MINISTRY of ECONOMY ECONOMIC OUTLOOK DECEMBER 2013 Economic Outlook is revized in the 1st and the...
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Transcript of MINISTRY of ECONOMY ECONOMIC OUTLOOK DECEMBER 2013 Economic Outlook is revized in the 1st and the...
MINISTRY of ECONOMYMINISTRY of ECONOMY
ECONOMIC OUTLOOK
DECEMBER 2013DECEMBER 2013
Economic Outlook is revized in the 1st and the 3rd weeks of the month.
Recent Update: 19/12/2013
A- MACROECONOMIC OUTLOOKA- MACROECONOMIC OUTLOOK
B- FOREIGN TRADE OUTLOOKB- FOREIGN TRADE OUTLOOK
1) MERCHANDISE1) MERCHANDISE
2) SERVICES2) SERVICES
C- INVESTMENTS , FOREIGN CAPITAL and INCENTIVESC- INVESTMENTS , FOREIGN CAPITAL and INCENTIVES
D- FREE ZONES in TURKEYD- FREE ZONES in TURKEY
E- BILATERAL, REGIONAL, PLURILATERAL and MULTILATERAL TRADEE- BILATERAL, REGIONAL, PLURILATERAL and MULTILATERAL TRADE
OUTLINEOUTLINE
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 22
A- MACROECONOMIC OUTLOOKA- MACROECONOMIC OUTLOOK
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 33
Growth Forecasts for Selected Countries/Country Groups (%)Growth Forecasts for Selected Countries/Country Groups (%)
In 2012, Turkish economy grew by 2.2%. According to the IMF, Turkish Economy is expected to grow by 3.8% in
2013. In the third quarter of 2013 ,Turkish Economy grew by 4.4%. Turkish
economy expanded by 4.0% in the first three quarters of 2013.
Source: IMF, OECD, UN, WB
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 44
Turkey Euro Area US Brazil Russia India China2013 3.8 -0.4 1.6 2.5 1.5 3.8 7.62014 3.5 1.0 2.6 2.5 3.0 5.1 7.32013 3.6 -0.4 1.7 2.5 1.5 3.0 7.72014 3.8 1.0 2.9 2.2 2.3 4.7 8.22013 4.3 -0.6 2.0 2.9 2.3 5.7 7.72014 3.5 0.9 2.8 4.0 3.5 6.5 8.02013 3.4 -0.4 1.9 3.0 2.9 5.5 7.82014 3.8 1.1 2.6 4.2 3.5 6.1 7.7
IMF
OECD
WB
UN
Growth Forecasts for Selected Countries/Country Groups (%)
According to the IMF estimates, global trade volume of merchandise and services is expected to increase by 2.9% in 2013 and 4.9% in 2014.
According to the WTO estimates, global trade volume of merchandise and services is expected to increase by 2.5% in 2013 and 4.5% in 2014.
Forecasts for Merchandise and Services Trade Growth (%)Forecasts for Merchandise and Services Trade Growth (%)
Source: IMF and WTO
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 55
YearsAdvanced Economies
Emerging Markets
Advanced Economies
Emerging Markets
2013 2.7 3.5 1.5 5.0 2.92014 4.7 5.8 4.0 5.9 4.92013 1.5 3.6 -0.1 5.8 2.52014 2.8 6.3 3.2 6.2 4.5WTO
Forecasts for Merchandise and Services Trade Growth (%)Exports Imports World
Trade Volume
IMF
Economic Targets of 201Economic Targets of 20144-201-20166 Medium Term Program Medium Term Program
*Actual** Forecast (Medium Term Program, Ministry of Development – October 8, 2013)
Medium Term Program which covers 2014-2016 period aims to reduce the current account deficit gradually and increase the growth rate by minimizing the effects of global uncertainty.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 66
2012* 2013* 2014* 2015* 2016*GDP (Billion $, Current Prices) 786 823 867 928 996GDP Per Capita ($) 10497 10,818 11,277 11,927 12,670Real GDP Growth 2.2 3.6 4.0 5.0 5.0Unemployment Rate (%) 9.2 9.5 9.4 9.2 8.9Tourism Income (Billion $) 25.7 29.0 31.0 32.0 34.5Current Account Balance (Billion $) -47.8 -58.8 -55.5 -55.0 -55.0Current Account Balance / GDP (%) -6.1 -7.1 -6.4 -5.9 -5.5
Real GDP Growth of Selected Countries/Country Groups (2012)Real GDP Growth of Selected Countries/Country Groups (2012)
Turkish Economy expanded by 2.2% in 2012.Turkish Economy grew by 3.0%, 4.5% and 4.4% in the first three quarters of 2013, respectively.
Source: TURKSTAT, IMF
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 77
Euro Area
Annual Economic Growth Rates (2002-2012)Annual Economic Growth Rates (2002-2012)
* Forecast, Medium Term Programme Source:TURKSTAT
Turkey has recovered fast from the global financial crisis. It is among the least affected countries from current global economic uncertainties.
Mean annual growth rate between 2002 and 2012 was 5.2%. Real GDP growth for 2012 realized as 2.2%.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 88
GDP Per CapitaGDP Per Capita
Source: Dollar value is from TURKSTAT, PPP GNI value from World Bank
Since 2002 GDP per capita has tripled from 3,492 USD to 10,497 USD. According to Purchasing Power Parity (PPP) GNI per capita surpassed 18 thousand USD.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 99
Capacity Utilization Ratio (%)Capacity Utilization Ratio (%)
Source: TURKSTAT
Capacity utilization ratio realized as 75.6 % in November 2013.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 1010
Industrial Production IndexIndustrial Production Index
Source: TURKSTAT
Industrial production index decreased by 0,5% year-over-year to 111.70 in November 2013 (2010=100).
