Transcript Source: TURKSTAT - diplomatymm.com.tr

MINISTRY of ECONOMY
ECONOMIC OUTLOOK
FEBRUARY 2014
Economic Outlook is revized in the 1st and the 3rd weeks of the month.
Recent Update: 02/21/2014
OUTLINE
A- MACROECONOMIC OUTLOOK
B- FOREIGN TRADE OUTLOOK
1) MERCHANDISE
2) SERVICES
C- INVESTMENTS , FOREIGN CAPITAL and INCENTIVES
D- FREE ZONES in TURKEY
E- BILATERAL, REGIONAL, PLURILATERAL and MULTILATERAL TRADE
February 2014
Ministry of Economy
2
A- MACROECONOMIC OUTLOOK
February 2014
Ministry of Economy
3
Growth Forecasts for Selected Countries/Country Groups (%)
Growth Forecasts for Selected Countries/Country Groups (%)
Turkey Euro Area US Brazil Russia India China
IMF
OECD
WB
2013
2014
3.8
3.5
-0.4
1.0
1.9
2.8
2.3
2.3
1.5
2.0
4.4
5.4
7.7
7.5
2015
2013
2014
2015
2013
2014
2015
4.3
3.6
3.8
4.1
4.3
3.5
3.9
1.4
-0.4
1.0
1.6
-0.4
1.1
1.4
3.0
1.7
2.9
3.4
1.8
2.8
2.9
2.8
2.5
2.2
2.5
2.2
2.4
2.7
2.5
1.5
2.3
2.9
1.3
2.2
2.7
6.4
3.0
4.7
5.7
4.8
6.2
6.6
7.3
7.7
8.2
7.5
7.7
7.7
7.5
Source: IMF, OECD, WB
 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.
February 2014
Ministry of Economy
4
Forecasts for Merchandise and Services Trade Growth (%)
Forecasts for Merchandise and Services Trade Growth (%)
Exports
Imports
World
Advanced Emerging Advanced Emerging Trade
Years Economies Markets Economies Markets Volume
2013
2.7
3.5
1.4
5.3
2.7
4.7
5.8
3.4
5.9
4.5
IMF 2014
2013
1.5
3.6
-0.1
5.8
2.5
WTO 2014
2.8
6.3
3.2
6.2
4.5
Source: IMF and WTO
 According to the IMF estimates, global trade volume of merchandise and
services is expected to increase by 2.7% in 2013 and 4.5% 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.
February 2014
Ministry of Economy
5
Economic Targets of 2014-2016 Medium Term Program
2012* 2013**
GDP (Billion $, Current Prices)
GDP Per Capita ($)
Real GDP Growth
Unemployment Rate (%)
Tourism Income (Billion $)
Current Account Balance (Billion $)
Current Account Balance / GDP (%)
786
10497
2.2
9.2
25.7
-47.8
-6.1
823
10,818
3.6
9.5
29.0
-58.8
-7.1
2014
2015
2016
867
11,277
4.0
9.4
31.0
-55.5
-6.4
928
11,927
5.0
9.2
32.0
-55.0
-5.9
996
12,670
5.0
8.9
34.5
-55.0
-5.5
*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.
February 2014
Ministry of Economy
6
Real GDP Growth of Selected Countries/Country Groups (2012)
Source: TURKSTAT, IMF, Eurostat
* 2013
 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.
February 2014
Ministry of Economy
7
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%.
February 2014
Ministry of Economy
8
GDP 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.
February 2014
Ministry of Economy
9
Capacity Utilization Ratio (%)
Source: TURKSTAT
 Capacity utilization ratio realized as 73.9% in January 2014.
February 2014
Ministry of Economy
10
Industrial Production Index
Source: TURKSTAT
 Industrial production index increased by 6.93% year-over-year to 124.81
(2010=100) in December 2013.
February 2014
Ministry of Economy
11
Inflation (Annual Percent Change)
Source: TURKSTAT
 Annual inflation in 2013 was realized as 7.40% and 6.97% according to
CPI and PPI, respectively.
February 2014
Ministry of Economy
12
Real Effective Foreign Exchange Rate (2003=100)
Source: CBRT
 Compared to the previous month, as of January 2014, Turkish Lira has
depreciated by 5.01% in terms of the CPI-based real effective exchange rate
and depreciated by 4.01% in terms of the PPI- based real effective exchange
rate.
February 2014
Ministry of Economy
13
Total Credits and Consumer Credits (Billion TL)
Source: BRSA
 Credits and specifically consumer credits increased in parallel to the
growing domestic demand.
 Total credits increased 3.71% on a monthly basis in December 2013.
February 2014
Ministry of Economy
14
CDS Premiums (Feb 19th, 2014)
Source: DB Research
* Higher CDS premiums indicate higher risk levels.
