Made In Turkey October

Lamy: “Trade generates opportunities for development”

MUSIAD International Fair offers high morality, high technology

Director-General Pascal Lamy, Geneva Graduate Institute

T

he 14th edition of MUSIAD International Fair is being held in conjunction with International Business

D

irector-General Pascal Lamy, at the opening of the academic year of the Geneva Graduate Institute with Nobel Laureate Amartya Sen on 3 October 2012, said: “International trade is recognized as a tool for

The Fair, which will be taking place at CNR Expo Center between October 11-14, 2012, will bring businessmen from

not advocate open trade for its own sake, but as a means for ‘raising standards of living, ensuring full employment and a large and steadily growing volume of Director-General Pascal Lamy said in his speech, “Trade has been a vehicle

in the city of Izmir in 1993 with the purpose of gathering the MUSIAD members to enhance commercial cooperation among them, according to statement of Page 7

Nail Olpak Chairman of MUSIAD

and higher incomes and by offering access to better goods, services, capital,

ISSN 1301-4641

Page 7

www.img.com.tr

October 2012 Year: 11 No: 121

The economy deserves more than what the rating agencies tell the world

The Turkish economy is on the right track T

he Turkish economy deserves more than what the leading international rating agencies tell the world, according to Turkish Finance Minister Mehmet

“Turkey would have attracted an additional $32 billion in portfolio and foreign direct investments if Turkey had been granted the rating it deserves,”

International credit rating agencies have failed to inform the world about any of the economic crises to date, Finance

Ratings are determined by looking at a country’s capacity to pay back its loans and whether it has the political will

speaking at an Ankara meeting at which the Foundation for Political, Economic and Social Research (SETA) delivered a

that the Turkish economy has cent every year for the last deto continue growing for three

Turkish Minister of Finance Mehmet Simsek

criticizes the leading agencies, agreeing that they have played a role in deepening the eco-

BP to invest in Azeri project

B

P will have to invest billions of dollars more than previously planned if it is to slow falling output at an Azeri oil project that is also that country’s biggest economic resource, oil executives The investments required to cut the decline at the Azmay not even be commercially viable for the companies to spend the money unless they receive sweeteners from the government, the sources told ReThe problems at ACG will affect international oil supplies and come as BP faces the possibility of paying out $17 billion more Gulf of Mexico oil spill than it has budgeted for, after the

company of gross negligence earlier this page 6

The markets think differently

said, adding that the country has attracted some $120 billion in investments in the last decade, which corresponds with the time period that governments of Prime Minister Recep Development Party have been Turkey’s rating falls below “investable” levels, according to Standard & Poor’s, Moody’s and Fitch, the three largest international ratings agenare obliged to take their ratings into consideration when These agencies need structural page 5

IMF sees heightened risks sapping slower global recovery

T

he International Monetary Fund (IMF) presented a gloomier picture of the global economy

G

overnment support to agriculture in OECD countries fell to 19% of total farm receipts in 2011, a record low driven by developments in international commodity markets, rather than by explicit policy changes, according to the latest version of an annual Support to producers stood at $252 billion (EUR 182 billion) in OECD

points to a generalised move away from support directly linked to propage 6

Turkish exports expand 7.4% in September

T

over to the same month previous year, Mehmet Buyukeksi, head of Turkish -

As for year on year, Turkey’s exports raised (TIM) Chairman Mehmet The Turkish automotive sector recorded the highest export volume in September with -

In its latest World Economic Outlook, unveiled in Tokyo ahead of the IMF-World Bank 2012

Page 13

Number of aircraft passenger exceeds 100 million

N

umber of passenger of Turkish airports have exceeded 100 million as of the end

General Directorate Airports Authority

of State (DHMI),

passengers increased over 10 percent through 20 domestic airports and as for international airports the increase was 11

percent rise in September over

According to the statement from Turkish

page 5

China’s growth to slow to 7.7% in 2012, recovery of 8.1% next year

Bad signs from euro’s boss

E

B

gion may slow down by a full percentage point

Support to agriculture at historic lows, says OECD

Page 7

The European Stability Mechanism (ESM) inaugurated

T

he start of the European Stability Mechanism marks an historic milestone in the shaping of the future of the European Monetary

The ESM is a one of the tools of the crisis resolution mechanism for

page 7

leading economy falls to a 31 month nomists discussing that this might be a signal veloped countries will remain modest, with recovery in the region to be driven mainly by strong domestic depessimism about the future, the survey command in developing countries, according to the release pany notes Germany is heading for recession, economists warned, as the eurozone

the country, Europe’s top economy, to the The Ifo institute said its closely watched survey of the business climate in Germany dropped unexpectedly in September for the Page 7

Greece supports Turkey’s EU visa-free travel initiative

G

reece will supports Turkey’s bid for visa-free travel across the European Union countries, because tourists from the neighboring country support Greece’s

“We will support the Turks’ right of free movement in the European Union,” Kefalogianni told Union of Chambers and Commodity ExPage 6

Made in Turkey Economic Newspaper, October 2012

2

Iran buys Turkish gold via UAE Mehmet Soztutan Editor-in-Chief

Performing well more than expected

T

I

“The lower-than-expected August trade

United Arab Emirates supported the re-

in domestic economic activity and net gold exports,” researchers from local

August, reportedly on the back of strong gold sales toIran even though the United Arab Emirates was the leading gold

lion, as growing trade with markets in Africa and the Middle East eclipsed a “The improvement in the foreign trade

according to the Turkish Statistical InsThis is good news for the current ac-

urkish economy has beeen performing well more than expected despite the global uncertainties coupled

BGC Partners economist Ozgur Altug “This data is a result of soaring gold ex-

that the rebalancing between the domestic and external de-

billion in August,” Oyak Securities

said that while the bank expected economic growth to pick up next year and

to Iran, made via the United Arab Emi-

would allow it to cut rates would de-

modest recovery, while exports continue to grow despite the

and current account

policy implemented in recent years is crucial for preserving the resilience of our economy against existing global uncer-

Turkey’s sovereign risk, and thus facilitate price stability and

welfare by keeping interest rates of longterm government mentation of the structural reforms envisaged by the Medium

Turkish gold sales to Iran have soared as Iranians turn to the precious metal to protect savings and, potentially, to trade, as Western sanctions aimed at forcing Iran to curb its nuclear program

gold to the UAE might be for Iran in -

sustainability, which would contribute to Turkey’s long term According to the Central and South East Europe Mergers and Acquisitions 2011 Barometer report published by the Ernst & Young , Turkey completed the highest number of mergers and acquisitions out of 11 central and southeastern Turkey had become very attractive for both domestic and international investors in recent years thanks to its political and We expect Turkey to continue its achievements in the years

be a United States of Europe at the end of this, and it may well not include everyone in

F. Brenner/ Washington D.C. With international economic monitors warning that the Continent could slide back into recession, Spain has watched its borrowing costs climb to unsustainable levels, as concerns rise about the country’s

Bank lending dried up!

Bank lending to private households has practically dried up in recent moths due to

messy divorce between Greece and the euro zone, with still unpredictable consequences for markets and other struggling European

Bank lending to private households in the euro area, which has practically dried up in recent months, remains very subdued in face of the region’s crippling debt crisis,

zone countries were urged to make sure contingency plans were in place for all eventualities, including a Greek exit We have a debt crisis, a banking crisis

Eurozone bank loans to the private compared with the same period last year

Exports to Africa and the Middle East rose 43 percent and 63 percent respectively, while exports to Europe, Turkey’s

said at his most recent news conference earlier this month that weak lending to

“Looking ahead, imports will remain weak and gold exports will continue to -

time in seven months at its last monthly

urkish contractors assumed overseas projects worth $215

tractors assumed more than 6,500 over-

In a report prepared, the Union of Turk-

Some 45 percent of all overseas projects assumed by Turkish contractors were in the Commonwealth of Independent States and were worth $96 billion,

months of 2012, Turkish contractors

Unpredictable consequences

month, the European Central Bank said

CIS favored by local contractors

T

turkey@ihlas.net.tr

months of the year narrowed 21 percent

Overall exports to the UAE jumped Turkey’s largest export destination in

Letters to the Editor

view of eurozone growth prospects and V. Rondon/ Frakfurt H. Treng/ Brussels

Weaker neighbors Until real measures are taken to restore growth, the divide in Europe between wealthy northern countries and weaker southern ones will continue to plague the region, say many analysts, putting continued pressure on Germany to support That comes at a time when Germany’s own economy is showing signs of slowing as other Europeans become less able to afford In the long term, some political leaders and economists are pushing for a more

Revolt against what?

From outside, Europe looks the same as ever – more riots on the streets of sunny Southern European countries and a niggling sense that the Old Continent is still From inside, the situation is certainly more Not only is the crisis still very much alive, but it seems to have moved into a third and

union in Europe — what they see as the

First we had a banking crisis; then we added a sovereign debt crisis; now we also have a political crisis, and one that strikes to the heart of what the European Union

“I don’t think little steps are credible here,” said Kenneth Rogoff, a Harvard economist

K. Turttgen/ Berlin

According to the report, Turkish con-

T

he amount of natural gas Turkish private energy importer companies will be allowed to buy from Russia is set to rise by 4 billion cubic meters to 10 billion cubic meters, Energy Speaking at a meeting organized by the Strategic Technical Economic Researches Center -

try was also considering allowing some 4 billion cm to be sold to the Turkish private companies directly by private natural gas importers, an issue that will be brought to the

jan, Iran and other countries that we will establish new energy ties ergy policies as a cause for peace, rather than a reason for tension and

may be some new agreements in Speaking at the same meeting, the head of the energy regulaprivate companies had applied to

A draft code on electricity and oil will be submitted to Parliament af“We want to carry forward pipeline projects with Russia, Azerbai-

“We may not be completely in agreement with Russia on Syria, but we leave that aside [for energy

Nearly 20 percent of the total 51 billion cm natural gas import is estimated to be conducted by the

energy deals with Iran and there

IEA, UNFCCC collaborate to improved data and analysis on climate issues The two organisations will share expertise in energy and electricity data, clean energy-related policies and measures, and clean energy technology

