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Investor Presentaiton

Macroeconomic Indicators Key Highlights GDP performed a strong performance in Q4 2021 with a %9.1 yoy realization, and took the yearly GDP growth level to 11%, for 2021. Growth momentum may get limited due to geopolitical and local risks and stay below potential levels. ■ Strong exports and rising tourism income kept CA deficit to GDP level at 1.9% by 2021 from 5.2% in 2020. Rising energy bill and effects of the geopolitical uncertainties may pose upside risks on CAD in 2022. Public Net Debt Stock as a percentage of GDP stood at 20.5% by the end of 2021. Additional borrowing requirements may arise depending on the global geopolitical risks. CPI finalized 2021 at 36.1% and continues to rise to 69.97% in the April of 2022, while PPI is as high as 121.8%. Now we expect CPI to rise up to 75% levels in May, due to the sticky pricing and ongoing risk factors. Headline will start to decline only by the very end of 2022, with base effects to 50-53%. CBRT is quite optimistic with its revised 2022 y/e CPI forecast of 42.8%. 2022 will be a period of tighter monetary policies in most of the Developed/Developing Economies, and now that the geopolitical risks are high, volatility may persist. GDP of Turkey (Current Prices, TL tn) Alternatif Bank 55 7,2 5,0 4,3 3,7 0,6 0,7 0,8 0,9 1,0 1,0 1,2 1,4 1,6 1,8 2,0 2,3 2,6 3,1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Turkey Inflation (%) 110 CPI ཁྐྲ ཎྜ 8 ➢ ྂ ཞ 130 PPI 121,82 69,97 10 -10 2013 2014 2015 2016 2017 Public Debt Net Stock / GDP (%) 2018 2019 2020 2021 2022 49,1% 41,7% 34,0% 32,5% 29,5% 28,2% 27,3% 20,8% 19,2% 20,5% 15,3% 16,2% 13,5% 10,9% 8,9% 6,7% 8,2% 8,2% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Turkish Statistical Institute (TUIK), OECD, Undersecreteriat of Treasury, Alternatif Bank Economist 4
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