1. ECONOMIC OUTLOOK TURKEY EMBASSY OF THE REPUBLIC OF TURKEY Office of the Commercial Counsellor

2. TURKEY-SPAIN COMPARATIVE ECONOMIC INDICATORS TURKEYSPAIN (Euro) POPULATION70 Million44,4 Million GNP658,8 Billion $1.049 Billion Euro GROWTH RATE% 4,5% 3,8 GNP PER CAPITA9.330 $23.486 Euro INFLATION% 8,4% 4,2 UNEMPLOYMENT% 9,9% 8,6 FOREIGN TRADE VOL.277,3 Billion $461,9 Billion Euro FDI INFLOW22 Billion $40 Billion Euro INTREST RATES% 21,5% 3,28

3. MACRO ECONOMIC PERFORMANCE  Average GNP growth rate : 6.9 %. Very successfull performance for the economy for the last 5 years.  Turkey ranked 15th largest economy of the world and 6th largest compared to EU 27 in 2007.  Turkey showed very succesfull performance in all important macro indicators such as unemployment and inflation.  Very similar to Spain; FDI and Tourism revenues are vital for the economy.  Export revenues are increasing but high current account deficit is major problem.

5. GNP BY SECTORS  Automotive, textile-clothing, electronics, food, iron-steel and chemicals are the main industry divisions.  Agricultural production is still very important and competitive.  Turkey has almost all natural mineral resources except oil and gas.  City of İstanbul and Marmara region are the main contributor to the GNP.

6. TURKISH CONTRACTING SECTOR  Turkish contracting sector operating abroad enhanced their activities in 2006 and 2007. Total amount of the projects undertaken by the Turkish companies reached 12,7 and 15 billion $ in these years respectively.  There are 18 Turkish Construction companies in the ENR Top 225 International Contractors 2007 list. Leading Turkish contractors ; ENKA, GAMA, TEKFEN, YUKSEL, BAYTUR are the front runners in the ENR list.

7. PRIVATIZATION IMPLEMENTATIONS (Billion $) From 1985 to the end of 2002 ; 8.1 billion $ revenue was realized from the privatization. After 2002 there is significant succes in privatization process of the state companies. In 2005, Turkey reached its maximum with revenue of 8.2 billion $ from privatization. Between 2003-2007, gross revenue was recorded 22 billion $.

8. FDI INFLOWS (Billion $)  Turkey is the 13th highest FDI inflow in the world and 3rd among the emerging countries in 2006.  At the end of 2007 cumulative FDI in Turkey reached 70 billion $.  52 billion of total has been realized for the last 3 years.  Trade, manufacturing, real estate, telecomunication, construction and tourism are the main areas that FDI in Turkey concentrated.

9. COMPETITIVE ECONOMIC STRUCTURE World Economic Forum Global Competitiveness Report 2006-2007

10. TURKEY-SPAIN TRADE AND ECONOMIC RELATIONS EMBASSY OF THE REPUBLIC OF TURKEY Office of the Commercial Counsellor

11. IMPORTANT FACTS  Spain is the member of the E.U., there is Custums Union between Turkey and E.U. (Free circulation of goods between Turkey and E.U./Spain.)  Spanish Government supports Turkey’s full membership to the E.U.  Alliance of Civilization Project  Strategic Partnership  Expansion of trade and economic relations in a short term period.  Spanish Government identified Turkey as one of the “target emerging market” for Spanish investors and companies. A strategic plan was prepared for Turkey. Similar plans also exist for India, China, Brazil etc.

12. TURKEY FOREIGN TRADE I Million $ EXPORTIMPORTBALANCEVOLUME 2004 63.16797.540-34.373160.707 2005 73.476116.774-43.298190.251 2006 85.535139.576-54.041225.111 2007 107.184170.048-62.864277.233

13. TURKEY FOREIGN TRADE II Export% Clothing-Textile15,7 Vehicles-Automotives/Parts14,8 Machinery and Mechanical Appliances 8,2 Iron and Steel7,8 Electrical Machinery- Equipment 6,9 Mineral Fuels – Oils4,8 Import% Mineral Fuels-Oils19,9 Machinery and Mechanical Appliances 13,2 Iron and Steel9,5 Electrical Machinery- Equipment 7,8 Vehicles-Automotives/Parts 7,3 Plastics and Articles 5,1

14. TURKEY FOREIGN TRADE III TOP EXPORT DESTINATIONS İİİİİ Germany : % 11,2 U.K. : % 8 Italy: % 7 France: % 5,6 Russian Fed.: % 4,4 Spain: % 4,3 USA: % 3,9 Romania: % 3,4 E.U. 27: % 56,3 TOP IMPORT ORIGINS Russian Fed. : % 13,9 Germany: % 10,3 China: % 7,8 Italy : % 6 USA: % 4,8 France: % 4,6 Iran: % 3,9 U.K.: % 3,2 E.U. 27: % 40,3

15. TURKEY-SPAIN FOREIGN TRADE – 2007/Euro EXPORT to Spain 4.212.100 Vehicles- Automotives/Parts Iron and Steel 1.033.164 442.584 Clothing (61-62) Electrical Machinery- Equipment 855.726 259.426 Machinery and Mechanical Appliances Mineral Fuels – Oils 245.554 173.116 Iron and Steel Products 143.622 IMPORT from Spain 2.961.500 Vehicles- Automotives/Parts Machinery and Mechanical Appliances 785.145 415.168 Plastics and articles there of Electrical Machinery- Equipment 199.491 184.812 Iron and Steel Organic Chemicals Mineral Fuels – Oils 184.364 147.038 68.860

16. ECONOMIC COOPERATION  Ankara-Eskisehir High-Speed Train Project (OHL-CAF/Alarko)  Borusan’s Investment in Spain : Investment of Turkish companies in Spain is very weak. On the other hand some Turkish companies have export offices in Spain.  Asociacion Foro Empresarial Hispano Turco was founded in 2007 by several Spanish and Turkish Businessmen in Madrid.  Mapfre’s Investment in Turkey : Total investments of Spanish companies in Turkey has reached aprox. 1 billion Euro in 2007.  Spanish investments in Turkey are mainly on trade, finance, tourism, cement production, real estate sectors.  La Caixa, Bank Sabadel have opened branch offices in İstanbul.

17. POTENTIAL AREAS FOR TRADE AND INVESTMENT  Renewable Energies  Construction and Contracting Sector  Tourism  Consulting  Real Estate  Banking  Tecnology Development  Agriculture (Southern Anatolian Project-GAP)  Privization Process in Turkey offers new opportunities  Cement  Iron and steel  Agricultural Machinery  Plastics  Chemical Products  Fishery  Pharmacy  Aluminium products  Vehicles-Automotives/Parts  Electrical Machinery- Equipment  Machinery

18. TURKEY-SPAIN TRADE AND ECONOMIC RELATIONS Hakan Karabalık EMBASSY OF THE REPUBLIC OF TURKEY Commercial Counsellor