T

he International Energy Agency (IEA) and the secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol (an international treaty aimed at reducing greenhouse gas emissions) have agreed on a framework for collaboration in order to reinforce their mutual efforts to promote clean energy This takes the form of a Memorandum of Understanding, which entered into force on 3 September This new level of formal collabo-

ration is spurred by fresh analysis from the IEA which indicates that current energy policies are likely to result in a global average temperature increase well above the by world leaders at the meeting of the parties to the UNFCCC in “The threat of climate change becomes increasingly pressing as each month rolls by,” said Maria van der Hoeven, Executive Direc-

improved dissemination of data and analysis, which will be key for clean energy policy makers Building on existing ad hoc projects, the IEA and the UNFCCC secretariat have formalised their intention to pool their technical expertise in energy data, clean energy-related policies and mea-

not nearly enough is being done

The IEA has extensive experience with regard to best practice in energy statistics, clean energy development and energy policy mak-

This collaboration will lead to

hand sets the overall framework

for intergovernmental efforts to tackle the challenge posed by climate change, and generates institutions and mechanisms which help countries adapt to the inevitable effects of climate change forward, the two secretariats will work together to support international efforts to generate a low-

Nicosia enjoys Turkish boom

T

urkish Cypriot Prime Minister

The Turkish Cypriot prime minister has said that his government plans to increase investments as part of a two-year economic program for 2013-

B

ceramics companies have been coming to the Bologna fair for roughly seven to eight years to year’s fair will close its doors “Every year more Turkish ceramic firms are participating

revive the image of traditional Turkish ceramics,” said Okyay, adding that Turkey is the world’s fourth-largest ceramics exporter, but has even larger “Our biggest problem is of

added that improvements in Turkey’s economy had positive impacts on the economy of Turkish Cyprus He added the government’s austerity program had begun yielding results with an increase of 3-4 percent in budgetary revenues, which reached

agency that the new investment proafter consultations with Turkey, which he said carried out 90 percent of over-

economy had been growing steadily since 2010 and that the Turkish Cy-

T

he Turkish Statistical Institute

es, retail trade and construction sec-

gram included more investments in infrastructure, adding that the prospective Turkish supply of water and electricity in March 2014 promised to make a major contribution to the

dence index was due to the business environment deterioration over the past three months and demand/turn-

and 2 percent respectively in Septemindex was a result of the deterioration in business activity/sales over the past three months, while the decrease in

“Both organisations recognise the advantage of working together in this area of mutual interest to help advance action to address climate

the deterioration in employment ex-

‘China Desk’ to help Chinese invest locally

T OLOGNA Turkish ceramic firms are making a strong showing at the renowned Bologna Cersaie Ceramic and Bath Fair, Zeynep Bodur Okyay, president of the Turkish Ceram-

priot state planning board estimated

urkey’s Akbank and the Bank of China have established a “China

and reached $24 billion by the end of

who have local partners and are planning

is a $100 billion foreign trade volume target between the two countries for 2020,”

course the fact that the international conjuncture is going through a rough patch and secondly the fact that our sector

The China Table will be geared toward ing, Treasury products, yuan services and

fact that Turkey is dependent on external sources of natural gas is a critical handicap

“Our foreign trade volume with Chinahas increased 20-fold in the past 10 years

manager, speaking at a press conference Manager Hülya Kefeli added that Akbank wants to be the market leader in foreign trade services with China with a 10 to 15

Made in Turkey Economic Newspaper, October 2012

3

Chairwoman of TUSIAD asks for a tax reform Head of TUSIAD, “A new and inclusive tax reform has become an my, as well as contributing to competition and source distribution”

T

he share of indirect tax in Turkey has approached 70 percent, fairly above the OECD average of 30 percent, says Umit Boyner, Head of the Turkish Industry and Business AssociaBoyner reminded that the lion’s share of indirect tax the unregistered economy and hinders the concept In her speech at a symposium on the unregistered economy Boyner touched on the irregularities of the tax structure in Turkey, while also praising the drop in the rate of unregistered employment and action plans constituted by the government to tackle the

employment has fallen to 40 percent currently from The “Action Plan on Combat Strategy against the Unregistered Economy” and the “National Employment Strategy Document” reveal the government’s In addition, Boyner also indicated that the ratio of tax revenue to national income was nearly on the

TUSIAD Chairwaman Umit Boyner

Pointing out tax structure due to the share of indirect tax in Turkey approached 70 percent, Boyner said, “The worst thing about the rising share of in-

The total tax burden, including social security liabilities, is almost 20 percent, according to a TUSIthe share of indirect tax collected for the registered economy increases, especially the concept of free recent years is quite positive in this respect,” ac-

Nurol sells groundbreaking armors to foreign market

W

e are one of the three countries in the world to manufacture state-of-theart boron carbide armor following the tracts worth $45 million so far,” Tunc Batum, DiBatum recorded the company had sold 1,000 of its Boron carbide, a boron ceramic material, is one of the hardest materials known, behind cubic boron nitride and diamond, used in tank armor, bulletA private Turkish military contractor said it has begun exporting “Turkey’s first domestic made armor, the T-shield,” of which production started “Boron carbide, a boron ceramic material, is one of the hardest materials known, behind cubic bo-

ron nitride and diamond, used in tank armour, bulletproof vests and numerous industrial applica-

lion to develop its own for the T-Shield in order to break its dependency on foreign resources,” Ba-

a lot sturdier than steel,” said Tunc Batum, noting The standard steel bulletproof vest weighs 6 to 8 kilos, while Nurol’s armored vest weighs only 4 “We have a limited production capacity and therefore our first priority is to make sure our own Boron carbide, a boron ceramic material, is one of the hardest materials known to man to be used in tank armor, bulletproof vests, building materials

“Turkey used to be depended on China and the Far East for its armor, but spent close to $600 mil-

HEMA to increase its capacity to threefold

A

n affiliation of Hattat Holding, invest for the new plant costing

HEMA Industry will increase its capacity By first tranche of 18 million euro from Deutsche EG (DEG), Hema Industry will With the new investment which is expected to be active in the second half of 2013, the heavy vehicle power-train production to be increased from 50 thousand to 150 thouIbrahim Hattat, Chairman of HEMA Insaid, “For our investment’s finance, we have made an agreement which is no payment for 4 years, after that, payment will this loan we will rank second in Europe in Gurhan Kartal, CFO of Hattat Holding, said, “As Hattat Group, we grew 64 perWe are not hopeless like European and

Peter Thimme, Director of DEG for Europe, Mideast and Asia, said, “Turkey is one of the rare countries which grow amid

We will continue to enlarge in upcoming

Made in Turkey Economic Newspaper, October 2012

4

Holistic approach solves crisis

T

he

(Publisher and Editor in Chief): Mehmet Söztutan

Editor

Ibrahim Kupeli

Advertising Sales Staff:

Adem Sacin,

Advertising Consultants

Emir OCAL

Correspondents:

Hakan Alkan

Chief Accountant:

Mustafa Aktas

HEAD OFFICE: 34520 Yenibosna - ISTANBUL / TURKEY

LIAISON OFFICES:

Buttim D Blok Kat: 4 No: 1267 BURSA

KONYA: Metin Demir KONYA

PRINTED BY

ISTANBUL / TURKEY

global

economic

crisis

When global economic crisis appeared

Both international economic institutes and United Nations has been in desperate straits in front of the wars, strife as the

r o m Hu

THOUGHT OF THE MONTH

Logic is a systematic method of coming to

has not completed its session, seemingly

leaders and international community do not show the necessary reaction or they are not being able to show necessary reaction to stop the unwanted events which do not allow setting up stability and peace in the

It is commented that the crisis resulted from a combination of complex factors, including easy credit conditions during the 2002–2008 period, in addition to international trade imbalances; real-estate

“Financial reserves at zero” The UN High Commissioner for Refugees, António Guterres, noted that his agency, is currently dealing with four acute crises as it tries to protect and assist

H

Who has been manipulating the global economy that cannot be able to get recovery since 2007?

Billions of dollars and euros have been melted

Syria, Mali, Sudan and the Democratic Republic of Congo (DRC) by the end of September, on top of last year’s record exodus of 800,000 refugees worldwide, nearly 1 billion, this is an awful amount, this means also over one billion people cannot join production

late 2011, the issue of the global economic crisis has invaded the economy agenda

Where moneys have gone, who spent, clearly it is not

Who are criminal in this?

Is it globalization which diminished the planet?

Ibrahim Kupeli Did the globalization of the United Nations process prepare the refugee agency, he infrastructure for this warned, “With its situation?

In conclusion, the global world has entered Nations refugee agency is facing an a very fragile position that is very sensitive “unprecedented” combination of crises and he appealed to the international globalization requires being very cautious community to provide the necessary When we observe the general situation across the world some regions and countries have been suffering for decades Regarding wars, strife and similar unwanted events, have left a huge damage on the countries’ economic activities and Wars, migration, natural devastations have made up a hindrance to stimulate the

IHLAS MAGAZINE GROUP Please mention “Made in Turkey” when writing to advertisers

Long term instability and uprising in some

Because the IMF downgraded its

Moreover, some of the countries are under economic sanction, so they cannot improve their economic activities, trade and growth to contribute to both their own countries and world economy, for example

According to the statement of the International Monetary Fund, the global economic recovery is weakening as government policies have failed to restore So the current situation, with which the world encounters, pushes the international community, world’s common sense

ow many lawyers does it take to change a light bulb?

“How many can you afford?”

to change the bulb, and twenty-eight

How many lawyers does it take to screw in a light bulb?

keep interrupting by standing up and shouting “Objection!”

shake him off the ladder, and the third instantly tell whether it’s verbal or for insufficiently supplying power, or negligent failure to prevent the surge that made the bulb burn out in the first place, one to sue the electrician who wired the house, and one to sue the

a continuance, one to object, one to demur, two to research precedents, one to dictate a letter, one to stipulate, five to turn in their time cards, one to depose, one to write interrogatories, two to settle, one to order a secretary

How many merchants does it take to change a light bulb?

“The light bulb that I sold you doesn’t work? You must be using a non-

sell you the light bulb and one to gift wrap it, but then you go home and

THE ECONOMIST What about economists?

- those who cannot forecast interest rates, and - those who do not know that they cannot forecast interest rates.

Well!