 CDS premium of Turkey indicates a medium level of risk.
February 2014
Ministry of Economy
15
Financial Markets
Data on Banking Sector
2012 December 2013 December
Number of Banks
49
49
10,981
11,903
80
83
213,466
200,745
1,370,690
1,732,412
181,940
193,818
23,523
24,759
2.86
2.74
Net Profit or Loss / Average Equities (%)
15.68
14.25
Liquid Assets with 12 Months of Maturity / Total Assets (%)
70.53
75.16
Capital Adequacy Ratio (%)
17.86
15.3
Number of Domestic Branches
Number of Foreign Branches
Number of Total Domestic Personnel Employed
Total Assets (Million TL)
Total Equities (Million TL)
Net Profit or Loss (Million TL)
Nonperforming Loans (Gross) / Cash and Cash Equivalents (%)
Source: BRSA
 Comparing to previous year, total assets of the banking sector increased
by 26.3% and reached 1,732 trillion TL in December 2013.
 Capital Adequacy Ratio of Turkish Banking Sector is 15.3% in December
2013.
February 2014
Ministry of Economy
16
EU Defined Budget Deficit/ GDP (%)
Source: Eurostat
* 2010
 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 2013, central government budget deficit was 18,4 billion TL. In January
2014, central government budget surplus was 1,9 billion TL compared to 5,9
billion TL in the same period of 2013.
February 2014
Ministry of Economy
17
Government Debt / GDP (%)
Source: Eurostat
 Debt/GDP ratio of Turkey was 36.2% in 2012, which was below the level in 25
EU Countries and the Maastricht Criteria (60%).
February 2014
Ministry of Economy
18
Unemployment Rates (%)
Source: TURKSTAT
 In November 2013, both the unemployment rate and Seasonally adjusted
unemployment rate was 9.9%.
 Seasonally adjusted unemployment rate in Euro Area was 12.0% and 10.7% in
(EU28) in December 2013. In terms of unemployment ratio Turkey outperformed 14
EU countries according to current data.
 After Russia, Germany, England and France, Turkey has the 5th largest labor force
among the European countries. (2012, World Bank)
February 2014
Ministry of Economy
19
Potential of Population (2012)
Source: World Bank and TURKSTAT (Turkey’s data are for 2013)
 Turkey has a population of 76.4 million in which half of the population
is under the age of 30.4.
 Growth rate of population is 1.4% in Turkey, 0.2% in EU Countries and
0.1% in Germany.
February 2014
Ministry of Economy
20
Growing Dynamism in Turkey's Domestic Market
 Cell phone penetration rate in households: 93.7%
(2013)
 Internet access rate in households: 49.1% (2013)
 Internet access rate in enterprises: 90.8% (2013)
 PC penetration rate in households: 30.5% (2013)
 Laptop penetration rate in households: 31.4% (2013)
 Digital camera penetration rate in households: 28.1%
(2013)
 Printer penetration rate in households: 14.0% (2011)
February 2014
Ministry of Economy
21
B- FOREIGN TRADE OUTLOOK
February 2014
Ministry of Economy
22
I) MERCHANDISE
February 2014
Ministry of Economy
23
Targets in Merchandise Trade
(Billion $)
Exports
Imports
Volume of trade
Balance of trade
Exports/Imports (%)
2012*
152.5
236.5
389
-84.1
64.5
2013* 2013** 2014** 2015** 2016** 2023***
151.9 153.5 166.5
184 202.5
500
251.7 251.5
262
282
305
625
403.5
405 428.5
466 507.5
1125
-99.8
-98
-95.5
-98 -102.5
-125
60.3
61.0
63.5
65.2
66.4
80.0
* Actual (Source: TURKSTAT)
**Forecast: Medium Term Programme, Ministry of Development, 2014-2016)
***The Exports Strategy of Turkey For 2023
February 2014
Ministry of Economy
24
Turkey's Share in Global Merchandise Exports (%)
 Turkey’s share in global merchandise exports was %0.83 in 2012.
February 2014
Ministry of Economy
25
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.
February 2014
Ministry of Economy
26
Foreign Trade Developments
2011 - 2012 / January-December 2012 - 2013
Annual (Billion $)
Export
Energy Export
Gold Export
Import
Energy Import
Gold Import
Foreign Trade Volume
Foreign Trade Balance
Balance excl. Energy
Export/Import (%)
Periodic (Billion Dollar)
2011
2012
2012 / (JAN - DEC)
2013 / (JAN - DEC)
134.9
6.5
1.5
240.8
54.1
6.1
375.7
-105.9
-58.4
56.0
152.5
7.7
13.3
236.5
60.1
7.6
389.0
-84.1
-31.7
64.5
152.5
7.7
13.3
236.5
60.1
7.6
389.0
-84.1
-31.7
64.5
151.9
6.7
3.3
251.7
55.9
15.1
403.5
-99.8
-50.6
60.4
Change (%)
2012/2013
-0.4
-12.9
-74.9
6.4
-7.0
98.2
3.7
18.7
59.7
*
* Energy corresponds to Chapter 27.