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 1111
Inflation (Annual Percent Change)Inflation (Annual Percent Change)
Annual inflation in 2012 realized as 6.16%. Inflation was 7.32 % in November 2013.
Source: TURKSTAT
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 1212
Real Effective Foreign Exchange Rate (2003=100)Real Effective Foreign Exchange Rate (2003=100)
Compared to the previous month, as of November 2013, Turkish Lira has depreciated by 0.74% in terms of the CPI-based real effective exchange rate and appreciated by 0.21% in terms of the PPI- based real effective exchange rate.
Source: CBRT
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 1313
Total Credits and Consumer Credits (Billion TL)Total Credits and Consumer Credits (Billion TL)
Credits and specifically consumer credits increased in parallel to the growing domestic demand.
Total credits increased slightly on a monthly basis in October 2013.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 1414
Source: BRSA
CDS Premiums (Dec 18th, 2013)CDS Premiums (Dec 18th, 2013)
Source: DB Research* Higher CDS premiums indicate higher risk levels.
CDS premium of Turkey indicates a medium level of risk.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 1515
Financial MarketsFinancial Markets
Comparing to previous year, total assets of the banking sector increased by 23.1% and reached 1,636 trillion TL in October 2013.
Capital Adequacy Ratio of Turkish Banking Sector is 15.8% in September 2013.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 1616
Source: BRSA
Data on Banking Sector 2012 October 2013 October
Number of Banks 49 49
Number of Domestic Branches 10,891 11,766
Number of Foreign Branches 79 83
Number of Total Domestic Personnel Employed 200,022 212,077
Total Assets (Million TL) 1,328,642 1,636,094
Total Equities (Million TL) 172,588 193,510
Net Profit or Loss (Million TL) 19,438 21,701
Nonperforming Loans (Gross) / Cash and Cash Equivalents (%) 2.96 2.79
Net Profit or Loss / Average Equities (%) 13.08 12.42
Liquid Assets with 12 Months of Maturity / Total Assets (%) 70.59 75.32
Capital Adequacy Ratio (%) 16.86 15.8
EU Defined Budget Deficit/ GDP (%)EU Defined Budget Deficit/ GDP (%)
EU defined general government budget deficit/GDP ratio was 2.6% in Turkey in 2010 and Turkey satisfied the Maastricht criteria of 3%. Turkey also outperformed 22 EU Countries.
Central government budget deficit/GDP ratio was 2.0% in Turkey in 2012. In January-November 2013 period, central government budget deficit was
1,2 billion TL compared to 13,3 billion TL in the same period of 2012.
* 2010
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 1717
Source: Eurostat
Government Debt / GDP (%)Government Debt / GDP (%)
Debt/GDP ratio of Turkey was 36.2% in 2012, which was below the level in 25 EU Countries and the Maastricht Criteria (60%).
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 1818
Source: Eurostat
Unemployment Rates (%)Unemployment Rates (%)
In September 2013, the unemployment rate was 9.9%. Seasonally adjusted unemployment rate was 10.2%.
Seasonally adjusted unemployment rate in Euro Area was 12.1% and 10,9% in (EU28) in October 2013. In terms of unemployment ratio Turkey outperformed 13 EU countries according to current data.
After Russia, Germany, England and France, Turkey has the 5th largest labor force among the European countries. (2011, World Bank)
Source: TURKSTAT
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 1919
Potential of Population (2011)Potential of Population (2011)
Source: World Bank (2011), TURKSTAT (2012)
Turkey has a population of 75.6 million in which half of the population is under the age of 30.1.
Growth rate of population is 1.2% in Turkey, 0.3% in EU Countries and -0.1% in Germany.
2020December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Cell phone penetration rate in households: 93.2% (2012)
Internet access rate in households: 47.2% (2012) Internet access rate in enterprises: 92.5% (2012) PC penetration rate in households: 31.8% (2012) Laptop penetration rate in households: 27.1% (2012) Digital camera penetration rate in households: 27.1%
(2012) Printer penetration rate in households: 14.0% (2011) 1 of each 5 people owns a vehicle. (2011)
Growing Dynamism in Turkey's Domestic MarketGrowing Dynamism in Turkey's Domestic Market
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 2121
B- FOREIGN TRADE OUTLOOKB- FOREIGN TRADE OUTLOOK
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 2222
I) MERCHANDISEI) MERCHANDISE
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 2323
Targets in Merchandise TradeTargets in Merchandise Trade
* Actual (Source: TURKSTAT)**Forecast: Medium Term Programme, Ministry of Development, 2014-2016)*** Turkish Exports Strategy for 2023
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 2424
(Billion $) 2012* 2013** 2014** 2015** 2016** 2023***Exports 152.5 153.5 166.5 184 202.5 500Imports 236.5 251.5 262 282 305 625Volume of trade 389 405 428.5 466 507.5 1125Balance of trade -84 -98 -95.5 -98 -102.5 -125Exports/Imports (%) 64.5 61.0 63.5 65.2 66.4 80.0
Turkey's Share in Global Merchandise Exports (%)Turkey's Share in Global Merchandise Exports (%)
Turkey’s share in global merchandise exports was %0.83 in 2012.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 2525
2626
Foreign Trade Volume/GDP (%)Foreign Trade Volume/GDP (%)
The ratio of foreign trade volume to GDP was 49.5% in 2012. Turkey’s integration to the international trade system is eminent.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Foreign Trade Developments Foreign Trade Developments
In January-October period of 2013 compared to same period of 2012, exports decreased by 1.2% and imports increased by 5.8% respectively.