Because of the global situation has been also bleeding and waiting for being solved their problems from which innocent For this reason, the global economic crisis and other humanitarian problems need a

EASY

SUDOKU

7

3

9

2

8

6

1

4

5

2

1

6

3

4

5

8

7

9

8

1

9

3

4

5

6

5

6

4

2

7

9

8

4

7

5

8

1

3

2

7

4

1

5

8

6

9

9

2

3

6

5

1

7

1

9

8

7

2

4

3

3

5

2

9

6

7

4

2

3

6

1

9

8

5

6

8

7

4

3

2

1

MEDIUM

8

6

5

7

3

9

1

4

2

4

2

9

1

8

5

3

6

7

7

5

9

2

1

3

6

3

7

8

1

5

4

9

1

4

3

6

7

2

8

2

8

6

4

9

5

3

6

9

7

5

2

1

4

4

2

1

3

6

8

7

5

6

4

7

8

9

2

8

1

2

9

3

7

5

9

3

5

8

4

6

1

HARD

9

2

6

7

8

3

5

1

4

5

8

1

2

4

6

7

3

9

4

6

7

3

8

1

2

7

1

5

9

4

6

3

3

2

4

8

7

5

9

5

9

6

1

3

4

8

1

5

3

7

2

9

6

9

4

8

2

1

7

5

6

8

2

4

9

3

1

8

7

9

6

5

2

4

2

3

1

5

6

8

7

FIENDISH

1

3

2

6

4

7

8

5

9

5

7

9

3

8

1

6

2

4

8

3

4

6

7

9

2

4

2

9

8

6

1

5

6

7

5

1

4

8

3

9

1

2

4

5

7

8

2

5

7

9

1

3

6

5

6

8

3

9

2

4

1

9

3

5

2

4

7

3

4

1

7

8

6

9

7

8

6

2

3

5

1

Made in Turkey Economic Newspaper, October 2012

5

China’s growth to slow to 7.7% in 2012, recovery of 8.1% next year

Turkish Minister of Finance Mehmet Simsek

The Turkish economy is on the right track

from 6 percent to almost 18 percent today, which underscores the critical importance of this redown from last year, and GDP growth in the second quarter growth has slowed in particular, driven by last year’s measures to rein in investments in real estate, ation in monetary policy earlier this year and local and central government stimulus measures could again reverse this trend in

Continued From Page 1 he new report says that weak exports and lower investment growth will cut down China’s GDP growth from -

T

China’s growth is expected to pact of stimulus measures kicks in, supported further by an uptick The East Asia global economy has tripled in the last two decades, from 6 percent to almost 18 percent today, which underscores the critical importance of this region’s continued growth for the rest of the world,” said World Bank Group President cumstances, poverty in the region will continue to decline, with the share of people living on $2 a day

percent in 2010,” said Pamela Cox, World Bank East Asia and “Weaker demand for East Asia’s exports is slowing the regional economy, but compared to other parts of the world, it’s still growing strongly, and thriving domestic demand will enable the region’s economy to bounce back to The report cites reconstruction spending in Thailand after last buttressing domestic demand in like Indonesia – together with Thailand and Malaysia – are currently enjoying a boom in spending by their governments and the In China, the growth of domestic demand in real terms has come

The report notes that tensions in the Eurozone have eased following the European Central Bank’s announcement to defend the the recent announcements by the United States Federal Reserve regarding a new round of quantitative easing to help stimulate the American economy, has helped

Policy makers in the East Asia continue managing growth and reducing poverty in an environment that will remain volatile, the experienced rapid expansion of credit need to be cautious, while exporters of commodities should continue to take measures and build institutions that help man“Over the medium-term, increases in productivity in the East Asia ingly becoming a middle income ued structural reforms, improvements in the business climate and investments in infrastructure and education systems will become more important, said Bert Hofman, World Bank Chief Econo-

Continued From Page 1 aiser said a lower current actained by slower growth “because risks in the international economy ing monetary policy and rising supervision in the banking sector in the second

R

that Turkey’s economic growth is in line with a soft landing and rebalancing scenario,” he said, adding that Turkey’s economic growth will likely accelerate “There is a certain risk that Turkey may not be able to meet its budgetary target situation regarding the budget is not so

“It would not be right to forget about in-

The Turkish government boasts of its three-year medium-term programs, the

recorded high growth rates for the last two years, economy-related Cabinet members put emphasis on the success of The Turkish Central Bank has chosen

yesterday held its policy rate unchanged of the upper end, the interest rate of primary dealer banks also reduced from 11

However, the report says that con-

Number of aircraft passenger exceeds 100 million

Should conditions in Europe deteriorate sharply, the risks are high that developing economies

Continued From Page 1 total of 14,060,290 passenger got service from the Turkish air-

Eurozone will adversely affect the economies in the East Asia

The report considers food price increases less of a risk for East Asia at this stage, as rice markets

A

in the domestic lines to 6,061,895 units, number of passenger in international cent rise in September 2012, compared Sanliurfa GAP Airport surged atop with 51 percent increase in the domestic air-

zli Cardak Airport 23 pc and Adana Air-

an increase of 21 percent enjoyed in Istanbul Ataturk Airport and 18 percent end of September 2012, domestic aircraft

pc to 381,266 units, the total aircraft traf-

of the end of September 2012, the total As of the end of September 2012, number of domestic passenger became 48,993,697 tional passenger was 51,759,316; together with number of direct transit passenger, the number of total passenger increased

Made in Turkey Economic Newspaper, October 2012

6

Support to agriculture at historic lows, says OECD

Continued From Page 1

T

he move toward lower farm support is a welcome trend, but we still see the need for better targeting and more costeffective farm policy,” said OECD Trade and Agriculture Director more closely directed at increasing agricultural productivity and should also be doing more to address environmental issues, ensure sustainable resource use and help The new report shows that support levels still vary widely across 11 period, New Zealand had the lowest level of support, at just 1%

of farm income, followed by AusUnited States (9%), Mexico (12%), Israel (13%) and Canada (16%) were also below the OECD aver-

The European Union has reduced its level of support to 20% of farm scale, support to farmers remains relatively high in Iceland (47%), Producer Support Estimates by country in % of gross farm receipts, 2010 and 2011 The report also shows that total support to agriculture as a percentage of national income is falling in the OECD area, declining

Greece supports Turkey’s EU visa-free travel initiative

from 3% of GDP on average over the 1986-88 period to declining trend is observed in all OECD countries over the The OECD projects that today’s relatively high commodity prices will continue over the medium-term outlook, meaning that markets will provide farmers the income that many governments have until now sought to provide “Given expectations of future demand growth and greater pressure on limited resources, there is a clear opportunity to turn farm policy toward the most

Continued From Page 1 rocedures for Turks to travel to four Greek islands have already been eased, and visas are no longer required from Turks with green passports, Kefalogianni said, adding that the number of Turkish tourists to Greece had increased 180 percent in a

P pressing policy goals, like boosting innovation across the food and agriculture system,” Mr Ash carrying out spending cuts across their budgets will have to improve the cost effectiveness of agricul-

MUSIAD International Fair offers high morality, high technology

membership process negatively,” “We believe that in order to overcome this crisis, determination is important; we should be open to reforms, and the government should act together with the business world,” Hatzidakis to a regional cooperation meeting to be held in the Marmara province of

“This brought about a revival for our a report on the subject, and will present it to Brussels in October,” Kefalo-

Hatzidakis also said Greece wants to set up a “special industrial zone” near “Such a project could become a center

During his visit to Athens at the invitation of Union of Greek Chambers Chairman Constantine Michalos, rience of economic crisis with members of Athens Chamber of Commerce and Industry and Economy Minister Kostis Hatzidakis, along

with Michalos two weeks earlier at the

met 15 days ago, and the president has to explain how Turkey overcame its portant tips for Greece in this time of

Continued From Page 1 ll those fairs that we organized as an NGO, were greatly welcome by Turkish people, as well as both local

A

way, our fairs have been successful at being among one of the biggest fairs in Turkey in terms of high numbers of visitors, exhibiBesides, MUSIAD Fairs always

made their marks on the country’s agenda during the dates when they were organized, through promotion campaigns on various media

Turkish and international business-

Our goal henceforth is holding even bigger fairs, leading to great-

Participating sectors of the fair are machinery, automotive, computer, electronic, furniture, decoration, packaging, electric household appliances, plastic, health, textile and

MUSIAD International Fair that is organized every two years will keep to be held with diligence to improve the collaboration between

In 2010, the 13th MUSIAD International Fair hosted 611 local and foreign exhibitors who had a change to present their products

and services to the key industry players, exporters, investors, provincial investment agencies, manufacturing associations, academics, chambers of commerce and indus-

economy and business issues will be discussed bringing together the -

have both experienced crises that key and Greece should establish mutual destinations and markets them in China and India jointly, Kefalogianni said “Soon we will meet with Turkey’s tourism minister to talk about

things experienced during and after We also do not want state interference in the economy; we demand less bureaucracy and the implementation of a new and simpler system that supports

problems to affect Turkey’s full EU

BP to invest in Azeri project Continued From Page 1 CG was supposed to produce more than 1 million barrels per day (bpd), after a

A

down to US$1.2 in August

T

urkey’s current accounts

Turkey’s Central Bank of has disclosed balance of payments

“This development is mainly as-

billion increase in net services lion, as well as US$718 million ing to the statement of central

ensured considerable western diplomatic support for the project and industry

ACG is so critical to Azerbaijan that the day of the signing of the Production Sharing services account, the travel revenues boosted by US$81 million travel expenditures decreased

by US$671 million recording

oil executives and diplomats said the challenge is now to keep output to around the

the same period of the previous

short of original expectations, but have cited maintenance when explaining the falls

The statement noted, “Under

Turkish hosieries produce 8.5 percent of the world production

P

air of socks production of Turkey is over 2,2 billion unit, Huseyin Ozturk, Chairman of Socks Producers’ Association He noted Turkey ranks second following China in socks production across the world, adding that over half of the total production of Turkey was ex“Turkish hosiery produc-

The sector exported $1,1 billion worth of goods in 2011 except suitcase trade, according to Istanbul Textile and Clothing Exporters (ITKIB),” Ozturk

