june 2014 turkish embassy 1 recent developments in turkish economy and bilateral economic and...

June June 2014 2014 Turkish EmbassyTurkish Embassy

11

RECENT DEVELOPMENTS IN TURKISH RECENT DEVELOPMENTS IN TURKISH ECONOMY AND BILATERAL ECONOMIC AND ECONOMY AND BILATERAL ECONOMIC AND COMMERCIAL RELATIONS BETWEEN TURKEY COMMERCIAL RELATIONS BETWEEN TURKEY

AND CZECH REPUBLIC.AND CZECH REPUBLIC.

Necmi UNecmi UğğurluurluChief Commercial Counsellor of Turkish Chief Commercial Counsellor of Turkish

EmbassyEmbassy

Growth Forecasts for Selected Countries/Country GroupsGrowth Forecasts for Selected Countries/Country Groups

In 2013, Turkish economy grew by 4%. According to figures for the first quarter of 2014 Turkish Economy growth rate

is 4.2 % which is the highest in Europe 3 in the world.

Source: IMF, OECD, WB

June June 2014 2014 Turkish EmbassyTurkish Embassy 22

World Turkey Euro Area US Brazil Russia* India China2014 3,6 2,3 1,2 2,8 1,8 1,3 5,4 7,5

2015 3,9 3,1 1,5 3,0 2,7 2,3 6,4 7,32014 3,4 2,8 1,2 2,6 1,8 0,5 4,9 7,42015 3,9 4,0 1,7 3,5 2,2 1,8 5,9 7,32014 3,2 2,4 1,1 2,8 2,4 1,1 6,2 7,62015 3,4 3,5 1,4 2,9 2,7 1,3 6,6 7,5

*WB High Risk Scenario: 2014:-1.8%, 2015:2.1% (4/08/2014)

IMF

OECD

WB

Growth Forecasts for Selected Countries/Country Groups (%)

Economic Targets of 201Economic Targets of 20144-201-20166 Medium Term Program Medium Term Program

*Actual (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.


2013* 2014 2015 2016GDP (Billion $, Current Prices) 820 867 928 996GDP Per Capita ($) 10,782 11,277 11,927 12,670Real GDP Growth 4.0 4.0 5.0 5.0Unemployment Rate (%) 9.7 9.4 9.2 8.9Tourism Income (Billion $) 32.8 31.0 32.0 34.5Current Account Balance (Billion $) -65.0 -55.5 -55.0 -55.0Current Account Balance / GDP (%) -7.9 -6.4 -5.9 -5.5

33

Real GDP Growth of Selected Countries/Country Groups (2013)Real GDP Growth of Selected Countries/Country Groups (2013)

Turkish Economy expanded by 4.2 % in the first quarter of 2014.

Source: TURKSTAT, IMF

June 2014 Turkish EmbassyJune 2014 Turkish Embassy

Euro Area

44

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 10,782 USD in 2013. According to Purchasing Power Parity (PPP) GNI per capita surpassed 18 thousand USD in 2012.

JuneJune 2014 2014 Turkish EmbassyTurkish Embassy 55

Central Government Budget Deficit/ GDP (%)Central Government Budget Deficit/ GDP (%)

Central government budget deficit/GDP ratio was 1.2% in Turkey in 2013 and Turkey satisfied the Maastricht criteria of 3%. Turkey also outperformed 21 EU Countries.

As for the Czech Republic is one of the best in EU countries with deficit/GDP ratio is 2.1 %


Source: Eurostat,TUİK

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 Mastricht Criteria (60%).

• Debt/GDP ratio of Czech Rep. was 46.0 % in 2012 second after Turkey


Source: Eurostat

Potential of Population (2012)Potential of Population (2012)

Source: World Bank and TURKSTAT (Turkey’s data are for 2013) Turkey has a population of 76.7 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 and – 0.13 % in Czech Rep. .

88June June 2014 2014 Turkish EmbassyTurkish Embassy

B- FOREIGN TRADE OUTLOOKB- FOREIGN TRADE OUTLOOK

June June 2014 2014 Turkish EconomyTurkish Economy 99

Targets in Merchandise TradeTargets in Merchandise Trade

* Actual (Source: TURKSTAT)**Forecast: Medium Term Programme, Ministry of Development, 2014-2016)


(Billion $) 2012* 2013* 2013** 2014** 2015** 2016**

Exports 152.5 151.9 153.5 166.5 184 202.5Imports 236.5 251.7 251.5 262 282 305Volume of trade 389 403.5 405 428.5 466 507.5Balance of trade -84.1 -99.8 -98 -95.5 -98 -102.5Exports/Imports (%) 64.5 60.3 61.0 63.5 65.2 66.4

TOTAL EXPORT AND IMPORT OF TURKEY ($)

Turkish foreign trade on the rise...Exports, which were USD 47 billion in 2003, rose to USD 152 billion

by at the end of 2013.

