Unemployment Rate Rises While Growth Continues in Turkish Economy
While the Turkish economy grew in the second quarter of the year, unemployment rates increased in July, and rising oil prices driven by US-Iran tensions impacted global markets.
The Turkish economy recorded a growth rate of 2.3 percent in the second quarter of the year, while the unemployment rate rose to 8.1 percent in July and an increase was observed in the banking sector's profits.
Economic Growth and Sectoral Distribution
The Turkish economy recorded a growth of 1.1 percent on a quarterly basis and 2.3 percent on an annual basis in the second quarter of the year.
With this data, the growth streak was carried into its 24th quarter, with agriculture and information-communication standing out on a sectoral basis, while the construction sector experienced a contraction.
Change in Unemployment Rates
In July, the unemployment rate rose from 7.6 percent to 8.1 percent.
In the same period, the broad-based unemployment rate increased from 28.8 percent to 30.6 percent.
Profit Status of the Banking Sector
The banking sector's net profit in July increased by 21.5 percent on an annual basis, reaching 68.9 billion Turkish Liras.
The total profit for the January-July period recorded an increase of 24.4 percent, realizing at the level of 596.4 billion Turkish Liras.
Global Markets and Geopolitical Tensions
In global markets, the escalation of tension between the US and Iran back into military conflict around the Strait of Hormuz is being closely monitored.
Mutual statements from the US Central Command and Iran increase anxiety in the markets while diplomatic calls continue.
Oil Prices and Inflation Concerns
Under the influence of rising oil prices, the barrel price of Brent crude climbed towards 92 dollars.
Concerns that this increase in energy costs could push inflation higher limit investors' risk appetite.
Foreign Exchange and Precious Metals Market
In foreign exchange markets, the US dollar, euro, and British pound are trading near their historical peaks against the Turkish Lira.
Gold prices are following a horizontal course, caught between safe-haven demand and the pressure of bond yields.