while. I've seen the "barter" that goes on. You give them tires but don't take money, then you buy some other stuff from them and they nullify your debt. Small town businessman do things of this nature like you wouldn't believe. This essentially makes the business untaxable for the most part. I can't even begin to imagine what the big players do in larger cities.

I wouldn't be surprised if %20-40 of economy operates like this.

This is our culture
When there is no money and credits are expensive, the people have to survive however you have to pay tax for your income. İf there is no plus , there won't be taxification.

Regarding VAT, whether you have registered your sales or not, VAT is paid by manufacturers so dealers can't go away with VAT.

Most of Turkish industrial sector work legal and pay VAT. There are other sectors such as services that don't pay VAT.

On the other hand, the money comes from taxes goes spendings to nonsense. İt would not save Turkiye's economy. İt would not create renovation with these politicians and democratic culture.
İndeed The less taxes creates the more jobs.

We don't have money( capital) for technological revolution and this is the problem.

Turkish industry is getting older, we use old technologies where there are no productivity.

 

[uçuyorum]

This is our culture
When there is no money and credits are expensive, the people have to survive however you have to pay tax for your income. İf there is no plus , there won't be taxification.

Regarding VAT, whether you have registered your sales or not, VAT is paid by manufacturers so dealers can't go away with VAT.

Most of Turkish industrial sector work legal and pay VAT. There are other sectors such as services that don't pay VAT.

On the other hand, the money comes from taxes goes spendings to nonsense. İt would not save Turkiye's economy. İt would not create renovation with these politicians and democratic culture.
İndeed The less taxes creates the more jobs.

We don't have money( capital) for technological revolution and this is the problem.

Turkish industry is getting older, we use old technologies where there are no productivity.

I mean honestly it makes sense. States can trade with offset agreements, why can't people.

We do have money though, we just waste it to make a few people rich. We spend a lot on research too but ineffective use ends up in waste

 

[UkroTurk]

Guys let's make brain storm( shit storm), how would you act in first year in order to increase wealth, if you were Turkish president?
For instance, personaly me,i have no clue

 

[uçuyorum]

Guys let's make brain storm( shit storm), how would you act in first year in order to increase wealth, if you were Turkish president?
For instance, personaly me,i have no clue

Oh I know one. There is one ministry i would cut the funding of by 90% and distribute it to education, military, higher education and research, and industry. I would focus far more on green energy. I would reduce contruction contracts and prevent sale of large banks to foreign entities, I would force them to provide more credit to a larger set of commercial entities with possibly state security

 

[UkroTurk]

I asked it my intelligent friend

(Don't say our politicians also same things on paper? that they are aiming these or doing the same things in our state? The academia say the same things in our universities.
Why don't these things work?
What is said as a solution is always empty talk.
We need money, money. There is no capital and equipped people for a technological revolution.)



If I were tasked with revitalizing Turkey's economy as president, my approach would be rooted in long-term, sustainable reforms aimed at enhancing productivity, improving citizens' living standards, and strengthening investor confidence. Here’s how I’d approach it:

1. Stabilize the Currency and Control Inflation

Restore Central Bank Independence: Ensure the Central Bank operates independently, free from political pressure, to set appropriate interest rates and monetary policy aimed at controlling inflation.

Reduce Currency Volatility: Implement policies that reduce dependency on foreign currencies. Promote the use of the Turkish lira in both domestic and international transactions where possible.


2. Tax and Fiscal Policy Reforms

Introduce Progressive Taxation: Increase tax rates for high-income individuals and profitable corporations to address income inequality, while offering relief for lower-income households.

Efficient Public Spending: Re-evaluate public spending, focusing on essential infrastructure, healthcare, and education. Minimize unnecessary government expenditures and improve accountability for public funds.


3. Attract Foreign Direct Investment (FDI)

Legal and Judicial Reforms: Strengthen the rule of law, provide more transparency, and improve the judicial system to attract long-term foreign investors, ensuring property rights and contract enforcement.

Incentivize Strategic Investments: Offer tax breaks, subsidies, and other incentives for sectors with high export potential, tech development, and sustainable energy, creating a diversified and resilient economy.


4. Invest in Education and Workforce Skills

Modernize Education: Focus on STEM fields, vocational training, and digital literacy, aligning education with market demands to close the skills gap and lower youth unemployment.

Adult Retraining Programs: Invest in programs to retrain the existing workforce, especially in areas like technology, sustainable energy, and healthcare, preparing workers for emerging sectors.


