Transcript June2011 - Turkish Embassy - Oslo Norway

MINISTRY OF FOREIGN AFFAIRS
TURKISH ECONOMY
IN THE WORLD
13.04.2015-İEGY
1
THE GEOGRAPHICAL LOCATION
OF TURKEY
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2
GEOGRAPHICAL ADVANTAGES OF TURKEY
 Area of 785.347 km2.
 8.485 km of coastline, surrounded by sea on three sides:
by the Black Sea to the north, the Mediterranean to the
south and the Aegean Sea to the west.
 A unique geographical location as a gateway to European,
Middle Eastern, North African and Central Asian markets.
 In four hours of flight from Istanbul, one can reach more
than 50 countries and a quarter of the world population.
 A political and economic attraction center for the
neighbouring geographies, with its strategical location.
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DEMOGRAPHIC ADVANTAGES OF TURKEY
 A huge and growing market→73,7 million population
(2010)
 Young, dynamic and well-trained population.
* 61% of the population is under the age of 34.
(Approximately 45 million)
*
Average Age: 28,8
*
500 thousand university graduates every year.
*
24,7 million of the population is actively employed.
* The 5th biggest labor power, if ranked among the EU
member countries
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TURKEY IN THE WORLD ECONOMY
(GDP based on purchasing power parity , Trillion Dollars, 2009)
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TURKEY IN THE EUROPEAN
ECONOMIES
(GDP based on purchasing power parity , Trillion Dollars, 2009)
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TURKEY AND G-20
 Turkey is a G-20 member, the “Super League” of world
economies, established in 1999.
 This membership gives Turkey the opportunity to
express its views and suggestions for the solution of
international economic and financial problems and
strengthens its profile.
 It is an important platform for sharing views on global
economy with the other leading actors.
 As a by-product of our pro-active foreign policy, we are
not solely focusing on our agenda, but also trying to
reflect the views of other actors not represented in G-20.
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GDP PER CAPITA
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GDP PER CAPITA
(Short Term Targets)
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DISTRIBUTION OF EMPLOYMENT
Distribution of Employment by Economic Sectors (%)
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FOREIGN TRADE
Exports
Annual estimate as of February 2011
Source: TURKSTAT
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FOREIGN TRADE
Main Export Destinations of Turkey
Main Export Markets -2010- Billion $
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Germany
11,4
UK
7,2
Italy
6,5
Iraq
6
France
6
12
FOREIGN TRADE
Short Term Targets
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FOREIGN TRADE
Imports
Annual estimate as of February 2011
Source: TURKSTAT
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FOREIGN TRADE
Main Import Countries
Main Import Countries -2010- Billion $
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Russia
21,6
Germany
17,5
China
17,2
USA
12,3
Italy
10,2
15
BILATERAL TRADE WITH THE
NEIGHBOURING COUNTRIES
(Global Downturn Period -Billion $)
2008
2009
2010
 Greece
3,58
2,76
3
 Bulgaria
4
2,5
3,2
 Georgia
1,52
1,05
1
 Azerbaijan
2,6
2,15
2,41
 Iran
10,2
5,43
10,7
 Iraq
15,2
6
7,4
1,75
2,52
 Syria
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1,75
16
TURKISH INDUSTRY
Automobile and Household Goods
 Turkey ranks 16th in the world production of motor
vehicles.
 Turkey is the leading bus manufacturer and 3rd largest
commercial vehicle manufacturer in Europe.
 Around 75% of the automative and auto parts industry
exports are delivered to the EU countries.
 During the last 4 years, ship-building capacity of Turkey
has grown 3 times. Turkey ranks 7th in world ship exports.
 In the production of household goods, Turkey has a
prominant reputation. It ranks 8th in world exports of
refrigerators, 6th in washing machines and 14th in
dishwashing machines.
 Most of the domestic appliances production is exported to
the EU.
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TURKISH INDUSTRY
Defence Industry
In the year 2011, 1 billion $ of exports is expected.
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TURKISH INDUSTRY
Textiles and Clothing
 Turkey ranks 7th in the world cotton production. There
are more than 35 thousand textile and clothing
companies in Turkey.
 Turkey ranks 4th in knitted clothing, 8th in woven
clothing, 3rd in socks and stockings and 8th in leather
wear exports.
 80% of the textile products are exported to the EU
countries.
 Turkey is one of the major producers of organic &
ecologic textile products .
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FOREIGN INVESTMENTS

With its population of more than 73 million, its dynamic and
open-market economy, competitive industry and the Customs
Union with the EU for more than 15 years, Turkey is an attractive
country for foreign investors.