Source: Ministry of Economy
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 2727
2011 - 2012 / January-October 2012 - 20132011 - 2012 / January-October 2012 - 2013
* Energy corresponds to Chapter 27.
2011 2012 2012 / (JAN - OCT) 2013 / (JAN - OCT)Change (%) 2012/2013
Export 134.9 152.5 126.1 124.5 -1.2Energy Export 6.5 7.7 6.5 5.6 -14.5Gold Export 1.5 13.3 11.9 3.2 -73.3
Import 240.8 236.5 195.8 207.1 5.8Energy Import 54.1 60.1 49.6 45.9 -7.5Gold Import 6.1 7.6 7.0 12.9 85.0
Foreign Trade Volume 375.7 389.0 321.9 331.6 3.0Foreign Trade Balance -105.9 -84.1 -69.7 -82.6 18.5Balance excl. Energy -58.4 -31.7 -26.5 -42.2 59.1Export/Import (%) 56.0 64.5 64.4 60.1 *
Annual (Billion $) Periodic (Billion Dollar)
Monthly Exports/Imports Monthly Exports/Imports
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 2828
In October 2013 compared to same period of 2012, exports have decreased by 8.2% and realized as 12.1 billion dollar and imports have increased by 3.7% up to the level of 19.5 billion dollar.
Monthly Exports and Imports, Billion Dollar
Source: TURKSTAT
Distribution of Foreign Trade in Broad Economic Categories Distribution of Foreign Trade in Broad Economic Categories
EXPORT
2929
IMPORT
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Source: TURKSTAT
Source: TURKSTAT
2011/2012 2012/20132011 2012 Değ.% 2012 2013 Change %
Investment Goods 14,192 13,734 -3.2 10,095 12,628 11.2 25.1Intermediate Goods 67,942 82,656 21.7 62,155 62,050 55.2 -0.2Consumption Goods 52,219 55,556 6.4 40,294 49,326 43.8 22.4Others 555 516 -7.0 368 536 0.5 45.7TOTAL 134,907 152,462 13.0 112,912 124,540 110.7 10.3
(Million $) Annual Periodic (January-Oct) Jan-Oct % Share
2011/2012 2012/20132011 2012 Değ.% 2012 2013 Change %
Investment Goods 37,271 33,925 -9.0 24,806 29,771 15.9 20.0Intermediate Goods 173,140 174,930 1.0 131,906 151,983 81.0 15.2Consumption Goods 29,692 26,699 -10.1 19,462 24,801 13.2 27.4Others 739 990 34.0 809 548 0.3 -32.3TOTAL 240,842 236,545 -1.8 176,983 207,103 110.4 17.0
Consumption Goods Annual Periodic (January-Oct) Jan-Oct % Share
Main Export Items Main Export Items
Source: TURKSTAT
3030
* Percent change is related to the annual change in exports in 2013.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
CHANGE % 2012 2013 2012 2013 2012 2013 2012/2013
1 87 VEHICLES OTHER THAN RAILWAY OR TRAMWAY 12,368 13,841 11,509 13,558 859 283 11.92 84 NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANIC AL APPLIANCES 9,892 10,600 21,315 24,488 -11,423 -13,888 7.23 72 IRON AND STEEL 9,640 8,296 16,605 15,400 -6,965 -7,104 -13.94 85 ELECTRICAL MACHINERY AND EQUIPMENT 7,659 7,712 13,207 14,362 -5,547 -6,650 0.75 61 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNI TTED OR CROCHETED 6,930 7,583 709 782 6,221 6,801 9.46 71 NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PREC IOUS STONES, PRECIOUS METALS 14,338 6,196 7,700 13,753 6,637 -7,557 -56.87 27 MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION 6,493 5,550 49,644 45,918 -43,150 -40,368 -14.58 73 ARTICLES OF IRON OR STEEL 4,918 5,061 1,888 2,270 3,030 2,791 2.99 62 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED OR CROCHETED 4,510 4,756 1,290 1,559 3,219 3,196 5.4
10 39 PLASTICS AND ARTICLES THEREOF 4,160 4,572 10,406 11,624 -6,246 -7,052 9.980,908 74,168 134,273 143,716 -53,365 -69,547 -8.3
126,103 124,539 195,770 207,104 -69,666 -82,565 -1.2
Periodic (January-October) Million Dolar
Rank Code Description of ChapterEXPORT IMPORT BALANCE
LIST TOTALTOTAL
Main Import Items Main Import Items
Source: TURKSTAT
3131
* Percent change is related to the annual change in exports in 2013.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
CHANGE %2012 2013 2012 2013 2012 2013 2012/2013