Source: Ministry of Economy
In January-December period of 2013 compared to same period of 2012,
exports decreased by 0.4% and imports increased by 6.4% respectively.
February 2014
Ministry of Economy
27
Monthly Exports/Imports
In December 2013 compared to same period of 2012, exports have increased
by 4.8% and realized as 13.2 billion dollar and imports have increased by 16.7%
up to the level of 23.1 billion dollar.
February 2014
Ministry of Economy
28
Distribution of Foreign Trade in Broad Economic Categories
EXPORT
(Million $)
Investment Goods
Intermediate Goods
Consumption Goods
Others
TOTAL
Annual
2011
14,192
67,942
52,219
555
134,907
2012
13,734
82,656
55,556
516
152,462
2011/2012
Değ.%
-3.2
21.7
6.4
-7.0
13.0
Periodic (January-Dec)
2012
2013
13,734
15,601
82,656
74,843
55.56
60,764
516
662
96,906
151,870
Jan-Dec % 2012/2013
Share
Change %
10.3
13.6
49.3
-9.5
40.0
9.4
0.4
28.2
100.0
-0.4
IMPORT
(Million $)
Investment Goods
Intermediate Goods
Consumption Goods
Others
TOTAL
February 2014
Annual
2011
37,271
173,140
29,692
739
240,842
2012
33,925
174,930
26,699
990
236,545
2011/2012
Değ.%
-9.0
1.0
-10.1
34.0
-1.8
Periodic (January-Dec)
2012
2013
33,925
36,760
174,930
183,812
26,699
30,416
990
663
236,544
251,651
Ministry of Economy
Jan-Dec % 2012/2013
Share
Change %
14.6
8.4
73.0
5.1
12.1
13.9
0.3
-33.1
100.0
6.4
29
Main Export Items
Periodic (January-December) Million Dolar
Rank
Code
1
2
3
87
84
72
4
5
85
61
6
71
7
8
9
10
27
73
62
39
Description of Chapter
VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING-ST OCK, AND PARTS AND ACCESSORIES
THEREOF
NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANIC AL APPLIANCES; PARTS THEREOF
IRON AND STEEL
ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THER EOF; SOUND RECORDERS AND
REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS, AND PA RTS AND
ACCESSORIES OF SUCH ARTICLES
ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNI TTED OR CROCHETED
NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PREC IOUS STONES, PRECIOUS METALS, METALS
CLAD WITH PR ECIOUS METAL, AND ARTICLES THEREOF; IMITATION JEW ELLERY; COIN
MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION;BITUMINOUS SUBSTANCES;
MINERAL WAXE S
ARTICLES OF IRON OR STEEL
ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED OR CROCHETED
PLASTICS AND ARTICLES THEREOF
LIST TOTAL
TOTAL
EXPORT
2012
2013
IMPORT
2012
2013
BALANCE
2012
2013
CHANGE %
2012/2013
15,148
17,004
14,514
16,808
634
196
12.3
11,999
11,332
12,998
9,934
26,316
19,642
30,159
18,691
-14,317
-8,310
-17,162
-8,757
8.3
-12.3
9,373
9,551
16,280
17,759
-6,907
-8,207
1.9
8,419
9,257
843
941
7,575
8,315
10.0
16,325
6,979
8,529
16,226
7,796
-9,247
-57.3
7,708
6,713
60,117
55,915
-52,409
-49,202
-12.9
6,093
6,160
2,367
2,758
3,726
5,431
5,717
1,498
1,863
3,933
5,013
5,611
12,505 13,881 -7,492
96,842 89,924 162,612 175,001 -65,770
152,462 151,869 236,545 251,651 -84,083
3,402
3,854
-8,270
-85,077
-99,782
1.1
5.3
11.9
-7.1
-0.4
* Percent change is related to the annual change in exports in 2013.
