Made In Turkey December 2012 by İstmag Magazin Grubu

Turkey, Yemen to enhance business relations

urkey and Yemen signed a series of agreements to improve their business relations and economic cooperation in the scope of 6th Joint Economic Committee that held in the capital city of Sana’a, Yemen. Turkish Deputy Prime Minister Bulent Arinc managed the signature ceremony of the agreements at the 6th Joint Economic Committee in the Yemeni capital, Sana’a. “There is no doubt that the decisions we have made in these meetings will make great contributions to the wealth of our countries,” Arinc told reporters during a ceremony to which Yemeni Trade and Industry Minister Saad al-Din Ali Salim bin Talib attended, too. Page 7

urkish Minister of Transport Yildirim said “Road transport is vital for developing trade.” Speaking at the opening ceremony of the meeting, Yildirim said, one of the biggest reasons regarding Turkey take place in the at least affected countries from the crisis after 2008 being able to maintain its infrastructure investments as nonstop. In 2008, black clouds began to blow over the world economy; as for 2009, half of the global trade collapsed. Page 7

ISSN 1300-2260

Turkish Deputy Prime Minister Bulent Arınc

Road transport has vitality for developing trade and welfare

www.img.com.tr

Turkey urges for fiscal discipline and sustainable growth T

urkey’s public debt is on a downward trend, while the private sector’s debt has risen over the last 10 years. However, things may not be as they seem in the case of private sector debt, according to Turkish Deputy Prime Minister Ali Babacan. “We are not so sure about the real level of the external national indebtedness of Turkey,” he said at a parliamentary session on Nov. 23, according to Anatolia news agency. A substantial part of what seems like private sector debt is in fact the private sector’s own money, he claimed, hinting

at a possibility that this may be indicating tax evasion. The ratio of public net debt stock to gross domestic product (GDP) dropped to 22.4 percent in 2011 from 61.5 percent in 2002, according to data from the Undersecreteriat of the Treasury. The ratio of private sector debt to the GDP, meanwhile, increased to 26.6 percent in 2012 from 18.7 percent in 2002, Babacan noted. It is hard to explain how the real sector receives so many loans from abroad, according to Babacan. His theory is that company owners who have parked their

own money abroad put up their foreign bank accounts as collateral and enable their company to obtain loans there. “They may be doing this for tax management or to avoid disclosing their wealth in Turkey,” he said. “Turkey’s creditors see that, too. That’s why the Turkish private sector is able take loans in big amounts and so easily … So we think that there is a serious amount of personal assets and a collateral system.” The sustainability of Turkey’s indebtedness does not pose a problem even in worst case scenarios, Babacan said, adding that the government wanted to im-

“Turkey will become among top-20 partner in IMF”

razil, Russia, India and China will become among the top-10 shareholders in the IMF in accordance due to the size of their economies, Mark Lewis says. Turkey will become a top-20 partner to the International Monetary Fund (IMF) as a result of ongoing reforms within the organization, according to Mark Lewis, the Turkey Chair of the fund at the Active Academy International Finance Summit in Istanbul Nov. 23. The reform process will lead to higher voting power and enhance the roles of emerging markets in the IMF, he said. Page 8

IMF Turkey Chair Mark Lewis

Central bank cuts rates, hints at stronger action

urkey’s Central Bank trimmed the highest of its main interest rates for a third consecutive month to prop up a slowing economy, also signaling it would not tolerate more gains for the lira. With this cut the Central Bank has cut the upper end by 250 bps in the last three months. The bank cut its overnight lending rate –the upper boundary of the interest rate corridor it uses to control monetary conditions– by 50 basis points to 9 percent but left its other policy rates on hold, in what analysts deemed a cautious move. Page 8

“We do not see future as dark”

hen we look at the things have been experienced in Europe that we have taken as an example for ourselves for long time, as of today, as businessmen we never appraise the general position of Turkey as pessimistic at all, Nail Olpak, President of Turkish Independent Industrialist and Businessmen Association (MUSIAD), said. In his speech at the Agri Ibrahim Cecen University at a program entitled “Career’s Days”, he stated while choosing persons for career planning it is necessary to be very careful. By means of good fellows, doors of success would be easily opened, Olpak underlined. Page 8

Turkish Airlines adds 200th aircraft to its fleet...

ver much of the past decade, Turkish Airlines has been a rising star in global aviation and continues to expand and rejuvenate its fleet. The airline has now reached its goal of operating a fleet of 200 aircraft. This will give Turkish Airlines, Europe’s youngest and most modern fleet as it works towards its goal of having the largest global network of an airline. It is presently the world’s fifth largest airline and with the addition of the 200th aircraft, the airline continues to strengthen its position. The arrival of this aircraft, and the progress that it represents, acknowledged with a ceremony at the Turkish Technic new hangar at Yeşilköy Airport on Tuesday, November 13, 2012. Page 11

December 2012 Year: 11 No: 123

Exports up, foreign trade deficit down! Turkish Deputy Prime Minister Ali Babacan

prove the net debt stock even further to 31 percent, down from 36 percent. Turkey is Europe’s clean air area, Turkish Economy Minister Zafer Çağlayan said in Paris, referring to the positive economic outlook for the neighboring country. The minister noted that last year when Europe grew 1.5 percent,Turkey grew 8.5 percent. “If Turkey was the 28th EU country, the EU would have grown 1.8 percent,” he Page 5 said.

urkey’s exports reached a record monthly value of $13.3 billion in October, while exports for the first 10 months of 2012 registered a 13 percent gain over the same period last year, data from the Turkish Statistical Institute (TurkStat). Turkey’s exports reached a record monthly value of $13.3 billion in October, while exports for the first 10 months of 2012 registered a 13 percent gain over the same period last year, data from the Turkish Statistical Institute (TurkStat) disclosed. The encouraging report also showed a reduction in the country’s problematic trade deficit, showing a 23 percent decrease in October versus that month last year, declining from $90.2 billion to $69.5 billion. Page 9

Made in Turkey Economic Newspaper, December 2012

Letter From The Editor Mehmet Soztutan Editor-in-Chief

Turkey’s credibility up

he Turkish economy enjoys sustainable economic growth. Average annual growth rate had increased to 5.3 percent between 2003 and 2011 from 3 percent between the years of 1993 and 2002. Public net debt stock was 61.5 percent in 2002, and that the government had reduced the figure to 22 percent, he said, adding that the country’s gross domestic product (GDP) rose to $774 billion in 2011 from $230 billion in 2002. Exports hit a record high in 2011 to reach $135 billion, figure in 2002 was only $36 billion. The figure for 2012 is expected to exceed $150 billion. The Government aims to decrease the ratio of the social security deficit to GDP to 1 percent by 2023. It is noted that unemployment rate has decreased under the average of OECD first time in Turkey, underlining that the basic aim of the Medium Term Program was increasing economic growth and employment, reducing inflation and current account deficit, rising domestic savings. The Government officials also noted that preparations were underway to begin the Kanal Istanbul project, a parallel waterway that is designed to connect the Black Sea and the Marmara Sea. They also reiterated previous goals for the year 2023, such as making the Turkish economy one of the 10 largest in the world and increasing the volume of annual exports to $500 billion. The Government also plans to increase annual per capita income to $25,000, build an economy worth at least $2 trillion by 2023 and enter the first league in the world in terms of research and development expenditure. International rating agency Fitch Ratings has recently raised Turkey to investment-grade status. So, Turkey may attract $30 bln with investment-grade. Large investment funds, including pension funds were waiting for the hike in Turkey’s credit rating before pouring billions of dollars in to the country. Mean while, in a recent statement, senior analyst Sarah Carlson of Moody’s revealed the criteria for a possible credit rating upgrade. “If Turkey reduces its structural current account deficit, and makes progress in decreasing external vulnerabilities by increasing its currency reserves or decreasing private-sector debts, then Moody’s will asses to increase Turkey’s credit rating,” she said. So, time is ripe for another investment-grade.

Letters to Stock exchange Editor provides highest profit the turkey@ihlas.net.tr in October In October 2012, maximum monthly real profit rate was realized in Stock Exchange, according to the statement from Turkish Statistical Institute (TurkStat). In October 2012, Stock Exchange, one of the financ i a l investm e n t t o o l s , yielded the highest monthly real profit with the rates 2.37% and 0.57% according to Producer Price Index and Consumer Price Index respectively. According to Producer Price Index, the monthly real profit rates of euro, deposit interest, gold (ingot) were 0.78%, 0.33% and %0.32%. However investors of US dollar lost up to 0.17%. According to Consumer Price Index, investors of US dollar, gold (ingot), deposit interest and euro lost by 1.92%, 1.44%, 1.43% and 0.99% respectively. Maximum real profit was gained by Stock Exchange investors quarterly, biannually and annually according to PPI and CPI. Investors of Stock Exchange made the highest real profit with the rates of 8.91% according to PPI and 6.68% according to CPI, quarterly. The real profit rate of Stock Exchange was 13.58% according to PPI and 11.31% according to CPI biannually. In the same period, Investors of Euro made the highest loss with the rates of 0.68% and 2.66% in terms of PPI and CPI respectively.

In October 2012, finan-

cial i nvestment tools were listed in descendi n g order with respect to their yearly real profit rates as follows: Stock exchange, deposit interest, gold (ingot), US dollar, and euro. The real profit rates of Stock Exchange, Deposit Interest and Gold (ingot) were 17.05%, 4.39% and 0.79% according to PPI, respectively, however in the same period US dollar, and euro lost by 4.17% and 9.13% respectively. According to CPI, the real profit rate of Stock exchange was 11.37%, whereas in the same period deposit interest, gold (ingot), US dollar and euro lost by 0.68%, 4.10%, 8.82% and 13.53% respectively.

The dangers ahead The knocking on There is a danger that the Fed could end up withdrawing its liquidity support too slowly, when market demand for liquidity abates, resulting in persistent undershooting of the target rate. More dangerously, the US central bank could end up keeping the target interest rate too low for too long, because of its concern about extreme financial stress, potentially producing an inflation problem down the road. Indeed, it is possible that inflation could go from being worryingly high to worryingly low before becoming worryingly high again. Some economists fear that the government may rack up so much debt as a result of the crisis that the Fed will come under pressure to ease the burden by allowing inflation to run a little higher in the years ahead.

M.Kris/ Frankfurt

The industrial world Looking further ahead, the industrial world faces an extended multi-year period of stagflation – low economic growth, continuing high unemployment, a drop in average living standards, and consumer price inflation well above the acceptable rates of recent years. Meanwhile, the newly industrialised or emerging economies in Asia and elsewhere – led by China, India, Brazil, and, yes, Russia – will fare well by comparison with relatively strong growth in output and employment, restrained consumer price inflation, and appreciating currencies versus the US dollar, euro, and the British pound.

S.Ronny / Berlin

our door

Here in the US, our economic pain is largely a consequence of consuming and spending more than we could afford at all levels of government and society. In a real sense, we are bankrupt and the ‘repo man’ is now knocking on our door. At the same time, judging from the Fed’s own balance sheet, quantitative easing continues. For now, I can’t see how the Fed can do otherwise – until there is a significant stabilisation in the housing market, a sustainable and continuing improvement in the labour market (with declining unemployment), and rising consumer confidence . . . or until inflation rates are so high that a return to price stability takes precedence. In the meantime, the Fed must continue buying US Treasury debt and housing agency debt with newly printed money. G. Tait/ Geneva

Downward bias to growth The Fed’s policy of quantitative easing, which was temporarily buttressing demand, is over, and its impact will likely decline over time, imparting a downward bias to growth in the coming quarters. This fiscal stimulus, which was temporarily buttressing demand, has been largely exhausted and has likely reached its point of peak impact (even if additional fiscal measures are taken), so that its impact will be declining in the coming quarters, imparting a downward bias to growth.

R.Hyat/ Frankfurt

Made in Turkey Economic Newspaper, December 2012

Industrial turnover increases by 4.9% in September 2012

TurkStat, Turkey’s Statistical Institute released the results of industry production survey. According to the announcement, Industrial Turnover Index in September 2012 increased by 4.9% compared with same month previous year.

n the sub-sectors level of industry, mining and quarrying index decreased by 1.0%, Manufacturing index increased by 5.1% in September 2012 compared with same month of the previous year. According to Main Industrial Groupings (MIGs) Classification, the highest increase

in September 2012 over the same month of the previous year realized in Durable Consumer Goods. In Sub-sectors of Manufacturing Industry the highest increase realized in Manufacture of Tobacco Products. When the change rates of Industrial Turnover Index in September 2012 compared

with September of 2011 inspected, the highest increase was in Manufacture of Tobacco Products by 63.8%, it is followed by Other Manufacturing by 38.3%. Industrial Order Index increased by 4.9% in September 2012 compared with the same month in previous year. According to Main Industrial Groupings (MIGs) Classification, the highest increase in September 2012 over the same month of the previous year realized in Undurable Consumer Goods. The highest increase in annual change rate of Industrial New Orders Index in September 2012 over the same month of the previous year real-

ized in Manufacture of Basic Pharmaceutical Products and Pharmaceutical Preparations. When the change rates of Industrial New Orders Index in September 2012 compared with September 2011 in-

spected, the highest increase was in Manufacture of Basic Pharmaceutical Products and Pharmaceutical Preparations by 56.0%, it is followed by Manufacture of Wearing Apparel by 20.3%.

Mayor Topbas opens Turkey’s first hydrogen filling station Having opened to the service with cooperation of Istanbul Metropolitan Municipality and UNIDO – ICHET, the first hydrogen fuel station of Turkey, Hyundai ix35 Fuel Cell became the first vehicle runs with hydrogen fuel.

peaking at the opening ceremony of hydrogen fuel station, Kadir Topbas, Mayor of Istanbul, said, “This is first hydrogen fuel filling station in Turkey for both cars and marine vehicles which will benefit from the station. With the cost of 10 TL, the vehicles can drive 120-130 kilometers. This fuel features both low cost and environmentally friendly.” “Hydrogen fuel is considered as the future fuel. We have witnessed a history at this ceremony. In a near future,

60-70 percent of the world population will live in cities. Cities pollute the environment. However cities and local governments will solve this problem. We have been trying to get rid of fossil fuel. Of course this is process involves an outstanding technological research. We live in an era when information is shared much and solution ways are sought. In such a process, we will be remembered among the firsts across the world regarding opening of this hydrogen fuel station which will serve

not only automobiles but also for seabuses. As a sign of our respect to the environment this hydrogen fuel station carries very important meaning. I hope the vehicles which drive via hydrogen fuel will increase in the future, we will also increase hydrogen fuel stations.” In his speech Hyundai General Manager Umit Karaarslan said, “In the world, lots of hydrogen vehicles have been manufactured for test propose, but first time Hyundai has entered a mass-production. When taken into

consideration the importance of hydrogen fuel cell for the environment and energy saving, we believe that it would be a very crucial project in Turkey.” He underlined that it would be a project to restrict oil imports as well as providing recovery in the foreign trade deficit. Karaarslan said that hydrogen vehicles together with hybrid vehicles would cover 25 percent of the total market, adding that thousands of hydrogen vehicles would be made by 2015.

