Made In Turkey January by İstmag Magazin Grubu

EU leaders warn of tough year ahead

nstead of celebrations came warnings from the leaders of euro powerhouses Germany and France that following the market maelstrom of the past year, 2012 carried further risks for the battered single European currency. “The debt crisis is still keeping us in suspense,” German Chancellor Angela Merkel said in her New Year’s message which warned of a difficult year in the eurozone. Europe, she insisted, was growing through this crisis, even if “the path to overcome it remains long and will not be without setbacks. Page 7

.S. auto giant Ford plans to invest $1 billion in its Turkish facilities in 2012 said Science, Industry and Technology Minister Nihat Ergün. In addition to Ford, Ergün said Japanese Toyota and Nissan also had Turkish investments in the pipeline. “There will probably be investments in new models,” said Ergün, most likely to include light-weight vehicle models similar to plans for the new generation Toyota Corolla. Page 6

Ankara scored a serious discount for Russian gas

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January 2012 Year: 11 No: 112 ISSN 1300-2260

www.img.com.tr

Foreign automakers increase their investments in Turkey

Turkey to stand stable despite global uncertainties Turkey aims to make Istanbul a ‘UN center’ Foreing Minister Prof. Dr. Ahmet Davutoğlu

avutoğlu said the government wanted to make Istanbul a center for poli-

tics and diplomacy as a “U.N. city.” “We want all countries’ flags to wave in Istanbul. It’s a diplomatic

perspective. “We aim to make Istanbul a U.N. center for issues of mediation, peace and issues concerning the future of humanity,” Davutoğlu said. “We agree with the U.N. on these matters and determined we have an important place [in these discussions].” The foreign

minister also said the government hopes Istanbul will become a center for finance, a main center for global economic influx and a main station for transportation lines. He said Turkey has already had talks with Switzerland and Luxembourg on the subject. Page 6

Merkel and Sarkozy vow fast action as crisis bites

Merkel

ERLIN- Germany’s Angela Merkel and France’s Nico-

Sankozy las Sarkozy call for rapid action as the ongoing eurozone crisis is showing

little sign of easing. The leaders say Greece cannot get anymore support without implementing serious measures The leaders of France and Germany vowed to speed up various measures to ease the eurozone crisis, as the euro flirted with new lows on the market amid signs of heightened banking tensions. French President Nicolas

Sarkozy said after talks with Chancellor Angela Merkel that an agreement on stricter budgetary rules tying in all EU members except Britain should be signed by March 1. Merkel said negotiations on a text were progressing well and also announced Paris and Berlin were ready to accelerate payments into a permanent fund for future possible bailouts. Page 8

Turkey may revise down its growth target for 2012 Economy Minister Zafer Caglayan

Deputy Prime Minister Ali Babacan

eputy Prime Minister Ali Babacan noted that if the economic situation in Europe were to deteriorate in the coming months, Turkey might be forced to pull down its ambitious 4 percent growth projection for 2012. Turkish economists already warned that the government’s 4 percent growth target was not realistic and a growth rate of around 2 percent would both be more prudent and likely. Babacan said Turkey would wrap up 2011 above a 7.5 percent growth rate but might have to slightly revise down its 4 percent growth target for 2012 depending on developments in Europe. Page 6

Turkey to focus on high-tech exports via entrepreneurship

aving attracted nearly $11.5 billion in foreign direct investment in the first ten months of last year, Turkey should attract foreign funding institutions aiming to boost their presence in the country through entrepreneurship funds for high-tech industries said Turkey’s economy minister. “Nearly 50 international funds invested in 150 Turkish firms specializing in high-tech industries last year,” said Zafer Çağlayan, Turkish Economy Minister speaking before the meeting on entrepreneurship funds with private firms’ executives in Istanbul. 50 Turkish firms have reached a total export volume of $1.5 billion last year, he said. Page 9

NKARA-Turkish Central Bank Governor Erdem Başçı pledges a stronger year in terms of stability and predictability, but cannot avoid speaking of increasing global concerns and volatilities. Big uncertainties will mark the global economy in 2012, according to Central Bank Gov. Erdem Başçı, who said Turkey’s monetary policy would maintain flexibility while increasing predictability. “This will be a year in which policy flexibility remains and policy predictability increases rapidly [for Turkey],” Başçı said during a meeting with journalists in Ankara. Başçı said the Bank would track financial stability in 2012. “We will not only focus on price stability but also go on with ensuring financial stability.” Noting the Bank’s inflation projection for the next three years stood at 5 percent, the governor said the rate

Turkish Central Bank Governor Erdem Basci

may exceed 10 percent in December. “Core inflation is expected to decline after peaking in January 2012. Page 9

Made in Turkey Economic Newspaper, January 2012

Letter From The Editor Mehmet Soztutan Editor-in-Chief

What lies ahead for 2012 ?

hat lies ahead for 2012? Actually, nobody knows. “Anyone who had said a few months ago that we, at the end of 2011, would be taking very serious and concrete steps toward a European stability union, a European fiscal union, toward introducing (budgetary) intervention in Europe would have been considered crazy,” German Chancellor Angela Merkel said. “Now these items are on the agenda, we are on the verge of it, there are still difficulties to be surmounted but their necessity is now widely recognized,” she added. From late 2009, fears of a sovereign debt crisis developed among investors concerning rising government debt levels across the globe together with a wave of downgrading of government debt of certain European states. Concerns intensified in early 2010 and 2011 and thereafter making it difficult or impossible for Greece, Ireland and Portugal to re-finance their debts. The interconnection in the global financial system means that if one nation defaults on its sovereign debt or enters into recession that places some of the external private debt at risk as well, the banking systems of creditor nations face losses. For example, in October 2011 Italian borrowers owed French banks $366 billion (net). Should Italy be unable to finance itself, the French banking system and economy could come under significant pressure, which in turn would affect France’s creditors and so on. This is referred to as financial contagion. As the economic crisis deepens across Europe, 2012 will be a hard year regarding Turkey’s negotiations with the European Union,. The EU needs Turkey more than ever to boost its weak economic growth. The eurozone economy posted growth of 0.8 percent in the first quarter of 2011, compared with Turkey robust growth which accelerated to 11.7 percent. As the eurozone economic growth slowed to 0.2 percent in the second quarter of the last year, Turkey’s growth reached 11 percent. 2011 export data showed Turkey returned to pre-crisis period in exports. Turkey’s exports increased by 18.2 percent in 2011, reaching $134.6 billion. Exports in Dec. 2011 increased by 4.5 percent and hit $12.1 billion. Top importers of Turkish goods in December were Germany, Iraq, Britain and the United States. We wish lucrative trade for business people,

Industrial production increases 8.4% in November 2011

ndustrial production index increased by 8,4% compared to same month in previous year in November 2011, according to the statement of Turkish Statistic Institute (TurkStat). In the sub-sectors level of industry, mining and quarrying index increased by 2.9%, manufacturing index increased by 7.6%, electricity, gas, steam and air-conditioning supply index increased by 16.9% in November 2011 compared to the same month of the previous year. Calendar adjusted production index in November 2011 increased by 5.2% compared to the same month of previous year and seasonal and calendar adjusted industrial production index decreased by 2.5% compared to previous month. According to the classification of the main industrial groups, the biggest increase was seen in durable consumption goods with 19.5 percent. This was followed by capital goods manufacturing with 15.9 percent, energy with 5.3 percent, intermediate-goods production with 5.3 percent, nondurable consumable goods with 5 percent. In the sub-sectors of manufacturing industry, the other transport vehicles ranked first with 101.2 percent. This followed by computers, electronic and optical products with 54.8 percent, wood and wood cork manufacturing, except furniture sector, with 32 percent increase gained respectively. In November 2011, in the other manufacturing 24.5 percent rise, fabrication metal manufacturing except machinery and equipment 17.7 percent, as for electric equipment manufacturing increased 16.2 percent. The most production decrease was seen in coke and refined oil products in this period.

Saudi Arabia, a new Letters to market for Turkish the Editor turkey@ihlas.net.tr poultry sector

audi Arabia has annulled a 6-year-old ban on Turkish poultry imports, regarding the bird flu epidemic in 2005, according to the statement of the Economy Minister Zafer Caglayan. This new agreement would open the way for Turkish exporters to access the $1.3 billion worth of poultry market in the Arabian Kingdom, Caglayan noted. The ban was abolished for the eight Turkish firms at the end of intensive talks with the Saudi authorities, he said, adding that this would provide motion to the Turkish exporters. In the statement also said that Saudi Arabia had a share of 5 percent (or $1.3 billion) in the global poultry imports market, accounting for $27 billion in 2010, he said. The country imported 675 tons of poultry. “If Turkey gets a 5 percent share from the Saudi’s poultry market, this would boost Turkish poultry sectors’ overall

exports by 20 percent,” the minister said. Negotiations with the Saudi authorities continue in order to annul the ban for other Turkish firms, the minister said. “Our largest markets are Iraq (63 percent), Hong-Kong (6 percent), Iran (5 percent), Vietnam (5 percent) and Libya (4 percent).” Saudi Arabia meets a big part of its poultry needs from Brazil, said Yuce Canoler, the secretary-general of Poultry Meat Producers and Breeders Association (BESD-BIR). “While shipping of the products from Brazil to Saudi Arabia takes 1.5 months, it takes only a few days from Turkey. Brazilians were dominant in Iraq before. Iraqis saw the difference of [quality] between our products and the Brazilians’. The same shift will happen in Saudi Arabia, too,” Canoler added.

Defense industry aims $1 billion worth of exports

urkish defense industry targets to achieve $1 billion worth of exports in 2012. Defense Industry Undersecretary Murad Bayar said that they were planning to boost the exports of defense industry from $100 million to one billion dollars. “We exceeded $800 million in 2011, and we think we will accomplish $1 billion worth of exports in 2012,” he added. Defense Industry Undersecretary Murad Bayar said, “In the past we gave importance predominantly to the manufacturing. Most of them were

licensed production. In recent period, we try to make their both technology and design.” Bayar recorded that they would deliver national ships, tank, infantry rifle, helicopter, and unmanned aircraft. Bayar noted that after the USA and Israel, Turkey features developing unmanned aircraft, adding that after testing the unmanned space vehicle ANKA would be used this year. After these aircrafts begin to be used we will pass to the serial production, he said. Bayar added that the first satellite of which R & D study was conducted in Turkey would be hurled in China.

Bubble How each European country involved in this crisis borrowed and invested the money varies. For example, Ireland’s banks lent the money to property developers, generating a massive property bubble. When the bubble burst, Ireland’s government and taxpayers assumed private debts. In Greece, the government increased its commitments to public workers in the form of extremely generous pay and pension benefits. Iceland’s banking system grew enormously, producing debts to global investors (“external debts”) several times larger than its national GDP.

H. Grett/ Berlin

Solvency Prior to development of the crisis it was assumed by both regulators and banks that sovereign debt from the Euro zone was safe. Banks had substantial holdings of bonds from weaker economies such as Greece which offered a small premium and seemingly were equally sound. As the crisis developed it became obvious that Greek, and possibly other countries’, bonds offered substantially more risk. Contributing to lack of information about the risk of European sovereign debt was conflict of interest by banks that were earning substantial sums underwriting the bonds. The loss of confidence is marked by rising sovereign CDS prices, indicating market expectations about countries’ creditworthiness While these bubbles have burst causing asset prices (e.g., housing and commercial property) to decline, the liabilities owed to global investors remain at full

price, generating questions regarding the solvency of governments and their banking systems.

A.Nerty/ Paris

Fiscal union German Chancellor Angela Merkel declared that European nations were on the verge of establishing a “fiscal union” with rigorous budgetary oversight to battle the eurozone debt crisis. The announcement came after French President Nicolas Sarkozy said Paris and Berlin will push for a broad treaty “refounding and rethinking the organization of Europe.” The French leader warned that that without some new “convergence” among European countries, the crisis could destroy the euro. S.Derh/ Basel

European Central Bank Mario Draghi, the governor of the Frankfurt-based European Central Bank, calls on eurozone governments to align their budgetary policies – a first step toward a tighter fiscal union. (ECB) chief Mario Draghi said the 17 countries that use the euro must tether their economies more tightly to avoid a repeat of the debt crisis that is threatening the global financial system. He also hinted that the ECB may play a more pivotal role in the resolution of the crisis, but he insisted that the governments must first back proposals to align their budgetary policies. B. Mutde/ Milan

“Automotive industrialists to make more than one new brand”

believe that Turkey’s industrialists in the automotive sector will achieve not only a brand more than one brands in domestic-made car,” Nihat Ergun, Minister of Science, Industry & Technology, said. Minister Ergun responded the questions of the press members following the ceremony of “Entrepreneurship Conference” and Economics Foundation award. Ergun said. “The important thing is to materialize a new Turkish brand and model. In order to reveal this brand and model, various methods can be carried out. If Fiat and Tofas have agreed to offer a brand and model of which foremost parts to be manufactured in turkey and to market a new brand and model from Turkey to the domestic and international markets, we will be glad greatly happy from this devel-

opment. But, we see that the development does not consist of only this, other firms also study on this issue. I believe Turkey’s car makers have capability and possibility to offer not only a brand more than one brands to the market.” The year 2012 to be a incentive year Stating that the works related with the incentive system have come to the final stage, Ergun said, “I think the issue will be shared with the public opinion in February 2012. The year 2012 will be an outstanding year in terms of investors.” The central bank’s reserves is the ammunition Minister Ergun continued, “Countries are not exposed to only political and military operations. From time to time, they are exposed to the economic oper-

ations. Having high rate of the foreign exchange currency is one of the most crucial elements to thwart economic operations. The reserves of the central bank are a kind of your ammunition.

Science, Industry & Technology Minister Nihat Ergun

Konukoglu: “Turkey’s era starts in the world”

urkey has enjoyed a successful period, Turkey’s period has launched across the world,” Abdulkadir Konukoglu, Chairman of the Board of Sanko Holding said. Attending a televise program of CNBCE TV which is presented by Melda Yucel, Konukoglu said that the economic crisis in the EU countries and the USA would affect Turkey’s economy some extent and depending on this, in the year 2012 a slow down would be experienced over the growth in 2011, but he was not anxious. Foreseeing that the growth speed of

Turkey would be 5 percent in 2012, Konukoglu said, “but we overcome this process faster that the EU countries and the USA. Turkey has learned production and exports. Those who take their bag in their hands get on the board of an aircraft to look for market. Our exporters do not leave anywhere without being stepped. Every country is our market. So we will overcome the negativeness stemming from the EU countries quickly.” “We have defeated bigger crisis, I have no anxiety that we will beat this one as well,” Konukoglu said. Konukoglu stressed that employment has increased and they had difficulty to find laborer who even has no occupation, if it goes on like this, as in Germany years ago in the near future laborer black-market would be set up.” Plane is taking off Resembling Turkey a plane which is taking off, Konukoglu emphasized, “While an aircraft takes off stops the climbing for a while and then it requires keeping its route a certain height, but the important thing is to stay into air.” Konukoglu pointed out that European

companies have gotten older like their population, but Turkey’s young population and companies is a crucial advantage when compared to European. Underlining that now the time had come for Turkey, responding a question related with the neighboring countries Konukoglu, “We are, of course, sad due to the problems in our neighboring countries. But these problems will end up on a day. If we scrutinize the issue in terms of Gaziantep province, we do not have any connection in the meaning of exports. Achieving $5 billion worth of exports, Gaziantep’s exports with Syria is only $90 million per annum. We consider our good neighborhood, relative relationship with Syria not economically. Exports from Turkey to Syria are not made in the great extent. There is mutual trade of the small tradesmen.” “Euro zone can break up” Despite Turkey’s economy is better than Romanian, Bulgarian and many countries which have been accepted membership later, Turkey’s EU bid has not been accepted up to date, Konukoglu said. Konukoglu continued, “They did not accept us however I believe that we have

not incurred losses through this process. Now time for us. We will also do not accept them into our exiting place. In the world, Turkey’s era is beginning. Turkey has rested, recovered and entered the arena. We will manage this process successful with our capital accumulation, young population and our own values which characterized us. I have anxiety for the future of Euro. Those will break up. They cannot continue on the way with Euro, each one will return their own monetary unit. 10 year ago while they were coming by asking for “do you have company for sales”, now the EU countries’ business establishments have begun to come by saying “we have companies for sales, does anyone buy them?”. Konukoglu recorded that they, as Sanko, would continue investment, but they would pay attention not to be indebted much as possible as. “This is not only valid for us, everybody must be careful in 2012, it is not necessary to engage in works which are bigger than their power. But do not let anybody to get panic. Panicking will be the biggest wrongness,” Konukoglu warned.