Source: TURKSTAT
February 2014
Ministry of Economy
30
Main Import Items
Periodic (January-December) Million Dollar
Rank
Code
27
1
2
3
84
72
85
4
87
5
71
6
7
8
39
29
9
10
90
30
Description of Chapter
MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION;BITUMINOUS SUBSTANCES;
MINERAL WAXE S
NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANIC AL APPLIANCES; PARTS THEREOF
IRON AND STEEL
ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THER EOF; SOUND RECORDERS AND
REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS, AND PA RTS AND
ACCESSORIES OF SUCH ARTICLES
VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING-ST OCK, AND PARTS AND ACCESSORIES
THEREOF
NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PREC IOUS STONES, PRECIOUS METALS, METALS
CLAD WITH PR ECIOUS METAL, AND ARTICLES THEREOF; IMITATION JEW ELLERY; COIN
PLASTICS AND ARTICLES THEREOF
ORGANIC CHEMICALS
OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING , CHECKING, PRECISION, MEDICAL OR
SURGICAL INSTRU MENTS AND APPARATUS; PARTS AND ACCESSORIES THEREO F
PHARMACEUTICAL PRODUCTS
LIST TOTAL
TOTAL
IMPORT
2012
2013
EXPORT
2012
2013
BALANCE
2012
2013
60,117
26,316
19,642
55,915
30,159
18,691
7,708
11,999
11,332
6,713
12,998
9,934
-52,409
-14,317
-8,310
-49,202
-17,162
-8,757
16,280
17,759
9,373
9,551
-6,907
-8,207
14,514
16,808
15,148
17,004
634
196
8,529
12,505
5,065
16,226
13,881
5,314
16,325
5,013
647
6,979
5,611
599
7,796
-7,492
-4,418
-9,247
-8,270
-4,716
4,056
3,996
171,020
236,545
4,558
555
662
-3,501
4,151
662
755
-3,334
183,462 78,763 70,805 -92,257
251,651 152,462 151,869 -84,083
CHANGE %
2012/2013
-7.0
14.6
-4.8
9.1
-3,896
-3,396
-112,657
-99,782
15.8
90.2
11.0
4.9
12.4
3.9
7.3
6.4
* Percent change is related to the annual change in exports in 2013.
Source: TURKSTAT
February 2014
Ministry of Economy
31
Main Export Items (Annual)
Annual (Million Dolar)
Rank
Code
1
87
2
3
84
72
4
5
85
61
6
71
7
8
27
73
9
10
62
39
Description of Chapter
VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING-ST OCK, AND PARTS AND
ACCESSORIES THEREOF
NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANIC AL APPLIANCES;
PARTS THEREOF
IRON AND STEEL
ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THER EOF; SOUND
RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS
AND REPRODUCERS, AND PA RTS AND ACCESSORIES OF SUCH ARTICLES
ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNI TTED OR CROCHETED
NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PREC IOUS STONES,
PRECIOUS METALS, METALS CLAD WITH PR ECIOUS METAL, AND ARTICLES
THEREOF; IMITATION JEW ELLERY; COIN
MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR
DISTILLATION;BITUMINOUS SUBSTANCES; MINERAL WAXE S
ARTICLES OF IRON OR STEEL
ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED OR
CROCHETED
PLASTICS AND ARTICLES THEREOF
LIST TOTAL
TOTAL
EXPORT
2012
2013
IMPORT
2012
2013
BALANCE
2012
2013
CHANGE %
2012/2013
15,148
17,004
14,514
16,808
634
196
12.3
11,999
12,998
26,316
30,159
-14,317
-17,162
8.3
11,332
9,934
19,642
18,691
-8,310
-8,757
-12.3
9,373
9,551
16,280
17,759
-6,907
-8,207
1.9
8,419
9,257
843
941
7,575
8,315
10.0
16,325
6,979
8,529
16,226
7,796
-9,247
-57.3
7,708
6,713
60,117
55,915
-52,409
-49,202
-12.9
6,093
6,160
2,367
2,758
3,726
3,402
1.1
5,431
5,717
1,498
1,863
3,933
3,854
5.3
5,013
96,842
152,462
5,611
89,924
151,869
-8,270
-85,077
-99,782
11.9
-7.1
-0.4
12,505 13,881 -7,492
162,612 175,001 -65,770
236,545 251,651 -84,083
Source: TURKSTAT
February 2014
Ministry of Economy
32
Main Import Items (Annual)
Annual (Million Dollar)
Rank Code
Description of Chapter
MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR
1
27 DISTILLATION;BITUMINOUS SUBSTANCES; MINERAL WAXE S
NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANIC AL APPLIANCES; PARTS
2
84 THEREOF
3
72 IRON AND STEEL
ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THER EOF; SOUND
RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND
4
85 REPRODUCERS, AND PA RTS AND ACCESSORIES OF SUCH ARTICLES
VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING-ST OCK, AND PARTS AND
5
87 ACCESSORIES THEREOF
NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PREC IOUS STONES, PRECIOUS
METALS, METALS CLAD WITH PR ECIOUS METAL, AND ARTICLES THEREOF; IMITATION
6
71 JEW ELLERY; COIN
7
39 PLASTICS AND ARTICLES THEREOF
8
29 ORGANIC CHEMICALS
OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING , CHECKING, PRECISION,
MEDICAL OR SURGICAL INSTRU MENTS AND APPARATUS; PARTS AND ACCESSORIES
9
90 THEREO F
10
30 PHARMACEUTICAL PRODUCTS
LIST TOTAL
Source: TURKSTAT
TOTAL
IMPORT
2012
2013
EXPORT
2012
2013
BALANCE
2012
2013
60,117
55,915
7,708
6,713
-52,409
-49,202
26,316
19,642
30,159
18,691
11,999
11,332
12,998
9,934
-14,317
-8,310
-17,162
-8,757
16,280
17,759
9,373
9,551
-6,907
-8,207
14,514
16,808
15,148
17,004
634
196
8,529
12,505
5,065
16,226
13,881
5,314
16,325
5,013
647
6,979
5,611
599
7,796
-7,492
-4,418
-9,247
-8,270
-4,716
4,056
3,996
171,020
236,545
4,558
4,151
183,462
251,651
555
662
662
755
78,763 70,805
152,462 151,869
CHANGE %
2012/2013
-7.0
14.6
-4.8
9.1
15.8
90.2
11.0
4.9
12.4
-3,501
-3,896
-3,334
-3,396
-92,257 -112,657
-84,083 -99,782
3.9
7.3
6.4
Source: TURKSTAT
February 2014
Ministry of Economy
33
Main Trade Partners (January-December 2013)
Main Export Partners (Share,%)
Main Import Partners (Share,%)
Source: TURKSTAT
February 2014
Ministry of Economy
34
Exports by Regions
(Million $)
A- EU (28)
B- FREE ZONES IN TURKEY
C- OTHER COUNTRIES
1- OTHER EUROPE
2- AFRICA
North Africa
Other Africa
3- AMERICA
North America
Central America And Caraips
South America
4- ASIA
Near And Middle Eastern
Other Asia
5- AUSTRALIA AND NEW ZEALAND
6- OTHER COUNTRIES AND REGIONS
TOTAL
2012
Share (%)
4,953
39.3
180
1.4
7,473
59.3
1,174
9.3
1,225
9.7
861
6.8
364
2.9
888
7.0
600
4.8
65
0.5
223
1.8
4,133
32.8
3,138
24.9
995
7.9
48
0.4
5
0.0
12,605
100
December
2013
Share (%) Change(%)
5,279
39.9
6.6
206
1.6
14.6
7,735
58.5
3.5
1,155
8.7
-1.6
1,319
10.0
7.7
921
7.0
7.0
398
3.0
9.3
859
6.5
-3.3
578
4.4
-3.6
64
0.5
-2.2
217
1.6
-2.5
4,321
32.7
4.6
3,205
24.2
2.1
1,116
8.4
12.2
52
0.4
7.7
28
0.2
468.0
13,220
100
4.9
2012
59,398
2,295
90,768
14,167
13,357
9,444
3,913
9,623
6,663
770
2,191
53,026
42,451
10,575
490
105
152,462
January-December
Share (%)
2013
Share (%) Change(%)
39.0
63,055
41.5
6.2
1.5
2,413
1.6
5.1
59.5
86,400
56.9
-4.8
9.3
14,227
9.4
0.4
8.8
14,159
9.3
6.0
6.2
10,047
6.6
6.4
2.6
4,111
2.7
5.1
6.3
9,696
6.4
0.8
4.4
6,564
4.3
-1.5
0.5
1,004
0.7
30.5
1.4
2,129
1.4
-2.9
34.8
47,631
31.4
-10.2
27.8
35,597
23.4
-16.1
6.9
12,033
7.9
13.8
0.3
539
0.4
9.8
0.1
149
0.1
41.7
100
151,869
100
-0.4
Source: TURKSTAT
February 2014
Ministry of Economy
35
Imports by Regions
(Million $)
A- EU (28)
B- FREE ZONES IN TURKEY
C- OTHER COUNTRIES
1- OTHER EUROPE
2- AFRICA
North Africa
Other Africa
3- AMERICA
North America
Central America And Caraips
South America
4- ASIA
Near And Middle Eastern
Other Asia
5- AUSTRALIA AND NEW ZEALAND
6- OTHER COUNTRIES AND REGIONS
TOTAL
2012
Share (%)
7,666
38.7
89
0.4
12,072
60.9
3,149
15.9
455
2.3
267
1.3
189
1.0
1,446
7.3
990
5.0
106
0.5
350
1.8
5,576
28.1
1,462
7.4
4,113
20.7
55
0.3
1,392
7.0
19,828
100
December
2013
Share (%) Change(%)
8,725
37.7
13.8
119
0.5
33.8
14,293
61.8
18.4
3,971
17.2
26.1
516
2.2
13.3
253
1.1
-5.2
263
1.1
39.5
1,555
6.7
7.6
1,186
5.1
19.8
92
0.4
-12.5
277
1.2
-20.9
6,697
28.9
20.1
1,794
7.8
22.7
4,903
21.2
19.2
212
0.9
285.4
1,341
5.8
-3.6
23,137
100
16.7
2012
87,657
1,046
147,842
37,206
5,922
3,308
2,613
20,233
15,084
1,069
4,080
71,012
21,410
49,602
861
12,608
236,545
January-December
Share (%)
2013
Share (%) Change(%)
37.1
92,447
36.7
5.5
0.4
1,268
0.5
21.2
62.5
157,936
62.8
6.8
15.7
41,319
16.4
11.1
2.5
6,031
2.4
1.8
1.4
3,509
1.4
6.1
1.1
2,522
1.0
-3.5
8.6
18,981
7.5
-6.2
6.4
13,953
5.5
-7.5
0.5
1,362
0.5
27.4
1.7
3,666
1.5
-10.1
30.0
76,863
30.5
8.2
9.1
22,214
8.8
3.8
21.0
54,649
21.7
10.2
0.4
1,318
0.5
53.1
5.3
13,424
5.3
6.5
100
251,651
100
6.4
Source: TURKSTAT
February 2014
Ministry of Economy
36
Tariff Rates
Source: WTO Tariff Profiles, 2012
February 2014
Ministry of Economy
37
2) SERVICES
February 2014
Ministry of Economy
38
Targets in Services
 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.