“World relies on banking finance system much” “World finance system has extremely trusted in the world finance system, if this fault has not been seen for a few years, this means we are blind,” Vedat Akgiray, Chairman of Capital Market Board of Turkey (SPK), said.

n his speech at the opening of ‘Turk-Arab Capital Market Forum’, stating he has been deputy chairman of the International Organization of Securities Commissions (IOSCO) and also representative of IOSCO, he recorded that 80 percent members of IOSCO have already presented as representative of emerging markets. He also noted that 11 of G-20 countries have featured as the representatives of the emerging markets. Akgiray said, “Prosperity and wealth have shifted as a big part from west to

east for a few decades. According to the expectations of 2020, 40 percent of the total financial assets will be held in the hand of emerging markets. The economic crisis which happened in 2009 has been still tried to be understood. I have not yet found an authorized to be able to explain the reason of the crisis. We have been struggling to find solution to this kind of crisis not to repeat in the future. One of the reasons of the crisis is illegal market.” The world finance system has extremely relied on banking finance system.

This is a mistake cannot be not seen for a few years. In 2020, this figure will reach by over $10 trillion together with stock exchange in the global base so that this is serious threat, he underscored. Akgiray went on, “Let’s turn back to the 1960-70s when finance of this market was rule of the game. Otherwise a reduction would happen in the wellbeing across the world or distribution of wellbeing would be restructured. Apart from this, unwanted things would be experienced. The fiscal market players should act more inte lligent. Even the efforts, such as cooperation would be almost impossible. Because of little players in such condition could not stand on foot. This is not a sustainable model. Cooperation has benefits for both little and big players. Regarding no cooperation, not to survive, death almost is indispensable. For cooperation there are many good reasons such as social, politic.

Cooperation has utmost importance for us. Capital markets have developed relatively less. Liquidation less, institutional governance important, but we do not do this. Operational cooperation is not available. In Istanbul there is stock exchange of ours. In a near future, it will be bigger. Everything will be gathered under a single roof. Its likely name will be Borsa Istanbul. Turkey is a country with a population of 75 million. As for GDP accounts for $1 trillion.” He indicated that in a situation when information has not been efficient developing of the financial markets are difficult. “Let’s give importance to information, transparency and corporate governance. Logical information allows market to be more efficient and transparent, attracts investors. Markets grow only in this way,” Akgiray concluded. Meanwhile, a memorandum of understanding was signed between Istanbul Stock Exchange and Libyan Stock Exchange in order to develop existing cooperation.

Turkey’s participation banks increase profit Turkey’s participations banks obtained profit of 718 million TL in the first nine months this year, increasing 21 percent compare with last year.

sman Akyuz, Secretary General of Turkish Participation Banks’ Union (TKBB), announced, the funds of the participation banks increased 16 percent to TL46,1 billion as of end of Sept 2012 compare with the same period last year.

Akyuz noted the share of Turkish Lira in the gathered funds was 59 percent, as for foreign currencies’ share was 41 percent. In the same period the funds which have been loaned to citizens became TL 48,1 billion increasing 17 percent.

“The total assets reached by TL65 billion with 16 percent increase, the equities reached by TL6,9 billion, rising 12 percent. The total net profit of the participation banks increased 21 percent to TL718 million in the first nine months this year compared with the

same period previous year. With 94 new branches, number of the participation banks reached by 781 with 14 percent rise, as for number of staff raised by 14 thousand 921 units with 8 percent growth,” Akyuz recorded in his statement.

4 ev alt_4. sayfa 18.11.2011 19:21 Page 1

Made in Turkey Economic Newspaper, December 2012

Made in Turkey Economic Newspaper, November 2011

Radical economic shifts in next decades

GROUP CHAIRMAN: H. FERRUH IŞIK İletişim Magazin Gazetecilik Sanayi ve Ticaret A.Ş.

THOUGHT OF THOUGHT OF THE THE MONTH MONTH

After a break, does it Humor or Logic is a systematic m methodthat of coming to resume? u Democracy H is a device

lobalization has pushed the world Exports of Turkey have consistently İletişim Magazin Gazetecilik to enter into an inclusive change, boosted in the last decade. in other words it has taken the For 2012, targeted figure is some $150 bilSanayi ve Ticaret A.Ş. world into a restructuring and integration lion. In the first eleven months this year, process. the accomplished export figures show that Until now seemingly the world cannot the year-end target would be achieved. Mehmet Söztutan be able to completely adapt to the global Setting stability and perceiving capacity Editor Ibrahim Kupeli (msoztutan@img.com.tr) up his political life with same reason. It is ears areeconomy spreadinginina Eurozone system and global healthily regarding in macroeconomic indicators, thethe govern (ikupeli@img.com.tr) feared that the Eurozone’s third biggest econosovereign debt crisis. way. Because of economic crisis has not ment has scheduled some objectives for Editorial Consultants: Ibrahim Kupeli my, Italy could become the next victim of the So, it is expected this situation to lead a yet been recovering for years across the the upcoming years. (ikupeli@img.com.tr) Advertising Sales Staff: Adem Sacin, debt crisis. recession in the global economy once again. world. One of them is to achieve exports worth Ömer Faruk Görün Ahmet Yıldız, According to the one commentators, Without completely from the effects The weak datarecovering about economies is likely $500 billion and second is to enter "Greece is interrupting by standing up and shouting hen the man in the street says: (fgorun@ihlas.net.tr) Sedat Karadayı, responsible only forin2% ofworld the eurozone's GDP, of the global economic crisis,towhich broke out f you’re looking"Iffor a jobbroke, or looking toit," hire "Objection!" him. I had to call the police. to put pressure on the government boost into ten biggest economies the by it ain't don't fix Yılmaz Özkan Italy as celebration the third biggest economy behind Advertising Sales Staff: Mustafa Bekir Karaca in measures 2008, the second of the crisis is now pos-thebut Three. to do it and two to suesnapped him hire, you need the a smile break. Here are • Pulled outOne a Polaroid camera and lawyer writes: stimulus to spurleg growth. 2023, centenary of Turkish Recep Arslantaş, (mbk@img.com.tr) for malpractice. ing more to stage both in Europemeasures and in other Republic. devel- Germany and France, its effect would be wors"Insofarinterview as manifestations of functional a flash memorable moments: picture of me. Said he collected Thereby, belt-tightening Eda Şişik Adem Sacin, en party than Greece. Three. One to turn theinterviewed bulb, one to shake oped countries world. in par- The ruling deficiencies are agreed any and all photos and austerity budget of aretheforeseen also aims to achieve per • A job applicant challenged theby interviewer of everyone who him. Advertising Consultants Emir OCAL Yılmaz Özkan him off the ladder, and the third only to sueone the The fear is that the Eurozone debt crisis can concerned parties to be imperceivable, In the entire world there is an anxiety about ticular throughout Europe by the govern- capita income by $25 thousand and $1 to an arm wrestle. • An applicant came in wearing Recep Arslantaş, ( eocal@img.com.tr ) ladder company. spread through Europe; it would have a big and are so stipulated, it is incumbent upon global crisis after a short break. ments for 2013, too. trillion worth of trade volume at the end • Candidate announced that her long-term shoe. She explained that the other shoe Eda Şişik Correspondents: Hakan Alkan to sue theinpower company for said mentioned parties to exer-was Three. impact on the international According to European OPEC it Union is Workers across the are of next decade. goals were toheretofore replace the interviewer. stolen One off her foot the bus. Advertising Consultants Aydın Emir Erkoç (hakan.alkan@img.com.tr) insufficiently supplying power, or neglicise the deferment of otherwise pertinent economy. the same•time, year. staginganother a series challenging of protests and strikes to Meanwhile, the world economy hasAt been Applicant said if he was hired he would What job am I applying for, anyway?” Correspondents: Hakan Alkan gent failure to prevent the surge that made Technical Manager: Tayfun Aydın maintenance procedures." have been concerns Whilereaction the organization show their against states rising unem- also experiencing somethere fundamental demonstrate his loyalty by having the “My resume might make it look like I’m (hakanalkan@img.com.tr) the bulb burn out in the first place, one to **************** (tayfun.aydin@img.com.tr) about a slowdown in the US its concern, showsmeasures. some ployment and austerity The changes. corporate logo tattooed on his forearm. a job hopper. But I want you to know that Technical Manager: Tayfun Aydın sue the electrician who wired the house, In the USA, everything that is not prohibChief Accountant: Mustafa Aktas astoit astruggles the indicators; deepened globbad condition inaseconomy According report ofto boost Unusual questions I never of the those voluntarily.” (tayfunaydin@img.com.tr) andleft oneany to sue bulbjobs manufacturers. ited by law is permitted. (mustafa.aktas@img.com.tr) growth and tackle stubbornal macroeconomic uncerthroughout Europe, of OECD, the balance of What is it that you people do at this “Sorry for yawning. I usually Chief Accountant: Mustafa Aktas to get auntil In Germany, everything that is not permit- Fifty four. Eight to argue, one sleep Subscription: İsmail Özçelik lypower high rates of unemploytainties, heightened risks surcourse, takes the entire economic is excompany? my soap operas are on.” (maktas@img.com.tr) continuance, one to object, one to demur, ted by law is prohibited. (ismail.ozcelik@img.com.tr) rounding the international world under its contagious pected toment. shift dramatiWhy aren’t you everything in a more interestingeven“I will harderone for to you than Subscription: İsmail Özçelik twodefinitely to researchwork precedents, dictate In Russia, is prohibited, Head of business? IMF financial system, the sovercally overMeanwhile, the next half I did for my last employer.” (ismail.ozcelik@img.com.tr) effect more or less… a letter, one to stipulate, five to turn in if permitted by law. Lagarde also urge theWhy gov- do you eign debt crisis the euroMeanwhile, when we in have century, with fast-growwant references? “I don’t thinkcards, I’m one capable of doing their time to depose, one tothis In France, everything is permitted, even if HEAD OFFICE: ernments to act boldly; othsocialeconomy, unrest in many a look zone, at Turkish ing emerging-market HEAD OFFICE: I know this is off the subject, but will you job, but I sure would like the money.” write interrogatories, two to settle, one to prohibited by law. İhlas Medya Plaza, 29 Ekim Cad. No: 23 erwise the world economy of the world,dethe natuit has parts enjoyed crucial economies accounting İhlas Medya Plaza, 29 Ekim Cad. No: 23 order a secretary to change the bulb, and marry me? I demand a salary commiserate with my In Switzerland, everything that is not pro34520 Yenibosna - ISTANBUL / TURKEY around the world runs the ral disasters ensuing velopment, despite and some for an ever-increasing 34520 Yenibosna - ISTANBUL / TURKEY twenty-eight to bill for professional servhibited by law is obligatory. Tel: (0.212) 454 25 00 Pbx Fax: (0.212) 454 25 98 Unusual statements experience.” Ibrahim Kupeli share of global risk of downward spiral of nuclear catastrophe negative events both in its in output. www.img.com.tr Tel: (0.212) 454 25 00 Pbx Fax: (0.212)E-mail: 454 25img@img.com.tr 98 ices. ********************* Once a week, I usually feel hot all over. “Instrumental in ruining entire operation ikupeli@img.com.tr financial instaJapan countries earlier this surrounding and year, The Uniteduncertainty, States is exHow many lawyers does it take to screw www.img.com.tr E-mail: img@img.com.tr A junior partner in a firm was sent to a I am fascinated by fire. for a chain store.” LIAISON OFFICES: excessive oil price volatility Ibrahim Kupeli the world. Regarding confipected tobility cedeand its potential place collapse in a light bulb? far-away state to represent a long-term I never get hungry. “Received a plague for Salesperson of the and stability increasedwhich speculator on the main of global dence and are activity asdemand. the world’s largest None, lawyers only screw us. BURSA: Ömer Faruk Görün robbery. After days LIAISON OFFICES: ikupeli@img.com.tr I would client haveaccused been of more successful if of Year.” As for the reason to why Greece into the commodity exchanges. Buttim D Blok Kat: 4 No: 1267 BURSA the indispensable stipulation economy China, as plunged earYou Might Lawyer if...at all costs.... trial, the case was won, the client acquitnobody would have snitched on me. “I am loyal to Be mya employer Tel: (90.224) 211 4450 , 51 Fax: (90.224) 211 4481 debt crisisGDP is shown the country In Eurozone, Greece has moaning under • you are charging someone for of sustainable development havebeen been es- ly as 2016, India’s is alsothat expected to has been ted and released. Excited about his sucBURSA: Ömer Faruk Görün I think I’m going to throw-up. Please feel free to respond to my resume beyond States its means even before it the heavy sovereign Despite huge bailout reading these jokes. tablished, the country has debt. recorded notepass that living of the United over since the long cess, the attorney telegraphed the firm: Buttim D Blok Kat: 4 No: 1267 BURSA KONYA: Metin Demir No matter how badly your last job on my office voice mail.” therecorded. euro, and its rising level of debt has • you believe that a forty words' program of European Union since 2010, thethejoined "Justice prevailed." worthy gains almost in every area through term, OECD Merkezi C Blok211 Kat: 4481 6 No:603-604-605 KONYA Tel: (90.224) 211H.Uluşahin 4450 , 51İşFax: (90.224) interview went, it probably wasn’t this “It’s sentence best foris employers placed a huge strain on thethe country's a short one. that I not work The senior partner replied in haste: country cannot escape from the debt crisis. The also last decade. OECD predicts, combined, two economy. 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Made in Turkey Economic Newspaper, December 2012

Swiss Turkish Economic Forum held The importance of “Corporate R&D” emphasized in the forum.

wiss Chamber of Commerce organized “8th Swiss Turkish Economic Forum” on November 22th, 2012 in Turkey. OSEC, Istanbul Chamber of Commerce (ITO), Novartis, Roche, Swiss Airlines, Mövenpick Hotel Istanbul and Otto’s were the sponsors of the organization. President of the Turkish Pharmaceuticals and

Medical Devices Agency Saim Kerman, Republic of Turkey Ministry of Science, Industry and Technology General Manager Süfyan Emiroğlu, Swiss Ambassador Raimund Kunz, Istanbul Chamber of Commerce Vice President of the Board of Directors Dursun Topçu and President of Swiss Chamber of Commerce Doğan Taşkent took part

right along with 12 people as spokespersons in the forum in which the importance of “Corporate R&D” was emphasized this year. It is reported that having set competitive goals for the 100th year, Turkey is aiming to be one of the ten largest economies in the world, raise its exportation to 500 billion TL and raise the per capita income to 25 thousand dollar in 2023, 11 years later from now. It is underlined that, because innovation has become a very important subject in line with this target, a lot studies have been made and is continuing to be made. The importance of “Corporate R&D”, which is one of the most important areas of innovation and Turkey’s Corporate R&D potential,

was remarked in the process. “As ITO, we feel delighted to host this activity. The forum which plays an important role in the affairs between Turkey and Switzerland focuses on the “Corporate R&D and Innovation” title this year. This is a vital subject for the countries and companies in order for them to be able to survive in this competitive ground. Turkey immediately needs to

provide a vision focused on innovation in order to fulfill its 2023 target. In this context, as ITO, we keep on raising awareness about R&D and innovation subject for over 300 thousand members of ours. We are arranging innovation themed educations, seminars, conferences and meetings” said Istanbul Chamber of Commerce Vice President of the Board of Directors Dursun Topçu.