Made in Turkey Economic Newspaper, January 2012

Turkey Fares Well

n the light of recent turbulence in the world, Turkey’s economic leadership could be a powerful force for progress across the region. A vibrant economy, depending upon the free exchange of ideas, the free flow of information, and the rule of law Turkey is gaining more credibility both economically and politically. Both experts and figures confirm that the Turkish economy has shown remarkable performance with its steady growth over the last eight years. A sound macroeconomic strategy in combination with prudent fiscal policies and major structural reforms in effect since 2002, has integrated the Turkish economy into the globalized world, while transforming the country into one of the major recipients of FDI in the region. The structural reforms have paved the way for comprehensive changes in a number of areas. The main objectives of these efforts were to increase the role of the private sector in the Turkish economy, to enhance the efficiency and resiliency of the financial sector, and to place the social security system on a more solid foundation. As these reforms have strengthened the macroeconomic fundamentals of the country, inflation drastically decreased to 6.4 percent by the end of 2010, down from 30 percent in 2002. As the GDP levels more than tripled to USD 736 billion in 2010, up from USD 231 billion in 2002, GDP per capita soared to USD 10,079, up from USD 3,500 in the given period. The visible improvements in the Turkish economy have also boosted foreign trade, while exports reached USD 114 billion by the end of 2010, up from USD 36 billion in 2002. Similarly, tourism revenues, which were around USD 8.5 billion in 2002, exceeded USD 20 billion in 2010. Significant improvements in such a short period of time have registered Turkey on the world economic scale as an exceptional emerging economy, the 16th largest economy in the world and the 6th largest economy when compared with the EU countries, according to GDP figures (at PPP) in 2010. Prior to the recent global recession which hit all economies throughout the world, the Turkish economy sustained strong economic growth for 27 quarters consecutively, making it one of the fastest growing economies in Europe.

However, the global financial crisis has considerably challenged the macroeconomic and financial stability of many economies by adversely affecting financing facilities and external demand, thus causing a significant slowdown in all global economic activities. While the financial markets in Turkey proved resilient to the crisis, the decrease in external demand and slowing international capital flows have had a negative impact on the economy, thus causing an economic contraction in 2009. However, the perceived positive developments in the economy showed signs of a fast recovery beginning as early as the last quarter of 2009, with an impressive 5.9 percent economic growth rate, hence making Turkey one of the fastest recovering economies in the world. Its robust economic growth continued in 2010 as well, having reached 12 percent, 10.3 percent, 5.2 percent and 9.2 percent in the first, second, third and fourth quarters of 2010 respectively, thus achieving an overall growth rate of 8.9 percent throughout 2010. Turkey, with such a robust economic performance, stood out as the fastest growing economy in Europe and one of the fastest growing economies in the world. Moreover, according to the OECD, Turkey is expected to be the fastest growing economy of the OECD members during 2011-2017, with an annual average growth rate of 6.7 percent. Reducing tensions with neighbours and increasing stability in the region are recipes for expansion, growth and influence. But it will take bold choices and strong political will to leave the past behind and embrace the future Turkey deserves. We hope that both business people and poProf. Dr. İsmail Kaya litical leaders understand these facts and behave accordingly.

Time to care hands with Dermokil cream Even in cold weathers, hands are well-cared and healthily with Dermokil hand cream.

n cold winter weathers, dried skin causes drying and creases especially in hands. In this period, Dermokil hand cream penetrates deeply in your skin by protecting hands in cold weathers. Our skin can be able to regenerate itself mostly. But extreme cold weathers, it can be insufficient to care itself, so skin gets drying and creases. Dermokil hand cream protects hands against outer effects by caring deeply hands. Dermokil helps remove wrinkles and dryness on hands thanks to clay minerals and crop essences in its formula. Hands are one of areas in body that are exposed to sunrays. As for Dermokil hand cream protects hands against harmful effect of sunrays with its minerals and mois

turizing complex in its ingredient. In winter months, those who want to own healthily and well-cared hands prefer Dermokil hand cream.

Original hair with original Fonex Gummy Wax

aintaining its leadership with innovative products in the sector directed towards consumers and professionals, Fonex Cosmetics offers permanent forms to hairs with “Gummy Wax” and adds glitter. Fonex Cosmetics takes place among the most preferred brands in Turkey with over 100 products in the international standards. With the consumer focused understanding, the firm develops products responding different needs of consumers and professionals. One of the registered products which Fonex has added to its wide product range is the hair forming “Gummy Wax” with the special formulation.

Fonex Gummy for Shapers Protecting of the hair models for long time is difficult as much as forming. Wish of everybody, either woman or man, is to possess beautiful hairs which protect their form for a long time… Fonex Cosmetics offers permanent beauty by the special formulated “Gummy Wax”. Having shaper and brighter cream features for t h e

unique hair models, Fonex Gummy Wax makes hairs win permanent and fixed stance for a long time without fattening. Protecting flexibility of hairs, providing to get easy form, Fonex Gummy Wax also cares hairs with keratin in its formula. With high holding feature, Gummy Wax allows hairs win extra volume without harming hairs thanks to its nonalcoholic ingredient.

Everything about health sector at Bursa Medical Fair

3rd Medical Services Fair will be held between February 23 26, 2012. Bursa 3rd Medical Services Fair will be organized by Tuyap Bursa Fairs Organization Inc. in support with KOSGEB, Republic of Turkey, Small and Medium Enterprises Development Organization, Bursa Metropolitan Municipality and other Chambers in Bursa. In the fair, which will open its doors for the third time this year, especially in Bursa and in the entire region, used medical equipments, medical services will be promoted. Developments and innovations in health care, will be displayed to the public opinion and about medical problems it will be raised the people of Bursa’s awareness. During the fair that prepared with participation of Health Establishments in the region “Healthcare Tourism Special Section” will be take part. The city of Bursa is an important position for Health Tourism as an alternative

tourism which is diversifying rapidly, growing and attracting attention as a rising star recent years. To meet the needs of patients and their caregivers in health care, health tourism, aimed at offering medical options. Health Tourism in Bursa, as a result of its geographical location, educated personnel, quality of European Standards, sufficient number of private health care associations, hosts tourists from abroad for the treatment besides coming from within the country. In parallel to developing the sector, leading firms to take part in the fair with the aim of inform visitors, offer innovation and the latest technological developments collectively. With effective promotions done by Tuyap Overseas Offices; the fair will host invited professional groups from Bosnia Herzegovina, Bulgaria, Georgia, Macedonia, Serbia, Russia and Greece. Also qualified visitors, especially coming from South Marmara, will meet with the companies.

Made in Turkey Economic Newspaper, January 2012

İletişim Magazin Gazetecilik Sanayi ve Ticaret A.Ş. Adına Sahibi ve Sorumlu Genel Yayın Müdürü (Publisher and Editor in Chief): Mehmet Söztutan (msoztutan@img.com.tr) Editor Ibrahim Kupeli (ikupeli@img.com.tr) Advertising Sales Staff: Mustafa Bekir Karaca (mbk@img.com.tr) Adem Sacin, Yılmaz Özkan Recep Arslantaş, Eda Şişik Advertising Consultants Aydın Emir Erkoç Correspondents: Hakan Alkan (hakan.alkan@img.com.tr) Technical Manager: Tayfun Aydın (tayfun.aydin@img.com.tr) Chief Accountant: Mustafa Aktas (mustafa.aktas@img.com.tr) Subscription: İsmail Özçelik (ismail.ozcelik@img.com.tr) HEAD OFFICE: İhlas Medya Plaza, 29 Ekim Cad. No: 23 34520 Yenibosna - ISTANBUL / TURKEY Tel: (0.212) 454 25 00 Pbx Fax: (0.212) 454 25 98 www.img.com.tr E-mail: img@img.com.tr LIAISON OFFICES: BURSA: Ömer Faruk Görün Buttim D Blok Kat: 4 No: 1267 BURSA Tel: (90.224) 211 4450 , 51 Fax: (90.224) 211 4481 KONYA: Metin Demir H.Uluşahin İş Merkezi C Blok Kat: 6 No:603-604-605 KONYA Tel:(90.332) 238 10 71 Fax: (90.332) 238 01 74 PRINTED BY İhlas Gazetecilik A.Ş., 29 Ekim Cad. No: 23, 34197 Yenibosna ISTANBUL / TURKEY Tel: (0.212) 454 21 93 Fax (0.212) 454 34 83

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“Turbulent Year” e left the year 2011 behind to- are continuously scanning to evaluate the gether with the bad and good conditions. According to the developevents. One of the foremost ments, one of the most feared regions is events was political uprising that called seemingly eurozone that would be faced Arab spring has been experienced in with the economic slowdown in 2012. some of the Middle Eastern and North In January, nine eurozone nations had African countries. their credit rating downgraded by ratEven though significant distance has been ings agency Standard & Poor’s (S&P), taken on the way towards a democratic causing the euro to fall to its lowest level order in some of the countries in the re- against the dollar since 2010. France and gion, unfortunately the process of the Austria lost their flawless AAA ratings Arab spring is continuing in some of the and are now rated AA+. As for Portugal’s countries. and Cyprus’s ratings were cut to “junk.” Especially in Syria, uprising which start- The sovereign debt crisis in Europe, ed in March 2011 still continues. The which took a turn for the worse in August clashes between the government’s forces 2011, coincides with slowing growth in and opposition group maintain its vio- several major developing countries (Bralence. zil, India and, to a lesser extent, Russia, In the region another country is Iraq South Africa and Turkey), mainly reflectwhich stages predominantly blasts of ing policy tightening begun in late 2010 bombs killing tens of people, in addition and early 2011 to combat rising inflato many disabled every tionary pressures from day. overly-fast growth, acThe biggest problem of cording to the statement Iraq and other countries of the World Bank. in the region is being adSo the Bank foresees ministered by the similar that the world economy regime characterizes lack in 2012 is set to grow of democratic and unfair by just 2.5 percent, election. weighed down by ripple Peace, comfort and stabileffects from the 2008 fiity are basic principles of nancial crisis. economic development. The developing counIbrahim Kupeli Wars, strife and political tries seem lesser risky ikupeli@img.com.tr uprising push the related than the developed councountries along with the entries. Growth in the detire world into the economic slowdown. veloping countries for 2012 is forecast Now the struggles, which are being ex- at 5.4 percent, the Bank has also lowered erted by the international monetary insti- its growth forecast for high-income countutions, aim to stabilize global economy. tries in 2012 to 1.4 percent and -0.3 perFollowing 2008-09 economic crisis, after cent for the high-income Euro Area. some two-year break, the economic crisis In the worsening condition in the global is expected to show its devastating impact economy lets eyes turn to Asia which is in the year 2012, too. Some says this time, seen the robust economy in the world. it would be worse than previous one. The International Monetary Fund (IMF) The World Bank predicts 2012 would be is looking to work ever more closely with a ‘turbulent year’. Asia to lessen the impact of the global In addition to the political turbulent es- crisis on the region and to help promote pecially in the MENA region, there are sounder and stronger growth globally, acalso expectations turbulent in the global cording to David Lipton, IMF First Depeconomy. Unstable developments would uty Managing Director. affect the entire world economy less or As for the situation in terms of Turkey, more. Because of the interconnected according to the officials, Turkey’s econglobal economy, for this reason no coun- omy would not be affected much from try and no region would be immune from the global crisis as much as Eurozone and that catastrophe. other developed countries; a 4-5 percent The economics and rating organizations development is predicted in 2012.

THOUGHT OF THE MONTH

A consultant is someone who takes the watch off your wrist and tells you the time.

Humor THINGS A CONSULTANT SHOULDN’T SAY TO A CLIENT 1. That was my first guess as well, but then I thought about it 2. You should see the hotel I’m staying at 3. Hey, I just realized that I was in junior high when you started working here 4. I like this office space. I’ll have them put me in here when you’re gone 5. My rental car is nicer than that junker you’re driving 6. Sure it’ll work; I learned it in business school 7. So what do you need me to tell you ? 8. Of course it’s right; the spreadsheet says so 9. I could just tell you the answer, but we’re committed to a six month contract 10. What are you, stupid ? THINGS YOU SHOULDN’T SAY AT A CONSULTANT INTERVIEW 1. I’m a t-shirt and jeans kinda person 2. Do you pay overtime ? 3. I hate flying 4. I’m useless without ten hours of sleep a night 5. There are lies, damn lies, and statistics 6. Are your rental cars covered for collision ? 7. College taught me working in teams is great for slackers 8. I think three letter acronyms are for people too stupid to remember whole phrases 9. Two words: family first 10. Call it what you want, it still means firing people WAYS TO TELL YOU’VE GOT THE CONSULTING BUG 1. Can’t stop using words that don’t exist

2. Worried that he who dies with the most frequent-flyer miles wins 3. Use so many “buzz words” in conversation, friends think you’re speaking a foreign language 4. Constant urge to give advice on subjects you know nothing about 5. Always hyphenating words that-don’t-needto-be-hyphenated 6. Compose your grocery list using bullet points 7. Can fit the thematic undercurrents of War and Peace into a two-by-two matrix 8. Tired of having a social life beyond work 9. A two-page story in Business Week is all it takes to make you an expert 10. Firmly believe that an objective viewpoint means more than any real work experience THINGS YOU’LL NEVER HEAR FROM A CONSULTANT 1. You’re right; we’re billing you way too much for this 2. Bet you I can go a week without saying “on board” or “value-added” 3. How about paying me based on the success of the project ? 4. This whole strategy is based on a Harvard business case I read about 5. Actually, the only difference is that I charge more than they do 6. I don’t know enough to speak intelligently about that 7. Implementation ? I only care about writing long reports 8. I can’t take the credit. It was George in your MIS department 9. The problem is, you have too much work for too few people Everything looks OK to me, you’re doing just fine

THE ECONOMIST Always listen to experts.

Well!

