1. ECONOMIC OUTLOOK APRIL 2013
Economic Outlook is revized in the 1st and the 3rd weeks of the month.
Recent Update: 26/04/2013

2. 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
April Ministry of Economy

3. A- MACROECONOMIC OUTLOOK
April Ministry of Economy

4. Growth Forecasts for Selected Countries/Country Groups (%)
Source: IMF, OECD, UN, WB
According to the IMF, Turkish Economy is expected to grow by 3.4% and 3.7% in 2013 and 2014 respectively.
In the 2012, Turkish economy grew by 2.2%.
April Ministry of Economy

5. Forecasts for Merchandise and Services Trade Growth (%)
Source: IMF and WTO
According to the IMF estimates, global trade of merchandise and services is expected to increase by 3.5% in 2013 and 5.3% in 2014 in real terms.
According to the WTO estimates, global trade volume of merchandise and services is expected to increase by 3.3% in 2013 and 5.0% in 2014 in real terms.
April Ministry of Economy

6. Economic Targets of 2013-2015 Medium Term Programme
*Forecast (Medium Term Programme, Ministry of Development – October 9, 2012)
Medium Term Programme which covers period aims to strengthen macroeconomic and financial stability by reaching potential economic growth rate, decreasing the current account deficit further, reducing inflation and improving public fiscal balances.
April Ministry of Economy

7. Real GDP Growth of Selected Countries/Country Groups (2012)
Euro Area
Source: TURKSTAT, IMF, EuroStat, IBGE,
Turkish Economy expanded by 2.2% in 2012.
April Ministry of Economy

8. Annual Economic Growth Rates (2002-2012)
* Forecast, Medium Term Programme Source:TURKSTAT
Turkey has recovered fast from the global financial crisis and amongst those countries affected less 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%.
April Ministry of Economy

9. 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 10,504 USD. According to Purchasing Power Parity (PPP, current international $), GNI per capita surpassed 17 thousand international dollar which has the same purchasing power over GNI as a U.S. dollar has in the United States.
April Ministry of Economy

10. Capacity Utilization Ratio (%)
Source: TURKSTAT
Capacity utilization ratio realized as 73.6 % in April 2013.
April Ministry of Economy

11. Industrial Production Index
Source: TURKSTAT
Industrial production index increased by 1.59 % year-over-year in February up to (2010=100).
April Ministry of Economy

12. Inflation (Annual Percent Change)
Source: TURKSTAT
Annual inflation in 2012 realized as 6.16%.
Inflation was 7.29% in March 2013.
April Ministry of Economy

13. Real Effective Foreign Exchange Rate (2003=100)
  Source: CBRT
As of March 2013, Turkish Lira has appreciated by 0.23% and 0.57% monthly in terms of the CPI-based and PPI- based eal effective exchange rate respectively.
April Ministry of Economy

14. 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 %3.21 on a monthly basis in March 2013.
April Ministry of Economy

15. CDS Premiums (Apr. 25th, 2013)
Source: DB Research
* Higher CDS premiums indicate higher risk levels.
CDS premium of Turkey is significantly low compared to most of the European countries.
April Ministry of Economy

16. Financial Markets
  Source: BRSA
Comparing to previous year, total assets of the banking sector increased by 14.41% and reached trillion TL in February 2013.
Capital Adequacy Ratio of Turkish Banking Sector is 17.63% in February
April Ministry of Economy

17. EU Defined Budget Deficit/ GDP (%)
* 2011
EU defined general government budget deficit/GDP ratio was 2.6% in Turkey in 2011 and Turkey satisfied the Maastricht criteria of 3%. Turkey also outperformed 18 EU Countries.
Central government budget deficit/GDP ratio was 2.0% in Turkey in 2012.
In January-March 2013 period, central government budget deficit was 897 million Turkish Liras.
April Ministry of Economy

18. Government Debt / GDP (%)
Debt/GDP ratio of Turkey was 36.1% in 2012, which was below the level in 24 EU Countries and the Maastricht Criteria (60%).
April Ministry of Economy

19. Unemployment Rates (%)
Source: TURKSTAT
In January 2013, the unemployment rate was 10.6%. Seasonally adjusted unemployment rate was 9.4%.
Seasonally adjusted unemployment rate in Euro Area was 12.0% and 10.9% in (EU27) in February In terms of unemployment ratio Turkey outperformed 15 EU countries according to current data.
After Russia, Germany, England and France, Turkey has the 5th largest labor force among the European countries. (2011, World Bank)
April Ministry of Economy

20. Potential of Population (2011)
Source: World Bank (2011), TURKSTAT (2012)
Turkey has a population of 75.6 million in which half of the population is under the age of 30.1.
Growth rate of population is 1.2% in Turkey, 0.3% in EU Countries and -0.1% in Germany.
April Ministry of Economy