1 27 MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION 49,644 45,918 6,493 5,550 -43,150 -40,368 -7.52 84 NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANIC AL APPLIANCES; PARTS THEREOF 21,315 24,488 9,892 10,600 -11,423 -13,888 14.93 72 IRON AND STEEL 16,605 15,400 9,640 8,296 -6,965 -7,104 -7.34 85 ELECTRICAL MACHINERY AND EQUIPMENT 13,207 14,362 7,659 7,712 -5,547 -6,650 8.75 71 NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PREC IOUS STONES, PRECIOUS METALS 7,700 13,753 14,338 6,196 6,637 -7,557 78.66 87 VEHICLES OTHER THAN RAILWAY OR TRAMWAY 11,509 13,558 12,368 13,841 859 283 17.87 39 PLASTICS AND ARTICLES THEREOF 10,406 11,624 4,160 4,572 -6,246 -7,052 11.78 29 ORGANIC CHEMICALS 4,256 4,416 544 477 -3,712 -3,939 3.89 90 OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEDICAL OR SURGICAL INSTRUMENTS 3,242 3,674 443 532 -2,799 -3,143 13.3
10 30 PHARMACEUTICAL PRODUCTS 3,204 3,392 497 581 -2,707 -2,811 5.9141,088 150,586 66,034 58,358 -75,053 -92,229 6.7195,770 207,104 126,103 124,539 -69,666 -82,565 5.8
Periodic (January-October) Million Dollar
Rank Code Description of ChapterIMPORT EXPORT BALANCE
LIST TOTAL TOTAL
Main Export Items (Annual) Main Export Items (Annual)
Source: TURKSTAT
3232December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
CHANGE % 2011 2012 2011 2012 2011 2012 2011/2012
1 71 PEARLS, PRECIOUS STONES, PRECIOUS METALS AND ARTICLES THEREOF 3,739 16,325 7,022 8,529 -3,284 7,796 336.62 87 VEHICLE OTHER THAN RAILWAY OR TRAMWAY ROLLING-STOCK, PARTS THEREOF 15,803 15,148 17,184 14,514 -1,381 634 -4.13 84 BOILERS, MACHINERY AND MECHANICAL APPLIANCES, PARTS THEREOF 11,561 11,999 27,111 26,316 -15,550 -14,317 3.84 72 IRON AND STEEL 11,225 11,332 20,424 19,642 -9,199 -8,310 1.05 85 ELECTRICAL MACHINERY AND EQUIPMENT: PARTS THEREOF 8,874 9,373 16,835 16,280 -7,961 -6,907 5.66 61 KNITTED AND CROCHETED GOODS AND ARTICLES THEREOF 8,386 8,419 1,085 843 7,301 7,575 0.47 27 MINERAL FUELS, MINERALS OILS AND PRODUCT OF THEIR DISTILLATION 6,539 7,708 54,118 60,117 -47,579 -52,409 17.98 73 ARTICLES OF IRON AND STEEL 5,748 6,093 2,521 2,367 3,227 3,726 6.09 62 NON KNITTED AND CROCHETED GOODS AND ARTICLES THEREOF 5,124 5,431 1,874 1,498 3,250 3,933 6.010 39 PLASTIC AND ARTICLES THEREOF 4,580 5,013 12,579 12,505 -7,998 -7,492 9.4
81,580 96,842 160,753 162,612 -79,173 -65,770 18.7134,907 152,462 240,842 236,545 -105,935 -84,083 13.0
LIST TOTALTOTAL
Annual (Million Dolar)
Rank Code Description of ChapterEXPORT IMPORT BALANCE
Main Import Items (Annual) Main Import Items (Annual)
Source: TURKSTAT
3333December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
CHANGE %2011 2012 2011 2012 2011 2012 2011/2012
1 27 MINERAL FUELS, MINERALS OILS AND PRODUCT OF THEIR DISTILLATION 54,118 60,117 6,539 7,708 -47,579 -52,409 11.12 84 BOILERS, MACHINERY AND MECHANICAL APPLIANCES, PARTS THEREOF 27,111 26,316 11,561 11,999 -15,550 -14,317 -2.93 72 IRON AND STEEL 20,424 19,642 11,225 11,332 -9,199 -8,310 -3.84 85 ELECTRICAL MACHINERY AND EQUIPMENT, PARTS THEREOF 16,835 16,280 8,874 9,373 -7,961 -6,907 -3.35 87 VEHICLE OTHER THAN RAILWAY OR TRAMWAY ROLLING-STOCK, PARTS THEREOF 17,184 14,514 15,803 15,148 -1,381 634 -15.56 39 PLASTIC AND ARTICLES THEREOF 12,579 12,505 4,580 5,013 -7,998 -7,492 -0.67 71 PEARLS, PRECIOUS STONES, PRECIOUS METALS AND ARTICLES THEREOF 7,022 8,529 3,739 16,325 -3,284 7,796 21.58 29 ORGANIC CHEMICALS 5,504 5,065 545 647 -4,959 -4,418 -8.09 90 OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING CHECKING, PRECISION 4,116 4,056 448 555 -3,668 -3,501 -1.510 30 PHARMACEUTICAL PRODUCTS 4,697 3,996 567 662 -4,131 -3,334 -14.9
169,591 171,020 63,882 78,763 -105,709 -92,257 0.8240,842 236,545 134,907 152,462 -105,935 -84,083 -1.8TOTAL
Description of ChapterRank Code
Annual (Million Dollar)IMPORT EXPORT BALANCE
LIST TOTAL
Main Export Partners (Share,%)
Main Trade Partners (JanuaryMain Trade Partners (January-October -October 20120133))
Main Import Partners (Share,%)
Source: TURKSTAT
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 3434
Exports by RegionsExports by Regions
Source: TURKSTAT
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 3535