Pointing out the sector had increased its share in a steady way both in exports and within Turkish ready-to-wear and knitted sector, he said, “The sector raised its exports in 2011 by $1,1 billion, as for the pair of socks over

by Germany with $223 million, France with $122 million worth of hosiery Hosiery

imports

ning of education terms and Eid al Fitr and Adha and air conditions affect sales in line with positive

were

Ozturk said socks show a parallel situation in line with foot and skin health

He added Turkish producers prevail in Europe in classical socks which are described as “basic”, noting they would be an authority in Europe within 5 years in high value added

as of the year 2011, the sector heightened its share

“There are remarkable increases in varicose, diabetic and technique

“During daylong the most important cloth of our feet that carries our load is

Ozturk recorded that the biggest market in exports was the European market, in the aspect of countries,

of thin socks have raised with different color and

give importance to socks

While the sector’s share

$272 million, it followed

In Turkey, consumption per annum per capita is 6

Sales of socks expand especially in August and -

be changed daily and let them rest for a few days and should be used alter-

Exports of Turkey’s aquaculture products raises 88 percent to US

T

uct exports raised 88 percent to the uary-to-August 2012 over the same period last year, according to the statement of Turkey’s Aquaculture products PromoTurkey’s Products Products

Aquaculture and Animal Exporters

Union Sector President Sinan Kiziltan marked products and feature vast consumers of packaged According to the information from Kiziltan

and the Miami Food and that the Boston Fair in particular is the world’s second-largest aquacul“Kiziltan recorded that of 2011, Turkey exported

have been able to successket, because of both the Boston Aquaculture Fair

tor exported 563,542 kiaccounting for an 88 percent increase, registering export sea bass and zander,” Kiziltan said, adding that Americans and like sea bass, sea bream and tuna that have been

“As for the same period

Made in Turkey Economic Newspaper, October 2012

7

Lamy: “Trade generates opportunities for development” “The current economic climate characterized by low growth, increasing unemployment rates, and the looming ghost of raising commodity prices has generated widespread instability, uncertainty and mistrust in the ability of governments to cooperate,” Director-General Pascal Lamy

Continued From Page 1 owever, the persistence of widespread poverty in many areas of the world and the growing inequalities in most of our societies are also a stark remind-

H

global economy have not accrued to everyone in an growth is a necessary but -

patterns of income distribution — both at international level and within a country — mean that economic growth does not often trickle down to the most vulnerable in our societies and that the poor are often denied access to the opportunities of trade

us is that to ensure that trade opening works for the poor, trade reforms

need to be accompanied by policies that guarantee an equitable distribution

relevant for today’s discussion on food security and the debate between

education, safety nets and access to credit are part of poverty reduction strategies as much as economic plementary policies protect the poor against the potentially destabilizing effects of trade opening, while ensuring that trade unlocks income-generating potential for all layers

integration of global food erty and Famines has changed the way famines are understood and can be addressed by showing why thousands of people might starve even when

overall coordination between government institutions as well as multilaterally in all areas of In other words, it requires a strong domestic and many ways, we are all in dire need of institutional

years on, in a world that is vexed by recurring food crises and food price volatility, his book remains extremely relevant in addressing food security “At the WTO Public Forum, we asked ourselves whether multilateralism current economic climate characterized by low growth, increasing unemployment rates, and the looming ghost of rais-

ing commodity prices has generated widespread instability, uncertainty and mistrust in the ability of But, whether pessimistic or carefully optimistic about the future, all speakers agreed that there is no real alternative to multi-

have so far do not work as well as we had hoped, then we, collectively, need ative solutions to today’s “With his deep experience in both eastern and western wisdom, his consistent prove individual and social welfare and his ideas for addressing poverty Sen’s theories provide us with this much-needed

Industrial production setback in August urkey’s industrial production index in August 2012

T

crisis, which is spreading throughout the world, has caused manufacturing in-

In the sub sectors level of industry, mining and quarrying index boosted

compared to same month of the previous year, according to the Turkish Statistical Institute

Thereby, Turkey’s industrial production index in August 2012 decreased by

and electricity, gas, steam and air conditioning sup-

the same month previous to the global economic

in August 2012 compared to the same month previ-

justed production index in August 2012 increased same month of previous year and seasonal and calendar adjusted industrial production index -

A

Newswires had expected an unchanged reading, hoping businesses would be more bullish after the European Central Bank announced unprecedented action earlier this month to stem the eu“The companies surveyed with their current business pressed greater pessimism about the future,” said Ifo president Hans-Werner “The headwinds on the German economy continThe disappointing data were “a reminder that even the eurozone’s strongest economies are suffering from a serious economic fer McKeown, an analyst

only a matter of time be-

fore the economy starts to

gust, and the outlook

support for the peripheral economies even more

ING bank economist Carsten Brzeski said the that the Germaneconomy could see a contraction in ever, he saw only a short“In the short run, a stronger euro and somewhat higher interest rates should dampenGerman growth but in the long run the positive impact from a stabilized eurozone should prevail,” said the Ifo calculates its headline index on the basis of companies’ assessments of their current business situation and the outlook for The sub-index measuring current business dropped -

The disappointing data weighed heavily on the markets, with all major European stock exchanges in the red and the euro plunging on the foreign Germany has shown strong resistance to the debt crisis that has swept through the 17-country bloc, relying on its powerful export motor to keep It notched up modest the second quarter while the eurozone as a whole But even the powerhouse has been unable to resist forever and a raft of economic data recently has suggested the economy is

The economy ministry said in its latest report earlier this month that, while

they expected a “fairly stable development” in the second half of the year, there was “no reason to sound the all-clear”, notcar registrations, a key indicator of demand in Germany, tumbled sharply in August, while the most

As the economy hits headwinds from the crisis, unemployment is beginning to rise -- admittedly from its lowest level since Germany was reunited more Latest data showed the total number of people out of work rose by 29,100 in mists fear that consumption and domestic demand could begin to run out of steam as several companies introduce short-time working schemes to cut

The European Stability Mechanism (ESM) inaugurated Continued From Page 1 his mechanism will be globally the largest intertion with a strong capital base of ¤700 billion of which ¤80 billion will be paid in by early 2014, including about ¤33 billion

T

As a permanent mecha-

nism, the ESM will take over the tasks currently Financial Stability Facility (EFSF) and the European Financial Stabilisa-

sponsible for the day-toprogrammes will, as a of Governors appointed Klaus Regling, the Chief The most important decisions will be taken by the ESM Board of

This was initially forewith the accelerated entry into force, the ESM will now operate along-

EFSF, as Managing DiThe ESM Treaty entered into force on 27 Septem-

It will also have a Board of Directors, as well as a Managing Director re-

percent compared with the

Turkish exports expand 7.4% in September year-on-year increase, according to data unveiled by the Turkish Exporters’ Association Continued From Pge 1 IM Chairman Mehmet Buyukeksi said that Turkey’s trend rate ing that Turkey’s export to EU member countries decreased by 11 percent in the first eight months of 2012, but that it has increased by 3 percent in September, Buyukeksi said that Tur-

Union of Antalya Exporters raised

Britain by 13 percent, Spain by 4 per-

In the first nine months of 2012, exports from Antalya reached a value of

T

Buyukeksi noted that Turkey’s export recorded 24 percent growth to the Commonwealth of Independent States, America by 19 percent, Africa by 16 percent and Middle East by 13 percent

member states had rati-

According to the statement from Chairman of the Executive Board of the Union of Antalya Exporters, Mustafa Satici, exports from Antalya in the same month preceding year and

Sectors which exported most from Antalya were agriculture, mining, soil inThe majority of our exports were accomplished to the Russian Federation

Southern resort city of Antalya surged Meanwhile, exports shipped by the

Bad signs from euro’s boss Continued From Page 1 nalysts surveyed

In August 2012, industrial

(TIM) Chairman Mehmet

Made in Turkey Economic Newspaper, October 2012

8

Exports of steel boost in September Kahramanmaras eyes

W

ith regard to the global economic crisis across the world decreasing of commodity prices led to reduction in the revenues of steel exporters in According to the data from Steel Exporters’ Union, exports of steel reached by 15 million September compared with the same period previous As for in terms of value, the sector’s exports became worth $11,8 billion

In September 2012, while exports of steel increased as for based on value deWhen regarded the first nine months, the exports of the sector boosted both In the regional base, the Mideast ranked first with 6,2 million tons, it followed by the European Union with 1,6 million tons and then North Africa with 1,5 million tons

in Turkey’s first 9 months exports of steel over the

Brazilian market

When compared with last year, in the first nine months, the biggest increase enjoyed in the European countries out of the European Union and then North America, Western Africa, Australia and Oceania in Tur-

S

the European countries, Businesspeople of the south-eastern province of Kahramanmaras eye the BrazilBusinessmen of Kahramanmaras have plans of achieving a total annual export

this period, the mostly exported products were flat iron with 6,73 million tons, ingot with 2,35 million tons, pipe with 1,35 million tons, profile with 1,31 million tons and coil iron with 836

Businesspeople of the south-eastern province of Kahramanmaras boosted their exports to Brazil by 130 percent to the same period previous year, following searching for new markets with regard to the economic crisis and stag-

In September 2012, exports of steel saw increase as amount with 1,61 million tons accounting for worth $1,22 billion, despite seeing an 11,9 percent of increase compared with September 2011, regarding the global economic crisis majority exports of steel made to the Middle East with 547 thousand tons, North Africa followed it

Kahramanmaras features one of the most important trade centers of Turtion with its production in the textiles

with 187 thousand tons, and then the EU countries In September the mostly

exported steel products were flat iron with 763 thousand tons, ingot with 218 thousand tons, pipe

Tatar President call for Turkish investors

T

urkish companies can use Tatarstan as a springboard to access to the Russian market, President Minnihhanov says at a form about

President of Tatarstan Rustem Minnikhanov said that the Russian market was developing in a dynamic tomotive Trade and Investment Cooperation” in the north-western province of Bursa, President Minnihhanov stressed that they wanted Turkish companies to use Tatarstan as a springboard to enter the dynamic

eeking new market regarding

“Turkish-Tatar relations develop with a fast pace es-

with 163 thousand tons, profile with 143 tons and coil iron with 75 thousand

Entrepreneurs of Kahramanmaras launched search for new markets after began focusing on the Brazilian marof 2012, the province’s exports to Brazil expanded 130 percent over the same period previous year and reached ber, Kahramanmaras’s exports to Brazil surged 125 percent over the same