5. Encourage Innovation and Entrepreneurship

Support Startups: Establish incubators, provide low-interest loans, and remove bureaucratic barriers for startups, especially in tech, green energy, and digital solutions.

Research and Development (R&D): Increase R&D funding and create partnerships between universities, private sector, and government to foster innovation.


6. Agricultural and Rural Development

Support for Farmers: Implement subsidies and training to help farmers modernize and diversify their products, focusing on high-value and export-oriented crops.

Sustainable Agriculture: Promote environmentally friendly farming practices and invest in water conservation to ensure long-term productivity and resource preservation.


7. Sustainable Energy Policy

Renewable Energy Transition: Increase investments in solar, wind, and hydroelectric power to reduce dependency on imported energy, creating jobs and lowering energy costs for citizens.

Energy Efficiency Programs: Encourage energy-efficient practices in industries and households through subsidies or tax incentives, reducing overall energy costs.


8. Reduce Public Debt and Strengthen Financial Sector

Debt Reduction Strategy: Work on reducing Turkey’s debt burden by improving government efficiency, cutting unnecessary spending, and enhancing revenue streams.

Strengthen Banks: Ensure Turkish banks are well-capitalized and transparent, building a resilient financial sector capable of withstanding economic fluctuations.


9. Encourage Tourism and Export-Oriented Growth

Tourism Promotion: Rejuvenate Turkey’s tourism sector through global marketing campaigns, focusing on eco-tourism, cultural heritage, and medical tourism.

Diversify Exports: Create export incentives for emerging sectors such as technology, renewable energy products, and specialized manufacturing.


10. Promote Social Well-being and Wealth Distribution

Raise Minimum Wage Responsibly: Gradually raise the minimum wage in line with productivity gains to improve living standards without fueling inflation.

Affordable Housing: Implement policies for affordable housing development to ensure that citizens have access to quality living spaces without excessive debt burdens.

Healthcare Improvements: Enhance public healthcare access, focusing on preventive care and affordable services to reduce the financial strain on families.


A reform-focused approach like this, combined with transparent leadership, would help build a resilient, inclusive, and prosperous Turkey, increasing wealth for all citizens. The focus would be on sustainable development, strategic investment, and empowering the Turkish workforce for the futur

 

[UkroTurk]

To achieve a technology revolution without large amounts of capital, Türkiye could leverage strategic partnerships, affordable technology solutions, and human capital development. Here are ways Türkiye could foster a tech-driven transformation even with limited financial resources:

1. Encourage Public-Private and International Partnerships

Seek Foreign Direct Investment (FDI): Partner with global tech giants and innovation hubs to bring expertise and capital into Türkiye. This could include agreements for setting up R&D centers or tech incubators in Türkiye in exchange for tax benefits or government support.

Partner with Development Organizations: Engage with international development organizations (e.g., World Bank, EU, UNDP) to fund technology initiatives. Programs like the EU’s Horizon Europe can support R&D projects in Türkiye, particularly in AI, digital transformation, and clean energy tech.

Joint Ventures with Turkish Diaspora: Türkiye’s skilled diaspora could be an invaluable resource for expertise, mentorship, and even financial backing through joint ventures in tech startups and education initiatives.


2. Focus on Affordable, Open-Source Technology

Adopt Open-Source Software: Use open-source software for government and educational purposes, which reduces costs significantly. Platforms like Linux, Apache, and MySQL could be deployed instead of expensive proprietary systems.

Low-Cost Hardware Solutions: Focus on affordable microprocessors like Raspberry Pi and Arduino for educational and prototype purposes. These low-cost tools can drive innovation at a fraction of the cost, especially in robotics, IoT, and other hands-on tech fields.

Cloud Computing and SaaS Solutions: Transition businesses and government to cloud-based software-as-a-service (SaaS) solutions. Cloud infrastructure can be more affordable than maintaining on-premises servers and can provide scalable solutions as needed.


3. Boost Skills Development and Tech Education

Technology Curriculum in Schools: Integrate basic programming, data science, and AI into school curricula from an early age. Türkiye could also implement nationwide STEM programs that focus on practical skills for emerging tech fields.

Collaborate with Tech Education Platforms: Partner with online education platforms like Coursera, edX, or Udacity to provide accessible tech skills training. Offering affordable or free access to these platforms would quickly increase tech-savvy talent.