2012 Share (%) 2013 Share (%) Change(%) 2012 Share (%) 2013 Share (%) Change(%) A- EU (28) 5,296 40.1 5,305 43.8 0.2 48,663 38.6 51,547 41.4 5.9 B- FREE ZONES IN TURKEY 180 1.4 175 1.4 -2.7 1,913 1.5 1,989 1.6 4.0 C- OTHER COUNTRIES 7,715 58.5 6,625 54.7 -14.1 75,527 59.9 71,004 57.0 -6.0 1- OTHER EUROPE 1,655 12.5 1,250 10.3 -24.5 11,579 9.2 11,664 9.4 0.7 2- AFRICA 1,193 9.0 928 7.7 -22.2 10,995 8.7 11,677 9.4 6.2 North Africa 846 6.4 647 5.3 -23.5 7,760 6.2 8,294 6.7 6.9 Other Africa 347 2.6 281 2.3 -19.1 3,235 2.6 3,383 2.7 4.6 3- AMERICA 859 6.5 726 6.0 -15.6 7,948 6.3 8,120 6.5 2.2 North America 620 4.7 517 4.3 -16.7 5,539 4.4 5,492 4.4 -0.8 Central America And Caraips 48 0.4 61 0.5 27.2 658 0.5 872 0.7 32.6 South America 191 1.5 148 1.2 -22.6 1,752 1.4 1,756 1.4 0.2 4- ASIA 3,957 30.0 3,669 30.3 -7.3 44,511 35.3 38,985 31.3 -12.4 Near And Middle Eastern 3,013 22.8 2,721 22.5 -9.7 35,920 28.5 29,154 23.4 -18.8 Other Asia 944 7.2 948 7.8 0.4 8,591 6.8 9,831 7.9 14.4 5- AUSTRALIA AND NEW ZEALAND 46 0.3 47 0.4 3.6 401 0.3 442 0.4 10.3 6- OTHER COUNTRIES AND REGIONS 4 0.0 5 0.0 14.3 92 0.1 115 0.1 25.1
TOTAL 13,191 100 12,105 100 -8.2 126,103 100 124,539 100 -1.2
(Million $)October January-October
ImportImports by Regionss by Regions
Source: TURKSTAT
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 3636
2012 Share (%) 2013 Share (%) Change(%) 2012 Share (%) 2013 Share (%) Change(%) A- EU (28) 7,325 39.0 7,428 38.1 1.4 71,820 36.7 75,587 36.5 5.2 B- FREE ZONES IN TURKEY 83 0.4 98 0.5 18.0 860 0.4 1,040 0.5 20.9 C- OTHER COUNTRIES 11,378 60.6 11,953 61.4 5.1 123,090 62.9 130,477 63.0 6.0 1- OTHER EUROPE 2,941 15.7 2,825 14.5 -3.9 31,077 15.9 33,838 16.3 8.9 2- AFRICA 519 2.8 529 2.7 1.9 4,909 2.5 5,017 2.4 2.2 North Africa 350 1.9 331 1.7 -5.4 2,706 1.4 2,975 1.4 9.9 Other Africa 169 0.9 198 1.0 17.1 2,203 1.1 2,042 1.0 -7.3 3- AMERICA 1,517 8.1 1,482 7.6 -2.3 17,232 8.8 16,009 7.7 -7.1 North America 1,099 5.9 1,017 5.2 -7.4 13,053 6.7 11,826 5.7 -9.4 Central America And Caraips 97 0.5 138 0.7 42.5 842 0.4 1,132 0.5 34.5 South America 321 1.7 327 1.7 1.8 3,337 1.7 3,050 1.5 -8.6 4- ASIA 5,111 27.2 6,038 31.0 18.1 59,201 30.2 63,539 30.7 7.3 Near And Middle Eastern 1,206 6.4 1,516 7.8 25.7 18,339 9.4 18,615 9.0 1.5 Other Asia 3,905 20.8 4,522 23.2 15.8 40,862 20.9 44,924 21.7 9.9 5- AUSTRALIA AND NEW ZEALAND 36 0.2 59 0.3 64.6 774 0.4 1,083 0.5 39.8 6- OTHER COUNTRIES AND REGIONS 1,254 6.7 1,020 5.2 -18.7 9,896 5.1 10,992 5.3 11.1
TOTAL 18,787 100 19,480 100 3.7 195,770 100 207,104 100 5.8
(Million $)October January-October
Tariff RatesTariff Rates
Source: WTO Tariff Profiles, 2012
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 3737
2) SERVICES2) SERVICES
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 3838
Tourism: Besides increasing the number of tourist arrivals, creating a structure that improves service quality, targets high-income groups by diversifying marketing channels, preserves natural capital and sustainability, and stimulates those types of tourism where Turkey has comparative advantages
Construction, Engineering-Architecture, Technical Consultancy and Contracting Services: Establishing a structure that fits Turkey’s economic and social needs, that is compatible with high technology and international rules, that is sensitive to environment, that creates high value added, high foreign exchange inflow and high employment, that grants high service quality, and that relies on qualified human and physical capital
Commercial Services: Increasing productivity and commercial trade volume in a competitive way, and to encourage technology and innovation
Targets in ServicesTargets in Services
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 3939
Turkey's Share in Global Services Exports (%)Turkey's Share in Global Services Exports (%)
Source: WTO
Turkey’s share in global exports of services was 0.99% in 2012.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 4040
Tourism Statistics (Quarterly)Tourism Statistics (Quarterly)
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy 4141
Tourists visited (Thousand), Source: TURKSTAT
Turkey ranks as the 6th in the world and the 4th in Europe among the most favourite tourism destinations.
Turkey’s income per tourist increased by 2.6% in 2012 compared to 2011.
Contracting Services AbroadContracting Services Abroad
4242
38 out of the world’s top 250 contracting companies are Turkish.
Turkey ranks as the 2nd country (following China) in terms of the number of top contracting companies.
