Key findings of the 2023 Report on Türkiye

Source:EEAS Date:14Nov2023

Delegation of the European Union to Türkiye 2023 report

The institutional and regulatory environment lacks predictability and transparency and complicates the post-electoral economic policy normalisation. Market exit remains costly and slow. However, Türkiye has made progress in digitalising government services to businesses. Although the size of the informal economy has fallen in recent years, it still accounts for a significant share of economic activity. State intervention in price-setting mechanisms persists. The provision of State aid lacks proper implementation rules, enforcement and transparency. The banking sector remained broadly stable but is facing financial stability challenges due to the numerous overly complex and far-reaching macroprudential and regulatory measures. The labour market strengthened further, although structural challenges remain significant, in particular for youth and female employment. Regional labour market disparities declined and reached one of the lowest levels in years. The recent net minimum wage increases were pro-cyclical.