Kemal Karakucuk, the Chairman of the Executive Board of the Chamber of Commerce and Industry of Kahramanmaras (KMTSO), stated they would He stressed that Brazil had become

factories in 35 sectors produce indus-

“We export a large amount of yarn and vestigation in Brazil resulted in favor

Over 100,000 people are employed by

the future with the result of the investi-

The province produces 35 percent of all yarn and 10 percent of all fabric in er in Turkey when it comes to metal

nine months of 2012 went up 130 perregions across the world to boost our

‘Economic crises pave the way for enemies of democracy’

He said that negotiations between the businessmen of Turkey-Tatarstan have become a tradition, adding that development was a symbol in development of Minnihanov thanked Turkey’s Economy Ministry, Bursa Governorship, Turkish Exporters’ Assembly and Turkey’s Automotive Industry Union due to their

rope”, felt that democracy was inconceivable with-

“We would like to be a window and door for you to

PACE President Jean-Claude Mignon

C

itizens should have their say in the way public affairs are run, not only years, but every day,” said Claude Mignon in opening a round table entitled “Is representative democracy in crisis?”, as part of the World Forum for Decountries affected by the crisis feel increasingly that all decision-making power has been taken away from them,” he added, stressing the need to “bring the institutions of representative democracy “There needs to be greater communication between elected representatives and citizens, using all the available channels such as Internet, social networks, parliamentary society associations,” he in order to restore public stitutions, and in the light of the growing power of the supranational institutions, “national parliaments should strengthen their role in order to ensure a balance, have greater scope for legislative initiative and attach paramount importance to scrutinising government

action”,

said

President

Anne Brasseur (Luxembourg), Chair of the ALDE Group (Alliance of Liberals and Democrats for Europe) felt that “democracy cannot be taken for granted; it is constantly being reshaped and adapted, and that is the principal strength of this is in crisis, the response cannot be populism or dictatorship, but more democracy, freedom and her view, it was wrong to think that the political institutions, particularly the European supranational institutions, were out of touch with citizens since most EU bodies were She also refuted the claim that there was a lack of interest in the political process and a decline in citizen participation: “civil society, which moreover is strongly represented in this Forum, has never been so involved in public life and listened to so much by decision-makers For his part, Andreas Gross (Switzerland), Chair of the Socialist Group and author of the report on “The crisis of democracy and the role of the state in today’s Eu-

“In order to revitalise democracy, it is imperative to introduce elements of direct democracy at regional and local level, and encourage greater citizen participation by enabling them to bring about changes in legislation and engage in more active dialogue with members of parliament, who as a result will be able to represent them more “to give fresh impetus to democracy and overcome the current crises, it is only at supranational level that the construction of this democracy can be “More democracy is always the best medicine when democracy is in crisis,” said Tiny Kox (Netherlands), Chair of the Uni-

the World Forum on Democracy plenary session on the subject “Do markets need democracy and vice-versa?”

He continued by saying: “Yet democracy is hard to reconcile with unreguple of the money markets provides proof, if proof were needed, of their incult in an economy which is globalised but in which the political power largely remains at the national “How can we transfer sovereignty to a supranational level without giving citizens the feeling that democracy is being weakened? One means might be to reinforce the role played by the national parliaments while at the same time increasing the responsibilities of the short, we need more de-

we often see the opposite ers are criticised that their democracy is not functioning well and does not meet international standards, they often react by limiting the right to freedom of expression and “It is perhaps too soon to say whether democracy theless it is worthwhile to cause without democracy human rights cannot be protected and civilisation cannot be developed in a humane way,” Mr Kox

“In the short and medium term, economies can in fact be developed withthis purported ‘model’ is unsustainable in the long term because it is accompanied by huge areas of ineffectiveness: scant consideration of environmental issues, mass corruption and a correlative

rule of law if a bribe is enough to circumvent the tence of the rule of law is a tremendous obstacle to

In his previous speech

Furthermore, it makes it

Claude Mignon said, “Democracy cannot do without dynamic and

the contradictions between very high growth and huge resultant in-

economic crises pave the way for the enemies of democracy,” explained the President of the PACE at the opening of

vital and, in fact, valuable to reconcile the markets with democracy,” said the PACE President in con-

Made in Turkey Economic Newspaper, October 2012

9

“EU’s progress report a full disappointment for Turkey” By this kind of negative approach, the EU faces with the risk by jeopardizing

Most developing Asian economies have room to counteract shocks

G

rowth is now expected to slide poised to play a critical role in the re-

2012, with a bounce back to

unveiling of the annual progress report in Brussels, Minister Bagis said it was obvious that the EU, already suffering from economic and political crises, is struggling to postpone Turkey’s complete membership by

Turkish EU Minister Egemen Bagis

E

gemen Bagis, Turkey’s EU Minister has reacted by criticizing the European Union’s annual progress

report, saying that it was a full disappointment for In his speech holding a press conference after

He added the Greek Cypriots’ intensive lobbying efforts in the EU as the holder of the EU term presidency has provoked already unsatisfying points take place in the “With this pessimistic approach, the EU, regrettably, overshadowed the positive agenda that was launched in May,” he

Minister Bagis indicated that the report acknowledged the considerable progress Turkey has made in realigning its standards and legislation with the “The European Commission found out that Turkey has made progress corded the EU has reiterated baseless and unjust statements that he used to hear from marginal ideological groups in Turkey quite contradictory to the

The Turkish minister Bagis depicted the report as a movie script that does

Key messages

not present an objective He criticized the EU by saying that the way the report was written actually serves the interests of those people who do not want to see Turkey move along with further Turkey’s EU Minister Bagis concluded, “We will carry on making our preparations for the upcoming term presidency of Iremains a key objective for Turkey, and our government has been committed to the accession talks with the same dynamism as it did in 2005 when the ne-

The possibility of a shock emanating from the unresolved euro area sovereign in 2011; in the United States pose the biggest downside risks to the economy, accordThe annual Asian Development Outlook, generally launched in April, presents an analysis of developing Asia’s recent economic performance plus its

growth of 2011;

in 2013;

Update shows whether these forecasts were met, explaining divergence between forecasts and the actual outturn,

dimming global growth prospects and soft domestic demand in the region’s two largest economies are slowing the

-

in the United States (US) pose major risks to the outlook; urgent need at the moment for countercyclical policy intervention;

Growth is now expected to slide from to secure future prosperity;

Turkish waistcloth in markets abroad

K

nown as a part of the Turkish bath culture in the period of the Ottoman, Turkish waistcloths are exported to the countries of the USA, Canadian and European with different colors, models As the indispensable of the Turkish baths, waistcloths with new colors, designs and models of

the masters of Buldan district, western Denizli province have embarked to the world’s markets that being used in spas, saunas and beaches as Halil Basturkmen, Chairman of the Buldan Chamber of Commerce, says that waistcloths are produced on the looms with a tradition which goes back to centuries

Although being identinowadays renewing itself waistcloths have wrapped up a new design to meet the needs of the modern life, Basturkmen He noted due to being produced with 100 percent cotton yarn, so that absorbing water quickly and being carried eas-

ily, in the past only were being used in Turkish bathrooms, the Turkish waistcloths are now used at spas, saunas and beaches with its new col-

He noted they would try to open to the new markets, adding that they were close to the European market and their products characterize

Basturkmen recorded that Turkish waistcloths

“We design new products by renewing ourselves continuously and produce fashionable products that can be used by consumers,” Basturk-

to the USA, Canada, France, Italy, Spain, in addition to the European

“We add power to our power” Yildiz noted that such sum was being spent for

ing of a country is very

He continued; “We have met with the ministers of 7 countries, lasted for

change throughout grow-

There were questions to ture, however how did you achieve the growth pace of Turkey?’ Let’s leave companies aside, even though countries suffer from the Thereby, I congratulate the Boydak family regarding

E

rciyes Steel Rope Factory which was established with the capital of TL2,5 million in the structure of Boydak Holding in 2009, has moved to its new place at Kayseri Mimar Sinan Or-

85 TL million for its new production facilities to inAt the end of ongoing investment to be completed the expenditure for the investment which is being spent to reach by TL120 Speaking at the opening ceremony, Orhan Ozsarac, General Manager of Erciyes Steel Rope Factory, said, their targets to make multi-wire rope out of widespread standards, adding that the aforementioned production was not “This rope production is preferred regarding featuring more value added, safer, and more durable in factory, which will run on a total area of 56 thousand sq meters, 26 thousand sq

meters are closed, technoAs of the end of 2014, they would consume 4,500 tons steel, produce 3 thousand tons steel wire, the investments were made in the Mustafa Boydak, Charirman of Kayseri Chamber of Industry and member of the Board of Boydak Holding, said that they had was 2,5 million Lira in 2009 when they added it into their structure, to 85 investments were continuing once the sum mount by worth TL120 million, the facility will reach full caadded sum of the investment characterized as the most remarkable and big investment in the central province of Kayseri in reTaner Yildiz, Minister of Energy and Natural Resources, congratulated the Boydak family due to the investment made, adding that today the countries which suffer economic crisis try to get loans worth

Minister Yildiz stressed that investment’s products would be used in many sectors such as in energy and many supplier indus“A power transfer line is being made towards MosulKirkuk; the materials here Thanks to the production at this plant imports in its

that achieve this is very bution of our industrialists Following speeches, the Tamer Yildiz, Deputy Governor Fikret Kasim Dayioglu, Mustafa Boydak, Boydak Holding’s members of board Sukru Boydak, Yusuf Boydak, Memduh Boydak, Ak Party Kayseri Provincial Chairman Omer Dengiz cut the opening ribinformation about plant by “Within 2 years, 3 thousand tons multi-wire robe will be manufactured” Since 1999, reaching expertise and information accumulation in steel wire sector, Erciyes Celik Halat has entered a restructuring period after joining the structure of Boydak Hold-