Contributions to the overall economic performance: Creating foreign exchange inflow, exports, employment, technology transfer; adding to the machinery stock, facilitating internationalization
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Regional Breakdown of Projects(%)
Years Projects CountriesProject Volume
(Million $)
Cum. Project Volume
(Million $)
Avr. Project Volume
(Million $)1971-2001 2010 60 43.294 43.294 22
2002 131 32 2.571 45.865 202003 277 36 4.503 50.368 162004 426 39 11.319 61.687 272005 408 34 12.328 74.015 302006 518 36 24.236 98.251 472007 579 44 25.278 123.529 442008 628 40 24.853 148.382 402009 487 45 21.725 170.107 452010 594 50 22.724 192.831 382011 521 49 20.237 213.068 392012 489 48 27.092 240.160 552013 235 37 23.653 263.813 101
Last updated on December 2013
Logistics 2012Logistics 2012
4343
Europe’s biggest truck fleet 45 thousands trucks and 1,420 companies Almost 1.1 million flights in 2012 2.4 million tonnes freight and 130 million passengers 25. biggest fleet in the world 48 airports and 76 ports Total length of divided highways will reach 15 thousand
kilometers. High-speed railway projects are carried out rapidly.
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
TurkeyTurkey’s ’s EnergyEnergy Perspective Perspective
4444
Turkey’s Energy Corridor Concept
Strategy is to act as a transit country for secure & commercially viable projects and to be an energy terminal. e.g. TANAP (Trans-Anatolian Natural Gas Pipeline) Project
In the long-term planning work, Turkey foresees to achieve the following targets in 2023 in the field of energy;
To be able to make complete use of its potential of indigenous coal and hydro resources,
To make maximum use of renewable resources, To incorporate nuclear energy into electricity generation To secure rapid and continuous improvement in energy
efficiency.
Some ongoing important energy projects that will help Turkey’s Energy Security;
•Mersin Akkuyu Nuclear Power Plant-Russia
•Sinop Nuclear Power Plant-Japan
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
C- INVESTMENTS, FOREIGN CAPITAL and C- INVESTMENTS, FOREIGN CAPITAL and INCENTIVESINCENTIVES
4545December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Investment Climate in TurkeyInvestment Climate in Turkey
4646
1- SOUND ECONOMIC PERFORMANCE 6- CENTRAL LOCATION2- YOUNG and DYNAMIC POPULATION
7- ENERGY CORRIDOR and TERMINAL of EUROPE
3- QUALIFIED and COMPETITIVE LABOR FORCE
8- LOW TAX RATES and INCENTIVE FACILITIES
4- LIBERAL and INNOVATIVE INVESTMENT CLIMATE
9- CUSTOMS UNION with EU and OPEN ECONOMY
5- INFRASTRUCTURE 10- DOMESTIC MARKET
10 REASONS TO INVEST IN TURKEY
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Time Time RRequired to equired to SStart a tart a BBusinessusiness
The required time to start a business is 6 days in Turkey.
Source: Invest In Turkey
4747December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Skilled Labour AvailabilitySkilled Labour Availability
Scoring is between 0 and 10.
Source: Invest In Turkey
4848December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
The Sectoral Breakdown of Foreign InvestmentsThe Sectoral Breakdown of Foreign Investments
Source: CBRT
*January-October
DecemberDecember 2013 Ministry of Economy 2013 Ministry of Economy 5050
(Million $) 2011 2012 2012* 2013*AGRICULTURE 32 43 41 36INDUSTRIAL SECTORS 7,965 5,420 4,783 2,718 Mining and Quarrying 146 213 193 218 Manifacturing 3,573 4,283 3,810 1,266 Production and Distribution of Electricity, Gas, 4,244 924 780 1,232SERVICES SECTOR 8,058 5,098 3,967 4,655
TOTAL 16,055 10,561 8,791 7,409
Breakdown of Foreign Investments by CountryBreakdown of Foreign Investments by Country
Source: CBRT
5151
* January-October
2011 2012 2012* 2013*1 Germany 665 491 389 1,7132 Netherlands 1,425 1,226 952 8493 Austria 2,418 1,519 1,423 6544 train 50 46 2 4685 Spain 2,251 193 113 4656 Japan 231 106 94 4587 Lebanon 45 315 315 3698 U.S. 1,402 439 331 3039 Luxembourg 555 1,183 1,043 209
10 Saudi Arabia 8 439 339 20511 Kuwait 43 271 63 20412 France 999 86 71 20113 Azerbaijan 1,266 338 318 19014 Swiss 233 454 320 18215 Russia 762 11 8 16916 England 904 2,004 1,966 12117 Italy 111 154 132 11418 Bahrain 5 131 110 7819 United Arab Emirates 89 52 27 7120 Thailand 0 1 0 57
13,462 9,460 8,016 7,13716,055 10,561 8,791 7,409
LIST TOTALTOTAL
Million $
DecemberDecember 2013 Ministry of Economy 2013 Ministry of Economy
Investment Incentive SystemInvestment Incentive System
The current investment incentive system of Turkey is structured in four sub systems:
General Investment Incentive System Regional Investment Incentive System Investment Incentive System for Big Scale
Projects Encouraging the Strategic Investments
5252December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Investment IncentivesInvestment Incentives
Source: General Directorate of Incentive Implementation and Foreign Investment
5353
*January-October
*January-October
2011 3,367 40,347 93,9352012 3,063 34,930 96,6472013 3,985 63,962 142,697
Certificates Issued
Amount of Fixed Investments (Million TL)
Potential Employment
(People)
Region I Region II Region III Region IV Region V Region VI Various TOTAL2011 1,092 664 511 450 334 306 10 3,3672012 1,093 558 508 354 232 312 6 3,0632013 1,446 652 549 429 392 494 23 3,985
CERTIFICATES ISSUED
DecemberDecember 2013 Ministry of Economy 2013 Ministry of Economy
D - FREE ZONES IN TURKEYD - FREE ZONES IN TURKEY
5454December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Tax advantages for manufacturers Medium-and long-term investment view Availability to transfer profits Commercial facilities Exemption from customs duties Acquisition of the documents relating to the free movement of goods under
the scope of Customs Union with the EU Principle of equality No time restrictions Flexibility to adjust to the market needs and conditions Reliable inflation accounting Market access to domestic and foreign markets Reduced bureaucratic procedures and dynamic business management Strategic advantages Affordable and compatible infrastructure Supply chain opportunities
The Advantages of Free Zones for UsersThe Advantages of Free Zones for Users
5555December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Free Zones in TurkeyFree Zones in Turkey
55,938 people have been employed in Free Zones of Turkey in 2012.