Size of assets of banking sector becomes 1.3 trillion TL

he net profit of the sector in the same period saw 15 billion TL increasing 19.4 percent. Banking Regulation & Supervision Agency (BDDK) released that the sector’s size of assets rose 7.5 percent to 1,3 trillion TL in September 2012 over the same period of 2011. Profit of the sector also expanded 17 percent to 17,1 billion TL in the same period. Credits made up 57.7 percent of total assets with 755,6 billion TL in September 2012.

As of August 2012, being one of the biggest credit items, loans showed 748 billion 783 million TL, securities 279 billion 169 million TL. While credits increased 9.6 percent, securities reduced 2 percent over the end of 2011. In this period, the receivable in pursuit raised 13.6 percent to 2 billion 574 million. The standard ratio of capital sufficiency became 16.2 percent according to criterion of Basel II as of August 2012. Meanwhile,

Turkish Lira has increased its value against the USD in the first 9 months 2012. The Turkish Lira deposits in local banks increased 202 million liras in the first nine months of the year over the same period previous year, according to data from the Ministry of Development. The figure raised more than 3.8 billion liras this year in the January-September period, from some 3.6 billion liras in the first nine months of 2011. Some 64 percent of the total is

consisted of savings deposits surpassing 2,4 billion TL up from 2,3 billion TL. This indicates an increasing confidence in the local currency, which is performing high this year after a year of big losses, hitting 25 percent against the greenback. Some 22.4 percent of the lira deposits consist of commercial deposits. The volume of commercial deposits has grown 2.9 percent, reaching some 860 million TL, up from 835,7 million TL over the same period last year.

White goods production and exports in upward trend Turkey’s white goods production expanded 8.9 percent to 16 million 289 thousand units in the first 9 months 2012, over the same period last year.

he exports of white goods raised 14.6 percent to 11 million 946 thousand, as for imports of white goods increased 0.9 percent to some 691 thousand, while number of white goods sales in the domestic mar-

ket decreased a little to 4 million 911 thousand 629 units with 0.1 percent in the first 9 months 2012. According to the weekly development report which was released by Turkey’s Ministry of Development, Turkey’s white goods

production in September 2012 reached by 2 million 188 thousand 438 units with 19.4 percent rise over the same month last year. Sales of domestic white goods producers raised 6 percent to 629 thousand 260 units in September. As for the exports reached by 1 million 616 thousand 390 units with 22.8 percent surge, imports of white goods increased 4.6 percent to 84 thousand 528 units in Sept. 2012 over the same month last year. In the first 9 months 2012, white goods production accomplished 8.9 per-

cent increase. In the first 9 months 2011, having achieved number of 14 million 952 thousand 395 units, this year at the same period white goods production rose by 16 million 289 thousand 254 units. Exports of white goods reached by 11 million 949 thousand 16 units in the first 9 months 2012, increasing 14.6 percent. Domestic sales of the white goods were 4 million 911 thousand 629 units, decreasing 0.1 percent. The imports of white goods increased 0.9 percent to 690 thousand 906 units in this period.

Exports of Turkey’s vegetable and fruit move towards record

anking 4th in vegetable production and 6th in fruit production in the world, Turkey has obtained 114 percent export increase in recent 9 years. According to Turkey’s Ministry of Food, Agriculture and Livestock Breeding, Turkey’s fresh fruit and vegetable production and exports have increased in remarkable rates in recent years. Thereby, Turkey ranked 4th in veg-

etable production and 6th in fruit production across the world by expanding its proportion 114 percent. According to the statement from the ministry, Turkey’s fresh vegetable and fruit production raised 39 million tons in 2002 to 44,5 million tons increasing 114 percent. In 2012, Turkey’s vegetable and fruit production is predicted to reach by 46 million tons. In 2002, $534 million worth

of export income, surged by $2,5 billion with 368 percent in this period. As for worth of exports in the first 9 months this year increased 23 percent from $1,3 billion to $1,6 billion over the same period last year. In the statement of the ministry also noted, the ministry has designated the fresh vegetable and fruit production target as 48 million tons for 2015. According to this scheme, fruit

production would be 18,5 million tons and vegetable production would be 29,5 million tons. The ministry has provided subsidy worth 241 million TL for producers who have planted certified saplings in the last 6 years. In addition to certified saplings, various supports are offered to the cultivators such as organic and good agro, diesel fuel, fertilizers, soil analyses and agricultural consultancy.

Turkey urges for fiscal discipline and sustainable growth

Continued from Page 1 he European Union will benefit from accepting Turkey into the union, “if Europe ignores Turkey, Turkey will not lose from it,” he said. Asked about EU-Turkey relations, he said the EU had an insincere attitude towardTurkey that can be understood from visa regulations and visa applications by Turkish business people. He said that when Turkey reaches its 2023 targets, it will be the one to decide whether to become a member country of the bloc. “We will continue on our way to the EU. We are not accepting these arrangements and regularizations for the EU, we apply them inTurkey because Turkey and the Turkish people deserve all these,” he said. Touching on Turkey’s development he said, “Turkey has changed a lot in the past decade.” In Paris the minister met with representatives of French firms and held bilateral

talks with them. Turkey will become a top-20 partner to the International Monetary Fund (IMF) as a result of ongoing reforms within the organization, according to Mark Lewis, the Turkey Chair of the fund at the Active Academy International Finance Summit in Istanbul. The reform process will lead to higher voting power and enhance the roles of emerging markets in the IMF, he said. Noting that some 6 percent of quota shares would be shifted from over-represented developed economies to underrepresented developing-economy member countries, Lewis said: “As a result [of this shift] Brazil, Russia, India and China will become among the top-10 shareholders. And Turkey will enter the top-20, reflecting its economic weight.” The last part of the reform may be completed in the beginning of the next year. If Turkey’s economy continues its soft landing, the economic indicators are favorable, Lewis said.

Made in Turkey Economic Newspaper, December 2012

Automotive keeps leading position in Turkey’s total exports Automotive sector of Turkey is the leading sector in exports with the share of 12.56 percent.

he automotive sector in Turkey is still the leader in exports despite a decline due to the economic crisis in Europe. According to the Turkish Exporters’ Assembly (TIM), while automotive exports from Turkey in the first 10 months of 2012 dropped 6.58 percent when compared to the same period previous year, exports in this period were higher than the total automotive exports made in 2006. In the first 10 months of 2012, exports of the Turkish automotive

sector reached by worth US$15.6 billion. According to the data from Turkey’s Exporters Assembly (TIM), following the year 2000, Turkish automotive sector has directed to the foreign market regarding crisis in the domestic market. Until 2008, the exports of the sector enjoyed an increase between 16.35 – 52.3 percent every year. The highest export increase ratio was obtained in 2003 with 52.3 percent, as for the highest export value was gained in 2008 accounting for $24 billion 730 mil-

lion, on the other hand regarding the global economic crisis the sector experienced a big downturn in 2009. Automotive sector accomplished 15.55 percent in 2010 and 17.41 percent rise of exports accounting for $20 billion 400 million in 2011 respectively. In the first ten months of 2012, automotive sector’s exports became $15 billion 679 million plunging 6.58 percent, but left behind the export figure in 2006 that were worth $15 billion 482 million.

Despite decrease, the automotive sector has kept its leading and locomotive feature with 12.56 percent share in the overall exports of Turkey in the first ten months of 2012. The chemical sector with 11.68 percent share accounting for $14 billion 583 million became the closest sector to the automotive sector in the total exports of Turkey in the same period and then ready to wear and steel sector ranked in the export list of Turkey with 10.66 and 10.52 percentages respectively.

Gaziantep carpets across world markets

he carpets which are woven by the stateof-the art machines are exported to 140 countries from the southeastern province of Gaziantep, the fore-

Abdulkadir Cikmaz GAIB Chairman

most carpet production center of Turkey. Southeastern Anatolia Exporters’ Union (GAIB) Chairman Abdulkadir Cikmaz announced that years ago had

been as a center of kilim production, now Gaziantep has become the “center of carpet” which is woven through modern machines. Last year shipping $1 billion 147 million worth of carpet exports, the carpet makers in Southeastern province of Gaziantep eye $1,5 billion worth of carpet exports by the end of this year. This year between Jan – Oct, accomplishing $1 billion 209 million worth of carpet exports, the carpet producers exported mostly to Saudi Arabia, the USA, Iraq, Libya, Germany, Egypt, United Arab Emirates and Russia respectively in addition to other countries.

Turkish natural stone exporters aim worth $2 billion

y the end of year Aegean natural stone exporters aim $2 billion worth of exports in the sector, Arslan Erdinc, Chairman of the Aegean Mine Exporters’ Association, said. The Aegean Mine Exporters achieved $1,55 billion worth of exports in the first ten months 2012, this figure would reach by $2 billion, Erdinc said. He noted that natural stone has taken in the star sectors in the exports of Turkey, adding that the sector’s exports would reach by $7 billion by 2023. Head of The Aegean Mine Ex-

porters, Erdinc reminded that in the scope of renewing investments of New York JFK Airport, Burdur Beige Marble would be used. “It would be a prestige, regarding being used of Burdur beige marble at New York JFK Airport which is accepted the biggest airport in the world. In order to reach the objectives of 2023 in the aspect of natural sector, which allows us achieve the most value-added exports and employing mostly untalented labor force, we expect Burdur beige marble as prestigious for us to open new gateways,” Erdinc noted.

Turkish florists eye to ship 50 million branches of flowers Turkish florists aim to exports 50 million branches of cut flowers to account for $10 million for 24th December

urkey’s Central Anatolian Exporters Union (OAIB) hopes $10 million by exporting 50 million braches of cut flowers. Osman Bagdatlioglu, Chairman of Ornamentals Exporters Union, said in the release of OAIB, some days have importance for their sector such as 24th December, Valentino’s Day on 14 February and Mother’s Day on May which is celebrated second week. He underlined that demand for

flowers have increased in the aforementioned days. “Our sector is gaining to the outstanding turnovers in such days. Now Turkish carnation has come in the forefront due to being cheaper than in Europe. From now on, we have gotten remarkable orders first from the UK and Netherlands and then other European countries. In this period, we aim to exports 50 million branches of flowers to account for $10 million,” he said.

Bagdatlioglu stated that 80 percent of the cut flower producers have international certificate,

so before exported to the wholesalers now flowers can be given to supermarkets.

Foreign trade deficit decreased by 31.2 percent In October 2012, exports boosted 11.6 percent to worth $13 billion 292 million; imports decreased 5.6 percent to $18 billion 803 million over the same month previous year, so foreign deficit plunged by 31.2 percent

ccording to the statement of Turkish Statistical Institute (TurkStat) in October 2012; exports increased 11.6% and reached to 13,292 billion USD while imports decreased by 5.6% and reached to 18,803 billion USD compared with October 2011. At the same month, foreign trade deficit decreased from 8,012 billion USD to 5,511 billion USD. Calendar adjusted exports increased by 19.3% and imports decreased by 1.7% compared with October 2011. Seasonally and calendar adjusted exports increased by 0.7% and imports decreased by 4.1% compared with previous month. In October 2012 exports imports coverage ratio was 70.7% while it was 59.8% in October 2011. As compared with the same month of the previous year, exports to EU were 5,315 billion USD increased by 1%. However the export proportion

in the EU countries decreased by 40% in October 2012, it was 44.2% in October 2011. In October 2012, the main partner country in Turkey’s exports was Germany with 1,109 billion USD and decreased by 8.5% over October 2011. Germany was consecutively followed by Iraq (930 million dollars), the United Kingdom (900 million dollars) and United Arab Emirates (688 million Dollars) in Turkey’s exports in October 2012.

In October 2012, the top country for Turkey’s imports was Russia (2,286 billion dollars), and this country was followed by China (1,735 billion dollars), Germany (1,611 billion dollars) and the USA (1,041 billion dollars) respectively. Precious stones and metals are atop in exports In October 2012, “precious stones and metals” has by far highest value exported worth 1,515 billion dollars and then, “vehicle other than railway or tramway rolling-

stock, automotive parts” (1,304billion dollars), “boilers, machinery and mechanical appliances, parts” (1,046billion dollars) and “iron and steel” (962 million dollars). At the same period, the top categories for imports were “mineral fuels and oils” (4,961 billion dollars) and then “boilers, machinery and mechanical appliances” (2,152 billion dollars), “iron and steel” (1,686 million dollars) and “electrical machinery and equipment” (1,408 billion dollars).

Made in Turkey Economic Newspaper, December 2012

Turkish Minister Yıldırım: Road transport has vitality for developing trade

International Conference on “Prospects of Trade and International Road Transport Development in the Black Sea, Central Asia and Middle East Regions”, which was held in the western province of Izmir, stresses importance of implementing key UN multilateral facilitation and security instruments and developing ancillary road infrastructure to develop transport links and transit in the Arab world, BSEC and ECO regions.

Continued From Page 1 egarding wrong buyingselling, which was carried out in the past, the collapse in the global trade reflected to transport system by doubling. Towards end of 2009 we saw an upward trend again. In this trend paradigm changing has happened. The west cannot still able to develop a complete way and method to come out of the crisis, we see that trade and transport have shifted to Turkey and surrounding countries of Turkey. Now richness and production center of the world is moving from west of Turkey to east. In the global meaning, this is an economic paradigm

change. In other words, the economic superiority in the hand of America is seemingly shifting slowly towards the Far East and Middle East.” Minister Yildirim recorded, in 2011; Turkey achieved the biggest global growth with 9.1 percent following China, adding that in 2012 in order to prevent the risk of current account deficit ‘checked growth model’ was preferred. At the meeting, IRU awards Mr Binali Yildirim, Minister of Transport, Maritime Affairs and Communications of the Republic of Turkey, the IRU Order of Merit, in appreciation of his exceptional contribution to the de-

velopment of the road transport network in Turkey, including the introduction of ADR in 2010. “The International Road Transport Union (IRU) is pleased to announce that it has awarded the IRU Order of Merit to His Excellency, Mr Binali Yildirim, Minister of Transport, Maritime Affairs and Communications of the Republic of Turkey, in appreciation of his exceptional contribution to the development of road transport in Turkey and notably as an exemplary supporter of the IRU’s work to facilitate road transport on the main trade itineraries between Turkey and the ECO and BSEC regions,” the statement of IRU said. IRU Secretary General, Martin Marmy, commended Mr Yıldırım, highlighting, “Your work in developing road infrastructure, regulations and other programmes to increase road safety, have greatly contributed to the facilitation of road transport in Turkey. We are honoured to award you with the IRU Order of Merit as a token of our appreciation for your exceptional achievements”. “Since taking office in 2003, Mr Yıldırım has successfully achieved significant positive

developments for the road transport industry, including the first ever Turkish Road Transport Law, the reorganisation of a national vehicle technical inspection system using the best international standards and the launch of a programme worth some USD 180 million, to withdraw 76,000 old commercial vehicles from service. The share of investment in the transport and communications sectors increased from 17% of total public investments in 2003 to 46% in 2011, with the total investment in the transport industry over this period amounting to approximately USD 68 billion.” Moreover, he worked to regulate

Industrial production increases by 6.2% in September Turkish year-on-year industrial production figures performed a 6.2 percent recovery in September over the same month a year ago, representing a strong comeback from August’s decline.

