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decades. Back in 2002, the country only had 14 shopping centres. Strong economic growth up until 2010 encouraged investments. It is estimated that a total of $50bn has been invested in Turkey’s shopping centres. However, prospects are not very bright for the Turkish retail industry. Economic growth has stalled, and consumer confidence remains weak. The World Bank recently predicted that the Turkish economy is set to contract 1% this year. Growth will pick up to 3% in 2020, it forecast. This level of growth is not enough to reduce unemployment which, according to the official data, is hovering around 15%. High unemployment, high inflation and slow growth means weaker consumer spending. The country’s statistics office TUIK reported last month that the consumer confidence index plunged 13% m/m to 55.3 in May, recording its lowest reading since 2004. TUIK also last month said that confidence in the Turkish retail industry declined 0.7% m/m to 89.9 in May. That followed the 0.1% decline in sentiment seen in the previous month.
9.1.6 TMT sector news
Turkey’s consumer technologies market posts limited 7.5% y/y nominal growth in Q1. The technical consumer goods (TCG) market in Turkey grew by 7.5% y/y to TRY14.2bn (€2.17bn) in Q1, a report by GfK Temax showed on June 9. Major home appliance (white goods) sales increased by 35% y/y to TRY3.48bn in the quarter while small home appliance sales grew by 16% y/y to TRY1.41bn thanks to tax cuts.Telecommunication equipment sales contracted by 7% y/y to TRY6.49bn in Q1 due to limitations imposed on instalments and lira depreciation while consumer electronics sales also declined by 4% y/y to TRY1.69bn.
78 TURKEY Country Report July 2019 www.intellinews.com