With its high performance, Turkey is steadily heading for an
annual GDP of 1 trillion dollars. During the last 8 years, the total
inflow of foreign direct investments has reached to 93,6 billion
dollars.

According to IMF and OECD reports/projections, Turkey is
among the most rapidly growing economies in 2010 and 2011.
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FOREIGN INVESTMENTS-II
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INTERNATIONAL COMPANIES
IN TURKEY
 As of February 2011, the number of
companies operating in Turkey was 26.609.
international
 Top 3 countries according to the country of origin of
international companies: Germany (4411), UK (2272) and
the Netherlands (1894).
 International companies operating in Turkey are mostly
focused on wholesale and retail, manufacturing, real
estate, chemical industry, textile and food production.
 Top 4 cities hosting international companies in Turkey:
-İstanbul (14810)
-Antalya (3258)
-Ankara
(1748)
-İzmir
(1560)
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PRIVATIZATION
 Privatization has been among the top priorities on the
agenda in line with Turkey’s target of creating a truly
competitive market economy.
 The involvement and participation of international
investors is highly encouraged in the massive privatization
program.
 The main philosophy of privatization is to confine the role
of the state to areas such as health, basic education, social
security, national defense and large scale infrastructure
investments.
 Turkey is listed among the top 25 OECD countries that has
gained the most out of its privatization program.
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PRIVATIZATION-II
Privatization Implementations* (Billion USD)
(*) 1985-2010 figures include privatizations done by Privatization Administration, Savings Deposit Insurance
Fund of Turkey and Ministry of Transportation.
GROWTH PERFORMANCE OF TURKEY
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GROWTH PERFORMANCE OF TURKEY II
 Growth Rates of Turkey in the last decade (GDP)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
6,8%
-5,7%
6,2%
5,3%
9,4%
8,4%
6,9%
4,7%
0,7%
-4,7%
2010
8,9%
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GROWTH PERFORMANCE OF TURKEY-III
(Comparison with OECD Countries)
According to OECD, Turkey is expected to be the fastest growing
economy among OECD members during 2011-2017, with an
annual average growth rate of 6.7 percent.
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INFLATION RATES (1983-2011)
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TURKEY’S IMPORTANCE IN THE
CONSTRUCTION SECTOR

Turkey is the leading country in its region in the construction
sector.

It is the main manufacturer of cement in Europe. Among cement
manufacturers in the world, Turkey ranks 4th. Turkey also ranks
10th in steel production.

As of the end of 2010, Turkish construction sector has
attained 188 billion dollars worth of contracts in 89 countries,
from Balkans to Central Asia, from Russia to the Middle East and
Africa.

On an annual basis it has an average business capacity of 20
billion $ (The target for 2011 is 30 billion$, for 2015 50 billion
$).

According to the “Top 225 International Contractors" list of
Engineering News Record magazine, Turkey is the second
country in the world with 33 outstanding firms (2010).
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TURKISH BANKING SECTOR-I

Turkey has already completed deep-rooted reforms in the
banking sector as of 2006. Thanks to these reforms, the banks in
Turkey have not suffered from the global crisis; on the contrary
they have increased their profits.