February 2014
Ministry of Economy
39
Turkey's Share in Global Services Exports (%)
Source: WTO
 Turkey’s share in global exports of services was 0.99% in 2012.
February 2014
Ministry of Economy
40
Tourism Statistics (Quarterly)
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.
February 2014
Ministry of Economy
41
Contracting Services Abroad
Years
1971-2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Project
Projects Countries Volume
(Million $)
2006
132
270
429
408
515
570
620
474
583
505
485
377
14
69
32
36
39
34
36
45
40
45
48
50
49
44
9
43,252
2,571
4,490
11,367
12,375
24,059
25,260
24,827
21,667
23,067
20,489
29,434
31,519
2017
Cum.
Avr.
Project
Project
Volume
Volume
(Million $) (Million $)
43,252
22
45,823
19
50,313
17
61,680
26
74,055
30
98,114
47
123,374
44
148,201
40
169,868
46
192,935
40
213,424
41
242,858
61
274,379
84
276,396
144
Contributions to the overall
economic performance: Creating
foreign exchange inflow, exports,
employment, technology transfer;
adding to the machinery stock,
facilitating internationalization
Regional Breakdown of Projects(%)
Last updated on February 2014
 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.
February 2014
Ministry of Economy
42
Logistics 2013







Europe’s biggest truck fleet
45 thousands trucks and 1,420 companies
Almost 1.2 million flights in 2013
2.6 million tonnes freight and 149.5 million passengers
25. biggest fleet in the world
52 airports and 76 ports
Total length of divided highways will reach 15 thousand
kilometers.
 High-speed railway projects are carried out rapidly.
February 2014
Ministry of Economy
43
Turkey’s Energy Perspective
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.
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
Some ongoing important energy projects that will help Turkey’s Energy Security;
• Mersin Akkuyu Nuclear Power Plant-Russia
• Sinop Nuclear Power Plant-Japan
February 2014
Ministry of Economy
44
C- INVESTMENTS, FOREIGN CAPITAL and
INCENTIVES
February 2014
Ministry of Economy
45
Investment Climate in Turkey
10 REASONS TO INVEST IN TURKEY
1- SOUND ECONOMIC
PERFORMANCE
6- CENTRAL LOCATION
2- YOUNG and DYNAMIC
7- ENERGY CORRIDOR and
POPULATION
TERMINAL of EUROPE
3- QUALIFIED and COMPETITIVE 8- LOW TAX RATES and
LABOR FORCE
INCENTIVE FACILITIES
4- LIBERAL and INNOVATIVE
9- CUSTOMS UNION with EU
INVESTMENT CLIMATE
and OPEN ECONOMY
5- INFRASTRUCTURE
10- DOMESTIC MARKET
February 2014
Ministry of Economy
46
Time Required to Start a Business
Source: Invest In Turkey
 The required time to start a business is 6 days in Turkey.
February 2014
Ministry of Economy
47
Skilled Labour Availability
Source: Invest In Turkey
 Scoring is between 0 and 10.
February 2014
Ministry of Economy
48
The Sectoral Breakdown of Foreign Investments
(Million $)
AGRICULTURE
INDUSTRIAL SECTORS
Mining and Quarrying
Manifacturing
Production and Distribution of Electricity, Gas,
SERVICES SECTOR
TOTAL
2011
2012 2012* 2013*
32
43
43 37
8,037 5,479 5,479 4,810
146
213
213 250
3,596 4,342 4,342 2,008
4,293
924
924 2,516
8,067 5,237 5,237 5,342
16,136 10,759 10,759 10,189
*January-December
Source: CBRT
February 2014
Ministry of Economy
50
Breakdown of Foreign Investments by Country
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Million $
Germany
Netherlands
Russia
Azerbaijan
Austria
Lebanon
Spain
Japan
Qatar
U.S.