These developments reveal son, the plant here excites Turkey ranks second in Europe with its power transThere are one million kilometers of power transfer and distribution lines reach a length to tour the The investments are worth 7,2 billion lira within the next three years, we will continue investment with invest up to 2015 to exceed the objectives in the EU mation accumulation to

wires with patent, industrial springs, aluminum conveyance steel cores, monothrones and multiwired steel ropes will be duces winches, lifts, basic lifting ropes, in addition thicker ropes’ production preparation is underway directed towards maritime consume 4 thousand 500 tons steel at the end of 2014 with additional investment worth 10 million euro, vestment to manufacture 2 thousand 500 tons and 3 thousand multi-wired

Asia’s Future Strength: Developing the Service Sector The possibility of a shock emanating from the unresolved euro area sovertraction in the United States pose the Fortunately, most developing Asian economies have room to counteract

play a growing role as economies that graduated from agriculture to industry evolve further into service economies; sector dynamism by moving toward high-value modern services, such as information and communication technolservices;

regionwide need for countercyclical In the medium term, continued weakness in external demand and moderated growth in the People’s Republic of China and India mean economies in the region must diversify their growth

creation of jobs for women in particular, thus supporting inclusive growth; frastructure and restrictive regulations are major bottlenecks for developing a

Made in Turkey Economic Newspaper, October 2012

10

Turkish food sector exports to 200 countries Turkish companies look forward to get support from customs to offer Turkish delight to Obama and Putin,” said Zekeriya Mete, the Head of Cereals, Pulse, Oily Seeds Exporters’ Union to Barack Obama President of USA and

rolled up sleeves in order to achieve trade worth $100 billion between the two countries due to having removed visas as well as interest in automotive, Last year, Turkish food sector met $1,1 billion of the total $6,6 billion worth of exports, this year in 7 months Turkish food sector exported worth $550 million Chairman of Exporters’Union, Zekeriya Mete

T

urkey’s cereals, pulse, oily seeds exporters ship to 200 countries, according to Zekeriya Mete, Chairman of Istanbul Cereals, Pulse, Oily Seeds Exporters’ Union, adding that they would make Turkey’s name

Featuring one of the most participant -

have also developed cooperation in the meaning of global dimension, Zekeriya

with Russia where there is a big potenHe said they would offer Turkish delight

Hazelnut exports rise in September

I

ports season 2012-2013 that began on September 1, over 35 thousand tons hazelnuts exported accounting for Turkish

hazelnut

exporters

shipped

CAYKUR aims to become a world brand

tons to overseas countries; as for other countries 2 thousand 144 tons hazelnuts

Last year in the same month, exports of hazelnuts were 22 thousand 118 tons, accounting for US$163 million 387 thou-

the 2012-2013 export season more than According to the information from Black Sea Hazelnut & Products Exporters’ Union, one quintal of kernelled hazelnuts

Turkish hazelnut exporters shipped 35 thousand 828 tons hazelnuts between September 1 – 30, 2012, accounting for 27 thousand 5 tons of exports sent to the European Countries, 3 thousand 300 tons to out of EU countries, 3 thousand 378

Hazelnut & Products Exporters’ Union, Turkey exports hazelnut nearly to 90 Featuring the biggest hazelnut producer in the world, Turkey is also the biggest ports are mainly shipped to the European Union countries and the share of these countries increase in parallel with the countries in the total exports is about 80-

E

xporting its tea varieties to 28 countries, CAYKUR is also preparing to export its products to neighboring countries and Ara-

Imdat Sutluoglu, General Manager of CAYKUR, “We have an objective to make CAYKUR a world Sutluoglu said, “In line with this target, we try to year they, as CAYKUR, aim to export 3 thousand “Our target is to make up 50 thousand tons market

Sezmen Alper, Secretary General of the EIB

Turkey’s national participation will be made by the Aegean Exporters’ Unions (EIB) with approval of the Minister of Economy and Turkish ExportSezmen Alper, Secretary Gen-

T

urkish exporters will participate in the 38th International Food & Beverage Exhibition (Foodex tunities in the city of Chiba, on

a great deal of its agricultural and foodstuff by imports accounting for $60 billion, add-

initially to get 1 percent and in medium term to get 5 percent

The 38th International Food & Beverage Exhibition est annual food and beverage tradeshow in Asia and has been a highly successful trade event since its debut in 1976 serving food market but many lucrative

market in terms of beverage Alper stressed that their target

professional visitors attended FOODEX 2012, including over

6,500 from Korea, Taiwan, China, Thailand, and Hong New Exhibitor Services provide exhibitors with unmatched opportunities to meet with key buyers and broker business deals: Pre-arranged Business Meetings – Over 1,500 meetings tailers, distributors and restaurant chains including: AEON, Tokyu Store, Sandy, CGC, Saizeriya…

all distributors, retailers, and foodservice outlets must order imported food products tor visits your booth or is interested in your products and you do not have an importer, the Importer Club provides access to importers who can facilitate

largest and most reliable supplier of food, as over one-third

Turkish tea brand in the world market,” Sutluoglu He said that they had obtained a productive season this year, adding that they were going to close the CAYKUR has scheduled to purchase 650 thousand Çaykur is the biggest and leading establishment of Turkish tea sector with its 47 fresh tea processing factories, 1 tea packing factory, 2 regional directorates of marketing and production, 7 regional directorate of marketing, Base Repair Shop, Ataturk Directorate of Tea and Garden Cultures Research -

Made in Turkey Economic Newspaper, October 2012

11

International tourism on track to hit one billion in 2012

Chairman of TURSAB, Basaran Ulusoy

growth by region, boosted by the and outbound tourism as well as by the continued strong performance of other major source Destinations in South Asia and showed some of the best results affected by the economic crisis of 2008-2009 due to its strong linkages with other economies, the region has bounced back quickly and is today a leader in the global

W

ith a record 467 million tourists traveling in the -

on track to reach one billion tourDespite concerns over the global economy, international tourism demand continues to show resilal tourists worldwide grew by 5% compared to the same period of a slight slowdown in growth can be expected for the rest of the year, international arrivals are forecast to exceed one billion by

world growing strongly, driving economic progress in developing and developed countries alike and, most importantly, generating much needed jobs,” said UNWTO Secretary-General, Taleb Rifai, opening the Global Tourism “As we lead up to the milestone of one billion, we need to ensure that the tourism sector is supported by adequate national policies and that we work to reduce existing barriers to the expansion of the sector, such as complicated visa procedures, increased direct taxation or Asia leads growth International arrivals were up in

“Amid the current economic uncertainty, tourism is one of the few economic sectors in the

destination in the world, consolidated its record growth of 2011, despite continuing economic were above the regional average in Central and Eastern Europe saw double-digit growth, as well

America has been one of the subregions with the fastest tourism tions in North America grew at 4%, a relatively high rate for a mature sub-region, while growth buoyant, consolidating 2011 res ed in the results of North Africa of Egypt is clearly mirrored in the results of the Middle-East

to show strong results, following the good growth rates of this subHealthy demand from both emerging and advanced economy source markets In terms of outbound markets, and among the top ten countries by expenditure on travel abroad,

contrast, demand in Southern and slowed down, but on top of a very strong 2011, and partly due to the recovery of destinations in North

pan, an 8% increase in spending recovery of this important mar-

with the world average, with Cen-

D

espite the political uprising in Syria and the economic crisis in European Union countries, the number of foreign tourists visiting

According to the statement of Basaran Ulusoy the Chairperson of the Association of Turkish Travel Agencies (TURSAB), “Despite the political uprising in Syria and the economic crisis in Europe, the number of foreign tourists coming to Turkey expanded preceding year and recorded number of 21 million 766 thousand tourists In his statement, Ulusoy reminded that Turkey hosted 31 million 456 thousand

Turkish tourism increases in January September 2012 foreign tourists in 2011 despite the political chaos in the Middle East and the economic crisis in European Union

The majority of the foreign tourists arrived in Turkey via the southern resort province of Antalya with 7,3 million, this city was followed by the north-western province of Istanbul with number of 6,1 million tourists and western province of Mugla with number of 2,2 million tourists, 1,9 million via Edirne and 969 thousand though northern province of Artvin,

was comparatively slow or negative in the UK, Australia, Italy and

Leading nonwovens and technical textiles industry event opens High international participation rate with pavilions from Asia and Europe The strong turnout of suppliers will showcase their latest products and technologies in 25,000 sqm of exhibition space, which is double in size compared to the last edition Technology and machinery suppliers – Andritz Kuesters (Germany), Shanghai Yin Science & Technology (China), Textest AG (Switzerland), Truetzschler Non-

Woven fabrics, laid webs, knitted fabrics and braidings producers – Concordia Textiles (Belgium), Intertape Polymer Group (Canada), Nonwovens specialists – Avgol

In addition, country and regional pavilions from Belgium, Germany, India, Italy and Taiwan, plus a European Zone will offer regional Quality fringe programme delivers the latest market news and industry trends In accommodating the fast growing technical textiles business segment in China, the fair has organised an informative fringe programme offering valuable perspectives on the market potential special debut Innovation Showcase Area, which showcases products and technologies for six fast growing application sectors, including: Automotive (Mobiltech), Geotechnical and Construction (Geotech and Buildtech), Filtration and Separation, Medical (Medtech), Safety and Protection zone (Protech) and Structural Re-

TEPAV Director Sak: “It is right time for agricultural policy design to achieve 2023 targets”

S

systematize the capacity it had

institute, he heralded the opening of the

World Trade Organization (WTO) Trade Policy Review Unit delivered a presentation that addressed how the Organization worked and how countries

Textile Technology (Donguan) Coated textiles manufacturers – Beijing Textile Holdings (China), Sioen Coated Fabrics (Belgium), Composites suppliers – Foshan Nanhai Wonderful (China) and

C

inte Techtextil China, a specialised biennial trade exhibition for technical textiles and nonwovens, will be running from 22 – 24 October 2012 at the Shanghai New International

challenging global market and economy, a recording-breaking number of 436 suppliers from 22 countries and regions, which is a will participate in this year’s fair, hoping to break into the robust

Bonding techniques and chemicals Bozzetto (Italy), and Synthomer Fibres and yarns suppliers – Invista (USA), Kordsa Global (Tur-

Meanwhile, an intensive seminar session led by top industry professionals will offer the latest updates in product, market and technological developments to all show parover of buyers, suppliers and products across the industry supply chain with these concurrent events: Intertextile Shanghai Apparel Fabrics, Yarn Expo Autumn and the China International Knitting Trade Fair at the Shanghai