They’ll tell what can’t be done and why. Then do it

EASY

SUDOKU

MEDIUM

ACROSS

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1 Root beer brand ( 3 wds.) 6 Extremity 9 Abdominal muscles (abbr.) 12 Traveler 13 Rio de Jeneiro 14 By way of 15 Cactuses 16 Cantural Provessing unit 17 Kimono sash 18 Engrave 20 Grub 22 Drum 25 Side notes 26 school group 27 Outfitted 29 Heal 31 Pooch 32 Austin novel 36 Short sock 39 Old -fashionad Fathers 40 Shuts 43 Henry the 45 greek ‘A’ 46 Spy 47 Thai 48 Type of music 50 Chatter 54 Flightless Bird 55 Vane direction 56 Individualist 57 Cram 58 Seed bread 59 Organic compound

1 College football conferance (abbr.) 3 6 9 2 Wing 2 4 8 3 Big apple (abbr.) 4 Restrain HARD 5 Penman 1 9 8 6 Curve 7 Rive 7 2 5 8 Hair 3 6 4 9 Stap away from 10 Holly scripture 2 7 9 11 Sailboat need 8 4 6 19 Keyboard sounds 21 Expensive 5 1 3 22 Tempo 6 3 2 23 Dined 24 Manned 9 8 1 25 United 4 5 7 28 Turkish President Abdullah 30 Hurry FIENDISH 33 Miles Per hour 4 1 2 34 Entrance rug 35 Fire remains 5 7 3 37 Closer 6 8 9 38 Sip liguer 40 Serve 2 3 5 41 South American animal 9 4 7 42 Drug 44 Gyroscopes 8 6 1 46 Fencing sword 7 5 8 49 On of these 51 Picnic visitor 1 2 6 52 Ball holder 3 9 4 53 Stray

Made in Turkey Economic Newspaper, January 2012

A brand new taste from Koska

One more new innovation from ETI: ETI Kombo

ffering the traditional tastes along with the modern comments, Koska adds taste to the sweet pleasure with its “Sugar free with carob and hazelnuts” in the winter months.Since 1907 to date, maintaining as a classic of the dining tables, Koska offers a more different taste with “Sugar free with carob and hazelnuts”. Increasing resistance against diseases with carob and hazelnuts in its ingredient, the halvah meets energy need in the winter months as well. Page 14

aving made of wonderful harmonization of chocolate and delicious biscuit, ETI invites a brand new test with its new product, Kombo. Offering the satisfactory of biscuit and pleasure of chocolate together, ETI Kombo is offered to the admiration of consumers with its innovative form, different eating way, original packaging and taste. Being distinctive from the products in the market with its every aspect, ETI KOMBO is nominee to be a delightful snacking. Page 14

New regulations in food safety enter into force A

new law has entered into force about veterinary services, phytosanitary, food and fodder in the standards of the EU. Mehmet Mehdi Eker, The Minister of Turkey’s Food, Agriculture and Stockbreeding, elaborated the food safety system by holding a press conference at the Istanbul Congress Center. Eker said it is necessary to determine everything which is drunken and eaten in every stage of the food chain, adding that they had regulated the new regulation for that aim. Eker stated that they had aimed consumers to access the healthier, more hygienic and reliable food via the102 regulations has been published and to be published. Eker continued, “In fact, the food sector is the turning face of the agriculture sector to consumers. Not only producer, but also everybody is a stakeholder of this sector. We observe foodstuffs in this way. So, we have formed our primary aim in this way.” “The rural services have been localized and are being managed by the units which were established in the struc-

ture of governorships. A general directorship for Food Control is being set up,” Minister Eker added. The minister Eker said Turkey had been maintaining membership negotiations with the EU, the biggest challenge has been said would be in food matter. Eker said, “But this is unjustness, it is not true. We have shown that by the food law and regulations, Turkey has caught up with the standards of the EU easily, and our country has implementation ability of them. While The other many chapters have not been open for the negotiation, we have opened the food chapter for the negotiation and with this law with which we have put 102 regulations into implementation the harmonization and integration with the EU will be easier related with the

food and food sector, it is also important that Turkey carries out this.” Page 15

ISM Cologne attracts great interest SM Cologne is a biggest confectionery trade fair. ISM refers to International Sweets World. The event will provide assistance in the penetration of new products and services in global market. Attendees coming to this event will find new ideas, new technology and a wide variety of food manufacturing solutions for their operations. Exhibitors will get an opportunity to get you touch with existing or new customers. ISM Cologne is a home to numerous variety of candies and different kind of biscuits. The show will showcase all the innovative and latest trends in confectionery sector. Page 15

Tadım

dried plums in markets

ne of the most admired packaged dried food brands, Tadım has crowned its dried fruit kinds which are delicious from each other with dried plum. Snack Tadım Dried Plum

which Meets sugar need with most natural and most sweet way by adding energy to your daily life and flavor to your taste. A 40-year leading brand of packaged dried food sector, Tadım offers its new dried fruit, Tadım Dried Plum to the admiration of consumers. Meet your sweet need by the most natural and most sweet way by eating the satisfier and low calorie Tadım Dried Plum, whenever you want. Tadım Dried Plum covers rich potassium and magnesium, high anti-oxidant and vitamins. Page 12

Altıparmak Food advances quickly on Relieve your intensive its way to be a global brand tempo of city-life with Dogus green tea

ince its establishment year 1980 to date, the leading firm of the packaged honey sector Altıparmak Food is preparing to be a global brand in the year 2012. In this scope, the firm is going to in-

stall a new building to cost TL30 million to expand its warehousing, analysis and packing capacity in the district of Cekmekoy, Istanbul. Altıparmak Food will also raise its capacity 30 percent. Marking that exports lie on the base of being a global brand, Ozen Altıparmak, Chairman of the Board of Altıparmak Food, said, “As Altıparmak Food, we are the biggest honey exporter

of Turkey. Since 1994, we sell honey to Europe, Saudi Arabia, Iraq and Dubai, the USA and Azerbaijan. In 2011, we boosted our honey exports 30 percent over the year 2010. This year we will also wish to make big progresses in the exports. We begin to export honey to China which is the biggest honey exporter of the world with 100 thousand tons per annum. In this scope, we will be the first Turkish company achieving sustainable honey export to China. The year 2012 would be a year that we will meet with the Chinese market and know its dynamics. This year advancing with prudent and

strong steps, in the upcoming years we are planning to follow a more aggressive sale strategy.” Page 14

Tukas Taste Culinary turns into a taste station

ahrap Soysal and Eyup Kemal Sevinc, the masters of taste, drew a huge attraction from consumers in the festive of new year held at Cevahir AVM. Tukas Taste Culinary has turned into a taste station for those who want to learn how to prepare salads, hot and cold side-dishes which feature as indispensability of dining tables. Page 14

etting new tastes in the vegetable tea category meet with consumers, Dogus Tea mitigates the intensive tempo of city life with its healthily and delicious teas. Dogus Tea offers different choices for those who give importance to their health. Thanks to ant-oxidant feature, coming good to intensive city life’s stress and exhaustion, Dogus Green Tea promises fitness and health to you. Page 14

Super Group exports to 35 countries

brahim Yasubuğa entered his business life with a small grocery in the eastern province of Agri. Now his firm grows quickly in chocolate, textile, energy and tourism sectors in the structure of Super Group. The group exports to 35 countries. Page 12

Ulker offers a new taste, white chocolate with pistachio nuts

iscover the wonderful harmonization of pistachio nut and white chocolate which is offered to the market under the name

‘Ulker Golden white chocolate with Antep Pistachio nut’. Offering the highest quality and tasty chocolates to the Turkish consumers; Ulker

meets those who want more than a chocolate with its special series, Ulker Goldan brand. Ulker Golden Antep Pistachio nut White Choco-

late, this brand new white chocolate presents a distinctive experience with the taste of Antep pistachio nut. Page 14

Made in Turkey Economic Newspaper, January 2012

Foreign automakers increase their investments in Turkey

Turkish Foreign Minister Ahmet Davutoğlu

Major foreign auto manufacturers, like U.S. Ford and Japanese Mazda, Nissan and Toyota will increase their investments in the Turkish market in 2012 despite the global economic volatility. Continued From Page 1 azda, another Japanese auto maker, plans to boost its offerings in Turkey by focusing on new motor technology. Mazda has been relatively quiet in Turkey over the past five to six years . Now, however, the company has plans to revamp its technology and bring forth a new era in auto production, said Nurkan Yurdakul, managing director at Mazda Motor Turkey. “We plan to introduce our new technology Mazda CX-5 to the Turkish market as soon as this April,” Yurdakul told . “After this model we will launch our two liter diesel motor Mazda6 that uses our Skyactiv technology at the end of 2012.”

The largest leap will be with the Skyactiv motor Mazda3, which will come to the Turkish market in 2013. The Mazda3 will have a 1.3 liter diesel engine, which will be capable of using only 3.3 liters of gas per 100 km. “We plan to boost Mazda sales from the current 2,200 vehicles per year to a minimum of 10,000 per year. Turkey will become the hub of Mazda sales to Europe,” added Yurdakul. Mazda currently has 30 distribution centers in Turkey, but only 12 of these are active. The company plans to increase this number. Despite ambitious investment plans, 2012 could be a rough year for auto makers, especially those on the European conti-

nent. French car makers like PSA Peugeot Citroen and Renault expect a lull in sales. Such stagnation could also affect auto producers’ plans for the Turkish market. Meanwhile, there has been a drop in second hand auto sales in Turkey with all the attractive yearend sales and offers. Mersin’s Auto Salesmen Foundation Head (MODER) Hüseyin Kış said he thinks there will be a pickup in second-hand auto sales after the New Year. “With the New Year, many of the special offers and promotions will come to an end and there are always more second-hand auto sales in the summer,” he said. He did, however, say the overall trend showed that customers

prefer to buy brand new cars due to their safety

Turkey aims to make Istanbul a ‘UN center’

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and lack of maintenance costs.

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Turkey may revise down its growth target for 2012 ANKARA - Turkey might be forced to revise down its 4 percent growth target for 2012 if the debt crisis in Europe continues, says Deputy PM Babacan says for the first time. Continued From Page 1 “Growth of 4 percent in 2012 would mean that 2012 would have to be as good a year as 2011, if not better,” said Babacan at the Independent Industrialists’ and Businessmen’s Association (MÜSİAD) meeting at the Rixos Hotel in Ankara. Inflation target realistic The current inflation rate in Turkey was around 10.45 percent, but a 5 percent inflation target was certainly achievable, Babacan said. This high inflation reading was, in his opinion, temporary and not a result of monetary policy but rather developments regarding the exchange rate, rise in electricity prices, an

increase in the import tax on various textile products and the rise in cigarette prices, he added. Babacan also said there was likely to be an improvement in Turkey’s current account deficit and in the past four to five months they had seen substantially more direct investment without a serious outflow of capital from Turkey. The Turkish Central Bank had sold a large amount of dollars, he said. “The volatility in the lira is less than what you see in other developing countries,” said Babacan, adding that currency devaluation was a problem facing all developing countries and not a phenomenon

Turkish Deputy PM Ali Babacan

specific to the Turkish case. Meanwhile, in evaluating 2011 and spelling out its 2012 expectations, MÜSİAD said Turkey’s growth rate was five times that of the U.S. and Europe and had surpassed other BRIC countries bringing it on par with China. MÜSİAD also praised Turkey’s employment record saying unemployment was equivalent to U.S. figures and less than the current unemployment seen in Europe.

Number of exporting provinces reaches by 16

umber of exporting provinces over $1 billion raised by 16 in the year 2011. The figure of 16 provinces’ exports composed totally worth $109,6 billion, accounting for 81 percent of the overall exports of Turkey. The data from the Turkish Exporters’ Assembly (TIM) showed that the province of Istanbul ranked atop with $59 billion 49 million worth of exports in 2011. Istanbul was followed by the province of Kocaeli with $12

billion 629 million worth of exports last year. The northwestern province of Bursa ranked third exporting goods worth $12 billion 538 million. By the addition of Konya and Trabzon provinces onto previous year’s provinces Istanbul, Kocaeli, Bursa, Izmir, Ankara, Gaziantep, Manisa, Denizli, Hatay, Sakarya, Adana, Kayseri, Mersin and Antalya, the number of provinces which export goods over $1 billion reached by 16.

In signing a cooperation protocol with the Istanbul Municipality Government, Foreign Minister Ahmet Davutoğlu said the government aims to make Istanbul a major hub for the United Nations and world financial and cultural organizations.

Davutoğlu said the government wanted to make Istanbul a center for politics and diplomacy as a “U.N. city.” “We want all countries’ flags to wave in Istanbul. It’s a diplomatic perspective. “We aim to make Istanbul a U.N. center for issues of mediation, peace and issues concerning the future of humanity,” Davutoğlu said. “We agree with the U.N. on these matters and determined we have an important place [in these discussions].” The foreign minister also said the government hopes Istanbul will become a center for finance, a main center for global economic influx and a main station for transportation lines. He said Turkey has already had talks with Switzerland

and Luxembourg on the subject. Davutoğlu said if human culture were to be encompassed in three cities, Istanbul would be one of them. It was crowned the European Capital of Culture in 2010. At the annual ambassadors’ meeting held in Istanbul, Davutoğlu said he was proud to give Istanbul Mayor Kadir Topbaş the year 2011 award honoring a Turkish statesman’s contributions to diplomacy. At the ambassadors’ conference, Turkey signed an agreement to be the host country for the Cooperation Council of Turkic Speaking States (CCTSC). Davutoğlu said the CCTSC headquarters will be in Istanbul under the agreement, contributing to the effort to make Istanbul a center for international organizations.

Automotive sector may shrink 10 percent in 2012

ustafa Bayraktar, Chairman of the Turkey’s Automotive Distributor Association (ODD), said that the automobile and lightweight commercial vehicle market which broke record with the sales of 864,439 units in 2011, would constrict 10 percent due to slowing down in economy in 2012. Bayraktar announced that the automobile and lightweight commercial vehicle market achieved 13.61 percent rise with the sales of 864,439 units in 2011. While passenger cars’ sales became 593,519 units, as for lightweight commercial vehicles’ sales became 270,920 units last year. “When 45,000 unit heavy weight vehicles are added, the total market will reach by 910 thousand units and so to the sales of a 1 million units have been approached,” Bayraktar noted. Bayraktar continued, “In 2012 regarding the economic growth would be lower than 2011, the general market to plunge. In my opinion, some 10 percent freefall could happen. But we can see bigger shrink in the first half. It will go on by recovering from the middle of the year.” Telling that there were two main rea-

sons which affect the demand, Bayraktar pointed out that consumer purchasing power and confidence would be lower compared with the last year. Opposite of foreign currency rise, which was expected to affect the demand, did not affect the demand much, Bayraktar said, “The general special consumption tax increase affected 10 percent of the total sales. Change did not happen in the majority of the segment. The 5 percent increase effect is felt in the light commercial vehicles’ sales.” The tax rise was introduced in the vehicles over 1600cc cars and in the commercial vehicles October 2011.

Mustafa Bayraktar, Chairman of the Turkey’s Automotive Distributor Association

Made in Turkey Economic Newspaper, January 2012

EU leaders warn of tough year ahead Far from the fanfare which heralded its arrival a decade ago, the 10th anniversary of the euro was marked by questions over its survival and predictions of more economic gloom in Europe.

Continued From Page 1 rench President Nicolas Sarkozy said 2012 was a year “full of risks” but vowed that Paris’s economic policy would not be dictated by the markets or the ratings agencies. “What is happening in the world announces

that 2012 will be a year full of risks but also full of possibilities. Full of hope, if we know how to face the challenges. Full of dangers, if we stand still,” Sarkozy said. “A very difficult year, marked by necessary but painful measures, is ending... a very difficult year is around the cor-

ner,” Greek Prime Minister Lucas Papademos said in his New Year’s message. The European Central Bank, which sets the interest rate for the entire 17-member eurozone from its Frankfurt headquarters, issued a new 2-euro commemorative coin but its own celebrations were decidedly muted. “Over the past decade, the single currency has become a symbol of integration and cooperation and the euro coins and banknotes have become part of our daily lives,” said ECB president Mario Draghi in a commemorative video message.

