World Bank: Turkey’s Poverty Rate Increases for 2nd Consecutive Year

People shop at a meat store in Fatih district in Istanbul, Turkey. (Reuters file photo)
People shop at a meat store in Fatih district in Istanbul, Turkey. (Reuters file photo)
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World Bank: Turkey’s Poverty Rate Increases for 2nd Consecutive Year

People shop at a meat store in Fatih district in Istanbul, Turkey. (Reuters file photo)
People shop at a meat store in Fatih district in Istanbul, Turkey. (Reuters file photo)

The World Bank revealed that the poverty rate increased in Turkey for the second consecutive year, and according to reports, suicide rates are also up due to difficult living conditions.

A World Bank report stated that poverty is estimated to have risen to 12.2 percent in 2020 from 10.2 percent in 2019, noting that bringing the rate back to pre-pandemic levels presents a challenge.

The World Bank issued its latest edition of the “Turkey Economic Monitor (TEM): Navigating the Waves”, which takes stock of recent economic developments and provides the World Bank’s analysis of economic prospects in the country.

It said the recovery in late 2020 has helped labor markets recover, however, many have been left behind, especially women, youth and lower-skilled workers.

Research by the main opposition Republican People’s Party (CHP) revealed a 38-percent increase in suicide rates between 2017 and 2019, revealing that while 232 people killed themselves in 2017 for economic reasons, the number increased to 312 in 2019.

The Turkish Statistical Institute announced last month that the unemployment rate in 2020 was 13.2 percent, with a total of 4.61 million people.

Following the economic crisis in the country, about 1.2 million families applied for subsidies in Istanbul alone.

The economy was negatively affected by the coronavirus pandemic for the second year, leading thousands of factories and companies to shut down.

CHP Deputy Leader Seyit Torun said that the municipalities of the party have started preparing a “poverty map”, according to the areas which apply for aid.

Turkey's inflation rate reached a new record last month, reaching 17.14 percent year-on-year.

A study by the Confederation of Turkish Trade Unions revealed the impact of the economic crisis, greatly exacerbated by the pandemic, on low-income families, indicating that the monthly food expenses for a family of four have reached 2,719 liras.

The study, published Saturday, pointed out that other necessary monthly expenditures including clothing, housing, transportation, education and health cost about 8,856 liras in February.



4 Factors Behind the Decline of Saudi Stock Market in H1 2025

Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
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4 Factors Behind the Decline of Saudi Stock Market in H1 2025

Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 

Financial analysts and market specialists have identified four main factors driving the decline of the Saudi stock market during the first half of 2025. Speaking to Asharq Al-Awsat, they pointed to heightened geopolitical tensions in the region, ongoing trade disputes and tariffs between the United States, China, and Europe, oil price volatility, and persistently high interest rates. Collectively, these pressures have squeezed liquidity and weighed heavily on market performance.

Despite the downturn, analysts expect the market to gradually recover over the second half of the year, supported by potential global interest rate cuts, stabilizing oil prices, easing economic uncertainty, and forecasts of robust growth in Saudi Arabia’s GDP and the non-oil sector, alongside continued government spending on major projects.

The Saudi stock market recorded notable losses in the first six months of 2025, with the benchmark index retreating 7.25%, shedding 872 points to close at 11,163, compared to 12,036 at the end of 2024. Market capitalization plunged by around $266 billion (SAR 1.07 trillion), bringing the total value of listed shares to SAR 9.1 trillion.

Seventeen sectors posted declines during this period, led by utilities, which plummeted nearly 32%. The energy sector fell 13%, and basic materials dropped 8%. In contrast, telecom stocks advanced around 7%, while the banking sector eked out a marginal 0.05% gain.

Dr. Suleiman Al-Humaid Al-Khalidi, a financial analyst and member of the Saudi Economic Association, described the first-half performance as marked by significant swings. “The index rose to 12,500 points, only to lose nearly 2,000 points before recovering to about 11,260,” he said.

He attributed the volatility to several factors: regional geopolitical strains, oil prices dipping to $56 a barrel, and high interest rates, which constrained liquidity. He noted that financing costs for traders now range between 7.5% and 9%, historically elevated levels.

“The Saudi market posted the steepest decline among regional exchanges despite record banking sector profits, which failed to translate into stronger overall index performance,” he observed.

Looking ahead, Al-Khalidi anticipates three interest rate cuts totaling 0.75 percentage points by next year, which would bring rates down to about 3.75%. “That should encourage a recovery in trading activity, improve liquidity, and support an upward trend in the index toward 12,000 points, potentially reaching 13,500 if momentum builds,” he added.

Meanwhile, Mohamed Hamdy Omar, economic analyst and CEO of G-World, described the downturn as largely expected, citing external pressures and prolonged trade tensions between the US, China, and Europe. “Retaliatory tariffs dampened investor confidence globally, and Saudi Arabia was no exception,” he said.

Lower oil revenues also strained state finances, leading to a budget deficit of SAR 58.7 billion in the first quarter, further tightening liquidity. Trading volumes fell over 30% year-on-year.

Omar pointed out that changes to land tax regulations and heightened regional security risks also weighed on sentiment. Nonetheless, he expects gradual improvement in the second half of 2025, driven by anticipated rate cuts, rebounding oil prices, and continued large-scale public investments.

He stressed the need for vigilance: “Saudi Arabia remains among the most stable markets, thanks to proactive regulation and policies designed to attract foreign capital and bolster investor confidence.”