Istanbul Boat Show sells boats worth 280 million euros

T

he 31st International Istanbul Boat Show was held on September 29th - Oc-

International Istanbul Boat Show, as the one and only in-water show of Turkey, is the most important marketing platform of Turkish marine industry along with its region and largely effective on increasing the trading volume, the

show was able to sell 140 boats in a one-week ment, Princess, a 12 million-euro mega yacht, was purchased by a petroleum sheik from Saudi Arabia, while English businessmen appear set Merlin, a mega yacht with sails, is currently beGerman, English and Turkish businessmen pre-

A total of 140 boats were sold to businessmen from England, the Middle East and Turkey

The boat show took place on an area of 150,000-square-meter and showcased over 650 cased on water while their accessories were The 31st International Istanbul Boat Show, exhibiting 380 local and foreign boat designs with sizes varying from 3 meters to 46 meters,

The boat show sold six of the catamarans in Boats that were up for sale, their prices were between 35,000 Turkish Liras and 12 mil-

Despite the global economic crisis, the boat

Turkey has become a major boat production center exporting globally, ranking third following Italy and the United States, and putting the country’s reputation in yacht production on the

Celebrating its 31st year, International Istanbul Boat Show organized by NTSR Fair Organizations at Marintürk Istanbul City Port between

stated that the institute, to be opened in collaboration with the Food and Agricultural Policies Research Institutes (FAPRI) at Iowa State University and Missouri University, both in the US, would train experts and work closely with the corporate sector, sector associations,

Turkey and the WTO: Policy Objectives and Key Stakeholders, was hosted of the Ministry of Food, Agriculture and Livestock and Former Agriculture Counselor to the WTO, and Sait Akman

Delivering an opening speech after Sak, Clay Hamilton, Agricultural Counselor at the US Embassy in Ankara, stated that such conferences had been successful for the development of the agriculture sector in the US and that they had promoted agricultural exports and imports via generating healthy dialogues between the

sessions moderated by Akman, Karen

tried to realize policies that would be to

At the second day of the conference on 25 September 2012, a series of sessions

/ US Department of Agriculture gave a presentation titled “The Importance of Science-Based Standards,” and Gregg Young, US Representative to the WTO, Geneva, made a presentation titled “Key

he added that they attached importance to the cooperation between the Turkish

the themes of the sessions were: Karen

Hamilton also expressed that they were happy about the new partnership

US Department of Agriculture, “The US Inter-Agency Policy Development

The opening session was followed by a ceremony in which a letter of intent for the opening of the Institute was signed

Food and Agricultural Policies Research Institute (FAPRI, which is based at Iowa

Floyd Gaibler, United States Grains Council, “US Industry’s Role in US William Meyers, University of Missouri, Food and Agricultural Policies Research Institute - FAPRI, “The Role of Academia in Policy Making: The Example of Wyatt Thompson, University of Missouri, Food and Agricultural Policies Research Institute, FAPRI, “Objective Policy

Made in Turkey Economic Newspaper, October 2012

12

METU manufactures tactical unmanned air vehicle

12

Made in Turkey Economic Newspaper, February 2012

R

esearch and development team of Middle East Technical University (METU) in the capital city of Ankara has manufactured a Tactical Unmanned itself and not being caught by radar, has the range of 150 kilometers and carries 25 ki-

in Aerospace Engineering Department lecturer at the Alemdaroglu introduced the vehicle and adding that the research for developing technologies of the unmanned air vehicle began in 2004 in their department by the support of State Planning Organization

that in the framework of developing unmanned air vehicles, they held projects for three He said that they had not only developed unmanned air vehicles, but also they have developed projects over imAlemdaroglu also added that In the scope of producing such

technologies, they established factured an unmanned aircraft which can land on its chest

that the tactical unmanned air vehicle carries 25 kilograms of useful freight, goes for 150 kilometers; it remains for 6

that within the framework of the same project; they accomplished their project of tactical unmanned air vehicle and

He added that the tactical unmanned air vehicle does not require a long runway for taking off and said that all parts of the vehicle are produced in

Nearly 870 million people chronically undernourished: UN hunger report 7

Continued From Page 16 he new report notes that the methodology does not capture the short-term effects of food price surges and other economic shocks and adds that FAO is

T

working to develop a wider set of indicators to better capture dietary quality and other dimensions of majority of the hungry – 852 million – live in developing countries in

3

8

9

5

2

4

7

2

3

6

Crossword Puzzle Solved 6

5

9

7

1

4

7 4

8

5

7

4

5

8

7

4

9

9

6

7

7

9 3

3

8

2 5

4

3

8 1

5

6 9

1 6

5

1

4 8

6

1

5 2

85 8 38 5 74 197 24 9 41 1 62 375 23 969 5 76 2 21 1 66 283 91 4 53 5 49 884 77 193 2 11 4 6 5 7 2 4 3 7 5 4 6 39 6 4 1 5 4 1 8 3 9 8 1 23 8 2 9 8 7 5 5 8 4 7 3 94 5 7 2 1 3 8 6

6 7 58 2 3 9 8 2 3 2 85 29 7 2 4 6 4 76 93

2

1

9

3 7 3 9 81 6 27 3

6

5

2

8

1 44 8 5 6 9 63 9

3

7

4

65 5 8 8 1 9 2 3 4 1 62 77 3 39 6

2

5

9

1

8

6

7

9

8

2

1

6

2

7

5

8

4

3

9

5

6

8 72 1 4 57 4 5 1 8

1

6

4

9

8

14 9 7 7 3 4 5 6 1 5 98 63 8 12 7

26 4 1 3 2 1 9 9 5 6 47 88 7 53 1

37 7 5 6 4 5 6 8 3 2 84 21 9 21 9

83 6 9 4 8 7 1 2 7 3 25 49 6 65 4 48 1 4 5 7 3 3 7 2 9 16 92 5 76 3 9 3 2 8 4 7 1 5 8 2

1

5

2

2

6

3

9

5

9

2

1

7

2

3

6

9

4

1

5

4

8

Murat Akyüz Chairman of IKMIB

2

9

1

8

5

3

6

6

4

8

1

9

6

8

7

5

3

3

4

1

2

4

8

4

7

9

7

3

4

7

2

5

1

2

6

4

7

8

5

9

47 5 837 119 623 368 241 756 64 3 722 397 511 885 456 939

8 2

9 4

5

8

3

6 4

5 6

7 9

3 2

9 5

1

85 97 24 48 19 52 66 4 9 5 2 7 8 3 59 18 83 96 77 61 44

6

8

1

12 61 76 7 6 4 71 55 47 9 1 8 93 24 62 5 3 22 6 39 98 3

4

5

1

6

3

3

FIENDISH

9

3

24 55 93 5 1 9 39 22 86 7 3 2 85 41 38 6 4 18 3 64 77 7

6

9

4

59 87 2 2

2

7 9

8 3

6 7

9 5

4

“In a period that growth model has been adopted based on exports, increasing of exports has extreme importance, 22 percent increase in the chemical sector indicates that growth will continue in many sectors in upcoming months,” said Murat Akyuz, Head of Istanbul

1

He added that chemical has become the fastest and most dynamic

5

2 8

3

5 6

1

2

4

5

58 24 86 99 32 65 41

33 72 97 81 65 46 29

84 39 45 62 57 78 13

76 18 21 54 89 93 35

67 46 54 25 11 89 92 1

9

6

2

5

3

9

9

1

8

8

1

3

7

7

8

4

3

2

6

5

2

3

4

7

4

6

7

3

4

1

7

8

6

9

As for other countries, mostly chemical export made were Greece,

3 6

45 57 79 13 98 21 86

1

followed Egypt which is one of the most important markets of the

7 8

9

7

7

37 2 18

1 1

5

4

4

1

5

6 4

Expanding its export proportion 22 percent, the chemical sector

2 7

8

2

2

4

4 3

Exports of the chemical sector feature a driving force in overall

2012, the chemical sector achieved $1 billion 492 million worth of exports, leaving behind the ready-to-made clothing sector by ranking second following the automotive sector which is atop in

9

nets for the most vulner-

8

1

4

3

8

3

5

MEDIUM

5 7 28 61 1 6 5 4 9 7 3 45 9 9 3 3 5 6 7 1 8 41 76 3 9 8 6 5 1 52 6 1 8 4 2 6 9 2 7 9 33 47 6 7 8 1 9 5 4 2 HARD

2

6

2 1 to6 prevent 4 5 3 malnutrition 7 9 8 9for 1 economic 4 growth, including agrico-existing with 1 5 7 9 2 6 8 3obesity 4 8 5 2 6 9 3 culture growth involving and non-communicable 3 4 2 5 1 8 9 7 6 6 1 4 7 8 2 smallholders, and safety

2

3 7

4

Rising again due to recovery indicators in Europe, the chemical sector’s exports made faces smile

5support 6 7

8

8

1

T

urkey’s chemical sector accomplished $12 billion 964 million worth of

5 7 priority 4 8 9must 2 be 6 given 1 3 to 4suggests 2 9 adopting 5 3 8 a twin9on 8 getting 3 6 7quality 1 4 nutrition 2 5 1track 3 approach 8 2 6 based 7

past two decades,4 Africa 7 1 experienced an increase 5 9 3 from 175 million to 239 EASY 9 2

6

9 1 3 2 6 million people during the

2 1 6 the number of malnour1 6 by7 ished people declined almost 30 per cent9in Asia 4 5 3

8

Chemical sector focus on $18 billion worth of exports

“The dynamo of Turkish economy is exports, as for the dynamo of

7

second stop in the exports, when regarded the exports increases during the year it seen that the chemical sector has achieved a clear

8

6

2

3

He underscored that they had focused on the exports worth $18

5

1

Bank loans driving force of growth

White goods production and exports up

We have dynamics to trigger the growth; we envisage that we would achieve a growth approximately 4 percent, Huseyin Aydin, President of the Banks Association of Turkey

Turkey’s white goods exports raised from 9 million 110

T

he Banks Association of Turkey’s President Huseyin Aydin said they would expect 17 percent growth in loans which are the locomotive of eco-

Our people are also inclined to scious choice and has come to a

recession but slowing down in Commenting on the growth about year-end objectives, Aydin said, “In the third quarter we can see some narrowness about growth,

that we would achieve a growth At the beginning of the year, we said that loan volume would grow