Turkish banks have branches and offices in 11 countries (USA,
Bahrain, Bulgaria, Georgia, Iraq, UK, TRNC, Luxemburg, Malta,
Greece, Saudi Arabia). (Source: The Banks Association of Turkey)

There are 41 representations of foreign banks in Turkey
(Switzerland 8, Germany 6, the Netherlands 6, USA 4, France 3,
UK 4, Spain 2, Italy 2, Qatar, UAE, Belgium, India, Canada,
Japan 1).
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TURKISH BANKING SECTOR-II
Source. BDDK (Banking Regulation and Supervision Agency)
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TOURISM
 One of the top 10 tourism destinations across the globe.
 Ranked 7th in terms of visiting tourists and 8th in terms of
tourism revenues in the world. The main visitors are
German, Russian and British tourists.
 Achieved 2,8 % increase in both 2009 and 2010 in the
number of foreign visitors, despite the adverse effects of
the global crisis.
 It possesses not only the infrastructure for seaside
tourism, but also for health, culture, faith, congress,
sports, hunting and archaeological tourism.
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TOURISM (2010)
 In 2010, 28,6 million foreign tourists visited Turkey.
 2,8% increase as compared to 2009.
 Percentage of tourists in 2010:
German 15.3%
Russian 10.85%
British
9.3%
(Other most visiting tourists ; Iranian, Bulgarian,
Georgian, Dutch, French, Syrian and Italian).
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HEALTH TOURISM
 Receiving nearly 60 thousand visitors for health tourism,
generating an approximate annual income of 1 billion $.
 Turkey is the 1st in Europe and 7th in the world in terms
of thermal sources.
 Modern and very competitive private health centers.
 Low costs in health services.
 Qualified and experienced staff in the health sector.
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TOURISM FIGURES (Past 10 Years)
 Tourist arrivals and revenues (last 10 years)
International
Visitors (millions)
Revenues
2001
11.3
7,4
2002
13.0
9,0
2003
13.7
9,7
2004
17.2
12,0
2005
20.5
14,0
2006
19.3
12,6
2007
23.0
14,0
2008
26.4
16,8
2009
27.3
15,8
2010
28.6
15,6
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(billion $)
35
TRANSPORTATION
 Turkey has a unique and strategic location as
part of both Europe and Asia.
 18.500 km of two-lane highways. The target is
to increase it to 22,500 km by the end of 2011.
 12 new motorway projects to be built by the
year 2023, the total length of which will be
4,773 kilometers.
 Marmaray Project will connect Europe and Asia
by railway under the Bosphorus.
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TURKISH AIRLINES

Fastest growing airline company in Europe.

In terms of destination diversity; 8th airline company in
the world, 3rd in Europe.

In terms of profits, 6th biggest airline company in the
world.

131 international; 41 domestic destinations (in total 172).

In 2010 8 new international destinations were
inaugurated: (Accra, Bologna, Dar-es Salaam, Entebbe,
Nakhcivan, Podgorica, Sochi, Washington D.C.)

In 2011 11 additional international destinations will be
established: (Malaga, Thessaloniki, Valencia, Toulouse,
Manila, Naples, Turin, Genova)