“Despite the challenges currently faced by Europe as well as the rest of the world, the people of the euro area can rest assured that the ECB will remain faithful to its mandate of maintaining price stability.” Economists agree that the longer-term benefits of the euro have been real and tangible, even if some helped set the stage for the current crisis. The end of currency exchange risks and costs helped integrate European markets, boosting trade between member states, a move that helped German small business in particular. Another benefit was in cutting inflation, which

has remained around 2% since the introduction of the single currency. But the euro’s lower interest rates enabled successive Greek governments to go on a borrowing binge that resulted in the debt crisis that spread to Porrtugal, Ireland and now threatens all the countries in the region, despite a series of “last chance” EU summits. The crisis over the past year has demonstrated that the eurozone leaders have still not developed a sufficiently robust firewall to boost the flagging economies of Spain and Italy. And support from the IMF remains uncertain.

The crisis has also highlighted a failure to coordinate the eurozone members’ disparate economic policies. Partly as a result, the euro ended the year at a 10-year low against the yen and a 16-month low against the dollar, although still well above its original rate to the dollar in 2002. For the first time, the euro’s very survival has been openly questioned in several countries. But a poll published by France’s Journal de Dimanche showed that 64% of French voters were against abandoning the euro, although 81% blamed it for fuelling price increases.

Atambayev invites Turkish businessmen to invest in Kyrgyzstan

yrgyz President Almazbek Atambayev come to Turkey on his first visit abroad after resuming presidency to meet Turkish officials, to discuss cooperation between the two nations in the fields of culture, economy and defense. Meanwhile, TOBB/DEIK President M. Rifat Hisarciklioglu met with the Kyrgyzstan President Almazbek Atambayev in Istanbul at the breakfast. During the meeting, TOBB/DEIK President Hisarciklioglu stated that the establishment of the arbitration council in Kyrgyzstan would make investments more appealing. Touching on the subject of establishing an Organized Industry Zone (OIZ) in Kyrgyzstan, Hisarciklioglu stated that they could benefit from Turkey’s experiences. Stating that they request that attain-

ing work permits be made easier, the TOBB President said that building contractors could be a great beneficence in Kyrgyzstan. Atambayev’s invitation to invest in Kyrgyzstan During his speech, Kyrgyzstan President Almazbek Atambayev stated that they viewed Turkey as an elder brother and emphasized the importance of the Turkish Union. Stating that Turkey has good relations with Russia but should desire for better, Atambayev said that Kyrgyzstan will sign a customs union agreement with Russia, Kazakhstan and Belarus, so making investments in Kyrgyzstan will be a good opportunity for reaching the markets of these countries. Stating that Kyrgyzstan is a region rich in mines and rivers, Atambayev

invited Turkish businessmen to invest in the establishment of hydroelectric energy plants and in the field of telecommunication in Kyrgyzstan. The Kyrgyz President Atambayev stated that they are working to promote investments in Kyrgyzstan by fighting briber and providing a more transparent work environment. “We want to promote investment opportunities in Kyrgyzstan” DEIK Turkish – Kyrgyz Business Council President Atilla D. Yerlikaya stated that they want to promote investment opportunities in Kyrgyzstan and plan to hold meetings in 5-6 provinces for this reason. The meeting was attended by Kyrgyzstan President Almazbek Atambayev, TOBB/DEIK President M. Rifat Hisarciklioglu, Kyrgyzstan Deputy Prime Minister Coomart

Maximum monthly real profit gained by US dollar

n December 2011, US Dollar, one of the financial investment tools, yielded the highest monthly real profit with the rates 1.87% and 2.30% according to Producer Price Index and Consumer Price Index respectively. According to Producer Price Index, investors of Stock Exchange, Gold (ingot), Euro and Deposit Interest lost by -3.43%, -3.14%, -0.80% and -0.48%, respectively. According to Consumer Price Index, investors of Stock Exchange, Gold (ingot), Euro and Deposit Interest lost by -3.02%, -2.73%, -0.39% and -0.06% respectively. Maximum real profit was obtained by US dollar investors quarterly according to PPI and by Gold (ingot) investors biannually and annually according to PPI and CPI. Investors of US Dollar made the highest real profit with the rate of 0.56% according to PPI, while the lowest loss with the rate of -1.69% according to CPI, quarterly. The real profit rate of Gold (ingot) was 17.43% ac-

cording to PPI and 17.33% according to CPI biannually. In the same period, Investors of Stock Exchange made the highest loss with the rates of -20.93% and -20.99% according to PPI and CPI respectively. In December 2011, financial investment tools were listed in descending order with respect to their yearly real profit rates as follows: Gold (ingot), US Dollar, Euro, Deposit Interest and Stock Exchange. The real profit rates of Gold (ingot), US Dollar and Euro were 27.73%, 8.40% and 7.97% respectively, however in the same period Deposit Interest and Stock Exchange lost by -5.26% and -29.58% respectively, according to PPI. The real profit rates of Gold (ingot), US Dollar, Euro were 31.06%, 11.23% and 10.78% respectively, however according to CPI in the same period deposit interest and Stock Exchange lost by -2.79% and -27.74% respectively.

Well-cared men’s choice: Fonex

en, who like being cared every time, energetic and looking attractive; especially for those who take care of their hairs and skins. Fonex responds to the different needs of men by its developed special formulated products and let them to have lively skin, healthily and bright hairs. While well-cared men win liveliness and energy, they also prevent irritation that happens after shave with Fonex After Shave prod-

ucts include rich essences which are source of health, provides renovation and regeneration on skin. With the shampoo kinds directed to various hair types, men would own healthily, voluminous, strong hairs. Also with shaper products they can form their hairs in the wanted way. Men can protect their hairs’ form during day thanks to Fonex’s wet, hard, extra hard, ultra hard, ultra powerful and ultra hard & wet and Gummy kinds.

Otorbayev, TOBB Young Entrepreneurs Council President Ali Sabancı, DEIK Turk – Kyrgyz Business Council Atilla D. Yerlikaya and businessmen.

Ankara scored a serious discount for Russian gas “Turkey is in a better position in terms of natural gas compared with three months ago. The South Stream Project opened a space to improve our strategic partnership with Russia,” Yıldız told reporters. The minister said the discount Turkey received on Russian gas would be valid until the end of contract terms in 2021 and 2025. Yıldız, who signed the agreement with Russian Prime Minister Vladimir Putin on Dec. 28, said Turkey agreed to the South Stream project to fulfill its task of helping supply Europe’s energy demand. “Although the energy chapter has not been raised in our negotiations with the European Union, Turkey allowed this project to fulfill its requirements regarding energy. After this deal, no project will be left dependent on Turkey’s consent. I hope the EU will open the energy chapter in our negotiations,” Yıldız said. Turkey will purchase 3 million cubic meters of Russian gas that was originally slated for “take or pay” contracts, he said. Turkey’s state-run pipeline company BOTAŞ withdrew from Westline due to a price dispute with Russia in September. Since then, Turkish private firms have been bargaining on possible gas exports from Russia. “If private companies sign an agreement for the Westline, they can take the natural gas as of June 2012,” Yıldız said. The energy minister said the Trans-Anatolia pipeline would not overshadow the Nabucco project. Turkey and Azerbaijan signed a memorandum of understanding Dec. 26 to establish a venture to build the Trans-Anatolia pipeline, which will stretch across Turkey from east to west and possess a capacity of 16 billion cubic meters a year. “Trans-Anatolia will not overshadow Nabucco, but if Trans-Anatolia can be carried out, Nabucco would take the natural gas from the Bulgarian border instead of Georgia,” he said. Commenting on oil exploration in the Black Sea, Yıldız said Turkey would not give up drilling for oil in the region. Oil exploration takes a long time, he said. “We will not give up after the seven drilling [operations] – we will continue exploration in the Black Sea. If there are offers from private firms, we will evaluate them.”

Made in Turkey Economic Newspaper, January 2012

International tourism to reach one billion in 2012 Bursa prepares to attract more Arab tourists in 2012

urkey’s northwestern city of Bursa’s objective is to attract 500,000 tourists from Arabic countries in 2012. In 2011, 800,000 tourists visited Bursa, and 300,000 of them were from Arabic countries, according to the announcement of Mehmet Akkus, chairman of the South Marmara region of the Association of Turkish Travel Agents (TURSAB). He added that the organization aimed to make Bursa a tourism capital of the Middle East in 2013. Akkus also recorded that Bursa would hold a Turkish-Arab tourism meeting in April 2012 to which

representatives from 22 Arab countries to attend. Bursa is one of the most interesting places to visit in Turkey with its scenic old town and wonderful buildings including mosques. The city is also renowned by its natural spas. The thermal springs in the northwestern suburb of Cekirge, popular even in Roman times, attract a large numbers of visitors each year with its modern bath and up to date treatment facilities. Besides, the province features with the Mount Uludag, a popular ski resort. Istanbul hosted 8 million tourist

Meanwhile, the number of foreign tourists visiting Istanbul reached 8 million in 2011. According to a statement posted by the Istanbul Culture and Tourism Department, number of foreign tourists visiting Istanbul exceeded eight million. In 2010, the number of foreign tourists was 6.9 million. German travelers constituted the majority of foreign tourists visiting Istanbul in 2011. This country was followed by the tourists from Russia, America, Italy and France. As for the tourist from Japan, Spain and Israel visiting Istanbul dropped compared to previous year in 2011.

Merkel and Sarkozy vow fast action as crisis bites Continued From Page 1 ermany and France are ready to review... to what extent our payments can be accelerated in a certain way and thus once again make our trust in and support for the eurozone clearly visible,” she told reporters. EU leaders are looking into ways of arming the fund, the European Sta-

bility Mechanism, with its resources in one go, rather than putting in smaller trenches over several years under the current plan. The meeting between the two, who have been at the forefront of efforts to combat the eurozone debt turmoil, came as the euro tested near 16-month lows against the dollar. “The situation is tense, very tense,” acknowledged Sarkozy.

The crisis also appeared to be returning with a vengeance to Athens, where it began. A team of international auditors was due to return to Greece next week to assess the country’s economy after Prime Minister Lucas Papademos warned of an “uncontrolled default” in March if no further aid was forthcoming. Merkel called for the “rap-

id implementation” of reform measures in Greece, warning that new bailout funds could not be paid out otherwise. Amid renewed speculation that Greece could be forced out of the euro, she nevertheless stressed: “It is our intention that no country should leave the eurozone.” Analysts were largely unimpressed by the meeting.

nternational tourist arrivals grew by over 4% in 2011 to 980 million, according to the latest UNWTO World Tourism Barometer. The growth expected to continue in 2012, international tourist arrivals are on track to reach the milestone one billion mark later this year. International tourist arrivals grew by 4.4% in 2011 to a total 980 million, up from 939 million in 2010, in a year characterised by a stalled global economic recovery, major political changes in the Middle East and North Africa and natural disasters in Japan. By region, Europe (+6%) was the best performer, while by subregion South-America (+10%) topped the ranking. Contrary to previous years, growth was higher in advanced economies (+5.0%) than in emerging ones (+3.8%), due largely to the strong results in Europe, and the setbacks in the Middle East and North Africa. “International tourism hit new records in 2011 despite the challenging conditions,” said UNWTO SecretaryGeneral, Taleb Rifai. “For a sector directly responsible for 5% of the world’s GDP, 6% of total exports and employing one out of every 12 people in advanced and emerging economies alike these results are encouraging, coming as they do at a time in which we urgently need levers to stimulate growth and job formation,” he added. Europe surpasses the half billion mark in 2011 Despite persistent economic uncertainty, tourist arrivals to Europe reached 503 million in 2011, accounting for 28 million of the 41 million additional international arrivals recorded worldwide. Central and Eastern Europe and Southern Mediterranean destinations (+8% each) experienced the best results. Although part of the

growth in Southern Mediterranean Europe resulted from a shift in traffic away from the Middle East and North Africa, destinations in the Mediterranean also profited from improved outbound flows from markets such as Scandinavia, Germany and the Russian Federation. Asia and the Pacific (+6%) was up 11 million arrivals in 2011, reaching a total 216 million international tourists. South Asia and South-East Asia (both +9%) benefited from strong intraregional demand, while growth was comparatively weaker in NorthEast Asia (+4%) and Oceania (+0.3%), partly due to the temporary decline in the Japanese outbound market. The Americas (+4%) saw an increase of 6 million arrivals, reaching 156 million in total. South America, up by 10% for the second consecutive year, continued to lead growth. Central America and the Caribbean (both +4%) maintained the growth rates of 2010. North America, with a 3% increase, hit the 100 million tourists mark in 2011. Africa maintained international arrivals at 50 million, as the gain of two million by Sub-Saharan destinations (+7%) was offset by the losses in North Africa (-12%). The Middle East (-8%) lost an estimated 5 million international tourist arrivals, totalling 55 million. Nevertheless, some destinations such as Saudi Arabia, Oman and the United Arab Emirates sustained steady growth. Receipts confirm positive trend in arrivals Available data on international tourism receipts and expenditure for 2011 closely follows the positive trend in arrivals. Among the top ten tourist destinations, receipts were up significantly

in the USA (+12%), Spain (+9%), Hong Kong (China) (+25%) and the UK (+7%). The top spenders were led by emerging source markets – China (+38%), Russia (+21%), Brazil (+32%) and India (+32%) – followed by traditional markets, with the growth in expenditure of travelers from Germany (+4%) and the USA (+5%) above the levels of previous years. International tourism on course to hit one billon in 2012 UNWTO forecasts international tourism to continue growing in 2012 although at a slower rate. Arrivals are expected to increase by 3% to 4%, reaching the historic one billion mark by the end of the year. Emerging economies will regain the lead with stronger growth in Asia and the Pacific and Africa (4% to 6%), followed by the Americas and Europe (2% to 4%). The Middle East (0% to +5%) is forecast to start to recover part of its losses from 2011. These prospects are confirmed by the UNWTO Confidence Index. The 400 UNWTO Panel of Experts from around the globe, expects the tourism sector to perform positively in 2012, though somewhat weaker than last year. Governments urged to facilitate travel As destinations worldwide look to stimulate travel demand under pressing economic conditions, UNWTO is urging governments to consider advancing travel facilitation, an area in which in spite of the great strides made so far there is still much room for progress. UNWTO advises countries to make the most of information and communication technologies in improving visa application and processing formalities, as well as the timings of visa issuance, and to analyze the possible impact of travel facilitation in increasing their tourism economies. “Travel facilitation is closely interlinked with tourism development and can be key in boosting demand. This area is of particular relevance in a moment in which governments are looking to stimulate economic growth but cannot make major use of fiscal incentives or public investment,” said Mr. Rifai.

Made in Turkey Economic Newspaper, January 2012

Economy Minister Zafer Caglayan

Turkey to focus on high-tech exports via entrepreneurship Continued From Page 1 ompared with last year’s total export volume of $138.4 billion, the export volume of the Turkish firms benefiting from entrepreneurship funds falls short,” Çağlayan added. “One of our main aims is to introduce entrepreneurship funds to Turkish entrepreneurs,” Çağlayan said, adding that the country’s competitiveness should be boosted through channeling international funds to Turkey. He said currently the share of high-tech products in the country’s total export volume is nearly 44 percent. “This has to be increased,” the minister said. “In order to achieve this, we have to work on the infrastructure, which could enable the emergence of global firms such as Apple and Google.” Turkish software companies lack sufficient information on exporting their products to foreign markets, he said, adding that financial difficulties remain a burden on the firms promising growth in the future. Encouraging SMEs “Small and medium firms make up to nearly 60 percent of Turkey’s total exports,” he said, adding that SME’s should be encouraged to focus on manufacturing goods providing added value. İbrahim Turhan, chairman of the Istanbul Stock Exchange, Mustafa Kaplan, head of the Small and Medium Industry Development Organization (KOSGEB), Süreyya Ciliv, chief executive of Turkcell, Levent Çakıroğlu, head of durable goods at Koç Holding, Murat Özyeğin, board member of Fiba Holding, Murat Sungur, chairman of Zorlu Energy attended the meeting.