Turkish Economy Minister Zafer Caglayan

ndustrial Production Index in September 2012 increased by 6.2% compared to same month in previous year, Turkish Statistical Institute (TurkStat) released. In the sub sectors level of industry, Mining and Quarrying Index increased by 10.8%, Manufacturing Index increased by 6.2% and Electricity, Gas, Steam and Air Conditioning Supply Index increased by 4.1% in September 2012 compared to the same month of the previous year. Calendar adjusted production index in September 2012 increased by 6.2%

compared to the same month of previous year and seasonal and calendar adjusted industrial production index increased by 3.9% compared to previous month. Over the release of industrial index which exceeded expectation with 6.2 percent in September 2012, Turkey’s Economy Minister Zafer Caglayan stated that last month when industrial production index paused has maintained its rise and featured the highest level in September up until now, underlining that the increase stemmed from the 21 percent export increase in September.

Upgrading of Turkey’s rating right decision

urkey’s International Association (YASED) announced upgrading of Turkey’s rating is a right decision yet Turkey must takes steps to clinch this success. Fitch Ratings’ Upgrading Turkey to Investment Grade is very suitable decision, YASED said. In its statement, YASED said, Turkey has been in a better situation than the countries where have

investment grade in terms of both debtlessness and other macro economic data. “Right and efficient management of the economy has saved Turkey from the risky stance. Turkey has overcome the global economic crisis process quick and easy due to realizing structural reforms, its tough structure, liquidity structure and continuously recov-

ering macroeconomic situation in the financial sector when compared with lots of countries,” the statement said. YASED noted in parallel to the Medium Term Program it is predicted 3.5 percent year-end growth and some $60 billion of deficit. “But reducing current account deficit to lower level in the upcoming periods, at the same time in order to get con-

tinuity of the sustainable growth, it is necessary to recover investment condition, continuity of structural reforms and value added production and increasing of investments. A positive trend in this direction, no doubt along with our upgraded rating, portfolio and big sized direct strategic investments would enhance in the next period,” the statement of YASED recorded.

conditions of access to the profession and the market, in full compliance with EU rules, and working hand in hand with the IRU, he successfully introduced ADR in Turkey in 2010. In terms of infrastructure, the inter-provincial state network of dual carriageways was increased from 6,000km to 22,000km, existing infrastructure was extensively repaired and modernised and other major road-building projects were undertaken including the construction of new main north-south axes. As a result of the improvements to the road network, the number and severity of traffic accidents decreased dramatically.

Turkish Deputy Prime Minister BülentArinc

Turkey, Yemen to enhance business relations

Continued From Page 1 urkish Deputy Prime Minister Arinc noted the agreements to foster the mutual investments and prevent double taxation as well as fresh impetus to financial and trade relations between the two countries, noting that they would maintain the meetings regularly. Arinc highlighted that big duties fall on the shoulders of Turkey in redeveloping of Yemen and they were ready for the duty. Arinc pointed out that there were crucial possibilities in Yemen related with the tenders in the projects to be developed and energy area in the aspect of Turkish contractors. He recorded that industry, trade, SMEs, health, agriculture, forestry, transport and urbanization services had been discussed at the meetings. “No doubt the decisions which have been handled in these meetings will provide great contributions to the two countries’ wellbeing. We, as Turkish government, will take steps in the shortest time in order to let the signed decisions enter into force,” Deputy PM Arinc noted. The agreements signed between Turkey and Yemen includes cooperation in transportation, technical and vocational training, youth and sports and housing.

Made in Turkey Economic Newspaper, December 2012

Turkey will become among top-20 partner in IMF

Continued from Page 1 oting that some 6 percent of quota shares would be shifted from over-represented developed economies to under-represented developing-economy member countries, Lewis said: “As a result [of this shift] Brazil, Russia, India and China will become among the top-10 shareholders. And Turkey will enter the

IMF Turkey Chair Mark Lewis

top-20, reflecting its economic weight.” The last part of the reform may be completed in the beginning of the next year. If Turkey’s economy continues its soft landing, the economic indicators are favorable, Lewis said. Marina Wes, lead economist for Turkey at the World Bank, said in her speech at the event that a growth rate between 4 and 5 per-

cent for Turkey was realistic in the medium term, while Turkey is estimated to grow at 3 percent this year. However, most of the Turkish economy’s difficulties are related to reducing the structural current account deficit, according to Wes. “We think that the current account deficit will stabilize at around 7 percent in the next few years,” she said. “[It can be decreased] by increasing internal savings, reducing external dependency in energy imports, developing renewable energy, increasing the ratio of exports to the gross domestic product and market diversification. All these measures will make Turkey less fragile in time,” she said. According to Mukim Öztekin, president of the Banking Regulation and Supervision Agency (BDDK), the international rating agency Moody’s did not elevate Turkey’s rating to the deserved

level, but did emphasize that Turkey was the only country in Europe with a positive outlook. Turkey’s economy will grow 3 percent this year and 3.5 percent next year, the International Monetary Fund (IMF) has predicted in its latest review. The IMF also expects inflation to fall to 6.2 percent next year from an estimated rate of 7.5 percent this year. The ratio of the current account deficit - a soft spot of the Turkish economy - to gross domestic product will be 7.5 percent this year and will drop to 7.2 percent in 2013, according to the IMFestimates. After growing well above global trends in 2010 and 2011, the Turkish economy has slowed to a more sustainable 3 percent growth rate this year, the fund said in a written statement. Growth has also become more balanced, as domestic demand

and imports decelerated on the back of tighter monetary and macro-prudential policies implemented in 2011. Exports continue to perform well thanks to successful diversification toward new markets, according to the report. The current account deficit has recently shrunk significantly, by 33 percent year-onyear in the 12 months to August. Inflation, both headline and core, is also coming down from its peak in early 2012. The Executive Directors of IMF commended the Turkish authorities for setting the stage for more sustainable and balanced growth in 2012, accompanied by declines in the current account deficit and inflation. They noted that the outlook was clouded by external uncertainties, and that Turkeyremains vulnerable to shifts in market sentiment, given the country’s still large external financing needs.

objectives for 2023. Our export objective is worth $500 billion for 2023. We want the share of our commodity trade from the world to double with this figure. In 2023, Turkey’s trade volume expected to reach by $2 trillion of GDP and to rank in the first ten countries of the world. Achieving these targets of course would be possible with much more competitive economy. Turkey is taking positive steps in this issue. In

2012, we have raised 16 grades in Global Competitiveness Index to 43rd line in 144 countries. Although this is very pleasing development but there is much way to go,” Buyukeksi said. “When regarded lower compounds of competition index, interesting data is met, Turkey has a value over the average of 10 in 12 indexes. Market bigness, development of finance markets, efficiency of com-

modity markets, technological infrastructure and general infrastructure are observed that we have emerged to the forefront in these compounds. As for health, basic education, high education and training at work place we are not sufficient,” Buyukeksi said. Buyukeksi highlighted that “reaching a competitive structure in all areas is one of the most important keys of sustainable competition power.”

Exporters invest on R&D and innovation

Continued from Page 16 n order to expand exports continuously in a sustainable way, Buyukeksi said they had been maintaining their all efforts in the scope of that consciousness, adding that Turkey had recorded a great advancement in recent years. “Ten years ago our per capita income was $2,123. In 2011, this figure surged by $10,469. Ten years ago our exports were $31 billion. In 2011, Turkey’s

export jumped by $135 billion. So that, we have gained a huge advancement within ten years. The point we have reached of course makes us proud. So we have achieved great businesses. Our state, industrialists, exporters, workers have done true things. Can we achieve much better ones? Of course, why not. I always believe to achieve better ones by giving hand in hand altogether. Within this framework, we have big

“We do not see future as dark” Continued from Page 1 “My advice for you, whatever conditions are you absolutely must complete your foreign language education. If you were in an environment where very good people have been, your success would increase as well. Of course, I do not say “stay at a narrow circle; do not negotiate apart from a group. But choose your friends well. Because of good friends provide contribution to your success every time,” Olpak marked. MUSIAD President Olpak stated that he gathers success in five stages, by saying: “If you will be successful you must possess a middle brain capacity. In terms of time, it should be acted as flexible; goodwill should be in every area of life. You should be hard-working. Your career objective should overlap with the targets of firm to which you would apply.” “We must use and also produce high technology” “When regarded in terms of economic, Turkey has been in an active process. Our economy is going well according to someone, as for others the economy is in a bad condition. but I would like tell with sincerely, when we have a look at the things have been experienced in Europe that we have taken as an example for a long time, as businessmen we are not pessimist about general table of Turkey at all. We say sufficient for the things which are available, but as of tomorrow morning we do not see it sufficient. We have stated our view with the report early this year. We mentioned a concept in the report so called ‘middle income trap’. Olpak said currently Turkey has $10,5 thousand per capita income; Turkey has objectives for 2023, and aimed $25 thousand per capita income. However, $25 thousand is not enough. Why it would not be $35 thousand? If we want to achieve that figure, there is a message of ours for public, private sector and universities. Our system and systematic that we have managed up to date are not enough. After this, we must act with the products and activities which feature high value added. What does it mean? It means that we must use and produce high technology. We will achieve this with educated human resources.”

Central bank cuts rates, hints at stronger action

Continued from Page 1 he bank kept the policy rate unchanged at 5.75 percent and it did not touch the lower end of the interest rate corridor that stands at 5 percent. Turkey’s economy expanded 8.5 percent last year, but the government trimmed its forecasts for growth in 2012 to 3.2 percent and forecast only a mild pickup in 2013. The central bank has been trying to boost growth without allowing the lira to strengthen too sharply. The prospect of a surge for the currency grew when agency Fitch gave Turkey its first investment grade credit rating in 18 years, pushing the lira to a threemonth high and prompting

Central Bank Gov. Erdem Başçı to warn he would act if it appreciated further. While not taking more dramatic action, the bank did again tinker with its reserve ratios and said that it could gradually begin to cut its main policy rate, the one-week repo rate, and overnight borrowing rate if needed. “This move tells me that the bank is now in a cautious mode, happy to have navigated through the earlier year travails on the exchange rate front, and content to ride through the soft landing phase for a little while yet,” Reuters quoted Timothy Ash, head of emerging markets research at Standard Bank, as saying. “The message is that it is

still a little early to put the foot to the floor on the gas again, when the current account deficit remains large, and financing risks are still considerable,” he said. “We think that since the Central Bank did not cut its policy rate or lower end , we expect to see a selloff in the bond market and stronger Turkish Lira. The Central Bank lowered its effective funding rate just below 5.70 percent, which is even lower than the policy rate of 5.75 percent now. We think that depending on the level of lira the Central Bank might deliver cuts in the lower end of the corridor or policy rate, but we think that we are not there yet,” said Özgür Altuğ, chief economist at BGC Partners, in a re-

search note. The bank increased the amount of foreign exchange that lenders must provide if they want to hold more than 40 percent of their required lira reserves in forex, in effect raising its reserve option coefficients and tightening the supply of foreign currencies. “We think the decreasing trend on the upper end of the interest rate corridor has come to an end and the Central Bank will be utilizing liquidity policy to sustain its expansionary stance in the future since the Central Bank refers to policy rate and borrowing rate with regard to its options in the forthcoming period,” said Odeabank Economic Research and Strategy.

Iskenderun readies for maritime base of East Mediterranean

he southern city of Iskenderun is being prepared for the investment worth $1 billion for the facility of ship maintenance-repair and dismount at the Maritime Specialization Industrial Zone of the city. The ship maintenancerepair and dismounting facility which will be installed at Maritime Specialization Industrial Zone in the southern city of Iskenderun might provide foreign currency worth $1 billion to the country. Per annum, approximately 6 thousand ships come to

the region of Iskenderun which has eight ports and ten docks. According to the statement, there are also 10 thousand ship traffic between Mersin and Iskenderun per annum. Some 1000 of those ships are aframax type super tankers. 11 percent of the world aframax trade is made in the Mediterranean region. As for number of ship which runs in the Mediterranean region is predicted 25 thousand units. In addition, increased ship traffic depends on new investments, privatization

of ports and power plants’ investments highlight needs for junk iron of the iron-steel facilities in the region. In this context, the Maritime Specialization Industrial Zone will shelter facilities to be able to make maintenance-repairing and dismounting of old ships. Bulent Kavsak, Chairman of Office of Maritime Chamber of Commerce in Iskenderun, said that a possible industrial zone would allow Iskenderun to be a maritime base of East Mediterranean. He added that they had approached

to final in setting up of Iskenderun Maritime Specialization Zone Inc. In case, the project is completed would make up jobs for 20 thousand people. Iskenderun Gulf has a suitable geographic position to meet needs of the ships which anchor the ports along with shoreline of the Mediterranean, in addition to the ships that cruise to the countries having shore in the Mediterranean, as well as docking needs of the ships which pass through Suez Canal.

Made in Turkey Economic Newspaper, December 2012

Balance of economic power to shift dramatically over next 50 years The United States is expected to cede its place as the world’s largest economy to China, as early as 2016, according to a new OECD report

he balance of economic power is expected to shift dramatically over the next half century, with fastgrowing emerging-market economies accounting for an ever-increasing share of global output, according to a new OECD report. Divergent long-term growth patterns lead to radical shifts in the relative size of economies. The United States is expected to cede its place as the world’s largest economy to China, as early as 2016. India’s GDP is also expected to pass that of the United States over the long term. Combined, the two Asian giants will soon surpass the collective economy of the G7 nations. Fast-ageing economic heavyweights, such as Japan and the euro area, will gradually lose ground on the global GDP table to countries with a younger population, like Indonesia and Brazil. Looking to 2060: A Global Vision of Long-term Growth uses a new model for projecting growth in the 34 OECD members and 8 major non-OECD G20 economies over the

next 50 years. The report forecasts global economic growth of 3 percent annually, with sharp differences between the emergingmarket economies, which are expected to grow at a much faster pace, and the advanced countries, which will likely grow at slower and often declining rates. Cross-country GDP per capita differences mainly reflect differences in technology levels, capital intensity, human capital and skills. “The economic crisis we have been living with for the past five years will eventually be overcome, but the world our children and grandchildren inherit may be starkly different from ours,” said OECD

Secretary-General Angel Gurría. “As the largest and fastest-growing emerging countries fully assume a more prominent place in the global economy, we will face new challenges to ensure a prosperous and sustainable world for all. Education and productivity will be the main drivers of future growth, and should be policy priorities worldwide. The shifting balance of long-term global output will lead to corresponding improvements in living standards, with income per capita expected to more than quadruple in the poorest countries by 2060. The increase could even be seven-fold in China and India. With

these gains, the gap that currently exists in living standards between emerging-markets and advanced economies will have narrowed by 2060. But large cross-country differences will persist. China will see more than a seven-fold increase in per capita income over the coming half century, but living standards will still only be 60% of that in the leading countries in 2060. India will experience similar growth, but its per capita income will only be about 25% of that in advanced countries. “None of these forecasts are set in stone,” Mr. Gurría said. “We know that bold structural reforms can boost long-term growth and living standards in advanced and emerging-market economies alike.” OECD research shows that wide-ranging labour and product market reforms could raise longterm living standards by an average of 16% over the next 50 years relative to the baseline scenario, which only assumes moderate policy improvements.