JuneJune 2014 2014 Turkish EmbassyTurkish Embassy 1111

Distribution of Foreign Trade in Broad Economic Categories Distribution of Foreign Trade in Broad Economic Categories

EXPORT

1212

IMPORT


(Million $) 2012/20132012 2013 Change % 2013 2014 2013 2014

Investment Goods 13,734 15,601 13.6 3,634 3,788 1,290 1,440 9.8 11.6Intermediate Goods 82,656 74,843 -9.5 18,794 20,591 6,702 7,710 52.3 15.0Consumption Goods 55,556 60,764 9.4 14,407 15,747 5,072 5,559 37.7 9.6Others 516 662 28.2 155 149 57 38 0.3 -34.3TOTAL 152,462 151,870 -0.4 36,990 40,275 13,122 14,748 100 12.4

Share (%, 2014 March)

2013/2014 March

Annual Periodic (January-March) Monthly (March)

2012/20132012 2013 Change% 2013 2014 2013 2014

Investment Goods 33,925 36,760 8.4 8,316 8,277 2,902 3,142 15.8 8.3Intermediate Goods 174,930 183,812 5.1 43,353 42,419 14,869 14,315 71.8 -3.7Consumption Goods 26,699 30,416 13.9 6,870 6,673 2,760 2,429 12.2 -12.0Others 990 663 -33.0 217 116 28 57 0.3 100.1TOTAL 236,545 251,651 6.4 58,757 57,484 20,559 19,943 100 -3.0

(Million $) Annual Periodic (January-March) Monthly (March) Share (%, 2014 March)

2013/2014 March

Main Export Items (Annual) Main Export Items (Annual)

Source: TURKSTAT


CHANGE % 2012 2013 2012 2013 2012 2013 2012/2013

1 87 VEHICLES OTHER THAN RAILWAY, TRAMWAY 15,148 17,001 14,514 16,808 634 193 12.22 84 MACHINERY, NUCLEAR REACTORS, BOILERS, ETC 11,999 12,992 26,316 30,155 -14,317 -17,163 8.33 72 IRON AND STEEL 11,332 9,921 19,642 18,691 -8,310 -8,770 -12.54 85 ELECTRICAL, ELECTRONIC EQUIPMENT 9,373 9,545 16,280 17,759 -6,907 -8,214 1.85 61 KNITTED AND CROCHETED GOODS AND ARTICLES THEREOF 8,419 9,247 843 941 7,575 8,306 9.86 71 PEARLS, PRECİOUS STONES, METALS, COİNS, ETC 16,325 6,978 8,529 16,226 7,796 -9,247 -57.37 27 MINERAL FUELS, OILS, DISTILLATION PRODUCTS, ETC 7,708 6,725 60,117 55,917 -52,409 -49,192 -12.88 73 ARTICLES OF IRON AND STEEL 6,093 6,149 2,367 2,758 3,726 3,391 0.99 62 NON KNITTED AND CROCHETED GOODS AND ARTICLES THEREOF 5,431 5,715 1,498 1,863 3,933 3,852 5.2

10 39 PLASTICS AND ARTICLES THEREOF 5,013 5,609 12,505 13,881 -7,492 -8,272 11.996,842 89,882 162,612 174,999 -65,770 -85,117 -7.2

152,462 151,796 236,545 251,651 -84,083 -99,854 -0.4LIST TOTAL

TOTAL

Annual (Million Dolar)

Rank Code Description of ChapterEXPORT IMPORT BALANCE

Main Import Items (Annual) Main Import Items (Annual)


Source: TURKSTAT

CHANGE %2012 2013 2012 2013 2012 2013 2012/2013

1 27 MINERAL FUELS, OILS, DISTILLATION PRODUCTS, ETC 60,117 55,917 7,708 6,725 -52,409 -49,192 -7.02 84 MACHINERY, NUCLEAR REACTORS, BOILERS, ETC 26,316 30,155 11,999 12,992 -14,317 -17,163 14.63 72 IRON AND STEEL 19,642 18,691 11,332 9,921 -8,310 -8,770 -4.84 85 ELECTRICAL, ELECTRONIC EQUIPMENT 16,280 17,759 9,373 9,545 -6,907 -8,214 9.15 87 VEHICLES OTHER THAN RAILWAY, TRAMWAY 14,514 16,808 15,148 17,001 634 193 15.86 71 PEARLS, PRECİOUS STONES, METALS, COİNS, ETC 8,529 16,226 16,325 6,978 7,796 -9,247 90.27 39 PLASTICS AND ARTICLES THEREOF 12,505 13,881 5,013 5,609 -7,492 -8,272 11.08 29 ORGANIC CHEMICALS 5,065 5,314 647 598 -4,418 -4,716 4.99 90 OPTICAL, PHOTO, TECHNICAL, MEDICAL, ETC APPARATUS 4,056 4,558 555 661 -3,501 -3,897 12.4