5656December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Trade Flows of Free ZonesTrade Flows of Free Zones
In 2012 total trade volume of the Free Zones reached to 23.1 billion dollars, increasing 1.8% annually.
Source: General Directorate of Free Zones, Foreign Investments and Services
5757
Million $ 2008 2009 2010 2011 2012From Domestic Market to Free Zones 3,195 2,177 2,295 2,668 2,971From Free Zones to Abroad 5,874 4,914 4,361 6,924 7,070From Abroad to Free Zones 8,248 5,493 6,626 7,253 7,258From Free Zones to Domestic Market 7,262 5,174 5,291 5,801 5,754
TOTAL TRADE VOLUME 24,578 17,757 18,572 22,646 23,053
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Concentration in Free Zones by IndustriesConcentration in Free Zones by Industries
Source: General Directorate of Free Zones, Foreign Investments and Services
Istanbul Ataturk Airport FZ Services and SoftwareAntalya FZ Yacht-building, Medical EquipmentKocaeli FZ Ship-buildingAvrupa FZ Ready-WearMersin FZ Ready-WearBursa FZ Automotive sub-industriesIzmir FZ LeatherTUBITAK-MAM FZ R&D ActivitiesAdana-Yumurtalik FZ Ship Repair and Maintenance
5858December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
E - E - BBIILATERAL, REGLATERAL, REGIIONAL, ONAL, PLURILATERAL and PLURILATERAL and MULTMULTIILATERAL LATERAL
TRADETRADE
5959December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Trade Relationships of Turkey with OthersTrade Relationships of Turkey with Others
Bilateral Trade Relationships of Turkey
Europe, Asia-Pacific, Eurasia, Middle East and North Africa, Sub-Saharan Africa, Americas
Regional and Multiple Trade Relationships of Turkey
EU, ECO, D8, BSEC, OIC, COMCEC
Multilateral Trade Relationships of Turkey
WTO, OECD, G20
6060December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Regional Breakdown of ExportsRegional Breakdown of Exports
Source: TURKSTAT * January-October** Except Lebanon and Kosovo
In January-October period of 2013, our exports to EFTA countries decreased by 33.6% annually. The annual increase of our exports to Turk Republics in the same period was 19.2% and Turk Republics became the fastest growing export destination of the regions above.
6161
(Million $) 2011 2012 Change %Share % (2012)
2012* 2013* Change %Share % (2013*)
CIS 13,377 15,075 12.7 9.9 12,352 13,914 12.7 11.2EFTA 1,887 2,601 37.8 1.7 2,101 1,394 -33.6 1.1Economic Cooperation Organisation 9,292 16,563 78.3 10.9 14,790 10,052 -32.0 8.1Organization of Islamic Conference 37,325 55,218 47.9 36.2 46,461 40,585 -12.6 32.6Black Sea Economic Cooperation 17,768 18,791 5.8 12.3 15,403 16,662 8.2 13.4FTA Countries** 13,602 14,576 7.2 9.6 12,530 12,065 -3.7 9.7OECD 67,114 66,290 -1.2 43.5 54,356 56,174 3.3 45.1Turkic Republics 5,040 5,841 15.9 3.8 4,798 5,721 19.2 4.6
TOTAL 134,907 152,462 13.0 100.0 126,103 124,539 -1.2 100.0
DecemberDecember 2013 Ministry of Economy 2013 Ministry of Economy
Chronological Evolution of the Relationship between Turkey and the EUChronological Evolution of the Relationship between Turkey and the EU
12 September 1963: Ankara Agreement 23 November 1970: The signing of the Additional Protocol 1 January 1973: Additional Protocol to come into force 14 April 1987: Turkey’s Application for Membership 6 March 1995: The Association Council Decision Establishing the
Customs Union 10-11 December 1999: Recognition of the Candidate Status of
Turkey at the Helsinki Summit 8 March 2001: The first Accession Partnership Document issued 17 December 2004: European Council decision to start
Negotiations with Turkey in Brussels Summit 3 October 2005: Start of the Negotiations between Turkey and
the EU 20 October 2005: Start of the Screening Process 13 October 2006: End of the Screening Process
6262December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
EU Accession Negotiations Current StatusEU Accession Negotiations Current Status
6363
Negotiations for 13 chapters were opended, 1 chapter was temporarily closed up to the present.