Exports up, foreign trade deficit down! Continued from Page 1 “At $13.3 billion we’ve reached our highest monthly export numbers yet,” Turkish Economy Minister Zafer Çaglayan said. Those numbers reflected the economy’s ability to diversify and shift away from a Europe mired in economic woes and continued growth amid a “soft landing” of reduced growth. Çaglayan said that the numbers put Turkey well on its way to reaching the $150 billion export target for 2012 that the government’s medium-term economic program (OVP) put forward, seeing $126.3 billion in exports between January and the end of October. Over the same period last year, that number was $111.3 billion. Slowing domestic demand saw imports drop over the same period, falling 2.9 percent to $195.8 billion from $201.6 billion during the first 10 months of last year. As imports slowed and exports rose by $15 billion, the total value of exports equaled 64.5 percent of the total value of imports, one of the highest levels in the past decade and a near 10 percent improvement from the 55.2 percent seen in last year’s October report. The trade deficit remains a perennial problem in a country forced to import roughly 98 percent of the fossil fuels it consumes from abroad. That price of dependency was clear in the report’s assessment of the foreign trade deficit without energy factored in, amounting to just $33.2 billion, the lowest number in 24 months and nearly half of the record $61 billion trade deficit seen in November of 2011.

The high October numbers reflected a growth of Turkish exports in new and developing markets, with Turkey’s once Europe-focused exporters gaining ground in Africa, the Middle East and Asia. In October the percentage of Europe-bound exports declined to 40 percent of total exports over 44.2 percent in October last year. Trade with Europe is at a standstill, with TurkStat stating that the total value of sales to European markets grew by 1 percent to $5.3 billion, a modest growth cancelled out by inflation. The largest Turkish export market remained Germany, Turkey’s long-time number one and one of the eurozone’s few growing economies. Trade nevertheless fell between October 2012 and 2011, falling by 8.5 percent to $1.1 billion. Close behind was trade with Iraq, which totaled $930 million in the month of October. Bereft of its own infrastructure and domestic industries, the country has become a key market for the

Turkish consumables and construction sectors. The report emphasized that Turkish exports are chiefly comprise manufactured goods, which make up 93.9 percent of exports over the month. That number comes as Turkish exports of gold have skyrocketed in recent months, fueled by a gas-for-gold trade to sanctionsstrapped Iran. T-Bank chief economist Veyis Fertekligil said that if gold was factored out from the export numbers, gains would be much more modest. Also among the economist’s concerns was slowing domestic demand, which he said was a worrying sign for an economy looking to accelerate growth in the coming year. Çaglayan nevertheless remained optimistic on the report, stating that a diversified export market was the key to higher numbers amid Europe’s fragile economic outlook. “Our exporters are now forced to look at every country in the world as a potential market,” Çaglayan pointed out.

Made in Turkey Economic Newspaper, December 2012

Exporters of hazelnuts eye to sell 270 thousand tons T

his season approximately 270 thousand tons hazelnuts are aimed to be exported, Dursun Oguz Gursoy, Coordinator Chairman of Black Sea Exporters’ Unions, said. Gursoy reminded that export season of hazelnuts had started in September 2012. Since the beginning of the season, they were continuing to export to some 100 countries, currently 84 thousand tons of hazelnuts have been exported, Gursoy said. “Contributing to the cultivation of hazelnut in Turkey, its exports are also

continuing paralleling to the production in a fast way. Up until now $470 million worth of exports has been accomplished. When we make a comparison with the same period previous year, we exported 65 thousand tons of hazelnut last year. But return of foreign currency was worth $500 million. Despite 30 percent more hazelnuts were exported this year in the said period, we got 6 percent less foreign currency regarding traded in low rate over the last year,” Gursoy said. He said that they aimed to export 270 thousand tons hazelnuts by the end of the

season, 31 August 2013. Gursoy continued to say; “In this season 270 thousand tons are targeted to export. Our expectations are in this direction. But this can change in line with some conditions. Our hazelnuts markets mostly are European Union countries. However, these countries have been experiencing a crucial economic crisis. But our forecast for the exports of hazelnut would exceed last year’s. Last season, we exported 230 thousand tons of hazelnuts. This year 270 thousand tons of hazelnuts would be sold. The figures show this forecast to us.”

Exports of olive oil enhance

xports of olive oil, which decreased since the season of 2005-2006, has boosted 33 percent over the same period last year. The statement from the Aegean Exporters’ Unions revealed that Turkey’s olive oil export indicates “stop” to bad condition lasting during 6 seasons. In 20052006 season, exporting olive oil worth $294 million, Turkish olive oil sector has faced with a bad table when compared with the previous season and in 20102011 dropped by worth $49 million. Ending on 31 October 2012, in the past season Turkish olive oil sector accomplished $65,4 million worth of olive oil exports and enjoyed 33 percent increase over the previous season. Ali Naim Gureli, Chairman of

Aegean Olive and Olive Oil Exporters’ Union, noted that regarding drought in 2007 – 2008, the olive oil sector had entered into trouble in the aspect of high in quality and raw material. “In Turkey, olive trees’ existence has reached by 170 million from 90 million with planting since 2000 to date, Gureli said, adding that over 500 thousand tons olive harvest would be gained in a near future by the new planted olive trees. In Turkey’s olive oil exports, the USA ranked first with worth $11,3 million, this country was followed by Saudi Arabia with $10,9 million worth of olive oil exports. Taking place in the targeted markets Japan was exported $7,5 million worth of olive oil. Turkey

exported olive oil to 98 countries in the season of 2011-2012.

Continued from Page 16 Aksoy noted that in industrial production in Sept showed an astonishing increase, over the expectation. “When we look at the sectors there is a rise which has spread into the sector. According to our accounts the motorized vehicles draw attention increasing 13 percent in production as seasonal and calendar adjusted over the previous month. Also in all manufacturing sectors saw production increase,” Aksoy added. Marbas Stock Exchange Research Manager Uzeyir Dogan, said; “If this industrial production increase will continue in the upcoming months, the Central Bank could oblige to make

brake again.” Dogan said that industrial production made surprise in Sept. following August too. Decreasing surprisingly and increased concerns about soft landing has turned into a hard plunge in August, this time industrial production saw a surprise rise in September. This figure has showed that concerns are futile, Dogan said. “I think CB will continue to defense its soft landing scenario. Decrease in interests lasting in last two months would cause domestic demand invigoration. This would bring reacceleration in November and December and subsequent months. This condition would prop the CB

to brake and to limit drop in interests, Dogan recorded. Garanti Investment Economist Gizem Oztok Altinsac also commented industrial production increased over the expectations in September. He drew attention that recovery in the imports’ data indicated the economy has started higher growth rate in the 4th quarter. “We can say that the worst quarter in the economy had stayed behind. In 2013, we foresee 4 percent growth. However, if capital entrance would be high, the growth figure can become bigger. The first quarter of 2013 is crucial in order to realize the main route of the growth,” Altinsac concluded.

Turkish business circles hopeful for higher growth in 2013

Dried food consumption and exports in rise

ried food consumption reaches by nearly 500 thousand tons per annum accounting for $3,5 – 4 billion in the domestic market, Muammer Caputcu, Chairman of Dried Food Industrialists and Businessmen Association (TUKSIAD), said. He indicated that dried food consumption owned a crucial place in culinary culture, adding that dried food sector have come to a remarkable sector with its increased diversity and modern production facilities in recent years. “In our country lots of dried food can be grown depending on the geographic condition, besides Turkey is an authority in hazelnuts, raisin, apricots and figs across the world,” Caputcu recorded. The most sold dried food kinds in Turkey’s domestic market were sunflower seeds, groundnuts, hazelnuts, pistachio nuts, roasted chickpeas and pumpkin seeds, total of these weigh up 350 thousand tons, he said. Sector grows 10 percent per annum Caputcu underlined that dried food sector has won great advances in recent 5 years both production and exports and said, “The sector has achieved the world standards with the state-of-the-art production machines and types of packaging. Turkey’s food sector grows 10 percent every year. This happens regarding growth of domestic market as well as exports. Turkish food sector has passing through a structural process. This transformation promotes in the scope of the EU integration process and increased exports to the countries out of the EU. On the one hand, the exports are growing, on the other hand consumers’ high in quality demands rise in the domestic market.” $650 million worth of dried food exports Apart from exports of hazelnuts, some of them for being used in chocolate, pastry products and other industries, Turkey’s dried food exports account for worth US$650 million. As for the imports of the sector were US$150-200 million, so the sector yields foreign trade surplus, Caputcu said. The dried foods are mostly exported to European countries and the USA, and then to Russia, Mideast and North African countries, he said.

Made in Turkey Economic Newspaper, December 2012

THY- Rising star of global aviation

Turkish Airlines adds 200th aircraft to its fleet...

Continued from Page 1 hose in attendance included Turkish Airlines Chairman Hamdi Topcu, and General Manager Temel Kotil, Ph.D., as well as Turkish Airlines’ senior managers, employees and media representatives. Speaking at the ceremony, Turkish Airlines Chairman Hamdi Topcu said, “As a company, we continue to achieve our goals one at a time. We first celebrated the arrival of our 100th aircraft and now we have reached our next goal of 200 aircraft in the fleet. Our next goal, as we continue to expand, is 300. When we began our

expansion in 2003, there were only 54 aircrafts in the fleet and we flew to 103 destinations. That number is now 205 cities in 90 countries. The fleet in 2003 required only 651 pilots and 1579 cabin attendant. Those staff numbers now have grown to 2445 cockpit and 5344 cabin attendant.” He noted that “All of these are signs of a growing Turkish Airlines.” Additionally, he pointed ou that, “The global economic crisis has shrunk in the aviation sector. Many companies went bankrupt. Previously independent flag carriers have partnered with other

companies to survive in an increasingly complex global environment. However, during this period, , Turkish Airlines has stood alone and continued to grow. We will continue to expand and grow from within.” Speaking at the ceremony, Turkish Airlines’ General Manager Temel Kotil, Ph.D. remarked that ‘’We now fly to 90 different countries around the globe. While it seemed like a dream to many, I have anticipated this achievement for some years now and announced our intentions at the IATA AGM some years ago.’’ He said that “I am more

optimistic on our 2023 goal becoming the world’s largest airline network. We intend to become a 5-star airline and the leading carrier in our region, home to 1.5 billion people.” Following the ceremony, the Boeing 737-900, parked in front of the hangar and with a special sticker “200”, entered line service and began its job of carrying passengers. Turkish Airlines scored a resounding success at the 2012 Skytrax World Airline Awards, with air travellers voting the airline as the “Best Airline in Europe”, the second year running. Turkish Airlines has been also named by Sky-

trax as the winner in the categories, “Best Airline in Southern Europe” and “Best Premium Economy Class Airline Seat” for its Comfort Class seats. According to the results of the 2012 evaluation , Turkish Airlines has been chosen as the winner of the 3 categories by Skytrax which is a globally recognized brand associated with ranking air travel excellence in the 21st century. It provides unique expertise to the world airline and airport industry through its professional Audit and Service Benchmarking programs of Product and Service Quality. The annual Skytrax survey, polled over 18 million business and leisure air travellers from 100 countries, with the winners of these passengers’ choice awards announced at the Farnborough Airshow, in the UK on July 12, 2012, with the awards presented to Turkish Airlines’ General Manager Temel Kotil Ph.D. by the CEO of Skytrax, Edward

Plaisted. “Turkish Airlines continues to consolidate its position as one of the world’s leading airlines and the awards they have received today for “Best Airline in Europe “ and the “Best Airline in Southern Europe” demonstrate their continued popularity amongst passengers. Turkish Airlines

Premium Economy cabin product has proved increasingly popular and the award Turkish Airlines collected for the Best Premium Economy Class Airline Seat is a clear reflection of the success of this high quality product” said Edward Plaisted of Skytrax. One of the fastest growing airline companies,

Turkish Airlines has previously received several “Passengers Choice Awards” from Skytrax. The airline has won Skytrax Awards for the “Best Airline in Southern Europe” for the past 2 years, and in 2009 the airline received the “Skytrax World Aviation Award” known as the Oscar of the Aviation industry

TURKEY OFFERS INVESTMENT OPPORTUNITIES 1. SUCCESSFUL ECONOMY Booming economy; more than tripling its GDP, reaching USD 772 billion in 2011, up from USD 231 billion in 2002 (TurkStat) Stable economic growth with an average annual real GDP growth rate of 5.2 percent over the last 9 years (TurkStat) Promising economy with a bright future as it is expected to become the fastest growing economy among the OECD members during 2011-2017 with an annual average real GDP growth rate of 6.7 percent (OECD Economic Outlook No. 86) 18th largest economy in the world and 7th largest economy compared with the EU in 2011 (GDP at current prices, IMF WEO) Institutionalized economy fueled by USD 110 billion of FDI in the last 9 years and ranked as the 13th most attractive FDI destination in 2012 (A.T. Kearney FDI Confidence Index) A dynamic and mature private sector with USD 135 billion worth of exports and an increase of 275 percent between 2002 and 2011 (TurkStat) 2. POPULATION A population of 75 million (2011, TurkStat) Largest youth population compared with the EU (Eurostat) Half the population under the age 29.7 (TurkStat) Young, dynamic, well-educated and multi-cultural population 3. QUALIFIED AND COMPETITIVE LABOR FORCE Over 26 million young, well-educated and motivated professionals (TurkStat) Increasing labor productivity The longest working hours, and the lowest sick day leaves per employee in Europe with 52.9 hours worked per week (2011, Eurostat) and annual average of 4.6 sick days per employee (2008, Mercer) Approximately 500,000 students graduate annually from over 170 universities (2011, Student Selection and Placement Center-OSYM) More than 700,000 high school graduates with around half from vocational and technical high schools (2011, Ministry of National Education) 4. LIBERAL AND REFORMIST INVESTMENT CLIMATE The second biggest reformer among OECD countries in terms of its restrictions on FDI since 1997 (OECD FDI Regulatory Restrictiveness Index 1997-2010) Business-friendly environment with average of 6 days to set up a company, while the average in OECD members is more than 12 days Highly competitive investment conditions Strong industrial and service culture Equal treatment for all investors Around 30,000 companies with international capital

International arbitration Guarantee of transfers 5. INFRASTRUCTURE New and highly developed technological infrastructure in transportation, telecommunications and energy Well-developed and low-cost sea transport facilities Railway transport advantage to Central and Eastern Europe Well-established transportation routes and direct delivery mechanism to most of the EU countries 6. CENTRALLY LOCATED A natural bridge between both East-West and North-South axes, thus paving the way for an efficient and cost effective outlet to major markets Easy access to 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa Access to multiple markets worth USD 25 trillion of GDP 7. ENERGY CORRIDOR AND TERMINAL OF EUROPE An important energy terminal and corridor in Europe connecting the East and West More than 70 percent of energy resources are located in the south and the east of Turkey, while the largest energy consumer, Europe, is located west of Turkey. LOW TAXES & INCENTIVES Corporate Income Tax reduced from 33 percent to 20 percent Individual Income Tax varies from 15 percent to 35 percent Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones could include total or partial exemption from Corporate Income Tax, a grant on employer’s social security share, as well as land allocation. R&D and Innovation Support Law Incentives for strategic investment to decrease imports, for large-scale investments, as well as for regional investments 9. CUSTOMS UNION WITH THE EU SINCE 1996 Customs Union with the EU since 1996, and Free Trade Agreements (FTA) with 22 countries (19 in force, 3 pending ratification) More FTAs underway Accession negotiations with the EU 10. LARGE DOMESTIC MARKET 50 million internet users in 2011, up from 4 million in 2002 65 million mobile phone subscribers in 2011, up from 23 million in 2002 51 million credit card users in 2011, up from 16 million in 2002 118 million airline passengers in 2011, up from 33 million in 2002 31.5 million international tourist arrivals in 2011, up from 13 million in 2002