Sponsorship to world-famous trademarks (F.C.Barcelona,
Manchester United, Euroleague)
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TECHNOLOGY, RESEARCH &
DEVELOPMENT
 Turkey’s R&D expenditures rose to 0.85% of
GDP in 2010. The target is 2%.
 The number of “technoparks” reached 39 in
2010. 1.451 firms are active in these parks,
the added value of which amounts to 540
million $ in Turkish exports.
 Between 2003 and 2009, domestic intellectual
property right applications and licensing
increased five-fold.
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TECHNOLOGY, RESEARCH &
DEVELOPMENT
 Utmost importance attached to investments in information
and communication technologies.
 A growing market of 30 billion US Dollars, constituting 4 %
of GDP
 Turkish “software” market recorded a growth rate of %
100 in recent years and reached the level of 2 billion US
Dollars as of 2009.
 Over 68 million mobile phone subscriptions, 37 million
wideband Internet users.
 Well educated engineers and specialised personnel in
technology and IT fields.
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TECHNOLOGY, RESEARCH &
DEVELOPMENT
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AGRICULTURE
 Turkey is the 8th biggest power in terms of agricultural
production (Annual produce value of up to 50-60 billion $).
 One of the most important
countries of the region.
producer
and
exporter
 Produces more than 150 agricultural products. The total
amount of fruits and vegetables produced is 42 million
tonnes. Exports to 177 countries.
 Thanks to her diverse geography & climate; Turkey is:
- ♯1 in terms of hazelnut, fig, quince, cherry, fresh and
dried apricot production,
- ♯3 in terms of pistachio production,
- ♯5 in terms of tea and olive oil production in the world.
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TURKEY’S DEVELOPMENT ASSISTANCE
Official development assisstance has exceeded 3,4 billion US Dollars in
the last 5 years (79,7 % TİKA, 8,7 % National Ministry of Education).
The total development assistance has reached 7,1 billion dollars
(offical+NGOs).
Year
Official Assistance
(million $)
NGOs’ assistance
(million $)
Total
(million $)
2005
→
601
450
1,051
2006
→
714
995
1,709
2007
→
602
734
1,336
2008
→
780
796
1,576
2009
→
707
812
1,519
2010
→
997
na
--Source: TİKA
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TURKEY’S OFFICIAL DEVELOPMENT
ASSISTANCE(2010)
 Official development assistance (2010)→ 966,82 million $
 Distribution
53,51%→ The Caucasus and Central Asia
24,17% → The Middle East
15,18% → Europe
4,04% → Africa
2,48% → Other
Top three countries with biggest share (2010):
134,49 million $ → Pakistan
107,32 million $ → Afghanistan
83,81 million $ → Kazakhstan
Source: TİKA
43
NEW ECONOMIC EVOLUTIONS
 Mutual elimination of visa requirements (Libya, Lebanon,
Syria, Jordan, Albania, Tajikistan, Serbia, Russia, Yemen)
 High Level Strategic Cooperation mechanisms with Syria
and Iraq, signing of numerous agreements in various
fields, Quadruple Cooperation Mechanism among Turkey,
Syria, Lebanon and Jordan.
 Development Assistance and TİKA Offices (26 coordination
offices in 23 countries).
 Developing transportation network with regional countries
(new railroad connections, enlargement of road transport
network, advances in maritime cooperation, increased
airline connections, THY as the 3rd biggest airline
company),
 New embassies in Africa
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CHALLENGES IN THE ECONOMY-I

Trade imbalance
:
69,9 billion $ (2008)
38,8 billion $ (2009)
71,6 billion $ (2010)

Unemployment
:
11%
(2008)
14%
(2009)
11,9% (2010)

Current Account Deficit : 42
billion $ (2008) (5,7%of GDP)
14
billion $ (2009) (2,3% of GDP
48,6
billion $ (2010) (6,5% of GDP)
Source: TURKSTAT, Treasury
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CHALLENGES IN THE ECONOMY-II
 Gross External Debt
:
290,4 billion $ in 2010
Public Sector
:
Private Sector
:
189,6 billion $
Central Bank
:
11,8 billion $
Long Term
:
211,7 billion $
Short Term
:
78,6 billion $
:
37,8% (2008)
 Gross External Debt/GDP
88,9 billion $
43,6% (2009)
39,5% (2010)
Source: Treasury
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2023 TARGETS

Targets for the century-old Republic in 2023:
- to be among the top ten economies of the world,
- to reach a trade volume of 1 trillion Dollars,
- to surpass 500 million US dollars in exports ,
- to attain 2 trillion dollars GDP,
- to increase GDP per capita to 25,000 $,
- to create 10 brands of global fame,
- to meet one thirds of its power generation from renewable
energy sources,
- to reach a capacity to host 50 million foreign tourists annually.
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2023 TARGETS

Further macroeconomic targets for 2023:
- to employ 30 million of the population actively,
- to decrease unemployment rate to 5 %,
- to include every citizen in the social security system,
- to decrease infant mortality rates to one-digit numbers,
- to complete all regional development projects in order to make
Turkey one of the foremost global grain producers,
- to double the overall length of railroad network up to 22,000 km with
new high-speed railroad lines,
- to add 15,000 km double-lane motorways to the road network,
- to construct at least three nuclear power plants,
- the total energy consumption per capita to exceed 4.000 kWh,
- to further advance in aeronautics, satellite and defence technologies.
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