10 30 PHARMACEUTICAL PRODUCTS 3,996 4,151 662 754 -3,334 -3,397 3.9171,020 183,460 78,763 70,785 -92,257 -112,675 7.3236,545 251,651 152,462 151,796 -84,083 -99,854 6.4

LIST TOTAL TOTAL

Annual (Million Dollar)

Rank Code Description of ChapterIMPORT EXPORT BALANCE

Exports by RegionsExports by Regions

2013 Share (%) 2014 Share (%) Change (%) 2013 Share (%) 2014 Share (%) Change (%)

A- EU (28) 5,361 40.9 6,084 41.3 13.5 15,280 41.3 17,007 42.2 11.3 B- FREE ZONES IN TURKEY 202 1.5 200 1.4 -1.2 600 1.6 560 1.4 -6.6 C- OTHER COUNTRIES 7,560 57.6 8,464 57.4 12.0 21,110 57.1 22,707 56.4 7.6 1- OTHER EUROPE 1,135 8.6 2,418 16.4 113.1 3,237 8.8 5,107 12.7 57.8 2- AFRICA 1,380 10.5 1,207 8.2 -12.5 3,650 9.9 3,631 9.0 -0.5 North Africa 1,001 7.6 883 6.0 -11.8 2,592 7.0 2,633 6.5 1.6 Other Africa 379 2.9 325 2.2 -14.3 1,058 2.9 998 2.5 -5.7 3- AMERICA 924 7.0 832 5.6 -9.9 2,445 6.6 2,313 5.7 -5.4 North America 634 4.8 556 3.8 -12.4 1,613 4.4 1,641 4.1 1.7 Central America And Caraips 64 0.5 84 0.6 31.3 197 0.5 220 0.5 11.7 South America 227 1.7 193 1.3 -14.7 635 1.7 453 1.1 -28.8 4- ASIA 4,078 31.1 3,945 26.8 -3.3 11,622 31.4 11,498 28.5 -1.1 Near And Middle Eastern 3,118 23.8 3,025 20.5 -3.0 8,727 23.6 8,790 21.8 0.7 Other Asia 959 7.3 920 6.2 -4.1 2,895 7.8 2,707 6.7 -6.5 5- AUSTRALIA AND NEW ZEALAND 39 0.3 55 0.4 42.5 120 0.3 135 0.3 12.4 6- OTHER COUNTRIES AND REGIONS 5 0.0 6 0.0 28.2 36 0.1 24 0.1 -34.7

TOTAL 13,122 100 14,748 100 12.4 36,990 100 40,275 100 8.9

(Million $)March January-March

ImportImports by Regionss by Regions

2013 Share (%) 2014 Share (%) Change (%) 2013 Share (%) 2014 Share (%) Change (%)

A- EU (28) 7,666 37.3 7,729 38.8 0.8 21,391 36.4 20,825 36.2 -2.6 B- FREE ZONES IN TURKEY 98 0.5 109 0.5 11.6 301 0.5 337 0.6 12.2 C- OTHER COUNTRIES 12,795 62.2 12,104 60.7 -5.4 37,066 63.1 36,321 63.2 -2.0 1- OTHER EUROPE 3,223 15.7 2,814 14.1 -12.7 9,376 16.0 8,759 15.2 -6.6 2- AFRICA 415 2.0 432 2.2 4.2 1,320 2.2 1,372 2.4 3.9 North Africa 219 1.1 266 1.3 21.8 760 1.3 838 1.5 10.2 Other Africa 196 1.0 166 0.8 -15.4 560 1.0 534 0.9 -4.7 3- AMERICA 1,816 8.8 1,556 7.8 -14.3 4,992 8.5 4,409 7.7 -11.7 North America 1,455 7.1 1,218 6.1 -16.3 3,772 6.4 3,442 6.0 -8.7 Central America And Caraips 91 0.4 88 0.4 -3.7 406 0.7 207 0.4 -49.1 South America 271 1.3 251 1.3 -7.3 814 1.4 760 1.3 -6.6 4- ASIA 6,381 31.0 6,294 31.6 -1.4 18,136 30.9 18,292 31.8 0.9 Near And Middle Eastern 1,929 9.4 1,664 8.3 -13.7 5,737 9.8 4,857 8.4 -15.3 Other Asia 4,451 21.7 4,630 23.2 4.0 12,398 21.1 13,435 23.4 8.4 5- AUSTRALIA AND NEW ZEALAND 23 0.1 12 0.1 -46.2 119 0.2 93 0.2 -21.9 6- OTHER COUNTRIES AND REGIONS 937 4.6 995 5.0 6.2 3,122 5.3 3,396 5.9 8.8