10 MILLION DOLLAR INVESTMENT OF EMKO IN 2013 The Chairman of Boards of Arı Group of Companies Mr.Yusuf Günay expressed his aims for 2013

he Chairman of Boards of Arı Group of Companies, Mr.Yusuf Günay expressed that EMKO which is one of the companies of Arı Group aim to activate 10 million dollar pipe and profile production investment in 2013. Explaining that Emko has been making production since 1993, Mr.Günay continued his speech as follows : “Heating is a basic need for humanbeing so we decided to deal with heating systems production having high quality standarts and high technology in heating sector. Our production capacity was 150.000 mt and we were able to use 50% of it and our products were sold to Germany and Hungary abroad and in the Black Sea and Marmara region in Turkey. Now, in our factory, we make our production with 3 different production lines and with 1.000.000 mt capacity in 70.000 square meters closed area and export our products to 5 continents, from America to China, to 43 countries. I believe that we will enter new countries with our high quality products. We always pay attention to be industrious, qualified and honest. We used world wide known Erdemir A 1 quality raw material in our all products. Keeping up with change and development has always become our basic principle. We are the unique company

producing all accesorries and required parts for panel radiators in our own factory . So that we reach the integrity of our quality. we have been working for our new towel radiator production line which is completely Turkish product and having high technology. We try to do our best for making it to work acitvely in 2013. By increasing our towel radiator production capacity from 100.000 pieces to 500.000 pieces, will be able to present more high quality EMKO products to our customers. In addition, Our new pipe production plant has been carried out in terms of our companies’ horizantal growth aim We plan to activate our this new plant in 2013. In the end, with its 10 million dollar cost of investment and 40.000 tones of steel processing capacity, 80 people will work there. Moreover, we have a plan to make our growth continue by establishing a new factory in our firend and near country, Persia. We determined place for factory and got public work permit and have dealt with bureaucratic procedures to get bencouragement from Iranian government We sell our EMKO branded solid fuel boilers with TSE AND CE certificates to all regions of Turkey and to eight countries. We get extra appreciation from our customers who use our solid fuel boilers.

EMKO Heating Systems is a company of Arı Group Companies. By improving its growth by day, Arı Group of Companies operate in : In Mining area : Coal, Bauxite, Leonardite In Construction area : Brick and Lime Factories In Health Areas : Private Hospital and Medical Firms In Service Area : Shopping Mall Operation, Transportation, Exchange Offices and etc. with 11 companies and more than 1000 employers is leading group in its area. “Actions speak louder than words” and we show not only our words but also our actions. “ In 2013, our new projects and our efforts with our new employees and work force will go on in full.

The Chairman of Board of Arı Group of Companies Mr.Yusuf Günay

14 -_14. sayfa 18.11.2011 19:14 Page 1

Made in Turkey Economic Newspaper, December 2012 Made in Turkey Economic Newspaper, November 2011

Flow of capital fromBill Asia increases Turkey’s Budget 161 percent

to be discussed at the F parliament low of capital from Asia boosted 161 percent between January – August this year over the same period 2011. As for flow of capital from the EU countries plunged 39.2 percent. According to the data compiled from the Ministry of Economy, the flow of capital which takes place in the scope of items of foreign direct investment reached by worth $7 billion 712 million between January – August 2012, the said capital was $10 billion 910 million in 2011. Some 77.4 percent of the foreign Continued 1 capital of $7From billionPage 712 million he Budget Bill for 2012 came from the EU countries, aims to boost employ13.7 percent from Asian coungrowth andother savtries andment, 8.9 percent from ings, strengthen fiscal discicountries. plineflow andofreduce The capital the fromcurrent the account deficit, according Asian countries expanded 161to the statement of months Turkish percent in first eight Finance Minister Mehmet this year compared with the Simsek. same period previous year.

While being $405 million in the apart from member states of Eu- tal increased 75 percent in the first eight months last year, the ropean Union, the flow of capi- first eight months 2012. flow of capital from the Asian countries reached by $1 billion 59 million in the same period this year. The flow of capital from the EU countries plunged 39.2 percent from $9 billion 830 million to $5 billion 968 million in the first eight months 2012. In this period, flow of capital from Germany raised from $289 million to $299 million; from the UK from $656 million to $1 billion 966 million; from Italy it raised from $73 million to $130 The Bill, presented by Simsek tion rate for 2012 the minister science, technology and million. to the Parliamentary Planning said, “We anticipate the inflaresearch-development were In this period the flow of capital 6 3 5 8 4 7 2 9 1 7 to 2 reach 8 1 by37.89 percent 5 6 andFrance Budget Commission, pre- tion4 rate supported more in the Bill, the from plummet from $879 1 8 9 added. 5 6 2 3 7 4 1 8 9 due 4 5 to 6the7 loss 2 in 3 dicted to achieve 1.4 trillion temporarily minister million to $67 million; from the 4 2Budget 7 9 Bill 1 3was 8 prepared 5 6 Turkish Liras domestic the5lira’s The 3 value 6 9 this 7 2year, 4 strong 8 1 Netherlands fromof$1gross billion 273 product (GDP), 4 percent domestic demand and recent in accordance with the 5 4 3 6 7 8 1 2 “prag9 7 4 5 6 3 9 8 1 2 million to $931 million; from growth, 5.2 percent year-end tax increases. But we project matic macroeconomic projec2 7 8 1 9 4 6 3 5 8 9 1 7 2 5 3 6 4 the other EU countries from $6 inflation, $148.5 billion by the end of tions of the government’s medibillion 660 million to $2 billion in that2 it 6will3 recede 9 6 1 2 3 5 7 4 8 1 4 8 5 9 7 exports and $248.7 billion in 2012.” um-term program” unveiled 575 million. 3 1 4 7 5 6 9 8 2 9 2 7 3 8 1 6 4 5 imports in 2012. The real economy, investments, earlier this month, Minister From other European countries 7 9 2concluded. 4 8 1 5 6 3 3 5 development 8 2 6 4 projects, 1 7 9 Acting prudently about infla- regional Simsek

Turkey’s Budget Bill which will be legislated by the National Assembly predicted to achieve a 1,4-trillion Turkish Lira of gross domestic product (GDP), 4 percent growth, 5.2 percent year-end inflation, $148,5 billion in exports and $248,7 billion in imports in 2012

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The Big 5ofShow Exports steelDubai opens its to doors continue boost Trade fair for construction and contracting, in October The Big 5 2011 will be running from 21–24 November 2011 at the Dubai International Exhibition & Convention Centre, Dubai, UAE

facing challenges and seizing Continued From Page 1 longside the exhibition opportunities. there will be a variety of It is the gateway to the Middle events like The Big 5 East and North Africa (MENA) Technical Conference, The Big providing both exhibitors and visiGreen Trail and The Big 5 GAIA tors with the opportunity to conAwards. The BIG 5 SHOW is duct serious business with likeccording to the Turkish Union of Steel Exporters (CIB), Turkey accompanied by THE BIG 5 PMV minded professionals. exported steel worth US$13.1 billion in the first 10 months of that is a dedicated arena for plant, The Big 5 is an audited show that 2012. machinery, tools & Turkey’s exports of steel were up 11.09 percent in the first 10 months of construction. 2012 over the same period previous year. Turkey exported 16.7 million tons of steel in the first 10 months of 2012. About The Big 5 Most of Turkish exports of steel went to the Middle East (6.9 million ton) followed by the European Union (1.8 million tons). For more than 30 According to announcement from Turkey’s Steel Exporters’ Union (CIB), years The Big 5 has despite the economic crisis in the foreign markets in recent months, inprovided a business creasing its exports continuously Turkey’s steel sector accomplished 10 and networking platmonths period of 2012 with increase. form for the conWhen other iron steel products added, Turkey’s steel exports reached by struction industry. It 18 million as amount, as for value the exports reached by US$14,8 bilis an opportunity for lion. In the first 10 months, the Mideast ranked first with 6,9 million tons buyers and sellers of in Turley’s steel exports, this region was followed by European Union construction prodwith 1,8 million tons and North Africa with 1,7 million tons. The most ucts and services exported products were flat bar with 7,43 million tons, ingot with 2,73 from around the million tons, pipe with 1,51 million tons, profile with 1,41 million tons world to source an and flashmin with 940 thousand tons. astounding array of In October 2012, Turkey’s steel exports became 1,79 million tons and as the very latest techfor value was US$1,33 billion. In October 2012, Turkey’s steel exports nologies, innovations boosted 18.9 percent as amount and 1.7 percent as value over the same and techniques. month previous year. More than an exhibition, the event last year attracted 35,166 unique In October, the Mideast took the first stopbuyers, with 657 thousand tons;onthe a 7% increase 2009. provides attendees with unrivalled EU followed it with 224 thousand tons andThe North Africa with 202 Big 5 2011 will thoube running access to information, intelligence, sand tons respectively. contacts and hands on experience. from 21 – 24 November 2011 at The most exported steel products in October were flat bar with 732 thouExperts from around the world the Dubai International Exhibition sand tons, 406 thousand tons of ingot, pipe with 168 thousand tons, filengage in the industry's most topi- & Convention Centre, Dubai, mashin with 104 thousand tons and profileUAE. with 103 thousand tons. cal discussions, finding solutions,

A A

of Tourism on decision-makers CECRA and ECD Ministers support CARS 2020 callLeaders of sector at 3rd Action Plan to use tourism to stimulate theLabel economy Private Products Fair

challenges of fiscal con- the impact of tourism in e need to con- solidation and increased fostering social wellbeing in many and understanding, and vince our deci- taxation economies, it is time for the need for it to address sion-makers of the challenges of sustainus to recall the role the importance of tourism able development and clitourism can have in to the economy and increasing exports, drivmate change to ensure a employment,” said Mr. ing economic growth and sustained future. Ministers Frederic Lefebvre, creating jobs,” he added. also stressed the need to Minister of Tourism of The debate highlighted reduce travel barriers and France, opening the meetthe multiplier effect of increase investment to ing. “In these challenging tourism on other sectors of move the tourism agenda times, we need to maxiforward. the economy in terms of mize our strengths and “In this period of economoutput, and particularly tourism is one of them,” ic transition, tourism is a employment, as well as he added. aims at adopting common principles on vertia level playing field on the driver single of market by strong developthe contribution of the “Tourism can be part of cal agreements on the distribution of new vestrengthening the single market for vehicles ment,” said Mr. Antonio sector to minimizing trade the solution to the ecohicles. These should include clauses pro- through improved type-approval system, Tajani, Vice-President of in an many nomic difficulties facingthatunbalances mote transparency and a competitive playing including market surveillance, to avoid unfair the European Commission economies and promoting the world,” said Mr. Taleb field including dispute settlement procedures, and responsible for regional competition. development. Rifai, UNWTO Secretaryminimum notice periods for termination of The adoption of the Action Plan, following Industry and With one billion tourists General. “Amid increased contracts, provisions to multi-branding the CARS 21 Final Entrepreneurship. Report June 2012,“As is not we set to cross international economicrelated uncertainty, – certainly unacceptably for those whohigh had uneminvested borders when in the2012, end of process. Inan order to monitor the face economic and conthethe meetthe framework encouraged represent implementation of the policiescrisis, announced and fidence all sectors ing furthermore stressed ployment ratesto and the several brands- and the transfer of business. continue the dialogue with the stakeholders, a CECRA asks since several months to put an dedicated process will be established called effective mechanism in place to ensure that “CARS 2020”. CECRA will be part of this these actions are implemented in practice. group and will continue to insist on the necesThe Commission also wants to ensure there is sity to tackle the specificities mentioned above.

he European Council for Motors Trades and Repairs (CECRA) and its European Car Dealers (ECD) support the CARS 2020 Action Plan but ask to focus also on the automotive dealers and repairers. The CARS 2020 action plan presented on 8 Nov. 2012 by European Commission VicePresident Tajani, Commissioner for Industry and Entrepreneurship, aims at reinforcing the competitiveness and the sustainability of the automotive industry toward 2020. CECRA welcomes in particular the fact that the cooperation with the European Investment Bank will be reinforced to finance an innovation boost and facilitate SMEs access to credit. This had already been asked in the past and we are particularly pleased to have been heard. Indeed, if the industry provides over 12 million jobs, CECRA has emphasized the necessity to focus not only on the 2 million direct manufacturing jobs but also on the 10 million indirect jobs among which an important part is supplied by automotive dealers and repairers. Special attention should be directed towards these jobs that are provided by SMEs and which cannot be relocated. Access to credit in particular for the dealers and the repairers is very important as they have to invest a lot in order to fulfill the standards of the manufacturers. SMEs should be a priority for the Commission as they were the basis of the “Small Business Page Act”Continued for EuropeFrom launched in 16 2008. This ‘Think n September 2011, financial SMEs investment Small First’ principle aims at promoting tools were listed in descending order with growth by taking into account SMEs’ characrespect to their yearly real profit rates as teristics when designing legislation, simplify follows: Gold (ingot), Euro, US the existing regulatory environment and tackleDollar, Interest and Stock The real the Deposit remaining problems which Exchange. hamper their profit rates of gold (ingot), Euro and US development. Dollar were 49.59%, 12.73% and In this context, another important issue for CE-7.58% respectively, however in legal the certainty same period. CRA is the necessity to obtain Deposit Interest and Stock Exchange lost by regarding the regulatory framework. How can 3.99% and -19.07% respectively, according to you invest money if you are not able to transfer PPI. The real profit rates of gold (ingot), your activities or when your contract can be Euro, without US dollar Deposit Interest were cancelled any and reason nor compensa58.04%, 19.11%, 13.66% and 1.44% tion? Meanwhile, CECRA will follow up veryrespectively,the however according to CPI the same carefully proposals which will be in made period Stock Exchange lost by -14.50% during the multi-stakeholder dialogue which respectively. will be set up by the Commission and which

Continued From Page 1

Stock Exchange yields maximum monthly profit in September

In September 2011, maximum monthly real profit rate was realized in the Stock Exchange according to Consumer Price Index

