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Economic outlook of turkey

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Presentation on theme: "Economic outlook of turkey"— 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

2 Turkey at a glance Urban population:70% Population: 75,6mil.
0-14 : 27,3%, 15-64 :65,2 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

3 Economic Environment GDP per capita 10.444 USD GDP Growth (2011) 8,5%
Inflation ,16% (Jan. 2013) Unemployment ,1% (Dec. 2012) Total exports in ,536 bil. $ Total imports in ,544 bil. $ Trade Balance deficit ,008 bil. $ Current Account deficit ,3% of GDP Unregistered economy: 32,1% Exchange Rate Euro/TL /2,35

4 TURKISH IMPORTS 2011-12 – Top 20 Chapters
(Source: Tuik) HS2 Product Category 2011 Value (thousand.$) 2012 Value (thousand.) Variation (%) Composition 27 Mineral fuels, minerals oils and product of their distillation 11 25,4 84 Boilers, machinery and mechanical appliances: parts thereof -3 11,1 72 Iron and steel -4 8,3 85 Electrical machinery and equipment: parts thereof 6,9 87 Vehicle other than railway or tramway rolling_stock,parts thereof -16 6,1 39 Plastic and articles thereof -1 5,3 71 Pearls, precious stones, precious metals: and articles thereof 21 3,6 29 Organic chemicals -8 2,1 90 Optical,photographic,cinematographic,measuring 1,7 30 Pharmaceutical products -15 74 Copper and articles thereof -6 1,6 88 Aircraft and parts thereof -20 1,3 40 Rubber and articles thereof -10 76 Aliminium and articles thereof 48 Paper & paperboard -7 1,2 52 Cotton,cotton yarn and cotton textiles -34 1,0 73 Articles of iron and steel 55 Man_made fibres (discontinuous) 0,9 54 Man_made filament 8 38 Miscellaneous chemical products

5 Greek exports to Turkey 2011-2012 Total imports excluding fuels
(Source: tuik) HS2 Product category 2011 2012 Variation Composition 2012 27 Mineral fuels, minerals oils and product of their distillation 51,5% 71,5 52 Cotton, cotton yarn and cotton textiles 114,3% 7,4 39 Plastic and articles thereof -11,5% 5,5 76 Aliminium and articles thereof 29,2% 2,4 74 Copper and articles thereof 58,9% 1,6 41 Row hides and skins (other than furskins) and sole leather 7,9% 1,1 10 Cereals 376,0% 84 Boilers, machinery and mechanical appliances: parts thereof -37,6% 0,8 89 Ships, boats and floating structures 11,7% 85 Electrical machinery and equipment: parts thereof -41,2% 0,6 48 Paper & paperboard:articles of paper pulp of paper or of paperbo. -7,9% 0,5 32 Tanning and dyeing extracts: fillers andstoppings : inks -6,0% 0,4 31 Fertilisers -15,3% 33 Essential oils and resinoids:perfumery, cosmetic or toilet prep. 50,5% 0,3 TOTAL 37,8% Total imports excluding fuels 12,20%

6

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

8 Food & Beverages 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
High special consumption tax VAT:18% Duties for wine: 50%

10 Construction sector 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)
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 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
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. 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

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

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

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

17 Imports of pharmaceuticals in Turkey (2)
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. $

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%. 2009 2010 2011 2012 Greek exports to Turkey Total turkish imports  

20 Website : www.agora.mfa.gr
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 :


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