England
Luxembourg
Saudi Arabia
France
South Africa
Kuwait
Swiss
United Arab Emirates
Italy
Bahrain
LIST TOTAL
TOTAL
2011
665
1,425
762
1,266
2,418
45
2,251
231
50
1,403
905
562
8
999
0
43
233
89
111
5
13,476
16,136
2012
491
1,381
11
338
1,519
315
193
106
46
439
2,044
1,186
439
86
0
271
454
52
154
131
9,787
10,759
2012*
491
1,381
11
338
1,519
315
193
106
46
439
2,044
1,186
439
86
0
271
454
52
154
131
9,787
10,759
2013*
1,845
1,024
868
776
659
574
531
493
469
344
297
295
243
222
221
212
201
164
145
94
9,771
10,189
* January-December
Source: CBRT
February 2014
Ministry of Economy
51
Investment 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
February 2014
Ministry of Economy
52
Investment Incentives
Certificates
Issued
2011
2012
2013
4,386
4,311
4,985
Amount of Fixed
Investments
(Million TL)
53,725
57,743
93,868
Potential
Employment
(People)
125,532
146,960
190,385
CERTIFICATES ISSUED
Region I Region II Region III Region IV Region V Region VI Various TOTAL
2011 1,419
896
669
579
432
376
15 4,386
2012 1,563
749
702
499
338
450
10 4,311
2013 1,791
808
705
519
488
648
26 4,985
Source: General Directorate of Incentive Implementation and Foreign Investment
February 2014
Ministry of Economy
53
D - FREE ZONES IN TURKEY
February 2014
Ministry of Economy
54
The Advantages of Free Zones for Users















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
February 2014
Ministry of Economy
55
Free Zones in Turkey
 57,010 people have been employed in Free Zones of Turkey in 2013.
February 2014
Ministry of Economy
56
Trade Flows of Free Zones
Million $
2008
From Domestic Market to Free Zones 3,195
From Free Zones to Abroad
5,874
From Abroad to Free Zones
8,248
From Free Zones to Domestic Market 7,262
TOTAL TRADE VOLUME
24,578
2009
2,177
4,914
5,493
5,174
17,757
2010
2,295
4,361
6,626
5,291
18,572
2011
2,668
6,924
7,253
5,801
22,646
2012
2,971
7,070
7,258
5,754
23,053
2013
2,887
7,701
7,490
5,162
23,240
Source: General Directorate of Free Zones, Foreign Investments and Services
 In 2013 total trade volume of the Free Zones reached to 23.2
billion dollars, increasing 0.8% annually.
February 2014
Ministry of Economy
57
Concentration in Free Zones by Industries
Istanbul Ataturk Airport FZ
Antalya FZ
Kocaeli FZ
Avrupa FZ
Mersin FZ
Bursa FZ
Izmir FZ
TUBITAK-MAM FZ
Adana-Yumurtalik FZ
Services and Software
Yacht-building, Medical Equipment
Ship-building
Ready-Wear
Ready-Wear
Automotive sub-industries
Leather
R&D Activities
Ship Repair and Maintenance
Source: General Directorate of Free Zones, Foreign Investments and Services
February 2014
Ministry of Economy
58
E - BILATERAL, REGIONAL,
PLURILATERAL and MULTILATERAL
TRADE
February 2014
Ministry of Economy
59
Trade 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
February 2014
Ministry of Economy
60
Regional Breakdown of Exports
(Million $)
CIS
EFTA
Economic Cooperation Organisation
Organization of Islamic Conference
Black Sea Economic Cooperation
FTA Countries**
OECD
Turkic Republics
TOTAL
2011
2012
Change %
13,377
1,887
9,292
37,325
17,768
13,602
67,114
5,040
134,907
15,075
2,601
16,563
55,218
18,791
14,576
66,290
5,841
152,462
12.7
37.8
78.3
47.9
5.8
7.2
-1.2
15.9
13.0
Share %
(2012)
9.9
1.7
10.9
36.2
12.3
9.6
43.5
3.8
100.0
2012*
2013*
Change %
15,075
2,601
16,563
55,218
18,791
15,138
66,290
5,841
152,462
16,935
1,669
11,905
49,407
20,379
14,942
68,697
6,913
151,869
12.3
-35.8
-28.1
-10.5
8.5
-1.3
3.6
18.4
-0.4
Share %
(2013*)
11.2
1.1
7.8
32.5
13.4
9.8
45.2
4.6
100.0
Source: TURKSTAT * January-December** Except Lebanon and Kosovo
In January-December period of 2013, our exports to EFTA countries decreased
by 35.8% annually. The annual increase of our exports to Turk Republics in the
same period was 18.4% and Turk Republics became the fastest growing export
destination of the regions above.
