Turkey's central government budget recorded a deficit of 78.6 billion liras ($4.2 billion) in September, marking the largest shortfall this year due to increased spending and decreased corporate tax revenues. This follows a surplus of 3.6 billion liras in August, driven by a surge in tax revenue, according to data from the Treasury and Finance Ministry.

A bomb explosion in Istanbul's popular tourist district killed at least six people and injured 81, with Turkish officials suspecting a terrorist attack. The explosion occurred on İstiklal Street, a busy area with bars, cafes, and shops. Authorities have arrested the person who planted the bomb. The incident comes as Turkey prepares for presidential and parliamentary elections in six months, highlighting the ongoing threat of terrorism. The Turkish government has imposed media restrictions and slowed internet access for security reasons.

Turkey may ratify Finland's bid to join NATO while rejecting Sweden's due to Sweden's perceived leniency towards Kurdish militants and recent incidents that have angered Turkey. Erdogan's statements suggest a strategic move that could delay Sweden's NATO membership.

Uganda has terminated its $2.3 billion railway project deal with a Chinese contractor due to the failure to secure financial backing from Beijing. The country is now in discussions with Turkish company Yapi Merkezi to take over the project, with an expression of interest expected in the coming weeks. This decision ends Uganda's eight-year pursuit of Chinese funding for the 273-kilometer railway project.

Turkey's egg producers are under scrutiny as the government intensifies efforts to control inflation, with the Competition Agency investigating potential price-fixing among egg producers. President Recep Tayyip Erdogan has targeted suspected profiteering, leading to increased inspections and fines for major retailers. The egg industry argues that price hikes are due to global inflation and a weakening lira, while the government maintains that lack of competition is exacerbating inflation. The situation highlights the broader economic challenges facing Turkey, including surging food prices and the impact of global commodity market fluctuations.

Turkish exporters achieved a record performance last year, but face challenges due to an overvalued local currency and a cooling demand in Europe. The government's economic policies, including a requirement for exporters to convert 40% of foreign income into lira, have led to trade imbalances. Despite high inflation, companies like System Denim find it easier to pass costs to local consumers. President Erdogan aims to make Turkey a manufacturing hub, but industries are calling for a devaluation of the lira to boost competitiveness. The upcoming election adds pressure as Erdogan showcases policy successes and aims to stabilize inflation with a steady lira. Turkey's ambition to become a top 10 global exporter is still distant, with companies weighing domestic sales against foreign currency earnings.

Outrage over the conviction of Ekrem Imamoglu, Istanbul's mayor and a key political rival to President Erdogan, has unified Turkey's opposition leaders. Five opposition leaders, forming the Nation Alliance, rallied in support of Imamoglu, who was convicted of insulting election officials. The court ruling has energized the opposition, though it remains uncertain if Imamoglu will be their joint candidate. The ruling has also caused market fluctuations, with a rebound in Turkish assets. The opposition faces internal disagreements over their candidate, with CHP leader Kilicdaroglu resisting pressure to support Imamoglu. The situation draws parallels to Erdogan's own rise to power, suggesting Imamoglu's conviction could similarly boost his political career.

Erdogan's AK Party is pushing for a constitutional amendment to ban same-sex marriage and legalize headscarves, aiming to solidify support from conservative voters ahead of a critical election. The ruling alliance needs significant parliamentary support or a referendum to pass the amendment. Opposition parties are deliberating their stance, with Erdogan likely to use any hesitation to his advantage in the campaign. This move comes amid high inflation and growing public discontent with the economy.

Top business representatives in Turkey are urging a shift to hyperinflation accounting, warning that the current system misrepresents profitability. Companies are required to pay taxes on profits that do not exist, according to Nurettin Ozdebir, head of the Ankara Chamber of Industry, as quoted by the newspaper Dunya last Friday. Sahin Bilgic, chairman of the Adana Commodity Exchange, added that regardless of a company's earnings amidst such high inflation, it is losing capital.

Turkey's largest business leaders are calling for a transition to hyperinflation accounting, warning that the current system misrepresents profitability. They argue that companies are paying taxes on non-existent profits and that despite high inflation, capital is being lost. The Turkish accounting standards require a three-year cumulative inflation of 100% to use this system, a threshold surpassed about a year ago. However, a law adopted in January states it cannot be applied until earnings for the entire year of 2023 are realized. Consumer price inflation in Turkey rose over 85% in October, while producer prices increased by 158%. The Central Bank's rate cuts have accelerated price increases. Company net incomes on the Istanbul Stock Exchange grew by 90% in the third quarter, and bank profits increased fivefold in the first nine months compared to the previous year. Without hyperinflation accounting, what is currently seen are 'zombie companies,' according to a public accountant.