Vocational and Coding Bootcamps: Set up low-cost coding bootcamps and tech vocational schools across Türkiye, focusing on the skills most in demand, such as web development, data science, cybersecurity, and digital marketing.


4. Develop a Robust Startup Ecosystem

Launch Government-Sponsored Incubators: Set up low-cost incubators in cities like Istanbul, Ankara, and Izmir, providing resources such as shared office spaces, mentorship, and access to government contracts.

Crowdfunding and Micro-VC Programs: Develop a Turkish crowdfunding platform to allow small tech startups to raise capital directly from the public. Similarly, micro-venture capital funds that target small investments can support early-stage ideas.

Focus on Export-Ready Tech Startups: Incentivize tech companies with export potential, providing them with tax breaks and support to attract international clients and bring foreign capital back into Türkiye.


5. Target Niche Markets and Specific Technologies

Specialize in Affordable, Scalable Tech: Given budget constraints, Türkiye could focus on scalable technologies with high impact, like mobile applications, digital health, agri-tech, and edtech, which can be developed with limited resources.

Invest in Digital Services and Fintech: Türkiye’s strong banking sector and young, tech-savvy population create an ideal environment for fintech innovations, especially in mobile banking, payment solutions, and digital currency.

Agricultural Technology (Agri-Tech): Introduce low-cost technology in agriculture, like IoT sensors for crop management, which would directly impact rural economies and food security while fostering tech adoption.


6. Implement Pro-Technology Policies and Incentives

Create a Favorable Regulatory Environment: Ensure tech companies have a supportive regulatory framework that enables innovation, particularly in rapidly evolving sectors like AI, blockchain, and digital payments.

R&D Tax Credits and Grants: Offer R&D tax credits or grants for startups and established companies that engage in tech research and innovation, even on a small scale. This incentivizes local innovation and reduces financial burdens.

Encourage Digital Transformation in SMEs: Support small and medium enterprises (SMEs) in adopting affordable digital tools like e-commerce platforms, digital marketing, and productivity software to become more competitive.


7. Emphasize Remote Work and the Gig Economy

Promote Remote Freelance Opportunities: Encourage Turks with tech skills to engage in remote freelance work for international companies, providing foreign income and global experience without requiring large local investments.

Develop a Gig Economy Framework: Create legal frameworks and protections that allow tech-savvy individuals to engage in gig economy work, including freelancing on platforms like Upwork and Fiverr, which can generate income with minimal capital.


8. Expand Tech Hubs in Secondary Cities

Support Tech Growth Beyond Major Cities: Encourage tech hubs in secondary cities where costs are lower. Türkiye can create special economic zones with tax incentives for tech firms, lowering the cost barrier for innovation while spreading economic growth regionally.

Remote Work Support Infrastructure: Develop co-working spaces, reliable internet access, and tech incubators in smaller cities to enable remote work and foster tech communities nationwide.


By prioritizing these strategies, Türkiye can create an affordable, adaptable path toward a technology-driven economy. This approach builds on Türkiye’s human capital, strategic partnerships, and small-scale tech advancements, setting the stage for scalable and sustainable growth in the tech sector even without significant initial capital.

 

[what]

I worked my uncle's tire shop for a while. I've seen the "barter" that goes on. You give them tires but don't take money, then you buy some other stuff from them and they nullify your debt. Small town businessman do things of this nature like you wouldn't believe. This essentially makes the business untaxable for the most part. I can't even begin to imagine what the big players do in larger cities.

I wouldn't be surprised if %20-40 of economy operates like this.

30% of the Turkish economy are assumed to be informal and evade taxes. Compared to i.e. Germany with 10%.

 

[YeşilVatan]

30% of the Turkish economy are assumed to be informal and evade taxes. Compared to i.e. Germany with 10%.

lmao right on the money!

 

[B_A]

Guys let's make brain storm( shit storm), how would you act in first year in order to increase wealth, if you were Turkish president?
For instance, personaly me,i have no clue

Do everything the Korean done in 1990s and 2000s.....

Firstly improve our university level to have 2-3 in top 100,secondly build the railway network,then encourage create National brand like LG and samsung.

 

[UkroTurk]

Trump's economic plans will have a very positive impact on Turkiye. As it is less dependent on US trade. Additional +2.2% Real GDP by 2028

View attachment 71981

USA -2.8/-9.7 as if Trump were Turkish spy

 

[Huelague]

Trump's economic plans will have a very positive impact on Turkiye. As it is less dependent on US trade. Additional +2.2% Real GDP by 2028

View attachment 71981

Good opportunity to improve our trade with EU. Customer union update.

