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ECONOMIC OUTLOOK OF TURKEY Alexia Manousou, First Secretary for Economic & Commercial Affairs Consulate General of Greece in Istanbul -Office of Economic.

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Presentation on theme: "ECONOMIC OUTLOOK OF TURKEY Alexia Manousou, First Secretary for Economic & Commercial Affairs Consulate General of Greece in Istanbul -Office of Economic."— Presentation transcript:

1 ECONOMIC OUTLOOK OF TURKEY Alexia Manousou, First Secretary for Economic & Commercial Affairs Consulate General of Greece in Istanbul -Office of Economic & Commercial Affairs 1

2 Turkey at a glance  Population: 75,6mil.  0-14 : 27,3%,  :6 5, 2  65 + : 7,5%(2012 est.)  Average age : 30 years old  Urban population:70%  Major cities : Istanbul (12,9 mil.), Ankara (4,2 mil.), Izmir (2,7 mil.), Bursa (1,6 mil.)  23,9 % of total consumption expenditure is done by households in Istanbul  Turkey’s west-east gap in revenues 2

3 Economic Environment  GDP per capita USD  GDP Growth (2011) 8, 5 %  GDP Growth ( 201 2) 3%  Inflation 6,16 % (Jan )  Unemployment 10, 1 % (Dec. 2012)  Total exports in , 536 bil. $  Total imports in , 544 bil. $  Trade Balance deficit 84, 008 bil. $  Current Account deficit. 7,3 % of GDP  Unregistered economy: 32,1%  Exchange Rate Euro/TL 1/2,35 3

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5 5 Greek exports to Turkey (Source: tuik) HS2Product category Variation Composition Mineral fuels, minerals oils and product of their distillation ,5%71,5 52 Cotton, cotton yarn and cotton textiles ,3%7,4 39Plastic and articles thereof ,5%5,5 76Aliminium and articles thereof ,2%2,4 74Copper and articles thereof ,9%1,6 41 Row hides and skins (other than furskins) and sole leather ,9%1,1 10Cereals ,0%1,1 84 Boilers, machinery and mechanical appliances: parts thereof ,6%0,8 89Ships, boats and floating structures ,7%0,8 85 Electrical machinery and equipment: parts thereof ,2%0,6 48 Paper & paperboard:articles of paper pulp of paper or of paperbo ,9%0,5 32 Tanning and dyeing extracts: fillers andstoppings : inks ,0%0,4 31Fertilisers ,3%0,4 33 Essential oils and resinoids:perfumery, cosmetic or toilet prep ,5%0,3 TOTAL ,8% Total imports excluding fuels ,20%

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7 Sectors in Turkish economy  Food & Beverages  Construction & Building Materials  Energy – RES (New Law)  Pharmaceuticals – Cosmetics 7

8 Food & Beverages 8  Since 1996: Customs Union Agreement EU-Turkey. Nevertheless, in some agricultural products Turkey imposes high tariffs  Examples: 102.6% wheat flour, cheese up to 180%, table olives-19.5% -31.2% olive oil, 38.5% honey, wines -50%, figs %, citrus - 54%, grapes %, watermelons %, apples %, 55.8% peaches.  Potential for: cocoa, chocolate - coffee - wine – frozen - biological - ready to cook or eat food - gourmet - health food products  VAT: 8% (1%).

9 Beverages & Spirits - Chapter 22 Turkish Imports 9 • High special consumption tax • VAT: 18% • Duties for wine : 50%

10 Construction sector 10  Dynamic sector – second worldwide  Represents 6% of the GDP of Turkey  About 100 contractors undertake 90% of the projects.  International presence: 2012: 33 t / construction companies included in "The World's Top 225 International Contractors" list.  Contracts in Turkmenistan, Ethiopia, Iraq, S.Arabia, Russia, Kazakhstan, Bosnia and Herzegovina, Morocco, Azerbaijan, etc.

11 Construction sector (2) 11  Major projects underway: Istanbul – Izmir highway (roads, bridges), third Bosphorus bridge, satellite cities, large projects in Ankara (subway etc). 112 projects worth 8.96 billion dollars.: 16 dams, 49 hydropower stations, irrigation systems, water treatment and purification  Foreign companies undertake projects through joint ventures with Turkish counterparts (expertise )  Opportunities in projects aiming at reducing energy costs - need for greater energy efficiency

12 Building Materials 12  The building materials industry is the third largest in Turkey  Turkey produces and exports a variety of building materials: cement, ready-mix concrete, aerated concrete, steel pipe, glass, glazing, ceramic coating, ceramic sanitary ware, construction coatings, natural bubbles, raw marble, plastic window frames, plastic prefabricated elements, aluminum  Interest for Medium – High technology products Sectors: insulation, electrical equipment, piping, coatings, paints, radiators, aluminum material,

13 Renewable Energy Sources  Lignite : appr. 10,000 MW Lignite firing power plants are in operation  Hydraulic Energy : 40% of the hydro capacity is in use, by means of 16,000 MW power plants which are in operation now.  Wind power : Only 1200 MW is used by 600 pieces of wind turbines.  GEOTHERMAL: : small part of this capacity is operation ( appr. 200 MW )  Solar Energy : the used installed power capacity today is negligible due to the unit cost of PV power Turkey is not self sufficient in energy resources. Approximately 76 % of Turkey’s energy requirement was met with the imported energy. Diversification of imports in terms of sources, routes and technologies has long been an important policy tool for Turkey to improve its energy supply security. 13

14 New Law for RES in Turkey  INCENTIVES FOR RENEWABLE ENERGIES IN TURKEY : 14

15 Pharmaceuticals  16th worldwide in terms of production  significant lack of R& D and high dependence on imports.  300 companies  20 companies hold 66% market share  The pharmaceutical market includes 23,000 pharmacies and 500 drug stores 15

16 Imports of pharmaceuticals in Turkey In 2012  Total imports reached 4 billion dollars. - 15%  Imports from Greece reached 7.6 million €, - 31% 16 Amounts in $

17 Imports of pharmaceuticals in Turkey (2) 17  Imports of raw materials and semi-finished products: 25% of total imports  Big amount of original drugs imported while generics are produced mostly domestically  No import duties for EU  Registration by Turkish natural / legal persons  Requirements: certificate of conformity (Ministry of Health), certificate of good manufacturing practice (GMP) - Delays

18 Cosmetics  170,000 products  1,435 local companies  The 1/3 of the market for hair care products  Interest in natural products  in sunscreens, men’s skin care and baby care products  Imports of chapter 33 exceed 1 billion. $ 18

19 Cosmetics Imports from Greece  In 2009, the share of Greek exports accounted for 0.44% of total Turkish imports whereas in 2012 it increased to 1.02%.  The last 4 years Greek exports increased by 314% Greek exports to Turkey Total turkish imports

20 Thank you for your attention Embassy of Greece in Ankara - Office of Economic & Commercial Affairs : Consulate General of Greece in Istanbul -Office of Economic & Commercial Affairs: Website : 20


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