Turkey to stand stable despite global uncertainties Continued From Page 1 eadline inflation will fall back to single digits starting from May,” Başçı said. The October tightening in loan growth has been “very effective,” he added. According to the governor, high inflation was a temporary one. “It is the price of a soft landing” as the Turkish economy grew 8.2 percent in the third quarter. The bank has decided to cancel monthly briefings with chief economists and general managers of lenders, introduced for the first time earlier in 2011 However, the bank will accept more requests from analysts for individual meetings with senior officials, said Başçı. “In general, the Central Bank’s 2012 monetary policy outlook did not provide any surprise for financial markets,” said Özgür Altuğ, chief economist at BGC Partners. “We sense the bank realized the fact visibility in financial markets has been quite low because of the

EU debt crisis and central bank’s monetary policy flexibility,” Altuğ said. “Consequently, we observe the bank will put great importance on communication in next year, but the cancelation of monthly investor conferences might be perceived as negative in terms of communication.” The governor also said the bank would replace 4.3 billion liras of bond maturing in its portfolio next year by buying bonds from the market via auctions. The bank has no plan “for the time being” regarding any other bond purchases next year, Başçı said. It will help markets and lenders make plans ahead by offering lending in liras and foreign currencies over one month, in addition to week-long auctions. The bank will set a target for the amount of dollars the bank sells in daily auctions at the monthly monetary policy meeting, added Başçı. Meanwhile, Turkey’s chronic trade deficit narrowed by $200

Turkish Central Bank Governor Erdem Basci

million in November compared to the same month last year, according to official figures revealed Dec. 30.

IFC and EIB collaborate to strengthen private sector development in emerging markets

FC, a member of the World Bank Group, and the European Investment Bank has agreed to improve collaboration between the two institutions when financing private sector development projects in emerging markets. Increased cooperation will improve the effectiveness of funding by reducing the administrative burden on borrower companies and allowing quicker completion of financial documentation. Greater cooperation will directly benefit public-private partnerships and project finance operations. It will also enable joint funding for small and medium enterprises and projects that contribute to the fight against climate change. The agreement will particularly benefit projects that support private sector development in Africa, the Caribbean, the Pacific, the Republic of South Africa, and in Mediterranean countries where the European Investment Bank operates under the Facility for EuroMediterranean Investment and Partnership. Under the agreement, signed in Luxembourg by the European Investment Bank President and IFC’s Executive Vice President and CEO, projects supported by both IFC and the European Investment

Bank will be able to obtain funds from both institutions with limited additional administrative requirements. The agreement defines guiding principles covering the application process and allocation of responsibilities between the two institutions to allow the timely completion of investments. Areas of cooperation and coordination include execution of mandate agreements, the appraisal and due diligence process, monitoring visits, and the handling of client requests. “In a time of economic uncertainty, it is more important than ever for international finance institutions to collaborate to support private sector companies investing in emerging markets,” said Lars Thunell, IFC’s Executive Vice President and CEO. “This agreement deepens the partnership between IFC and EIB, and it will benefit our client governments while allowing us to respond quickly to the most urgent development challenges.” Philippe Maystadt, President of the European Investment Bank, said: “This agreement provides a welcome opportunity to reduce duplication of administrative procedures and improve the effectiveness of lending operations in emerging markets.

Closer cooperation between the European Investment Bank and the IFC when acting as joint-lenders will allow a stronger contribution to private sector growth.” IFC and the European Investment Bank have a longstanding partnership, which intensified during the financial crisis. To maintain support for small and medium enterprises and the private sector in emerging markets impacted by the crisis, IFC and the European Investment Bank, together with other partners, launched Joint IFI Action Plans for Eastern and Central Europe, Africa, and the Caribbean. Working with other partners, the IFC and the European Investment Bank also launched the Microfinance Enhancement Facility to support sound microfinance institutions impacted by the crisis, and jointly capitalized systemically important banks throughout Africa through the Africa Capitalization Fund. Through the Infrastructure Crisis Facility, they also provided financing for important ongoing infrastructure projects that had come to a halt because of the crisis. IFC and EIB have cofinanced projects worth more than $3 billion in private sector projects globally.

Made in Turkey Economic Newspaper, January 2012

Turkey poses to be supply base of global giants

urkey draws attention of the international companies in fresh vegetables, fruits, glassware as well as electronic and ready-to-wear areas. Last March while Metro Group announced it would make Antalya one of the supply centers in food area, Tesco Kipa has announced in the other areas out of foods. Wall-Mart the retailer giant is continuing works for supply in Turkey, as for Singaporean firm Fair Price group has begun negotiation in the purchasing issue with Turkish Exporters’ Assembly (TIM). Meanwhile it is said that the total turnover of Turkish products which are sold at the various points of the world exceeded a few billion dollars. After the global economic crisis, the local and small sized productions are regarded as advantageous in the new economic order, it is commented that Turkey reaps the fruits by its geographic position and manufacturing advantages. So this advantageous condition urges the big retailer chain to open their subsidiaries in Turkey, as well as evaluating the advantageous in different areas in Turkey. Many chains in DIY and supermar-

ket segments meet some 50 percent of their sales, which accomplish in Turkey, via Turkey. The firms, which supply their white goods and electronic needs from Turkey with the exports contribution of the Turkish firms such as Vestel, Arcelik, Simbo, chose the way to lower their costs with the advantageous supply points. In this area being one of the first countries Turkey has begun to become supply center of the firms in the various areas. In this scope, Tesco Kipa bought goods worth $300 million, IKEA exported worth $500 million last year. As for the German Metro firm exported worth $35 million. In 2012, planning to add high competitive products as textile, house appliances, white goods on its portfolio, Tesco held a business trip to Turkey late last year. Carrefour mostly buys home textile and other textile products from Turkey. Since 2005 to date accomplishing $1 billion worth of exports from Turkey, the firm aims to raise this figure more in the upcoming period.

IEA-IRENA partnership to develop a global renewable energy

he International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) signed a partnership agreement which will strengthen co-operation between the two organisations. Although the agencies have collaborated since IRENA’s inception in 2009 – including developing a joint approach on renewable energy statistics – this agreement will launch a number of new initiatives, such as a joint database of renewable energy policies. The IEA’s Executive Director, Maria van der Hoeven, emphasised the importance of close cooperation. “The Joint Database will eventually allow the coverage of renewable energy policies in 150 countries, which I consider a crucial milestone to foster best policy practices – and consequently cost-effective large-scale deployment of renewables,” she said.

IRENA’s Director-General, Adnan Z. Amin, added: “IRENA and the IEA are natural partners in the global quest to increase the deployment of renewable energy. This agreement will allow us to maximise output by drawing on each others’ respective strengths and complementary areas, while avoiding duplication of efforts.” The proposed new areas of work are outlined in a Letter of Intent, which was signed by the Executive Director of the IEA and the Director General of IRENA, during the IRENA Assembly in Abu Dhabi on 14 January 2012. IRENA, which was established in January 2009, aims at acting as a global voice for renewable energy, promoting its widespread and increased adoption. The existing IEA database will now be known as the IEA/IRENA Global Renewable Energy Policies and Measures Database and will be

improved with additional datasets from IRENA Members and Signatory countries. Both parties will collect and verify information for the database, which will open to free public access and be updated at least twice a year. Other points covered in the Letter of Intent include the regular exchange of information, the organisation of joint conferences and workshops and reciprocal participation in technical committee meetings. There will also be increased collaboration between the two agencies at the Secretariat level, and in energy technology networks, including the IEA’s Multilateral Technology Initiatives. (These initiatives, also known as Implementing Agreements, are well-established programmes for pre-commercial international technology co-operation between countries, and many of which focus on renewable energy technologies).

Cotton International 2012 Global Summit to debut in Bangkok

otton International magazine announces its inaugural global event to convene the leading cotton and textile professionals from around the globe and address the challenges and new opportunities for the full cotton value chain in today’s volatile market. The Cotton International 2012 Global Summit will be held April 25-27 at the elegant Landmark Hotel in Bangkok, Thailand – the heart of the increasingly important Southeast Asia region. In coopera-

tion with the International Textile Manufacturers Federation (ITMF), and other prominent industry organizations, the 2012 Global Summit will attract cotton industry leaders from key markets and allied industry partners to connect, engage and transact business. “The incredible market volatility and uncertainty over the last three to four years has fundamentally changed the way cotton and textile professionals must run their businesses,” said Gary Fitzgerald, CEO

and Chairman of Meister Media Worldwide, parent company of Cotton International. “As the voice of the global cotton community, it’s our mission to help all of the stakeholders in the industry turn this market volatility to competitive advantage. The Cotton International 2012 Global Summit is a big step toward fulfilling that mission.” The global financial markets and the global economy are going through a period of cyclical and structural changes that generate uncertainty and volatility, presenting new challenges for companies all over the world.

“The textile industry finds itself dealing with volatile raw material prices and relatively inflexible retail prices, so survival depends on the ability to adapt business models in an ever-changing environment,” said Christian Schindler, Director General of ITMF. “That’s why it’s so crucial to meet, discuss and analyze future challenges and opportunities with business partners from all sectors of the cotton and textile industries. The Cotton International 2012 Global Summit in Bangkok will be an ideal occasion to do that.” The CI 2012 Global Summit program will feature panel discussions

by industry leaders on key issues such as the changing market dynamics, emerging market developments, global trade patterns, contract sanctity in the value chain and risk-management strategies for mill owners. Detailed information about the agenda, speakers and other contentrelated topics will be released in the coming weeks. “The current health and long-term sustainability of the global cotton industry is best served by direct interaction among industry sectors, in a setting that encourages communication, relationship-building, education and the adoption of best

practices to facilitate trade,” Fitzgerald said. “This gathering of leading cotton and textile professionals from across the globe will serve to ensure cotton’s leadership in these challenging times and its position as the world’s most popular and sustainable fiber.” About the Organizer: Cotton International (www.cotton247.com/ci) is a publication of Meister Media Worldwide (www.meistermedia. com), a Willoughby, Ohio, U.S.A.based provider of magazines, digital products, events, custom media, and business services for specialty agriculture markets worldwide.

Made in Turkey Economic Newspaper, January 2012

Minister Caglayan: “We try to raise current trade volume with Iraq”

urkey’s Economy Minister Zafer Caglayan visited Mesut Barzani, the regional head of Northern Iraq administration. Caglayan stated that seeing

Iraq as whole in terms of the ethnic and sectarian structure is outstanding in the aspect of Turkey every time. He noted, “Both Mesut Barzani and Necirvan Barzani

also have the same point of view with the issues which we give importance as Turkey. Unitary, unity and a structure which take into consideration the all ethnic and religious structures are the same choice for us and Necirvan Barzani.” Stating that they, as the economy ministry works very closely with the Ministry of Foreign Affairs, Caglayan said, “Iraqi Electric Ministry has approved the tender of ENKA Holding worth $235 million to build energy plant power. The

health ministry also singed another agreement worth $125 million for building a hospital. These two investments account for $400 million.” “I feel myself here like at my home” Minister Caglayan also attended a business form held in Erbil. Caglayan recorded that Turkey would continue to work to develop the relations with every region, every section of Iraq. “I also thank to you regarding your interest to me and my

friends. I feel myself here like at my home,” Caglayan said. Cagalayan also reminded that last year Turkish contractors signed business agreement here over worth $2,5 billion. About trade relations with Iraq, Caglayan said, “Onefourth of the containers which come to the Mersin port, which is the second big port of Turkey, carry goods to Erbil. These figures show extremely importance of the trade with Iraq. In the international area, following China, Turkey does

the most work in the contractor area. We ranked second in this area; our aim is to be champion across the world.” Worth $12 billion foreign trade As of the end of 2011, the total foreign trade with Iraq approached by $12 billion. “I say that a trade volume worth $12 billion does not fit with such friendship, we wish to reach by a trade volume worth $22, $32 billion. I hope we will achieve that figure. Turkish businessmen will do

what fall on their shoulders in this issue,” Caglayan recorded. Caglayan also note that Berham Salih gave good news for them. “Mr. Salih has allocated a land together with a building on it to set up a Turkish Culture Center. We thank to him very much. Mr. Prime Minister you know that this would return to you by its folds. The Turkish Culture Center will sign more friendship, brotherhood,” Minister Caglayan concluded.

TUSIAD prepares three scenarios for economy in 2012

urkish Industry & Business Association (TUSIAD) prepared a report entitled “Turkey’s Economy in 2012”. The report was gathered under three headlines based on three different scenarios. According to the announcement, the report entitled “Turkey’s Economy in 2012” which was prepared

by Turkish Industry & Business Association covers three different hypotheses, under the three headlines. One of these scenario which was accepted as basic is the scenario “Confidence in home” foresees Turkey economy would meet with the foreign saving restriction, for this reason Turkey economy would grow 3.2

percent in 2012 over the growth in 2011. According to this scenario the basic factor which would urge the growth to slow down is the private sector’s investments to diminish. In this scenario the investment spending will grow 6.1 percent, and the special consumption spending will plunge by 3.5 percent.

World Bank projects global slowdown, with developing countries impacted

As for the scenario titled “Retarded Macro Harmonization”, it is forecasted that the macroeconomic politic harmonization can retard in the home, due to the global macro problems. According to this scenario, the foreign capital narrowing is evaluated together with the spoiling in confidence in economy so in-

Continued From Page 16 eclining commodity prices have contributed to an easing of headline inflation in most developing countries. Although international food prices eased in recent months, down 14 percent from their peak in February 2011, food security for the poorest, including in the Horn of Africa, remains a central concern. “Developing countries need to evaluate their vulnerabilities and prepare for further shocks, while there

IKMIB and AKIB award R&D projects to motivate exports The chemical sector has approached one more step to its export target worth $50 billion to accomplish by the year 2023

he researchers in the universities throughout Turkey have developed R & D projects to stimulate exports. additional $500 million worth of exports are aimed in the chemical exports by these projects, such as anti-ageing product which was prepared by the vegetable oil and honey, environmentally-friendly detergent which was made of sunflowers’ scape, losing weight by aromatherapy essential fragrances, packaging which prolong the shelf-life of fresh fruits and vegetables, anti-microbial paint against hospital microbes. The chemical sector has approached one more step to its export target worth $50 billion by R & D Projects in the year 2023. Putting into life by the cooperation of Istanbul Chemical Matters Exporters’ Union (IKMIB) and the Mediterranean Chemical Matters Exporters’ Union (AKIB) by support of Turkish Exporters’ Assembly (TIM), the number of 100 R & D Projects was introduced to the chemical industrialists. In order to allow exports being sustainable and also chemical exporters to obtain advantage in the global markets by improving high technological products, the event of R & D Market was held at the building of Foreign Trade Complex on 27-28 December, 2011, in Istanbul. As Plastic and rubber, cosmetics, soap and cleansing products; medicine and pharmacy products; paints and adhesives and others totally 100 projects in 5 different categories took place at the R & D Project Market Event that allows the representatives of the industrial establishments, lecturers from the universities, foremost R & D centers, employees of techno-park and researchers meet together.