21. Growing Dynamism in Turkey's Domestic Market
Cell phone penetration rate in households: 93.2% (2012)
Internet access rate in households: 47.2% (2012)
Internet access rate in enterprises: 92.5% (2012)
PC penetration rate in households: 31.8% (2012)
Laptop penetration rate in households: 27.1% (2012)
Digital camera penetration rate in households: 27.1% (2012)
Printer penetration rate in households: 14.0% (2011)
1 of each 5 people owns a vehicle. (2011)
April Ministry of Economy

22. B- FOREIGN TRADE OUTLOOK
April Ministry of Economy

23. I) MERCHANDISE
April Ministry of Economy

24. Targets in Merchandise Trade
* Actual (Source: TURKSTAT)
**Forecast: Medium Term Programme, Ministry of Development- 10/09/2012)
April Ministry of Economy

25. Turkey's Share in Global Merchandise Exports (%)
Source: WTO
Turkey’s share in global merchandise exports was %0.83 in 2012.
April Ministry of Economy

26. Foreign Trade Volume/GDP (%)
The ratio of foreign trade volume/GDP was 49.5% in 2012.
Turkey’s integration to the international trade system is eminent.
April Ministry of Economy

27. Foreign Trade Developments
/ January-February
* Energy corresponds to Chapter 27.
Source: Ministry of Economy
In January-February period 2013 compared to same period of 2012, exports increased by 8.3% and imports increased by 8.3% respectively.
April Ministry of Economy

28. Monthly Exports/Imports
In Febuary 2013 compared to same period of 2012 exports have increased by 5.8% and reached to the level of 12.4 billion dollar and imports have increased by 9% up to the level of 19.4 billion dollar.
April Ministry of Economy

29. Distribution of Foreign Trade in Broad Economic Categories
EXPORT
IMPORT
April Ministry of Economy

30. Main Export Items April 2013 Ministry of Economy
* Percent change is related to the annual change in exports in 2013.
Source: TURKSTAT
April Ministry of Economy

31. Main Import Items April 2013 Ministry of Economy
* Percent change is related to the annual change in imports in 2013
Source: TURKSTAT
April Ministry of Economy

32. Main Trade Partners (January-February 2013)
Main Export Partners (Share,%)
Main Import Partners (Share,%)
Source: TURKSTAT
April Ministry of Economy

33. Exports by Regions
Source: TURKSTAT
April Ministry of Economy

34. Imports by Regions
Source: TURKSTAT
April Ministry of Economy

35. Tariff Rates April 2013 Ministry of Economy
Source: WTO Tariff Profiles, 2012
April Ministry of Economy

36. 2) SERVICES
April Ministry of Economy

37. 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.
April Ministry of Economy

38. Turkey's Share in Global Services Exports (%)
Source: WTO, CBRT
Turkey’s share in global exports of services was 0.97% in 2012.
April Ministry of Economy

39. Balance of Payments - Services
*January-February
Source: CBRT
April Ministry of Economy

40. Tourism Statistics (Quarterly)
Tourists visited, 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 1% in 2011 and remained the same in 2012.
April Ministry of Economy

41. Contracting Services Abroad
Contributions to the overall economic performance: Creating foreign exchange inflow, exports, employment, technology transfer; adding to the machinery stock, facilitating internationalization
31 out of the world’s top 225 contracting companies are Turkish.
Turkey ranks as the 2nd country (following China) in terms of the number of top contracting companies.
April Ministry of Economy

42. Logistics (2012) Europe’s biggest truck fleet
(45 thousands trucks and 1,420 companies)
Almost 1.1 million flights in 2012
(2.4 million tonnes freight and 130 million passengers)
25. biggest fleet in the world
48 airports and 76 ports
Total length of divided highways will reach 15 thousand kilometers.
High-speed railway projects are carried out rapidly.
2.080 km. otoyol, km. devlet yolları, km. il yolları ağı olmak üzere toplam km. yol ağı (1/1/2011)
2011 Ocak-Eylül: %14,1 artış ve uçuş ile 1,7 milyon ton yük ve 91,2 milyon kişi taşınmıştır. (Devlet Hava Meydanları İşletmesi)
Dünyadaki 25. büyük filo (2008 Ağustos, Denizcilik Müsteşarlığı)
45 Havaalanı ve 51 liman
Avrupa’nın En Büyük Kamyon Filosu (45 bin adet kamyon ve şirket)
April Ministry of Economy

43. Energy
Turkey is an energy hub between energy producer and consumer regions
April Ministry of Economy

44. C- INVESTMENTS, FOREIGN CAPITAL and INCENTIVES
April Ministry of Economy

45. Investment Climate in Turkey
April 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.
April Ministry of Economy

47. Skilled Labour Availability
Source: Invest In Turkey
Scoring is between 0 and 10.
April Ministry of Economy

48. Finance Skills Scoring is between 0 and 10.
Source: Invest In Turkey
Scoring is between 0 and 10.
April Ministry of Economy