 

[Saithan]

it'd be a problem to increase our trade with EU only, I think getting better trade relations with Asia, Africa, S America etc. are more important. dream on about the custom union update. not going to happen unless WW3 explodes and the west/EU brutally needs Türkiye, something like 20 nukes already launched or such or EU being invaded hardcore.

 

[B_A]

TURKSTAT Corporate

data.tuik.gov.tr

Our GDP is good in this two years

But even our GDP is catching up Spain ,Korea and Australia(the gap is about 30%)

We still lack enough high-value companies and Brand(like Baykar in defence industry)

 

[Huelague]

TURKSTAT Corporate

data.tuik.gov.tr

Our GDP is good in this two years

But even our GDP is catching up Spain ,Korea and Australia(the gap is about 30%)

We still lack enough high-value companies and Brand(like Baykar in defence industry)

We need this fucking customer union update.

 

[B_A]

Türkiye's current account balance recorded another monthly surplus, posting nearly $1.9 billion (TL 66.27 billion) surplus in October and bringing the 12-month deficit further down, official data from the country's central bank showed on Thursday.
The balance posted a larger-than-expected surplus of $1.88 billion in October, according to the data shared by the Central Bank of the Republic of Türkiye (CBRT).



A Reuters poll from last week expected the current account to record a surplus of $1.32 billion in October, with forecasts by 11 economists polled ranging from $900 million to $1.9 billion surplus.
The economists in the Bloomberg poll similarly estimated the balance would register a surplus of around $1.3 billion. The current account posted a surplus of $3 billion in September.



Gold and energy excluded current account balance indicated a net surplus of $7.16 billion, the bank noted.
In the month, the goods deficit recorded $3.5 billion, while services saw a net inflow of $6.45 billion, the CBRT said. Travel items, under services, recorded a net inflow of $5.1 billion.
Primary income recorded a net outflow of $1.05 billion and secondary income recorded a net inflow of $20 million. Direct investment recorded a net outflow of $204 million.
When looked at on an annualized basis, the current account balance showed a deficit of $7.7 billion, the central bank data revealed.



In September, the annualized current account balance had a deficit of $9.5 billion.
The central bank, pledging to fight inflation, has gradually hiked its policy interest rate to 50% from 8.5% since June last year.
Türkiye also introduced measures to cap strong domestic demand, one of the main reasons for higher imports, and to boost investments and exports to improve the current account balance.
Economists expect the current account deficit to continue to improve this year as monetary and fiscal policy remains tight.

Narrowing trend​

Citi in a recent note said the current account balance will register a surplus of about in October driven by a surplus in the services balance.
"Developments to date suggest to us that the current account deficit is on track to narrow this year to about 0.6% of GDP (gross domestic product) from about 3.6% in 2023 due mainly to a slowdown in activity, a normalization in gold imports and a softer energy bill."
The foreign trade deficit, which constitutes a major part of the current account balance, declined 10.5% and stood at $5.91 billion in October. The January-October deficit fell 30.1% to $65.85 billion.
Last year, the current account deficit narrowed to $45.2 billion from $48.8 billion in 2022.
The median of the current account deficit forecasts for 2024 in a Reuters poll was $10.25 billion, with estimates ranging from $5 billion to $11 billion of deficit.
In the government's medium-term program, updated every September, the 2024 current account deficit is estimated to be $22 billion but government officials have said the current account deficit will narrow further.
Trade Minister Ömer Bolat said in a post on X on Thursday that the current account "has given a surplus for the first time in five years for five consecutive months."
"The current account deficit has decreased by $32.8 billion to $3.3 billion in the first 10 months of 2024," he noted.
"Positive trend in current account balance continues," Vice President Cevdet Yılmaz said.
"Improvement in the current account balance contributes to the disinflation process by strengthening economic and financial stability," he added.
Reiterating that the annualized current account gap has narrowed to $7.7 billion as of October, Yılmaz said that "the balance of services supports the improvement in the foreign trade deficit."
"While the strong outlook in external financing is maintained, our reserves are also increasing," he said.
"The positive results obtained from macroeconomic indicators reveal the effectiveness of our economic program," he further said.
"With the impact of the rebalancing policies and reforms we will implement within the scope of the Medium Term Program (MTP), we expect the current account deficit to be around 1% of national income by the end of 2024," Yılmaz noted.