The projects were evaluated by “Award Choosing Committee” which was constituted by independent members, following the briefings of the projects and tete a tete negotiations of researchers and industrialists and verbal presentations. The 5 projects, which were selected from the all projects each is innovative from other one, were awarded at a ceremony and presented to their winners. The awards of the bests of the R & D Market offered by Economy Minister Zafer Caglayan, TIM Chairman Mehmet Buyukeksi, IKMIB Executive Board Chairman Murat Akyuz and AKIB Executive Board Chairman Ali Ugur Ates. The first winner

got TL8 thousand, second one TL5 thousand and third one TL3 thousand by the R & D Market which undertakes a significant role in closing the gap of current account deficit. As for the award over the categories, it was TL12 thousand. IKMIB Executive Board Chairman Murat Akyuz said that the R & D Market is a remarkable step in the realization of university-industry cooperation. Pointing out that it would be possible to overcome dependency of the sector on the foreign markets by the R & D and innovation, Akyuz recorded that they would bring the event which has a vital importance into a traditional way at a point to be able to make ideas and products.

vestment and consumption growth rates per annum expected to setback. As for the optimistic scenario, the unemployment rate would setback by 9.8 percent depending on high investment and GDP growth.

is still time,” said Justin Yifu Lin, the World Bank’s Chief Economist and Senior Vice President for Development Economics. Developing countries have less fiscal and monetary space for remedial measures than they did in 2008/09. As a result, their ability to respond may be constrained if international finance dries up and global conditions deteriorate sharply. To prepare for that possibility, Hans Timmer, Director of Development Prospects at the World Bank, said:

“Developing countries should prefinance budget deficits, prioritize spending on social safety nets and infrastructure, and stress-test domestic banks.” While prospects in most low-and middle-income countries remain favorable, the ripple effects of the crisis in high-income countries are being felt worldwide. Already, developing country sovereign spreads have increased 45 basis points on average and gross capital flows to developing countries plunged to

$170 billion in the second half of 2011, compared with $309 billion received during the same period in 2010. “An escalation of the crisis would spare no-one. Developed- and developing-country growth rates could fall by as much or more than in 2008/09” said Andrew Burns, Manager of Global Macroeconomics and lead author of the report. “The importance of contingency planning cannot be stressed enough.”

Made in Turkey Economic Newspaper, January 2012

Super Group exports to 35 countries

Continued From Page 5 n example success story for the Turkish entrepreneurs from Ibrahim Yasubuga who started his business in the province of Agri. As in the every big enterprise’s foundation, the story of Yasubuga who established Super Group begins his business with a small establishment. Launching his trade life by establishing a small grocery in Agri, now Yasubuga manages a giant

company which acts in 4 various sectors, accomplishing a turnover over $100 million and exporting to 35 countries. Although the long success story from the beginning to date is summarized by one sentence, the stages were not overcome easily. Ibrahim Yasubuga opened a small store to obtain the livelihood in Agri. At that time while border trade was intensively made with Iran, he began to buy and sell jeans from the neighbor country. When the border trade let him win well, he began to think to go to the district of Laleli, which was the center for the textile trade, Istanbul. Accumulating money, he came to Laleli which was a very important textile center in the 1980s and set up a company titled Super Textile. At the beginning he marketed the products of the textile firms. “Buysell up to where, I must produce” Yasubuga said by himself. After

for a while researching, first he began to produce curtain fabrics and then other kinds of textile products. The works which grew every day urged him to buy a factory having 5 thousand sq meters area in Çorlu town. More production led to more exports in the factory. Working completely by focusing on exports, now Super Group exports to 35 countries, but he manages his most strengthen trade ties with Russia and China. Yasubuga said that

Chemical Industry in Turkey

hemistry sector has a significant place among our country’s industrialization and development indicators because chemistry sector provides raw materials, intermediate products and finished products for many other sectors. Chemistry sector has recently entered a remarkable development process with the reliability and support of the stabilized structure. While Turkey achieved its highest exportation figures in Turkish Republic history with an exportation of 134.6 billion dollars in 2011, Chemistry sector increased its exportation by 29 percent and reached 16 billion 383 million dollars. According to these figures, the increase rate in the exportation of the Chemistry sector is even higher than the exportation leader automotive sector. Having a share of 10% in the exportation of Turkey by increasing its exportation gradually every year as a result of these studies, Turkish Chemistry Sector has become an assertive sector that delivers its products to every corner of the world. It is aimed to reach an annual sector exportation of 50 billion dollars in the 100th anniversary of our Republic under the framework of Exportation Strategy of the Year 2023. Egypt, Iraq and United Arab Emirates were the first three countries to which the chemistry sector made the most exportation last year. These countries are followed by Germany, Russian Federation, Italy, Greece, Azerbaijan – Nakhcevan, Malta and Romania respectively. Our chemical substance and products exportation to Malta reached a record level with an increase rate of 612 percent. One of most important sub-sectors of Turkish Chemistry Sector is certainly pharmaceutical and pharmacy sector. Pharmaceutical industry holds one of the highest ranks among the sectors that provide the highest added value. Sector’s exportation in 2011 reached 576 million dollars with an increase rate of 12.2% when compared to the previous year. The main countries we export our products to are Germany, Iraq, Switzerland, United Kingdom and TRNC. Istanbul Chemicals and Chemical Products Ex-

porters Association continues to provide new opportunities and new markets to our exporters conducting business activities in health sector and is still a pioneer that supports our exporters in international organizations. Our country’s national participation has been realized for the third time this year in “Medica 2011” fair organized in Dusseldorf, Germany between the 16th and 19th November, 2011. Being one of the world’s big fairs in health sector, Medica Fair was organized in Messe Dusseldorf fairground. 4571 participants from 62 countries were in the fair, which is organized once every year, and this fair was visited by 137,000 local and foreign professionals. 22 companies under our national participation and 67 independent companies participated in Medica Fair, which is the world’s biggest event in health sector, in 2011. National participation organization will be realized by our Association for the second time for “Arab Health” fair to be organized in United Arab Emirates between the 23rd and 26th of January, 2012. Nearly 90 Tu r k i s h companies, of which 43 are under our national participation organization, will display their health products, equipment, hospital furniture, etc. in “Arab Health” Fair, which is the world’s second biggest fair in health sector with an approximately 86,000 sqm area and where 2,800 participating companies from 60 countries and 66,000 local and foreign visitors are expected, with the participation of Sheikh Rashid and Za’abeel this year.

‘Bind Chocolate is the renowned brand of the world’ Beginning the trade life with a small store made Ibrahim Yasubuga direct towards food sector too. Entering this sector happened by the renowned Bind chocolate. Purchasing 75 percent of the company which was established by Binay family from the province of Erzincan in 2011, Super Group aims to take the brand to its deserved point across the world. Stating that brand which is the first retail business of the group will be taken its place among the esteemed tastes in the world thanks to powerful connections abroad, Yasubuga said, “We will constitute regional dealers in both Turkey and the world via franchising system. Now having 9 branches, Bind will achieve 35 branches by the end of the year. Thanks to this the brand will also prove the success of the group in the food sector.”

Tadım dried plums in markets Continued From Page 5 he most fitting way to meet sugar need is Tadım Dried plum will stabilize your blood sugar with its vitamins and keeps you fill to make you energetic daylong. Featuring to reduce the risk of heart and cancer diseases thanks to its powerful anti-oxidants, Tadım Dried Plum accelerates your skin regeneration with its high fiber source and revitalizes your body. In addition to low calories and satisfying features, also its effective for those who want to stay fit with the effect making intestines work, as well as for those who are the patients of tension, liver, heart, kidney and rheumatoid and want to consume salt free dieting.

Despite end-of-year decline, 2011 food prices highest on record

lobal food prices declined in December, but the overall annual average was the highest ever on record, the United Nations Food and Agriculture Organization (FAO) reported. Last month, FAO’s Food Price Index level was 211 points – 27 points below its peak in February. The decline was driven by sharp falls in the international prices of cereals, sugar and oils due to a productive harvest coupled with a slowing demand and a stronger United States dollar. However, despite the steady decline in prices during the second half of the year, the Index overall averaged 228 points in 2011 – the highest average since FAO started measuring international food prices in 1990. The second highest average occurred in 2008 at 200 points.

Page 14

A stylish alternative from Simfer: Vitroseramik Cooker

ooking meal comes into a comfortable way with Cooker expert Simfer’s Vitroseramik Cookers. The degree control which is available on the cooker equipped with the smart technology when the cooker stays open if anything is not put on it, the safety system enters into force to turn off the cooker. The cookers thanks to their unscratched surface cleansing are made easily. Attracting attention with its touch-operated panel Simfer 3904 Vitroseramik Cookers and Simfer 3901 Vitroseramik Cookers provide to cook meals with delicious thanks to the 9 stages temperature adjusting. Having inactive temperature indicator, there are 4 cells one each oval, dual, as for two of them feature quick heated in the electric vitroseramik built in cookers in 60 cm width.

Breeze of Country in kitchen with Pera oven

f art is to call to senses and let them act, as for cooking meals is also an art. Because a meal which was painstakingly cooked addresses both eyes and palate, converts dining tables into an entertainment. When considered in this respect, actually it is not be wrong that every home has an artist. As every artist needs, in order to be able to reveal good works women who are the artists at

Berrak pickles from field to your dining table

Istanbul Chemicals and Chemical Products Exporters Association President Murat Akyuz

the success in the textile business made his textile company one of first three brands in the sector. He added that his firm has a crucial place in terms of brand awareness in the market. Employment for 1100 persons Super Group provides employment totally for 1100 persons, 150 in Russia, 100 in China, 50 in Ukraine and the rest one in Turkey. The new investments will raise the employment.

errak produces light cucumber pickles for those who do not consume the pickles feature high rate of salt and acid. Berrak continues to cheer dining tables with the sorts of pickles, olives, roasted products. Known with its leadership and expertise in pickles, Berrak brand enlarges its pickles series. The firm has added “light cucumber pickles” onto its 14 kinds of pickles series such as cucumbers, mixed, peppers, beets, eggplants, capers. Taking their place on the shelves in the past months, this new product has 35 percent less salt and acid rate than other pickles kinds. Accompanying dining tables of those who pay attention to the salt and acid rates, this light pickles do not include protection matters. This product takes its place on the shelves by the 720 ml jars.

kitchens also need high in quality devices. Emerging to forefront with its culinary mastership and quality, PERA brand provides possibilities to women, features with its different oven models from each other, as well as its decorative features. The way to make up a plain, sincere and warm atmosphere at kitchens passes through having a country style kitchen. For this, as well as old style furni-

ture, accessories and wood covered or natural color painted walls, it also requires kitchen devices suitable to this style. PFS SX 90 solo oven model of Pera has an exact design that those who would like to make up country breeze at kitchens. On the other hand, PFS SX 90 model PERA solo ovens help women to cook delicious meals as in the old times.

Kütahya Porcelain offers a chic and passionate gift

ütahya Porcelain offers a chic and passionate gift on Valentine’s Day. Kütahya Porcelain reflects elegance of your darling on Valentine’s Day. The designs, with which you can state your love, also dazzle with its modern lines. The heart shaped vase with its colors among these products describes your love again. You can let your darling feel your love is unique once again with the heart designed vase and a single rose. As for the coffee-cup with hear design is another design with that you can tell your love on this special day. On the plate section of cup there is also a part for cookies.The gifts of Kütahya Porcelains are sold at Corner Collection stores or Kütahya Porcelain stores or via internet.

Made in Turkey Economic Newspaper, January 2012

OPEC: Demand to climb a little in 2012 O

PEC held its 160th meeting. The Conference exchanged views on, inter alia, recent developments in multilateral environment matters and the outcome of the recent UN Climate Change Conference held in Durban, South Africa, as well as the status of the Organization’s ongoing energy dialogue with the European Union. The Conference applauded efforts being made by Member Countries’ climate change negotiators to safeguard the interests of developing countries, in general, and oilproducing nations, in particular, and recorded its appreciation of the crucial work carried out by the Secretariat in relation to this very important topic. The Conference reviewed recent oil market developments, as presented by the Secretary General, in particular supply/ demand projections, as well as the outlook

for 2012. Ministers noted that the heightened price volatility witnessed during the course of the year 2011 is predominantly a reflection of increased levels of speculation in the commodities markets, exacerbated by geopolitical tensions, rather than a result of supply/demand fundamentals. The Conference further observed that downside risks facing the global economy continue to include: the sovereign debt crisis in the Euro-zone; persistently high unemployment in the advanced economies; and inflation risk in the emerging economies. Planned austerity measures, not only in the Eurozone but also in other OECD economies, are likely to contribute to lower economic growth in the coming year. The Conference noted, further, that, although world oil demand is forecast to increase slightly during the year 2012, this rise is expected to be partially offset by a projected increase in non-OPEC supply.

In light of the foregoing and given the demand uncertainties, the Conference decided to maintain the current production level of 30.0 mb/d, including production from Libya, now and in the future. The Conference also agreed that Member Countries would, if necessary, take steps (including voluntary downward adjustments of output) to ensure market balance and reasonable price levels. In taking this decision, Member Countries confirmed their preparedness to swiftly respond to devel-

opments that might have a detrimental impact on orderly market developments. Given the ongoing worrying economic downside risks, the Conference directed the Secretariat to continue its close monitoring of developments in supply and demand, as well as non-fundamental factors, such as macro-economic sentiment and speculative activity, keeping Member Countries abreast at all times. As always, the Conference emphasized OPEC’s statutory commitment to oil market stability through supplying petroleum to consumers at price levels that are not detrimental to the world economy, as well as consumers, but which, at the same time, do not generate unsuitable investment conditions or undermine the ability of the industry to adjust to market changes. Although the global outlook provides little security to producers and investors, future oil supply depends on ongoing and timely investments in capacity expansion.

IMF wishes to cushion impact of global economic crisis with Asia

he International Monetary Fund (IMF) is looking to work ever more closely with Asia to lessen the impact of the global crisis on the region and to help promote sounder and stronger growth globally, David Lipton, IMF First Deputy Managing Director, said. In his first major speech since his appointment late last year to the IMF management position, Mr. Lipton told participants at Asian Financial Forum in Hong Kong that “Asia’s economies today are strong and showing great promise, in part because of the reforms introduced courageously, and not without painful consequences, when Asia faced its own crisis in the nineties. But now it is problems in the rest of the world, Europe in particular, that pose a risk to Asian prosperity. Now, Asia has a stake in seeing Europe solve its problems and even in playing a role in that process. “Beyond that, Asia has its own challenges, both in the near and longer term,” Mr. Lipton warned, but “by working together, more and better than in the past, Asia and the IMF can help ensure stability and prosperity for the region and for the world,” he added. Reflecting on the global outlook, Mr. Lipton observed that “at the global level, the pace of economic activity is weakening, and the risks for Europe and the world are high.” But, he stressed, “rather than allow ourselves to be paralyzed by pessimism, it is time to focus on the more hopeful perspective of working our way through this crisis. If there is good news,

it is that we know what policies are needed, and we are busy trying to muster the finance to support those policies.” Without bold action however, “Europe could be swept into a downward spiral of collapsing confidence, stagnant growth, and fewer jobs. And in today’s interconnected global economy, no country and no region would be immune from that catastrophe. This is especially true for Asia,” Mr. Lipton said, reflecting its tight trade and financial links with Europe. He said Asia emerged from the 2008 financial crisis with its global standing strengthened and called on Asian policy makers to stay the course with fiscal normalization to rebuild buffers eroded since the 2008 crisis; pause monetary tightening as long as inflation forecasts remained within central banks’ targets; ensure liquidity and funding in the banking sector; and further reduce external vulnerabilities by lengthening debt maturities, securing credit lines and further expanding currency swap arrangements, either bilaterally or through the multilateral Chiang-Mai Initiative. Mr. Lipton added that “should downside risks materialize in force, policymakers in Asia would need to respond swiftly, as they did in 2008/2009.” “As Asia goes forward, the IMF stands ready to be a partner,” Mr Lipton said, adding that “the IMF learned important lessons from Asia’s experience that we are now applying to programs across the globe, including in Europe.” Two areas he singled out where the

IMF’s work can support the region’s interests are enhancing economic and financial surveillance for crisis prevention, and strengthening the global financial safety net—including sharper surveillance of economic spillovers and macrofinancial linkages, but also new lending tools, such as the precautionary credit line, specifically tailored for crisis bystanders. Efforts are also underway to better integrate IMF resources with regional reserve pooling arrangements like the Chiang Mai Initiative and enhance cooperation with them. At the same time, Asia looks set to take a bigger role at the IMF,” Mr. Lipton said. He noted the importance of an increased role for Asian members within the IMF, which is reflected among other recent developments in the package of quota and voice reforms were agreed in 2010. These reforms will increase emerging Asia’s representation by more than a quarter, with Japan and China the second- and thirdlargest shareholders and India also in the top 10. Asian nationals are now 40 percent of the IMF’s management team, and the IMF will hold its 2012 Annual Meetings in Tokyo in October 2012. “Given its rise as an economic powerhouse, it is only natural that Asia’s voice in the IMF should become increasingly influential,” Mr. Lipton noted. While all eyes are on Europe right now, “by working more and better together, Asia and the Fund can help bring about sustained economic growth—for the region and for the world,” Mr. Lipton said.