Trade in free zones up

In the free zones, trade increased 28.4 pct to $14,9 billion in eight moths. The majority of the trade was accomplished at the Aegean Free zone with $3,5 billion. According to the data of the Ministry of Economy, the most trade was achieved at the Aegean Free Zone, increasing 133 pct to $3,5 billion in the first eight months of 2011. The trade was $1,5 billion over the same period previous year. As for the Istanbul Industry and Trade Zone

ranked second with $2,7 billion in the same period, but the rate decreased 2.6 pct compared to the last year. At the Mersin Free Trade Zone, trade became $1,7 billion, rising 20.71 pct. Despite decreasing 8.83 pct, trade at the Istanbul Ataturk Airport became $1,5 billion listing in the most traded zones. At the European Free Trade Zone, the trade expanded 78.2 pct to $1,4 billion. As for the trade, which was accomplished in lowest level, happened at the Mersin Free Trade Zone

with $2,5 million; $3,3 million at the Rize Trade Zone; $40,7 million at the Trabzon Free Trade Zone. Most of trade to OECD and EU countries The majority of the trade accomplished to Organization for Economic Co-operation and Development (OECD) and European Union (EU) countries with $6,7 billion, increasing 35.9 percent over the same period last year between January – August 2011. The trade to the 27 EU countries realized as $5,4

should contribute to over- formed to advocate the and environmental come difficulties and value of tourism within change. rivate Label Industry 61 countries whose %33 are from tourism can2012, makethe a signifthe strategies of economic The next meeting of the 3rd Private La- Balkans and Eastern Europe, icant contribution to this recovery/growth; it aims T20 will be held in bel Products Fair is being %29 from Middle East, %11 from effort,” he added. to position tourism as a Mexico, in May organized by TUYAP Fairs, Inc., Western Europe, %8 from Afri- 2012. The in T20 is an initiative driver of economic, social cooperation with (PLAT) Prica, %7 from Caucasus.

vate Label Association of Turkey In addition to individual visitors, between the dates of December, Tuyap organized international 6 - 8 2012 at TUYAP Fairs, Con- purchasing delegations from Alvention and Congress Center, bania, Azerbaijan, Bosnia HerzeBuyukcekmece, Istanbul, Turkey. govina, Croatia, Egypt, Georgia, Tuyap and Plat have given hand Greece, Iran, Iraq, Jordan, Kosoin hand for the future of the sec- vo, Kuwait, Lebanon, Macedotor. nia, Morocco Montenegro, RusAccording to the announcement sia, Serbia and Syria. of the fair; 25,000 visitors from 60 countries, special purchasing PRIVATE LABEL INDUSTRY committees of 700 persons will 2012, the 3rd Private Label Prodbe attending to the fair. ucts Fair will be organized conTuyap offices in Russia, Georgia, currently with; Iran, Egypt, Bulgaria and Mace- FOODist - 6th Istanbul Food and donia will be attending to the Beverage Fair fair. By support of Turkey’s Min- MAMTEK ISTANBUL - 2nd istry of Economy with the co- Shops, Shopping Centers, Market operation of Exporters’ Unions, Systems, Equipment and Logispurchasers from 24 countries tics Fair will come. Meanwhile, informa- HORECA ISTANBUL, 2nd Hotion and invitations have been tel, Restaurant, Café, Bar and Casent to 300,000 professionals, tering System, Equipment, Furbesides VIP invitations for 3,000 niture and Textile Products and purchasers. The leaders of the Supplies Fair sector will be at this fair. The synergy made by the four A total of 339 companies and projects will provide participants company representatives from with an effective and multifac21 countries participated concur- eted discussion platform, accordrently organized in Private Label ing to the statement of the fair Industry, Foodist, Mamtek Istan- organizers. bul and Horeca Istanbul Fairs in 2011, according to the statement of the fair organization. Consequently, the Industry Gained Momentum with the Synergy of the Events. A total of 21,053 professionals 2025 from 61 countries abroad billion increasing 28.9 European countries increasing 4.05 percent, as and 19,028 from 67 cities in Turpct, to the rest of OECD became $32,7 billion with for the North African and key - visited the fair. countries trade became 0.18 rise, to CIS Mideast countries trade The 2011 Fair has been visited $1,3 billion with 6.9 pct (Commonwealth of became $2,2 billion, ris2025 international visitors from increase. Independent States) trade ing 11.6 percent in the The trade to other was $752,5 million, same period.

Made in Turkey Economic Newspaper, December 2012

Turkish family firms stronger than average Turkish family business, which constitute most of the local trade life, are doing well unlike their crisis-hit counterparts in the west, according to a survey conducted by PwC, PricewaterhouseCoopers. Qualified labor is their main point of concern.

ome 33 percent of sales at family-run businesses in Turkey go toward external markets, a figure which is estimated to hit 40 percent in the next five years, says a recent PcW survey. Family businesses that sit at the heart of the Turkish economy stand stronger than their global peers despite unpleasant trade woes in developed markets, a recent PwC report showed. Sales by Turkish family businesses increased 81 percent, substantially surpassing the global average of 65 percent, according to the “Family Business Survey 2012” of PwC, a global company providing industry-focused assurance, tax and advisory services. Only 9 percent of the participants

from Turkey reported a fall in sales, while the global figure for family firms reporting falling sales was 19 percent, PwC said in a press release. “Family businesses have a vital importance for the economy of Turkey and are an integral part of business life,” Eric Andrew, the Global Network Middle Market Leader at PwC, said. Turkish companies are considerably less concerned in 2012 than they were in 2010, said Andrew. Only 36 percent of the Turkish respondents said they were worried about the economic situation, down from 56 percent in 2010. More than one in every 10 Turkish companies (12 percent) plan to expand their business aggressively and rapidly

Turkish Health Minister Recep Akdag

in the next five years, while 78 percent of them expect steady growth, exceeding the global average of 69 percent. Turkish executives identified market conditions (37 percent), government policy and regulations (34 percent) and difficulties in external markets as the three main external issues. While the recruitment of skilled staff and labor shortages have become more acute challenges globally, this has become less of a concern for Turkish family businesses over the last two years. The ratio of executives who are concerned about skilled staff shortages receded to 23 percent from 44 percent in 2010. Yet keeping qualified employees is the top concern for 81 percent of Turkish family businesses, while the global figure is at just 46 percent. “Only three markets [Singapore, Turkey and Malta] agree that their governments are doing everything they can to help them and there was overwhelming dissatisfaction from countries such,” the report said. Some 41 percent of Turkish respondents said the government supports family firms. However, the figure drops to 8 percent when it comes to “net agreement that your government is doing what it can to help businesses survive and develop their activities in the current economic climate.” Turkish family businesses have steered successfully through the past difficult period and have self-confidence for the future. Now Turkish family businesses are able to compete with leading firms of the world and do not hesitate to acquire them when appropriate,” said Mehmet Karakurt, the family a director at PwC Turkey. The survey was conducted in more than 30 countries with 1952 family business executives, 99 of whom were from Turkey.

Free zones for health sector to be set up

ree zones in health sector will be established for those who come abroad, the high in quality and cheap health service which has been inherently in the country will be more attractive with these zones for health, Recep Akdag, Minister of Health, said. Speaking at the 5th edition of International Health Tourism Congress, Minister Akdag stated that getting health service in human beings’ living area is essential, but the world reality is not suitable to this every time. “Turkey has been among favorite countries in the health tourism. Ten years ago patients in Turkey were going to the USA and Europe before the Transformation Program in Health, now Turkey ranks in the first ten in health tourism and is surging quickly,” Akdag said. Turkey’s Health Minister Akdag recorded that nearly 200 thousand people per annum come to Turkey for treatment half of them come for vacation and other half particularly come for treatment. He said that both politic and economic stability have made Turkey an appealing center. Akdag pointed out health services have raised very high level, adding that in Tur-

key lots of processes are made both high in quality and cheaper compared to other countries. “We have enacted a law in order to establish health zones and have been working on details of the issue along with the Ministry of Economy. We will set up health free zones in particular for our guests who come from abroad. We will be also offering some many advantageous for the investors in these zones. Actually existing high in quality and cheap health service, in fact existing inherent in the system, will have come into some attractive way by means of incentive which are offered to the health tourism,” Minister Akdag said. Akdag noted tax cut is applied for those investors and investment support is given, reiterating his call for those to work jointly in the promotion of the destinations and revealing joint potential to those who would like to invest. Ertugrul Hasipoglu, TRNC Health Minister, said they would like achieve the success in health tourism that they have gotten in tourism area. Hasipoglu underlined that they had realized lots of their dreams to date; their only dream is recognition of TRNC by the international community.

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Başlayan ﬁyatlarla. İhlas Holding, önceden haber vermeden değişiklik yapma hakkını saklı tutar.

KRİSTALŞEHİR SATIŞ OFİSİ 29 Ekim Caddesi No: 23 34197 Yenibosna / İstanbul

Tel : 0212 454 25 25 • Fax: 0212 454 21 46

bilgi@kristalsehir.eu • www.kristalsehir.eu

Made in Turkey Economic Newspaper, December 2012

Turkey 15 years behind Europe in food supplement EURO OTC PHARMA CEO Jürgen Beyer said that according to researches, Turkey is 15 years behind Germany in food supplement sector.

ood supplements, which are considerably new for Turkish market, come to the fore with their specifications like protecting the body from illness and strengthening the immune system. People in Turkey are not so familiar with these products. Though, these products have been used in Europe for many years. There is a company that attracts a lot of attention with its products which have been in Turkish market for a few months: EURO OTC PHARMA. We had the

o p portunity to make a short interview related to this subject with EURO OTC PHARMA CEO Jürgen Beyer and EURO OTC PHARMA Director of Turkey Dr. Seda Çelik whom we met during the 11th Pharmacy Fair. Your products have been in Turkish market for a few months, what are your future plans? We are going to complete İstanbul organization at the first place. And starting from November, we will start to build teams in Bursa, İzmir, Antalya, South-East, Middle Anatolia and Black Sea region. We will be heavily working on pharmacies and hospitals. For that reason pharmacists and doctors are really important for us. We got the feedback from the doctors that they support our products due to the quality and special combinations. When we come to the international markets, we are not only working with Iran but all the Arab countries around Iran like UAE, Bahrain, we already have activities in

such countries. Thanks to the connections in those markets we are now about to enter Saudi Arabia market. We received our sales certificates of approval in Yemen. We are considering to get into the other markets in Europe. Our aim is East Europe first. Then we are going to inspect Russian market because this country is an ideal candidate to enter East Europe market. W i l l those activities be managed from Turkey? They are being managed from G er ma ny right now but we are planning to manage f rom Turkey in the future. Turkey is like a bridge for us, it is easy to reach both Asia and North from Turkey, and for the advantages in trade business we prefer working in Turkey. Because our office has been fully active since July, these plans are a target set. We always prefer to proceed step by step. Both for production and for delivery to other countries, we prefer to improve our Turkey business step by step. When will you start with the production in Turkey? As mentioned, we will do it step by step as well. First, we must decide which production process to start with. That’s why we have to wait until mid of 2013 in order to start investment projects. How will you realize the sales? The products are sold in pharmacies. Our team introduced and continuing introducing our products to doctors in the hospitals and to the pharmacists in the pharmacies. Products are sold through the warehouses. We work together with Hedef, Selçuk, Galenos and İSKOOP.

Our aim is not to be active only in food supplements. We are now working on other products which should be registered through Turkish Ministry of Health. We will keep on working as a pharmacy brand. Are your products approved by Ministry of Health or Ministry of Agriculture? These food supplements are approved by the Ministry of Agriculture according to the procedure. We have another process going on for the products from Ministry of Health. Are there any certification applications for the products you sell in Turkey? Since we are in Iran market, our company in Germany has halal certificate. In Iran market, it is not allowed to sell products without halal certificate. We have not applied for any certifications in Turkey yet. Will you be producing other products except food supplement like cosmetics products? Cosmetics sector is a tough market as you know where a lot of strong rivals compete. We need to evaluate it first. We are now focused on food supplements. What were the criteria you evaluated when you decided to enter Turkish market? First of all the 70 million population attracted us, besides 5 million Turkish people are living in Germany. We know Turkish people, so that’s an advantage. These were the criteria we evaluated at the first place. Then I visited Turkey many times. What I saw was that Turkish market was 15 years behind German market, meaning open for investment. We achieved the same in Germany 15 years ago. It was costly to buy vitamins from pharmacies in Germany 10 or 15 years ago. After then, pharmacies started to sell vitamins, minerals and food supplements. Turkey is in the same process. This is completely about the hierarchy of needs. When people satisfy their basic needs, they start investing in themselves. The desire for healthy living brings us to this point. All of our products are prophylactic, they are not therapeutic. What are perceptions of people about your products? Do they consider them as need or luxury? Which category of customers do you have? Consumption of our products is all about

Interest in MEDICA Fair growing

conscious… For example, I eat some butter and one toast for breakfast, I have nothing for lunch, I only eat in the evenings, I do not eat fruits. In fact this is not about money but the eating habits. I usually do not feed well during week days but at the weekend I eat fruit and vegetables. We all struggle to live in better conditions. These better conditions include supporting the body in terms of food. Turkey is a very lucky country considering its conditions. It is easy to find natural vegetables and fruits, there are plentiful of them. Do you get enough of fruits and vegetables to satisfy your vitamin and other needs? Because the limits for the needs are known and there are specific combinations. For example, zinc with vitamin B or calcium with vitamin D, they support each other. Sometimes it may not help to take only one of them. Ox vitamins I don’t want this to be misunderstood; when we say luxury, it means that 15 years ago a box of vitamin cost 150 Euro now it costs 30 or 50 Euro. It used to be produces less in numbers that’s why it was expensive those days. Are there any products that you are assertive about or any products that you want it to come to the fore? We have Calcium for eve r yo n e but w e a made tiny little change. Some people may find it hard to swa l low the tablets. We produced liquid form of calcium for them. We offer a calcium compound consisting of Calcium, Vitamin D and Vitamin K… Usually Calcium’s are in effervescent tablet form and do

Many companies from Turkish health sector built up new exportation connections in MEDICA Fair.

e represented our country in the world’s largest health and medical fair MEDICA, with 104 companies including 32 companies from IKMIB’s national participation organization. This year it is our fourth national participation in the fair. The growing interest and participation of the companies pleased us. Turkish health sector companies operating in hospital furniture and equipments, medical textile products, consumables, orthopedics products, medical devices and hospital technologies fields found the opportunity to exhibit their products along with the participants from various countries of the world and built up new exportation connections. The value of medical de-

vices export was 527,6 million dollar in 2011. In the same year, between January and October our export rallied 18 percent compared to the same period in the last year and became 514,7 million dollar. We are estimating that our export will reach 615 million dollar by the end of year. We are targeting to raise our export to 1 billion dollar within two years. Medical devices come first in our medical products export. Orthopedics products and hospital furniture and equipments come after medical devices. It is seen that we are exporting heavily to Europe countries among the markets we export. First ten countries in this field we export are Germany, Swizerland, Iraq, England, Azerbaijan, Italy,

France, Belgium, Holland and Algeria. We put emphasis on medical products field in terms on their potential to generate high added value. Our country made an important move to grow in export however, when we consider our future goals, the only way of rallying our export is to make high value added exportation. Chemical sector, in a broad sense, is at a very good point from this point of view. We became the leader in October passing automotive sector for the second time with 1 billion 659 million dollar of exportation. In January – October period our chemical export has reached 14 billion 625 million dollar. The per kilo exportation data of chemical products sector is above Turkey average. Some of the sub sectors are as follows; pharmacy 29,86 $,

processed asbestos 6,77 $, rubber and rubber products 5,02 $, volatile oils and cosmetics 3,52 $, adhesives, glues, enzymes 3,21 $, plastic products 2,59 $ and organic chemicals 1,62 $. Now it is time for us to consider the high value added products in export. We can easily achieve this in health and medical sector oriented products. Moreover, most of our companies operating in this field are doing great job and performing well in exportation. I suppose there are no obstacles in this field for us since we are investing in innovation and high technology. Murat Akyüz İKMİB (İstanbul Chemicals and Chemical Products Exporters’ Association) Chairman of the Board

not taste good. However our products have an aromatic taste, besides, it is much easier to swallow thanks to their liquid form. We are really assertive in our solid forms. We have a Vitamin C product which is preferred to its zinc compound, doctors suggest this product as well. We have Selenium Capsules which has no similar form in the market. We got what we expected from our Zinc plus Juice. Also Macavit Capsules will a great potential due to the effect on maximizing overall performance of the body. We are also very assertive in our products for kids, they taste very good and we trust in their compounds. As for children’s products, what do you have? Usually parents cannot feed them very well. We have multivitamin drops and syrup. Drops are for the children below the age of 1. For above the age of 1, we have syrup form. We especially suggest these products for the children having appetite problem. Children tend to drink water after they have syrup but this does not the case for our products because they love the taste. In our next product series, there will be syrups for the kids suffering from iron deficiency. As you know, iron deficiency is widespread in Turkey. Do you have social responsibility projects around the world? There is a project we are running called “Ronald McDonald House Charities”. This project provides sick children with life space and accommodation. We have been supporting this project for years. We are going to have social responsibility projects like this in Turkey as well. We have a plenty of projects, we will be starting one of these in the coming days.