February 2014
Ministry of Economy
61
Chronological 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
February 2014
Ministry of Economy
62
EU Accession Negotiations Current Status
 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)
February 2014
(17)Economic and Monetary Policy
(26) Education and Culture
Ministry of Economy
63
EU Accession Negotiations Current Status
Screening Reports Approved at
the Council of the European
Union with Benchmarks
(8 Chapters)
Draft Screening Reports are to be
Approved at the Council of the
European Union
(9 Chapters)
February 2014
(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
(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
Ministry of Economy
64
Trade between Turkey and the EU
*January-December
Source: Data Source of the Ministry of Economy
February 2014
Ministry of Economy
65
FTA Countries
EFTA (Norway, Switzerland,
Iceland, Liechtenstein)
9.
2.
Israel
11. Georgia
3.
Macedonia
12. Montenegro
4.
Bosnia and Herzegovina
13. Serbia
5.
Palestine
14. Chile
6.
Tunisia
15. Jordan
7.
Morocco
16. South Korea
8.
Syria (**)
17. Mauritius
1.
Egypt
10. Albania
18. Lebanon*
19. Kosovo*
(*) Agreements that are in the approval process
(**) Pending
February 2014
Ministry of Economy
66
FTA Countries(On-going Negotiations)
1.
Ukrain
10. Gulf Cooperation Council
2.
Colombia
11. Libya
3.
Ecuador
12. MERCOSUR
4.
Malaysia*
13. Faroe Islands
5.
Moldova*
14. Japan
6.
Democratic Republic of the Congo
15. Singapore
7.
Ghana*
16. Peru
8.
Cameroon
17. Mexico
9.
Seychelles
* Negotiations completed.
February 2014
Ministry of Economy
67
Trade with FTA Countries
 Our exports to FTA Countries decreased %1.3 in 2013.
 The share of FTA Countries in total exports reached
%9.8.
 Turkey recorded a trade deficit of 8.5 billion USD in 2012
with FTA Countries, while there was a trade deficit of 2.3
billion USD in 2002.
February 2014
Ministry of Economy
68
Trade Representatives Abroad
178 trade representatives from the
Ministry are serving in 110
countries, 160 locations and 6
offices abroad.
February 2014
Ministry of Economy
69
Locations of Trade Representatives
AMERİKA
Buenos Aires New York
Karakas
Sao Paulo
Mexico City Şikago
Ottava
Toronto
Santiago
Miami
Vaşington
San Francisco
Houston
Seattle
Los Angeles
AFRİKA
Abuja
Addis Ababa
Akra
Cezayir
Dakar
Darüsselam
Hartum
İskenderiye
Kahire
Nairobi
Pretoria
Rabat
Trablus
Tunus
Kazablanka
ASYA
Astana
Aşkabat
Bangkok
Bişkek
Cakarta
Duşanbe
Hanoi
İslamabad
Kabil
Kuala Lumpur
Manila
Pekin
Seul
Singapur
GEORGETOWN
Taşkent
Tokyo
Ulan Bator
Yeni Delhi
Almatı
Guangzhou
Hong Kong
Karaçi
Mumbai
Şangay
Georgetown
AVRUPA/KAFKASYA
AB
DTÖ
OECD
Atina
Bakü
Belgrad
Berlin
Bern
Bratislava
Brüksel
Budapeşte
Bükreş
Dublin
Helsinki
Kiev
Kişinev
Kopenhag
Lahey
Lizbon
Lefkoşa
Londra
Lubliyana
Madrid
Minsk
Moskova
Oslo
Paris
Podgorica
Prag
Priştine
Roma
Saraybosna
Sofya
Stokholm
Tiflis
Tiran
Üsküp
Varşova
Viyana
Zagreb
Barselona
Batum
Düsseldorf
Hamburg
Hannover
Kazan
Marsilya
Milano
Münih
Novorossisk
Odessa
Rotterdam
Selanik
St.
Petersburg
Stutgart
Birmingham
Krasnodar
Novosibirsk
Yekaterinbur
g
ORTA DOĞU
Abu Dhabi
Amman
Bağdat
Beyrut
Doha
Kuveyt
Manama
Muskat
Riyad
Sana
Şam
Tahran
Tel Aviv
Basra
Cidde
Dubai
Erbil
Halep
Kudüs
Musul
Tebriz
Daimi Temsilci Yardımcılığı
AVUSTRALYA
Sidney
Melbourne
February 2014
Ticaret Müşavirliği
Ticaret Ataşeliği
İrtibat Büroları
Ministry of Economy
70
Projects with Future Prospects
• 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
February 2014
Ministry of Economy
71