Indispensability of your dining tables: “Coskun Sucuk”

he most reliable, produced by 100 percent red meat flavor of Turkey, Coşkun ET continues to enrich your dining tables with its “Sausage Group”, indispensability of the Turkish traditional palate. Taking place in the firms that come to mind first in Turkey, Coşkun ET offers unforgettable tastes to its consumers since the establishment day in 1975 with the first quality 100 percent red meat ingredients. Being suitable to the traditional palate, Coçkun Sausages pose

indispensability of the family tables especially in the weekends’ breakfasts. Having produced in the high hygienic standards, Coşkun ET solidifies its tastes with its sausage kinds as coil, finger and spices. Coşkun Et which can be cooked whether in fried-pot, earthenware; or on barbecue, grill,

also offers the unique mixture

tastes the of special spices.

Biscolata Pia offers an exotic journey

ith its communication campaign in recent time and product kinds, Biscolata has become a phenomenon, by adding Biscolata Pia with exotic fruit to its product range. The irresistible Biscolata cake of the delicious fruit jell which was prepared by fresh ananas, mango and peach let fans of Biscolata Pia Exotic to enjoy a unique flavor pleasing. As the brand of those who wish to own the

best of everything and live their life with passion, Biscolata raises its product varieties with every passing day. Promising a perfect test for those who open to the new and seditious tastes, and gives importance to their palate, in the new member of Biscolata Pia family composed the jell of peach, mango and ananas fruits. In addition to Biscolata Pia’s new kind, there are also its kinds consist of orange and fram-

boise. At the bott o m s i d e there is softy cake, delicious fruit gel in the middle side and as for the upper side Biscolata pia with its real chocolate.

Bien classic with yogurt and strawberry in market

ew and extraordinary alternatives with the distinctive taste and flavor come from Simsek for the fans of biscuits and cakes. The new sort of Bien Classic, “Bien with classic yogurt

and strawberry” is a delicious cake which was prepared completely suitable to the Turkish palate. The new product of Simsek, “Bien Classic with yogurt and strawberry” doubled

the taste for the fans of cake. Coming out by the mixture of strawberry and yogurt, the softsweet natural taste melts inside of cake. When you want to eat something whether at the noontime or five o’clock tea, Bien offers an alternative taste. As the first kind of Bien family with yogurt, “Bien Classic with yogurt and strawberry” will be the new favorite of fans of cake.

Is Turkey heading for a soft landing? Mehmet Ali Özbudun

hen it comes to good landing, there are many sayings. The pilots have a cliché: -A good landing is any landing you can walk away from! As for the economy, the crux of the point is whether the high growth is sustainable or not. While the potential growth rate of Turkish economy has turned out to be 5-6 percent, the gross national product growth of 9 percent in 2010 and 9.6 percent in the first nine months of 2011 have surpassed the estimations. The question is: -Can Turkey avoid a hard landing? The answers differ. ***** The International Monetary Fund (IMF) envisages that Turkey’s economic growth may plunge to 2 percent in 2012 due to sharply decreasing capital inflows. IMF noted in its recent report: -Policy responses were insufficient to prevent the development of a large “currentaccount deficit and high inflation.” - Monetary policy shifted to an unconventional mix of reserve requirements, the interest-rate corridor, and the policy rate, which has not demonstrated it can deliver price or financial stability. ***** What is more, some credit rating agencies expect Turkey’s economy to face hard landing after higher than estimated growth this year. These gloomy scenarios mainly arise from the fact that troubling outlook of Turkey’s biggest trading partner, the European Union, combined with a reliance on foreign funding to sustain the country’s ever growing current account deficit. The major problem is that EU- based debt crisis may decrease demand for Turkey’s exports (Nearly half of Turkey’s exports go to the EU) and restraint the inflows critical to finance the current account of the country. The growth target for 2012 was estimated to be 4 percent by the Turkish officials. They say that the growth target could be revised downward if the European debt crisis hits further. ***** However, the Turkish Central Bank is trying to engineer a soft landing by utilizing a policy mix to slow the economy down without putting it into a deep recession. According to the Turkish Central Bank, global imbalances combined with the postcrisis dynamics initiated a divergence between external and domestic demand and a surge in short term capital inflows during the late 2010 and 2011. In other words, surging capital inflows coupled the resultant real exchange rate appreciation with rapid credit growth and the mounting current account deficit have all prompted the Bank to launch a series of monetary instruments to pave the way for a soft landing and reducing the risk of a sudden stop without hampering the price stability objective. Thus, the Bank puts emphasis on financial stability. For this reason, the Bank has initiated a far reaching “policy mix” by: -Keeping short term rates as low as possible by utilizing interest rate corridor to discourage short term capital inflows to allow an orderly realignment in exchange rates coupled with other macro prudential instruments, thereby curbing the total credit volume and the resultant financial risks. ***** As for the results of the policy mix, the Bank noted the following: -Credit growth and domestic demand continues to moderate with the tightening in monetary and financial conditions. -The upward trend of current account deficit has been taken under control starting from the last quarter of 2011. The quality of current account deficit financing continues to improve. -The improvement in the current account balance will be more marked and pronounced in the final quarter of the year. -Besides, Turkey’s strong fiscal position and tightly-regulated banks have made the fast-growing economy less vulnerable to external shocks such as euro zone debt crisis and able to recover quickly from slumps in the EU demand. As for the inflation, the Bank underlined the following points: -Inflation has increased sharply in recent months due to exchange rate movements, hikes in administered prices, and base effects in unprocessed food prices. -Inflation will increase above the target for the next couple of months before converging to the target of 5 percent by end-2012. ***** In the final analysis, we think that the Central Bank’s bid for a soft landing in economy is yielding the results. We wish a soft and happy landing for all the market players of the Turkish economy. So far, so good!

Made in Turkey Economic Newspaper, January 2012

A brand new taste from Koska Continued From Page 5 aving produced without adding sugar and “Koska Halvah with Carob and Hazelnuts”, which can be consumed by everybody with pleasure, is sold with the price of TL4,55 in 250 gr. packaging.

About Koska Having laid its foundations by Mr. Hadji Emin as a halvah store in 1907 in the province of Denizli, Koska has continued with a store which was opened by Halil Ibrahim Dinar with his sons in 1931 in the district of Koska in Istanbul. In the meantime, having renowned by its halvahs and sweets which were made by Mr. Adil, the store began to call as Koska Halvahs due to its existing neighborhood’s name was Koska. Later the family made Koska its products’ brand by taking its patent. In

1974, being established in the district of Topkapi, Istanbul, in addition halvah; Turkish delight, jams and nougat are produced at the plant. In 1983, Koska maintained its activities by moving to its new plant which was modernly built in the district of Merter, Istanbul. Having executed by the fourth generation of Dindar family, now Koska maintains its operations at its new premises located on an area of 11 thousand sq meters, 18 thousand sq meters closed area to which moved late 1998 located along with the crossroad of Avci-

Agricultural exports up 4.5fold in 11 years

Relieve your intensive tempo of city-life with Dogus green tea

Altıparmak Food advances quickly on its way to be a global brand

ead of Union of Turkish Chambers of Agriculture (TZOB), stated that the agriculture sector’s exports achieved worth some $18 billion in 2011, adding that in 11 years the exports rose 4,5 times. Semsi Bayraktar, Chairman of TZOB, said that Turkey’s agricultural exports broke record in 2011, increasing 19.07 percent over the previous year to $17 billion 887 million. In his statement, Bayraktar said, in the year 2010 exporting agricultural goods worth $15 billion 22 million, in 2011 the sector’s exports raised $2 billion 865 million 175 thousand over the last year. He noted that stockbreeding products ranked at the first stop with 47.73 percent rise in the total agricultural exports. “The stockbreeding products’ exports became worth $1 billion 421 million 426 thousand with $459 million 220 thousand worth of rise in 2011, Bayraktar said. As for the share of the agricultural sector’s exports in the overall exports of Turkey were 13.29 percent, increasing 0.1 percent in 2011 over the preceding year. TZOB Chairman Bayraktar emphasized that the share of the agriculture in the overall exports reached the highest figure in 2011 since 2001. Bayraktar noted that according to the figures of Turkish Exporters’ Assembly (TIM), the exports of the sector was $4 billion in 2000; $4,8 billion in 2001; $4,56 billion in 2002; $6,09 in 2003; $7,59 billion in 2004; $9,23 billion in 2005; $9,76 billion in 2006; in 2007, the exports achieved worth $11,36 billion, so the sector exceeded the limit of $10 billion worth of agricultural exports. “The exports of the agriculture became $13,57 billion in 2008, in 2009 $13,26 billion and in 2010 the exports accomplished worth $15,02 billion. Last year the exports reached by the edge of $18 billion,” Bayraktar concluded.

Continued From Page 5 Dogus Tea produces the green teas featuring marvelous benefits in 6 different kinds as plain, lemon, cinnamon, carnation, bergamot, straw berry and green apple. Dogus green teas undertake a supporting role to remove exhaustion stemming from the natural life condition from you.

Continued From Page 1 ackaged honey market grew 6 percent in 2011 The marketing Director of Altıparmak Food, Gursal Gurarda highlighted packaged honey market growth in 2011 in Turkey. Gurarda said, “In 2011, the packaged honey market increased 6 percent to the turnover of TL240 million over the previous year. In the growth of the market the success that we achieved in the year 2011 played a great role. We have entered among the 20 companies with our Binbirçiçek, Balkovan and Honeybana Balparmak brands’ commercial ranking in 20 companies via our advertisement. In 2011, we achieved the sales volume of 6,000 tons, so we boosted the number of household where our products entered up to 1 million. With 57 percent share in the market we keep our leadership by far in 2011.” Altıparmak aims to double its current sales Pointing out the sales of honey in Turkey, Ozen Altiparmak said, “The benefits for health and importance in nutrition of honey are adopted more with every passing day. In line with the increasing demand,

Semsi Bayraktar Head of Union of Turkish Chambers of Agriculture (TZOB)

lar-Ambarli, Istanbul. Renewing its production machinery and equipment with the state-of-theart technology, Koska produces halvah, sesame paste, molasses, jam, Turkish delight and traditional Turkish sweets by raising its capacity and quality more. Using natural sweeteners in its products, Koska produces sugar free halvah, Turkish delight, marzipan and jams by the approval of the Ministry of Food, Agriculture & Stockbreeding. Having sold its all products across Turkey, Koska exports to 55 countries.

One more new innovation from ETI: ETI Kombo Continued From Page 5 aking its place on shelves with the slogan, “Its shape is Kombo, Taste is Kombo”, ETI Kombo lets consumers to enjoy pleasing times with its taste that offers chocolate and biscuit together. Having offered to sales with prices of TL1,00 and TL2,5 weighting 75 and 186 gr. respectively . ETI Kombo provides holding practice due to their reverse stance and brand new shape in their packaging. Except its holding part, covered completely with chocolate, ETI Kombo will be an indispensable part of your daily life with satisfying biscuit.

the honey market in Turkey grows. In this line our target is to expand our current sales of 6000 tons honey to increase by two folds to 12000 tons within 4 years.” Support to honey producers Altıparmak Food presented the book “Emeğinden Bal Damlayanlar” “Honey drops from their Labor” which tells daily life and difficulties of 40,000 honey producers. The book prepared by photographer Ali Ihsan Gokcen by touring Turkey step by step. The half of the prints of the book will be distributed to honey producers as free. The other half will be offered for sales and the income to be used to recover the conditions of honey producers. The book is the continuity of the book which was published in the previous year under the name “Arı Biziz, Bal Bizdedir, “We are honey, honey is at us.” Some of the breakthroughs of Altıparmak Food • Remnant analysis in honey • Origin determination analysis in honey • Guarantee band • Classification of honey by locations • Innovation in product packaging • Quality tracking system in food sector

Ulker offers a new taste, white chocolate with Sevval Machinery pistachio nuts exports dried food machines to 37 countries A Continued From Page 1 s the first and only white chocolate with Antep pistachio nut of Turkey, Ulker Golden white chocolate with Antep Pistachio nut includes 20 percent Antep pistachio nut. This taste was developed by the R & D experts of Ulker corresponding to the Turkish palate. Test white-chocolate with whole green pistachio nuts which melt inside of mouth. There are other chocolate kinds such as milky chocolate with abundant pistachio nuts, bitter chocolate with Antep pistachio nuts and 70 percent cacao, milky chocolate with Antep pistachio nuts in Ulker Golden series.

anufacturing yellow roasted chickpeas and dry food machines, Şevval Machinery exports its machines to 37 countries. Working in the dried food machinery sector for 55 years, Şevval Machinery has declared the year 2012 as a progressing year. Marking that dried food sector must pass to the robotic production system in a near time, the General Manager Engin Boyaci said that they

would set up a new facility to expand their production capacity, to raise their yearly turnover of $2 million to ½$5 million. Telling currently they would export to 37 countries including America, Sweden, Russia and Germany, Boyacı noted, “We can present the services across the world. We manufacture the machines which can process every kinds of dry food with our team consisting of 30 persons.”

Tukas Taste Culinary turns into a taste station

Continued From Page 5 he renowned taste masters Sahrap Soysal and Eyup Kemal Sevinc displayed how to prepare the dining tables by showing their all masterships. They offered the side dishes which were prepared by Tukas ingredients to consumers at Cevahir AVM. The renowned taste masters attracted a great interest from the consumers at Tukas Taste Stop which was set up at Cavhir AVM.

Made in Turkey Economic Newspaper, January 2012

New regulations in food safety enters into force An action plan has been prepared for 12 products including meat and meat products, milk and milk products, alcoholic and nonalcoholic beverages, and other foods. Not only production facilities, but also mass consuming and seller places will be taken under

Continued From Page 5 ontrol from seed to dish Exampling from the new regulation’s details, Eker stressed that foods would be followed up ranging from seeds up to dish. Some of the innovations are as follows:

registration. Monitoring safety will be carried out. For example eggs come from which farm and province to be known. Meat and meat products are produced where, at which region, farm, monitoring to be applied through backwards.

In order to protect consumers’ health, the firms which produce counterfeit and faked products to be publicized by the ministry. The information on tags will exist at least 12 fonts. Consumers can find information about their consuming food that meets how much for their daily need.