“No benefit from fear for death”

Sanko Holding Executive Board Chairman Abdulkadir Konukoglu told his predictions for economy how would be in 2013. “There is no cure for death. Investments should not go into recession, but we stretch our legs in accordance with the length of our quilt. Thereby, there is no reason to be into the mode of afraid in 2013. I think it would pass similar with 2012,” Konukoglu said. Joining Melda Yucel’s televising program entitled “Finance Café – Business World” on CNBC TV, Konukoglu commented the year 2012 and told his expectations for 2013, as well as domestic made car. Upper a question, whether he demand to make domestic car brand, Konukoglu underlined that they, as Sanko Holding, manufacture earthmoving machines, meanwhile they had purchased Basak Tractor plant and began domestic made tractors. “Despite, we do not manufacture domestic car, but we manufacture domestic made tractors and earthmoving machines. In the future, if a chance would appear, we will look at it,” Konukoglu said. “Every time, we say same thing. Every time our door is open… the important thing is Turkey takes step in this issue. We would like also to have our salt to be in the soup in this issue. Automotive industry, machinery industry and tractor industry all is like a cousin to each other. Learning these, I think we would enter such business with more encouraged, more decisive in the future,” he said. Konukoglu underscored that they make engine, gearbox and hydraulic equipment at the plant in the province of Sakarya where tractors are manufactured.

Fitch’s upgrading of Turkey’s credit rating About rating organization Fitch’s upgrading of Turkey’s credit rating, Konukoglu said, “In fact, we must pass to A+ or A stables. But unfortunately, it has not happen. In my opinion, as political they keep us still under pressure in terms of rating. We must be at better position. When we look at the countries in the EU, despite being worse than us, their rating higher than us, they keep their credit rating higher than us. In our opinion as the Turkish industrialists it seems that rating organizations protect them some.” Konukoglu noted foreign investors’ stance towards Turkey is warmer for 2 – 3 years, together with upgrading of Turkey’s credit rating it would grow some. “We continue investments with courage” Over question, how did 2012 pass? Konukoglu responded “not bad”, adding that their turnovers boosted 15 percent over the previous year. About 2013, Konukoglu said, “In 2013, we will invest worth $150-200 million in textile sector. We are investing for renewing and modernization. In energy our investments are maintaining. We continue investments courageously not upgrading rating, the general condition of Turkey.” He added that textile has been as flagship in the holding’s total turnover. Interests to drop Konukoglu foresees that in the next future rate of interests would plunge, as long as interest cuts continue, de-

pending on it investments would expand. “Now, export volume of Turley is not bad. I believe investments go on well. I think rates of interest must be cut off some. Exports market of Turkey is not only included the USA and Europe, Turkish businessmen export to all countries and have boosted their exports by opening to the new countries in particular to the African countries,” Konukoglu recorded. He pointed out the role of SMEs in export increase. Expectation from 2013 Over discussion in economy about “speeding up – braking”, Konuoglu said, this condition diversifies according to sectors, in some sectors raised acceleration more, as for some others they braked. “When we look at average, when compared with the last year there was not much braking, lots of sectors have continued on their ways. As Sanko Holding, we have grown 15 percent over their expectations,” he noted. Over the question of Melda Yucel, “How 2013 is coming”, if you are a reporter, how would be your headline for the year 2013, Konukoglu said, “Let’s speak like this; there is no benefit to fear for death. We should not lag behind in terms of investments, but you should extend your leg in accordance with your quilt’s length. It is necessary to invest being able to pay your debt in any condition. Otherwise, in any crisis you might face with a difficult condition. For this reason, there is nothing for being anxious much in 2013.”

Made in Turkey Economic Newspaper, December 2012

IMF adopts institutional view on capital flows • Clear, pragmatic institutional view designed to guide advice to countries • View clarifies trade-offs between policy options to maximize benefits, address risks • Policies should take into account impact on financial stability across borders

he International Monetary Fund has developed a comprehensive, flexible, and balanced view on the management of global capital flows to help give countries clear and consistent policy advice. Global capital flows have increased dramatically in the last decade, from an average of less than 5 percent of global GDP during 1980-1999 to a peak of about 20 percent by 2007. In the past, countries’ capital accounts have ranged from almost completely closed to completely open and, while most countries have moved in the direction of greater openness, wide differences remain. The issue of when, how,

and how much to liberalize capital flows has been one of the most contentious in the global economic policy debate for decades. Benefits and risks The free flow of capital across the globe can have important benefits for countries and for the global economy. For example, capital flows can help a country’s financial sector to become more competitive and sophisticated. At the global level, they can achieve a better allocation of capital that fosters higher growth, and help smooth the adjustment of economic imbalances between countries. Capital flows can also pose important risks however. They are volatile and can be large

relative to the size of a country’s financial markets or economy. This can lead to booms and busts in credit or asset prices, and makes countries more vulnerable to contagion from global instability. The global crisis is the latest in a series of events that have shown that policymakers need to be vigilant to the risks, while maximizing the benefits of capital flows. The new institutional view is the culmination of work begun two years ago to develop a pragmatic, experience-based approach to help countries cope with capital flows. The IMF has published several studies on capital flows that underpin this institutional view, and on December 3 issued a syn-

thesis of its work that the IMF Executive Board endorsed. The goal is to help countries reap the benefits of capital flows, while managing their risks. “We need to be in a position to provide clear and consistent advice with respect to capital flows and the policies related to them,” said David Lipton, the IMF’s First Deputy Managing Director. “This work clarifies the trade-offs between policy options for dealing with the risks related to capital flows, harnessing the benefits of capital mobility, and addressing the implications of capital flow management for global economic and financial stability.”

Turkish textile sector increase its export unit price

Ibrahim Burkay, Chairman of the Board of Uludag Textile Exporters’ Union

xports of Turkish home textile’s unit price have increased 7 fold by means of design, Ibrahim Burkay, Chairman of the Board of Uludag Textile Exporters’ Union (UTIB), said. “In the world markets, our aim to achieve $13-14 unit price, which is currently over $7 – 8, within 3 years,” Burkay said. Burkay indicated that Turkish home textile sector has realized of the development in the home textile area years ago and has turned its en route towards this side. He noted that the average kg price in Turkey’s exports was $1,48, as for in the home textile the price has climbed to $10,7. Pointing out that unit price in exports has been increased via design and branded products, Burkay said, “From now on, R & D and innovation are indispensable in the global competition. Home Textile Design Contest, of which 3rd edition will be held this year, appears a essential step in this issue.” Burkay recorded the design department of universities in Turkey have gained a great

advancement in recent years, and said; “Every year number of students is increasing by the support of universities. We will make road-show with 12 universities. If the universities join this contest, they would encourage students more. If the importance of design is apprehended well, youths might take design work on their top line.” Application for Home Textile Design Contest, which is held by UTIB, has already begun. Being held with the aim to make up fashion and trend in the international

markets, deadline for application is 15th February 2013. Contesters will compete in two groups as students and professionals. The contest will be held in four categories as mattress, bathroom, curtain and armchair, for the first winners TL7,5 thousand monetary award, TL4 thousand to second ones, and third ones TL3 thousand award will be offered. As for innovative design owner will win TL10 thousand monetary award, besides education opportunity for two years abroad.

Exports of apples to make faces smile

urkey to boost its apple exports regarding surroundings countries’ harvest being low, Halil Ozturk, Deputy Chairman of Turkey’s Vegetable and Fruit Commissioners’ Federation (TUSEMKOM), said. He added that they have been in research for increasing exports of fruit and vegetables. Turkey ranks at the third stop in apple production following China and the USA. Stressing that Europe and Mideast were a crucial market, Ozturk said, “Italy and Iran which meet apple need of Europe and the Middle East respectively, suffer lack of apple harvest. The foremost apple importers of the world have directed towards our country due to lack of harvest. Now a remarkable activity is being enjoyed in our country. Currently Tunisia and Egypt demand apple from us with a great deals. So this demand boost will raise exports of apple from Turkey.” Ozturk claimed that Turkey would become authority in the Middle Eastern market. “Political uprising in Syria has affected our export negatively. We can attract the Middle Eastern market to Turkey. When looked through geographic position and historical aspect, there are our relations with these countries in both past and now. Trading with these countries is not much difficult. We think that if we can be able to cultivate in the quality of their wish, in addition to our government’s steps in this direction, our horticultural products will obtain value,” Ozturk recorded.

Made in Turkey Economic Newspaper, December 2012

Exporters invest on R&D and innovation Exporters invest on R & D by apprehending change true, Mehmet Buyukeksi, Chairman of Turkish Exporters’ Assembly (TIM), said.

Turkish TIM Chairman Mehmet Buyukeksi

e underscored that they were emerging innovation to the forefront, now new designs; new brands have been coming from Anatolia and have been spreading across the world. Speaking at the 8th edition of ‘Competition Congress’ which was held by Sectorial Associations’ Federation (SEDEFED) and Sabanci University – TUSIAD (Turkish Industrialists Businessmen Association), Buyukeksi said, “The only thing which does not change in the universe is change, as for the world economy performs change with every passing day. This age is the communication age. Communication

which has gained pace, approach both societies and human beings to each other much more. Every kind of information, news not after months, weeks, days, hours, outreach overall the world within seconds. As sharing of information is measured in seconds, the markets respond to the developments quickly. The speed of sharing has increased competition as well. Now there is much more difficult, much more aggressive competition in the markets. Emerging one step ahead in the hard competition condition depends on how we can be able to keep up with the change. if you do not believe change, you pretend like you have changed

and you do not change, what a pity that you cannot be able to get chance for success much in this new world.” He marked that they as Turkey exporters, have known aggressive competition experiencing in the market abroad very well. “World of exports is an arena where the most sharp for competition is made. There is never any place for both fault and relaxation. We are aware of this. For this, we are exerting great effort to increase our competition. In these formidable conditions we believe to stand on foot to be possible only increasing our competitiveness,” Buyukeksi said. Page 8

agreement on the acquisition of a 99.85 percent stake of the local lender was signed. Denizbank shares will not be offered to the public, Gref said. Yet the 50 percent share of Sberbank owned by the Russian Central Bank should be reduced to 25 percent via public offerings, he said. Denizbank’s name will not be changed, but the matter is a subject that may be reconsidered a few years down the road, Gref said. Sberbank and Turkish Export-Import (Exim) Bank have undersigned a $1 billion financing deal to boost bilateral trade between Turkey and Russia. The memorandum of understanding

inked by Gref and Turkish Eximbank General Manager Hayrettin Kaplan will grease the wheels for Turkey’s exports toward buyers in Russia or third countries in the next three years. Turkey’s Exim Bank may increase the financing support in case demand exceeds $1 billion. The Russian banking giant also reached an agreement with Turkey’s Investment Support and Promotion Agency of Turkey (ISPAT) to increase investment cooperation and environment in both countries. “Russia and Turkey are in a strategic partnership within the scope of increasing international trade flows

and mutual investment projects,” said Gref commenting on the deal. “Considering Denizbank’s recent acquisition by Sberbak Group, we aim to expand the financing of activities between companies, which are active in Russia and Turkey,” he said. Signing a memorandum of understanding with ISPAT will strengthen Sberbank’s presence in Turkey, Gref said.

Sberbank leads way for more Russian investors

our or five of Russia’s largest companies are prepared to invest in Turkey, Russian banking giant Sberbank’s chief executive officer and chairman told Anatolia news agency. Russian investors were further encouraged by Sberbank’s acquisition of the local lender Denizbank, Herman Gref said, adding that “[investors] include energy, food and construction companies.” Rosatom and Lukoil’s presence in Turkey had also set a good example for potential Russian investors, he said.Sberbank acquired Denizbank in early June for $3.5 billion and in September a final

Tanil Kucuk, Chairman of Istanbul Chamber of Industry

Turkish business circles hopeful for higher growth in 2013

n September 2012, Turkey’s industrial production increased 6.2 percent, in response to some 2.2 percent expectation, seasonal and calendar adjusted industrial production index increased by 3.9% compared to previous month. Business world and experts commented over the industrial index increase in September 2012. Tanil Kucuk, Chairman of Istanbul Chamber of Industry, stated that industrial increase in September 2012 would improve the growth somehow in the third quarter. He noted that 6.2 percent increase became the highest growth increase throughout 2012. Kucuk said the growth rate in Sept. which was over the expectations indicates reduction in August stemmed from the seasonal effects featuring as a temporary tendency, is pleasing and motivating development. “Meanwhile, both Turkey’s upgrading rate and upward industrial growth in Sept. economy would enter reinvigoration tendency in the last quarter of the year. This enlivening will also stimulate the economy in 2013,” Tanil Kucuk said. Inanc Sozer, Economic Research Manager of Odeabank, indicated that revive in economic activity had started, adding that industrial index has increased over forecasts. Sozer pointed out that data in September marked finally the expected recovery has come and said, “In industrial increase in September that has reached last ten months high, exports increase has played role in

this as well as domestic demand growth. Even gold exports take place at the top, except gold overall exports advance on a positive way. Except gold exports, recording highest increase rate with 9.2 percent in seven months, we had specified in our previous reports that production in Sept. would have exceeded our prediction. In this scope, while demand gets recovery, maintaining export its boost despite all difficulties is a positive development. In the near period, as production in Germany gets recession (for three months), in Turkey production continues its upward trend moderately. “Taking into consideration the recovery and financial conditions in loosing process, we expect domestic demand to increase from the last quarter of the year. In this point, volatility in the yearly production increase should not be interpreted wrong in the last quarter of the year. Due to Eid el Adha holiday in October production would be setback and in November we can see double digit production increase after 13 months. This fluctuated change should not cause to the confused perception. In the fourth quarter, we predict production would increase 5 percent,” Sozer said. He noted that they have foreseen Turkey’s economic growth in 2012 would be 3.2 percent corresponding with Medium-Term Plan. Seker Investment Economist Ibarhim Aksoy said the data of the production index would not affect remarkably the Central Bank’s monetary policy. Page 10