TOTAL 20,559 100 19,943 100 -3.0 58,757 100 57,484 100 -2.2

(Million $)March January-March

Main Export Partners (Share,%)

Main Trade Partners (JanMain Trade Partners (Jan-Mar -Mar 20120144))

Main Import Partners (Share,%)

Source: TURKSTAT


2) SERVICES2) SERVICES


Tourism StatisticsTourism Statistics

(Billion $)

2011 2012 2013

----------- ----------- ----------

Tourism income 28.2 29.4 32.3

Tourism Expenditure 5.5 4.7 5.3

• Turkey ranks 6 th place in the world and the 4 th in Europe among the most favoured destinations in 2013

Contracting Services AbroadContracting Services Abroad

2020

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


Regional Breakdown of Projects(%)

Years Projects CountriesProject Volume

(Million $)

Cum. Project Volume

(Million $)

Avr. Project Volume

(Million $)1971-2001 2006 69 43,252 43,252 22

2002 132 32 2,571 45,823 192003 270 36 4,490 50,313 172004 429 39 11,367 61,680 262005 408 34 12,375 74,055 302006 515 36 24,059 98,114 472007 570 45 25,260 123,374 442008 620 40 24,827 148,201 402009 474 45 21,667 169,868 462010 583 48 23,067 192,935 402011 506 50 20,626 213,561 412012 486 49 29,464 242,995 612013 392 47 31,956 274,935 822014 76 18 7,883 280,310 104

Last updated on May 2014

C- INVESTMENTS, FOREIGN CAPITAL and C- INVESTMENTS, FOREIGN CAPITAL and INCENTIVESINCENTIVES


Investment Climate in TurkeyInvestment Climate in Turkey

2222

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


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


Skilled Labour AvailabilitySkilled Labour Availability

Scoring is between 0 and 10.

Source: Invest In Turkey


Breakdown of Foreign Investments by CountryBreakdown of Foreign Investments by Country

Source: CBRT

2828

* January-March


2012 2013 2013* 2014*1 Netherlands 1,381 1,005 209 1,1682 Russia 11 871 140 6893 Italy 154 145 69 3434 U.S. 439 346 119 1165 U.K. 2,044 297 37 1056 Germany 491 1,846 77 1007 Azerbaijan 338 776 38 758 Saudi Arabia 439 243 60 549 France 86 222 98 50

10 South Africa 0 221 0 4211 Spain 193 531 440 3912 Japan 106 493 320 3813 Hong Kong 38 12 7 3414 Ireland 22 6 0 2815 United Arab Emirates 52 176 12 2816 China 10 9 9 2417 Bahrain 131 94 26 2118 Luxembourg 1,186 294 55 1919 Norway 136 30 15 1820 Austria 1,519 659 211 17

10,295 8,935 2,153 3,02510,759 10,195 2,107 3,076

LIST TOTALTOTAL

Million $

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


• BİLATERAL ECONOMIC AND TRADE BİLATERAL ECONOMIC AND TRADE RELATIONS WITH CZECH REPUBULICRELATIONS WITH CZECH REPUBULIC

BILATERAL TRADE BETWEEN TURKEY AND CZECH REPUBLIC (1.000 US $ )

2011 2012 2013

Export 1.300.472 1.103.907 1.138.568

Import 1.356.756 1.703.953 2.209.955

Volume 2.657.228 2.807.860 3.348.526

Balance - 56.284 - 600.146 - 1.071.387

*The share of Turkey in Czech Rep. total imports is % 0.07 The share of Czech Rep. İn Turkey’s total import is % 0.08

June 2014 Turkish Embassy

The Prominent Czech Companies which are doing business and cooperation with Turkish Companies in

Turkey• CEZ • Pro Energy• CKD• Vitkovice• Zentiva

Turkish Czech Companies Cooperation in Third Countries

• Ronesans and PSG Cooperation won a tender in North of Iraq constructing power station for 1000 MGW.

• The total value of the project is 1 Billion US Dollar• Secon project of the coopreation is building a

business center in Petersburg (Russia)• The total value of the project is 100 Million US Dollar.

• THANK YOU VERY MUCH FOR YOUR ATTENTION

june 2014 turkish embassy 1 recent developments in turkish economy and bilateral economic and...

Documents

ministry of development

turkish foreign trade

turkish economy growth

ministry of economyb

ministry of economytargets

ministry of economypotential

ministry of economygdp

ministry of economychart131