49. The Sectoral Breakdown of Foreign Investments
* January-February
Source: CBRT
January- February 2013
April Ministry of Economy

50. Breakdown of Foreign Investments by Country
* January-February
Source: CBRT
April 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
April Ministry of Economy

52. Investment Incentives (January-March)
Source: General Directorate of Incentive Implementation and Foreign Investment
April Ministry of Economy

53. D - FREE ZONES IN TURKEY
April 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
Exemptiın 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
April Ministry of Economy

55. Free Zones in Turkey
55,938 people have been employed in Free Zones of Turkey in 2012.
April Ministry of Economy

56. Trade Flows of Free Zones
Source: General Directorate of Free Zones, Foreign Investments and Services
In 2012 total trade volume of the Free Zones reached to 23.1 billion dollars, increasing 1.8% annually.
April Ministry of Economy

57. Concentration in Free Zones by Industries
Source: General Directorate of Free Zones, Foreign Investments and Services
April Ministry of Economy

58. E - BILATERAL, REGIONAL, PLURILATERAL and MULTILATERAL TRADE
April 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, ACTA
April Ministry of Economy

60. Regional Breakdown of Exports
Source: TURKSTAT
* January-February ** Except Lebanon,Mauritius and Korea
In January-February period of 2013, our exports to EFTA countries decreased by 61.3% and our exports to FTA countries decreased by 13.6% annually. The annual increase of our exports to Turk Republics in the same period was 29.9% and Turk Republics became the fastest growing export destination of the regions above.
April Ministry of Economy

61. Chronological Evolution of the Relationship between Turkey and the EU
12 September 1963: Ankara Agreement
13 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
5 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
April Ministry of Economy

62. The process of Accession Negotiations between Turkey and the EU
Negotiations for 1 chapter were temporarily opened and closed afterwards.
Science and Research
Negotiations for 12 chapter were opened but closure criteria to all those negotiations were imposed bt the EU.
Business and Industry Policy,
Statistics,
Financial Control,
Consumer and Health Protection,
Trans-European Networks,
Intellectual Property Law,
Company Law,
Free Movement of Capital,
Information Society and Media,
Taxation,
Environment,
Food Safety, Veterinary and Plant Health
Position papers of Turkey for 2 negotiations were forwarded to the EU. EU Common Position Paper is expected to be announced.
Education and Culture,
Economic and Monetary Policy
For the opening of 8 chapters opening criterias of the EU have to be met by Turkey.
In all other chapters, Screening Reports are expected to be announced by the EU.
April Ministry of Economy

63. Trade between Turkey and the EU
*January-February
Source: Data Source of the Ministry of Economy
April Ministry of Economy

64. FTA Countries Egypt EFTA (Norway, Switzerland, Iceland, Liechtenstein)
Albania
Georgia
Montenegro
Serbia
Chile
Jordan
Lebanon*
Mauritius***
South Korea****
(*) Agreements that are in the approval process
(**) Pending
(***) Will enter into force on 1st June 2013
(****) Will enter into force on 1st May 2013
EFTA (Norway, Switzerland, Iceland, Liechtenstein)
Israel
Macedonia
Croatia
Bosnia and Herzegovina
Palestine
Tunisia
Morocco
Syria (**)
April Ministry of Economy

65. Trade with FTA Countries
Our exports to FTA Countries increased %7.2 in 2012.
The share of FTA Countries in total exports reached %9.6.
Turkey recorded a trade surplus of 3.9 billion USD in with FTA Countries, while there was a trade deficit of 1.5 billion USD in 2002.
April Ministry of Economy

66. Trade Representatives Abroad
208 trade representatives from the Ministry are serving in 105 locations and 8 offices abroad.
April Ministry of Economy

67. Locations of Trade Representatives
AMERİKA
Buenos Aires
Karakas
Mexico City
Ottava
Santiago
Vaşington
Houston
Los Angeles
New York
Sao Paulo
Şikago
Toronto
Miami
San Francisco
Seattle
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
Taşkent
Tokyo
Ulan Bator
Yeni Delhi
Almatı
Guangzhou
Hong Kong Karaçi
Mumbai
Şangay
Georgetown
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
Yekaterinburg
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
Ticaret Müşavirliği
Sidney
Melbourne
Ticaret Ataşeliği
İrtibat Büroları
April Ministry of Economy

68. Projects with Future Prospects
Export Oriented Production Strategy and Input Supply Strategy
Market Access Strategy
Supporting Exports
Trade Remedies
Restructuring the Incentive System
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
April Ministry of Economy