Temporarily Closed (25) Science and Research (12 June 2006)
Opened (13 Chapters)
(4)Free Movement of Capital (18 December 2008)(6)Company Law (12 June 2008)(7)Intellectual Property Law (12 June 2008)(10)Information Society and Media (18 December 2008)(12)Food Safety, Veterinary and Plant Health (30 June 2010)(16)Taxation (30 June 2009)(18)Statistics (26 June 2007)(20)Business and Industry Policy (28 Şubat 2007)(21)Trans-European Networks (19 December 2007)(27)Environment (21 December 2009)(28)Consumer and Health Protection (19 December 2007)(32)Financial Control (26 June 2007)(22) Regional Policy and Coordination of Structural Instruments
Chapters for Which Turkey Has Presented It’s Negotiation Position Document to the Commission (2 Chapters)
(17)Economic and Monetary Policy (26) Education and Culture
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
EU Accession Negotiations Current StatusEU Accession Negotiations Current Status
6464
Screening Reports Approved at the Council of the European Union with Benchmarks (8 Chapters)
(1) Free Movement of Goods (3) Right of Establishment and Freedom to Provide Services (5) Public Procurement (8) Competition Policy (9) Financial Services (11) Agriculture and Rural Development (19)Social Policy and Employment (29) Customs Union
Draft Screening Reports are to be Approved at the Council of the European Union (9 Chapters)
(2) Freedom of Movement of Workers (13) Fisheries (14)Transport Policy (15) Energy (23) Judiciary and Fundamental Rights (24) Justice, Freedom and Security (30) External Relations (31) Foreign, Security and Defense Policy (33) Financial and Budgetary Provisions
December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Trade between Turkey and the EUTrade between Turkey and the EU
*January-OctoberSource: Data Source of the Ministry of Economy
6565DecemberDecember 2013 Ministry of Economy 2013 Ministry of Economy
1. EFTA (Norway, Switzerland, Iceland, Liechtenstein)
2. Israel
3. Macedonia
4. Bosnia and Herzegovina
5. Palestine
6. Tunisia
7. Morocco
8. Syria (**)
FTA CountriesFTA Countries
9. Egypt
•Albania
•Georgia
•Montenegro
•Serbia
•Chile
•Jordan
•South Korea
•Mauritius
•Lebanon*
•Kosovo*
(*) Agreements that are in the approval process
(**) Pending
6666December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
1. Ukrain2. Colombia3. Ecuador4. Malaysia5. Moldova6. Democratic Republic of
the Congo7. Ghana
FTA Countries(On-going Negotiations)FTA Countries(On-going Negotiations)
8. Cameroon
9. Seychelles
10.Gulf Cooperation Council
11.Libya
12.MERCOSUR
13.Faroe Islands
6767December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Our exports to FTA Countries increased %7.2 in 2012. The share of FTA Countries in total exports reached
%9.6. Turkey recorded a trade surplus of 3.9 billion USD in
2012 with FTA Countries, while there was a trade deficit of 1.5 billion USD in 2002.
Trade with FTA CountriesTrade with FTA Countries
6868December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Trade Representatives AbroadTrade Representatives Abroad
183 trade representatives from the Ministry are serving in 105 countries, 162 locations and 8 offices abroad.
6969December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
Daimi Temsilci Yardımcılığı
Ticaret Müşavirliği
Ticaret Ataşeliği
İrtibat Büroları
AFRİKA
KahireNairobi PretoriaRabatTrablusTunusKazablanka
ASYA
Astana Aşkabat Bangkok Bişkek Cakarta Duşanbe Hanoiİslamabad Kabil Kuala Lumpur Manila Pekin Seul Singapur
AVRUPA/KAFKASYAAVRUPA/KAFKASYAABDTÖOECDAtina Bakü Belgrad Berlin Bern BratislavaBrüksel Budapeşte Bükreş Dublin Helsinki Kiev Kişinev Kopenhag Lahey LizbonLefkoşa
Londra LubliyanaMadrid Minsk MoskovaOslo ParisPodgoricaPragPriştineRomaSaraybosna Sofya Stokholm TiflisTiran Üsküp Varşova Viyana Zagreb
BarselonaBatumDüsseldorfHamburgHannoverKazanMarsilyaMilanoMünihNovorossiskOdessaRotterdamSelanikSt. PetersburgStutgartBirminghamKrasnodarNovosibirskYekaterinburg
Taşkent Tokyo Ulan Bator Yeni Delhi AlmatıGuangzhouHong Kong KaraçiMumbaiŞangayGeorgetown
AbujaAddis Ababa AkraCezayirDakarDarüsselamHartumİskenderiye
Buenos Aires KarakasMexico CityOttavaSantiagoVaşingtonHoustonLos Angeles
AMERİKA
ORTA DOĞUORTA DOĞUAbu Dhabi Amman BağdatBeyrutDohaKuveytManama
MuskatRiyadSana ŞamTahranTel Aviv Basra
CiddeDubaiErbilHalepKudüsMusulTebriz
SidneyMelbourne
AVUSTRALYAAVUSTRALYA
New YorkSao PauloŞikagoTorontoMiamiSan FranciscoSeattle
GEORGETOWN
Locations of Trade RepresentativesLocations of Trade Representatives
7070December 2013 Ministry of EconomyDecember 2013 Ministry of Economy
• Export Oriented Production Strategy and Input Supply Strategy
• Market Access Strategy• Improving the Investment Climate• Trade Agreements• Next-Generation Free Zones• Trade in Services and Turkish Investments
Abroad • Market Surveillance and Inspection• Strengthening the Organization Abroad
Projects with Future ProspectsProjects with Future Prospects
7171December 2013 Ministry of EconomyDecember 2013 Ministry of Economy