Despite end-of-year decline, 2011 food ISM Cologne attracts great interest prices highest on record

Continued From Page 5 he show will attract more and more visitors every year in the show. The main highlight of ISM Cologne is: Innovation Award 2011 will be presented during the trade fair Lots of visitors will attend the ISM Cologne from across the world and they will be able to know more about the products and services linked to Confectionery, food & beverage wholesalers, importers and buying groups, Shopping centers of the oil companies and gas station chains, Wholesale health products, Bakeries / Cafes / Bakeries / confectioneries, Wholesale health products, Hypermarkets, Department Stores, Cash & Carry company, Consumer Markets, Oecothrophologen, Consumer Markets and much more will

Continued From Page 12 nternational prices of many food commodities have declined in recent months, but given the uncertainties over the global economy, currency and energy markets, unpredictable prospects lie ahead,” said FAO Senior Grains Economist Abdolreza Abbassian. Cereal prices registered the biggest fall due to record crops and an improved supply outlook, with the FAO cereal price index dropping 4.8 per cent last month. Maize prices fell by six per cent, wheat by four per cent, and rice by three per cent. However, the cereal price index for the year rose by 35 per cent from 2010, the highest since the 1970s. The oils and fats price index also dropped, with a three per cent decline from November due to the unexpected surge in supplies of vegetable oil – mainly of palm and sunflower oil – which, coupled with poor global demand for soybeans, deflated prices. Meat prices were slightly down from November, mainly due to the 2.2 per cent drop in pig meat prices, but as with other commodities, its annual price was 16 per cent higher than in 2010. Dairy prices remained almost unchanged, and the sugar price index declined for the fifth consecutive month, reflecting expectations of a large sugar world production surplus over the new season due to good harvests in India, the European Union, Thailand and Russia.

attend the show. Numerous exhibitors will participate in ISM Cologne. Some of them will be Gutschermuhle GmbH, Hobum oils and fats GmbH Vandemoortele Foodservice, A & D Nuremberg Confectionery GmbH, Aachener Printen and chocolate factory, Henry Lambertz GmbH & Co. KG, ABICAB - Brazilian Cocoa, Chocolate, Peanut Candies and Manufacturers Association, ACT International Agro Alimentary Consortium of Tunisia, ABS BV Sweets, ACT International Agro Alimentary Consortium of Tunisia, 4Retail bvba,

Meat and Fishery Establishment to stabilize the market n the new restructuring process, Turkey’s Meat and Fish Establishment, the state-run establishment, will be restructured as ‘Milk, Meat & Fishery Establishment’, the general manager Bekir Ulubas said that they, as the establishment, would stabilize the meat and milk market. Bekir Ulubas, General Manager of Meat and Fish Establishment, said that the establishment would be reorganized and stabilize the meat market. Holding a press conference in the western province of Denizli, Ulubas said the organization will be renamed as ‘Milk, Meat & Fishery Establishment’. Ulubas recorded that they would balance both the prices of milk and meat in the

2BSWEET BV, Aziende Riunite SpA ADR Dolciarie and lots more.

FOTEG ISTANBUL hosts more and more visitors and exhibitors 10th FOTEG ISTANBUL 2012, the International Trade Fair for Food Processing Technologies, which will be held on March 1-4th, 2012 at the Istanbul Expo Center, in Halls 1 and 2, is still accepting the exhibitor reservations. Many firms have already signed up for the event.

articipants of the fair increased FOTEG ISTANBUL hosts more and more visitors and exhibitors with every passing year. “In the year 2011, our foreigner exhibitors increased in numbers. We hosted 641 participating firms showing their latest machinery, technology, products and services, of which 449 were from abroad. There were a total of 11,836 professional trade visitors of whom 839 were from overseas,” according to the statement of the officials. Organized by HKF Trade Fairs, FOTEG ISTANBUL 2012 is celebrating its 10th anniversary this edition, gathering the food processing industry professionals together at the same venue from Turkey and abroad. Everything about the food processing industry in 21.000 sqm exhibition space The 10th FOTEG ISTANBUL 2012 is displaying everything about the food processing industry in 21.000 sqm exhibition-space at Istanbul Expo Center, Yesilkoy, in Halls 1 and 2. “We remind you that this event is a golden opportunity for the food processing industry gathering the professionals from all over the

world to open up new markets and forge new trade agreements together.” As the first and only one international trade fair of its kind in Turkey, FOTEG ISTANBUL has the honor to carry the UFI (The Global Association of the Exhibition Industry) Approved Event certificate, the highest seal of international quality. The magnet for the food processing Each year the success of the fair’s data speak for the fair’s prowess in making FOTEG ISTANBUL the magnet for the food industry, currently in preparation for its 10th edition. Last year there were 449 overseas firms from 39 different countries participating, they represented these activities: Food processing technologies, machinery and equipment, food analysis systems, food packaging machinery, food refrigeration and storage systems, food colouring, food fibres, diet products, organic food additives, flour storage and conveyor systems, dough preparation machinery, pasta production machinery and equipment, food safety and hygiene. High level trade visitors including chairmen, vice-chairmen and their

board members, managers, factory managers, marketing managers, heads of quality control departments and laboratories, heads of R&D departments, factory managers, food technicians, sales and marketing representatives, selfemployed, diplomatic missions, military catering representatives, hotel F&B managers, bank representatives, members of the media, academics and students from relevant university departments made up the trade visitors’ profile. The trade visitors profile included representatives from these areas of the industry: dairy products, meat products, canning, water bottling, brewing, wineries, fruit juices, frozen food, oils and fats, biscuits, chocolate and confectionary, diet products, food additives, baked goods, fruit and vegetable processors, spices and dried fruits and nuts. There were also representatives from companies involved in packaging, cold storages, electrical and electronic goods, the agricultural sector, catering and fast-food.

market. Ulubas continued to say: “When milk price decreases in order to stabilize the prices we will go to agreement to process milks as milk power and butter. In meat if there is extreme supply in the market, if the carcass meat prices decrease, when breeders are said do not supply your stockbreeding due to market has extreme supply of meat, we will pay the cost of fodder for the animals to the breeders for the time that we keep how in the stockbreeding. By this way we prevent the surplus supply in the market in order not to decrease prices of the aforementioned products”, Ulubas said.

Made in Turkey Economic Newspaper, January 2012

The growth target for 2012 achievable

he growth target for the Turkish economy this year, set at 4 percent by the government, is achievable, according to Durmuş Yılmaz, former Central Bank governor and chief economy advisor to President Abdullah Gül. He also said Europe was not going bankrupt and the euro was not falling apart. “The 4 percent growth envisaged this year in the medium-term program is achievable,” said Yılmaz, speaking at a meeting organized by the Orhangazi Chamber of Commerce and Industry in Bursa, an industrialized province in

western Turkey. The real question was whether high growth is sustainable, said Yılmaz, referring to the gross national product growth of 9 percent in 2010 and 9.6 percent in the first nine months of 2011. Potential growth rate of Turkish economy this year may be 5-6 percent, according to Yılmaz. The International Monetary Fund said in December that economic growth may plunge to 2 percent in 2012 due to weak capital inflows, while Economy Minister Ali Babacan stepped back from the ambitious growth target

of 4 percent for 2012. The growth target could be revised downward if the European debt woes deteriorate further, he said Jan. 5.

The dynamics of Turkish growth are based on domestic demand, said Yılmaz. “Thus, to lessen the risks, such as cur-

rent account deficit, this growth should slow down and especially some corrections are needed in the economy.”

Eurozone crisis to mark Turkey’s EU talks

Turkish EU Minister Egemen Bagis

s the economic crisis deepens across Europe, 2012 will be a hard year regarding Turkey’s negotiations with the European Union, according to EU Minister Egemen Bağış.

The EU needs Turkey more than ever to boost its weak economic growth, Bağış told Anatolia news agency during an interview. “If the European Union thinks that whatever

they can rip off from Turkey is a gain during the economic crisis the EU has been experiencing, opening new chapters for Turkey’s accession would not be beneficial for us,” said the minister in charge of Turkey’s EU negotiations, adding that the chapters should serve mutual interests. “European Union needs Turkey on several matters. Turkey grew by 8.9 percent in 2010 and nearly 10 percent in 2011,” said Bağış. Last year was not an easy one regarding the EU ac-

cession talks for Turkey. “It will also be a tough year in 2012,” the minister said, adding that he was hopeful for 2013. “I believe Turkey will be a shining star of Europe in 2013.” The eurozone economy posted growth of 0.8 percent in the first quarter of 2011, compared with Turkey robust growth which accelerated to 11.7 percent. As the eurozone economic growth slowed to 0.2 percent in the second quarter of the last year, Turkey’s growth reached 11

percent. The eurozone expanded by 0.2 percent in the third quarter of the last year while Turkey’s economic growth slowed to 8.2 percent. However, Turkey is not immune eurozone woes as several economists agree that uncertainties will mark the new year. Fresh challenges – if not uncertainties, as Turkish Central Bank Gov. Erdem Başçı has put it – look set to mark 2012, according to economists and business professionals. Revealing

Turkey’s monetary policy in 2012 earlier this week, Başçı made a sharp distinction between normal days and exceptional circumstances. Such a duality does not seem to be limited to the monetary policy, but also extends to the overall economy as Turkey’s 2011 dilemma of fast growth and widening trade deficit and the most important current account gap widened to $65 billion in first 10 months of the last year, is poised to continue into the new year.

World Bank projects global slowdown, with developing countries impacted Colombia seeks more Turkish investment ISTANBUL olombia seeks more Turkish investors, according to Angelino Garzon, vise president of the South American country who visited Turkey for official talks. Garzon said at the Turkey-Colombia Trade and Investment Forum in Istanbul on Jan. 7 that he hoped the two countries would have better and firmer relations. Garzon said Colombia grew 5.5 percent last year and expected to grow around the same percentage in 2012. “Colombian exports reached $55 billion last year, up from $28 billion 10 years ago,” he added. Garzon hoped to sign a free trade agreement with Turkey and called on Turkish businessmen to invest in his country. Garzon underlined that Colombia had rich natural resources.

eveloping countries should prepare for further downside risks, as Euro Area debt problems and weakening growth in several big emerging economies are dimming global growth prospects, says the World Bank in the newly-released Global Economic Prospects (GEP) 2012. The Bank has lowered its growth forecast for 2012 to 5.4 percent for developing countries and 1.4 percent for high-income countries (-0.3 percent for the Euro Area), down from its June estimates of 6.2 and 2.7 percent (1.8 percent for the Euro Area), respectively. Global growth is now projected at 2.5 and 3.1 [1] percent for 2012 and 2013, respectively. Slower growth is already visible in weakening global trade and commodity prices. Global exports of goods and services expanded an estimated 6.6 percent in 2011 (down from 12.4 percent in 2010), and are projected to rise by only 4.7 percent in 2012. Meanwhile, global prices of energy, metals and minerals, and agricultural products are down 10, 25 and 19 percent respectively since peaks in early 2011. Page 11

Turkey set to achieve $150 billion in exports in 2012

urkey boosted its exports some $135 billion in 2011, the highest in its history and up over 18 percent over a year earlier. In the past two years, Turkey’s exports grew by some 35 percent, despite the grave risks in Europe, Turkey’s largest export market. In December, worth $12.8 billion revenue earned via exports alone was the highest monthly figure in the past 37 months. According to the data from Turkish Exporters’ Assembly (TIM), Turkey’s largest exports came from the motor vehicles more

than $20 billion in 2011. Following this, the chemical products and ready-towear clothing ranked in the list; each brought more than $16 billion in revenue to the country. Steel exports ranked at the fourth place with some $15 billion. As in previous years, the exports were mainly motor vehicles, chemicals, metals and textiles. The government is trying to achieve worth of exports to $150 billion this year, taking another step towards achieving a $500 billion target in 2023, the centennial of the republic.

“What we know is that we have accomplished an all-time high in export volume. This is certainly excellent, but we should not see this as sufficient and must raise the bar of success,” said Independent Industrialists and Businessmen’s Association (MUSIAD) President Omer Cihad Vardan. He added $150 billion worth of exports target in 2012 was achievable. Adnan Dalgakıran, President of Central Anatolia Machinery and Accessories Exporters’ Union (Makinebirlik) agrees that $150 billion in export rev-

enue at the end of 2012 is a probable. “More than 40 percent of Turkey’s exports go to Europe. So, if no major problem would emerge in Europe, we may boost our exports more than expected up to worth $150 billion in 2012,” he said. Economy Minister Zafer Caglayan said an impor-

tant incentive package would be announced prior to the end of the month. “We are working on the issue very intensively and meticulously,” he said in Ankara. “The package is expected to help domestic and foreign investment in certain fields where Turkish industries are dependent on foreign suppliers.”

2012 could be choppy year for bourse

arket analysts are predicting 2012 could be a rough year for the Istanbul Stock Exchange (İMKB) as there is a downward trend and a large degree of volatility in the İMKB 100 index. They advise investors to buy around the 48,000-50,000 band, according to Reuters. More optimistic analysts, who predict a pick-up in the second half of the year, believe the index could reach the 63,000-65,000 band by the end of 2012. However, they also suggest banking sector profits could feel the pinch while non-banking sector stocks are more likely to see a rise in their profits. In a climate of uncertainty, those institutions encouraging investors to add retail, energy, mining and defense sector stocks to their portfolios.

Turkish exports set record-breaking rise

ith $134.6 billion export capacity, Turkey has surpassed its $132 billion export record in 2008, taking it back to pre-crisis levels, Economy Minister Çağlayan says. Turkey’s export industry set a record-breaking, 18.2 percent rise between December 2010 and December 2011 to reach $134.6 billion, Economy Minister Zafer Çağlayan said. “First, these exports figures have broken a [republican] record. Second, Turkey has surpassed its $132 billion export record in 2008, taking it back to pre-crisis levels,” Çağlayan said at a Turkish Exporters’ Assembly (TİM) meeting in Ankara. In nine years, Turkey has increased its exports 3.7 times from $36 billion to $134 billion, he said. Fifteen Turkish provinces posted export figures in excess of $1 billion in 2011 while 38 provinces broke their export records, he said. “December’s was the highest export figure recorded in the last 37 months.” Exports for December 2011 went up by 4.5 percent, reaching $12.1 billion compared to the same month last year, according to data released by TİM. Of Turkey’s total exports in December, $1.2 billion went to Germany, $935 million to Iraq, $660 million to the United Kingdom, $567 million to the United States and $551 million to France. Turkey also sent a significant number of exports to Saudi Arabia, the Netherlands, Azerbaijan, Egypt, Malta and China. The automotive sector was the winner with the highest December figures at $1.8 billion. Auto sector exports primarily went to Germany and Iraq. The automotive sector was followed by the steel and iron industry with an 11.8 percent increase from November, bringing the export level to $1.4 billion. Looking at 2011 as a whole, the automotive sector was again the export leader. Chemical products came in second, the retail sector was third and the iron and steel sector was fourth.

Eurozone inflation set to drop to 2.8 percent

RUSSELS - Eurozone inflation is expected to drop to 2.8 percent in December, its first fall in four months but still above the level favored by the European Central Bank (ECB), official figures showed. Eurostat, the European Union’s statistical agency, said it estimated annual inflation in the 17-nation eurozone at 2.8 percent, compared to 3 percent in November. Inflation in the euro nations hit 3 percent in September, up from 2.5 percent in August, and remained stable through October and November. The December estimate, if confirmed, will mark the 13th consecutive month that inflation has remained above the ECB’s target for price stability of below or close to 2 percent. However, the estimate could reassure the ECB, which next meets Jan. 12. Meanwhile, private sector activity in the eurozone shrunk for the fourth consecutive month in December but showed a slight improvement from the previous two months, a key survey showed. While output increased in Germany and stabilized in France, it slumped sharply in Italy and Spain, two nations under intense pressure over their high debts, according to the survey compiled by Markit. The purchasing managers’ index (PMI), a survey of 4,500 manufacturing and services firms, stood at 48.3 points in December - better than a previous estimate of 47.9 points. It had fallen to 47 in November. Any score below 50 indicates contraction. Despite the December improvement, the overall performance in the last three months of 2011 was the worst quarterly score since the second quarter of 2009. The average score for the fourth quarter stood at 47.2 points.