New company launches up 32 pct in four months
The number of newly established companies in Turkey surged 32.3 percent year on year in the first four months of this year, the country’s top trade body said on May 21.
Some 40,629 companies were launched this January-April, up from 30,721 in the same period 2020, according to data released by the Union of Chambers and Commodity Exchanges of Turkey (TOBB).
During the four-month period, 3,651 firms went out of business, a figure down 11.4 percent versus the same period last year.
A total of 4,195 foreign-partnered or foreign-funded new companies were launched in the January-April period.
In April, 8,565 companies started doing business in Turkey, up 204.5 percent on an annual basis, according to TOBB.
The number of companies that went out of business also grew 130.1 percent year on year to 957 last month.
According to the TOBB report, 977 companies with overseas capital were established this March.
Gross debt stock at $235.7 bln in April
The Turkish central government’s gross debt stock amounted to 2 trillion Turkish Liras (around $235.7 billion) as of the end of April, official figures showed.
The Treasury and Finance Ministry said the reading rose 23.7 percent from the same period last year.
The gross debt stock includes the outstanding debt of public sector institutions, the Central Bank, private companies and households.
Some 43 percent of the debt stock is denominated in Turkey’s local currency, while the rest is in foreign currency.
While 1.1 trillion Turkish liras ($135.4 billion) of the debt was domestic, some 829.4 billion liras ($100 billion) was external, it added.
Data also showed that as of April 30 the stock of Treasury receivables totaled 18.2 billion liras ($2.2 billion).
The U.S. dollar/lira exchange rate was around 8.27 at the end of this April.
Turkey’s GDP grew by 1.8 percent to $720 billion in 2020, which was the fastest amongst G20 countries last year aside from China.
Turkish Finance Minister Lütfi Elvan said recently that he expects a GDP growth of more than 5 percent this year.
Last year, Turkey responded to COVID-19 with a large economic stimulus program, focused on credit channels. In fiscal terms, Turkey’s COVID-19 stimulus package amounted to nearly 12 percent of its GDP, including tax deferrals and contingent liabilities.
Uniquely amongst G20 countries, Turkey’s support was overwhelmingly provided through the banking sector, and was not realized as direct fiscal costs on the budget, but as contingent liabilities to the government in future, according to the World Bank’s Turkey Economic Monitor report released last month.