Aydin also touched connection between IT and banking sector, by saying: “One of the most important legs of the Turkish banking sector is to use technology which is used by the Turkish banking sector is upper level than the European Union and some other countries with which are the

technology, the second factor is human resources and then capithis aspect, I can say that we use technology well in these three

Dublin to host 8th forum of cities against poverty

UNDP Administrator Helen Clark said more people now

O

n World Habitat Day, the United Nations Development Programme has announced the host city of WACAP8 will be Dublin, Ire-

tion, and to share knowledge

take place on 20-21 February

Naoise Ó Muirí, Lord Mayor of Dublin, said his city is proud to host WACAP8 and is looking forward to receiving the delnational Forum and Expo will bring together key people to build solutions for the Millennium Development Goals and to address the global challenge

The World Alliance of Cities Against Poverty (WACAP) was first launched in 1996 as a global network of municipal address the challenges of urbanization, to facilitate southsouth and triangular coopera-

attracts senior political leadership from cities as well as policy and technical specialists

The Organization of Economic Cooperation and Development estimates that by 2050, 70 per cent of the world populashould offer social, economic and political opportunities for citizens to reach their full pocontribution, with our partners, UN WOMEN Executive Director Michelle Bachelet said that no city could be considered safe, smart or sustainable unless half of its population – women and girls—could enjoy

gust 2012, exports of white goods in this

million 101 thousand units in the

518 thousand 392 units and imports in-

use the newest thing in the quick-

growth might happen by the end

“Through a diverse range of speakers and sessions, the Forum will specifically examine ways in which technology can make our cities ‘Smart, Safe

T

urkey’s white goods production

public spaces without the fear nicipal leaders, WACAP8 can help ensure that women, youth and children are safe to fully enjoy the many opportunities WACAP is led by UNDP and a 10-member executive steering committee consisting of the cities of Florence (Italy), Malaga (Spain), Huy (Belgium), Monaco, Nantes (France), Rotterdam (Netherlands) and Dublin (Ireland), in addition to UNDP, Past Forums have taken place in Lyon, France (1998); Geneva, Switzerland (2000); Huy, Belgium (2002); Rome, Italy Athens, Greece (2008) and This year’s forum in Dublin will coincide with the country’s hosting of the presidency of the

units, according to the data of Turkish Sales of white goods in the domestic market decreased 1 percent to 4 million 282 thousand units, as for the exports

In August 2012, white goods manufacturtic white goods producers became 627 thousand same with the last year in Au-

goods production was 13 million 120 thousand units the production in the same period this year heightened by 14 raised from 9 million 110 thousand units cent increase, the imports of white goods raised from 603 thousand 663 units to

Readymade garment sector turns crisis into opportunity

A

ccording to the statement from the Aegean Exporters’ Union, due to approaching of new year and the economic crisis in European Union has turned into opportunity for the Turkish ready-to-wear and clothing secIn September 2012, ready to wear sector, which had been setback for 12 months in a row, increased its exports 25 percent ranking at the third stop in the overall an ready to wear exporters expanded its exports 21 percent by stopping the reces-

reason, they would like to prefer to order their goods from Turkey, regarding to Turkey, they can get higher quality featuring one of the locomotive sectors which spurred their exports was readyprocess we expect this rising trend will The Aegean Ready Wear Union’s exports became worth $856 million 237

Emre Kizilgunesler, head of the union, said due to the orders they had taken from Europe ahead of the new year, so

readymade exports worth $205 million were accomplished to Germany, to Spain exports were worth $146 million, to the

guessed that the crisis in Europe would

were followed by the Netherlands, Czech Republic and Italy respectively in the exports of readymade garment of the Ae-

“The European importers do not want

Made in Turkey Economic Newspaper, October 2012

13

IMF sees heightened risks sapping slower global recovery

Turkey’s growth predicted 3.2 % percent in 2012 Holding news conference, Ali Babacan, Deputy Prime Minister, said that they prein 2012, 4 pc in 2013 and 5 pc in 2015

Continued From Page 1 eading emerging markets such as China, India, Russia, and Bra-

The forecast said that monetary policy in advanced economies was expected to

Growth in the volume of world trade is

have recently launched new programs to

L

economies are likely to suffer a sharp contraction in 2012, constrained by tight

associated with political and economic transition in the aftermath of the Arab Spring and weak terms of trade—real GDP growth is likely to slow to about 1¼ percent in 2012 and rebound moderately

diminish noticeably as post-earthquake

Libya, the pace of overall growth among oil exporters will rise sharply in 2012, to above 6½ percent, and then return to

I

n his speech, Deputy Prime Minister Babacan said, they foresee that domestic demand would revive in the last quarter of 2012 in his announcement about Medium He noted that joblessness proportion has de-

“Low growth and uncertainty in advanced economies are affecting emerging market and developing economies nels, adding to homegrown weaknesses,” said IMF Chief Economist Olivier IMF’s Blanchard in Tokyo: ‘Low growth and uncertainty in advanced economies are affecting emerging market and developing economies’ (IMF photo) Annual Meetings in Tokyo Release of the closely watched forecast opens a week of intense activity in Tokyo, where more than 10,000 central velopment, private sector executives, academics, and journalists are gathered to discuss global economic issues at the World Bank-IMF annual meetings being

fragile and efforts in advanced economies to rein in budgetary spending, while Projections by region The recovery is forecast to limp along in the major advanced economies, with growth remaining at a fairly healthy level in many emerging market and developing -

The IMF said that its forecast rested on two crucial policy assumptions—that European policymakers get the euro area crisis under control and that policymakers in the United States take action of

nancial crisis, notably in many emerg-

to accelerate to 4¾ percent in the course ed acceleration is strong for Brazil be-

have recently improved in response to euro area policymakers’ actions and eas-

at boosting demand in the near term and monetary policy easing, including policy rate cuts equivalent to 500 basis points

-

However, growth rates are not projected

elsewhere is not forecast to pick up ap-

projected to expand by about 1½ percent during the second half of 2012, rising to -

forecast to accelerate to a 7¼ percent main driver will be China, where activity is expected to receive a boost from accelerated approval of public infrastruc-

all—about ¾ percent (on an annualized With lower budget cuts and domestic and euro area–wide policies supporting a tions later in 2013, real GDP is projected

in Turkey, underlining that the basic aim of the Medium Term Program was increasing economic growth and employment, reducing -

projected to be about 3¼ percent for the

In these economies, high employment growth and solid consumption should continue to propel demand and, together with macroeconomic policy easing,

key economic assessments will be issued, the Global Financial Stability Reand the Fiscal Monitor, which examines

forecast to stagnate in the second half of 2012 and grow by about 1 percent in the

unusually uncertain: for 2012, with weak investment slowdown, real GDP growth is projected to be close to 5 percent, but improvements in external conditions reforms announced very recently—are projected to raise real GDP growth to

tions in the crisis-hit economies, somewhat stronger demand from the euro area, and the end of a boom-bust cycle in Turkey are expected to raise growth back wealth of Independent States will grow tinue growing strongly, averaging above are participating in a strong expansion, with the exception of South Africa, which has been hampered by its strong

debt’s proportion to Gross Domestic Product

He also calls for savings, by saying “yes to spend in proportion with our revenue, but no

in 2013 as well, adding that 2013 would be a Deputy Prime Minister Babacan reminded that the Central Bank would continue to act what-

said that its negative effects were continuing, noting that uncertainty maintains its effect stemming from the developed countries for the “The economic and political developments in Euro zone maintain the determinative effect speed stand lower than before the crisis,” Ba-

expand by about 1 percent in the second automatic tax increases and spending ther issue would make growth prospects

to see low but positive growth through-

activity in the oil importers will likely be held back by continued uncertainty

Eurasian meeting of food, beverage, private label, retail sectors at Tuyap FOODist 2012, the 6th Istanbul Food and Beverage Fair will be held Tuyap Fair, Convention and Congress Center, on 6 – 8 December 2012

A

ccording to the statement from the Aegean Exporters’ Union, due to approaching of new year and the eco-

guessed that the crisis in Europe would con“The European importers do not want endure costs of inven-

they would like to prefer to order their goods from Turkey, the fairs will host regarding the domestic national and local market pu When they rchasers in 2012 as order their goods to Turkey, they can get higher quality products in shorter nomic crisis in European Union has turned into opportunity for the Turkish ready-to-wear

featuring one of the locomotive sectors which spurred their exports was ready-made

In September 2012, ready to wear sector, which had been setback for 12 months in a row, increased its exports 25 percent ranking at the third stop in the overall exports of

upcoming process we expect this rising trend will continue,” Kizil-

Aegean ready to wear exporters expanded its exports 21 percent by Emre Kizilgunesler, head of the union, said due to the orders they had taken from Europe ahead of the new year, so they were working

The Aegean Ready Wear Union’s exports became worth $856 million 237 thousand

its exports to the EU jority of the readymade exports worth $205 million were accomplished to Germany, to Spain exports were worth $146 million, to the UK worth $86 mil-

were followed by the Netherlands, Czech Republic and Italy respectively in the ex-

ports of readymade garment of the Aegean Ready-To-Wear Cloth-

importers in the region have been hit by the sharp increase in global food prices

Finance Minister Mehmet Simsek and Development Minister Cevdet Yilmaz also joined

Made in Turkey Economic Newspaper, October 2012

14

Ege Seramik’s Autumn 2012 Collection exhibited at Cersaie

H

aving held every year in the city of Bologna, Italy, Ege Seramik displayed

to its Autumn 2012 Collection at A56-B51 stand in Hall 16 of Ege Seramik displayed its works which take place in its Autumn 2012 collection such

as Alba, Atrium, Equinox, Dali, Hollywood, Magic, Time, Palermo, Cube, Woodcut, Como series in addition to Albis and Carrara series which produced via Equinox and Dali series take place among the series that attract interest in its Autumn 2012

Equinox conceals its naturalness Antique era breeze, Palermo Equinox series is in the forefront both with its naturalness and with glazed granite feature being durable against outdoor effects in sizes of 30x60 cm and 45x45 cm and taking place in the Digital Tile product group the series has Dali is stressed with natural stone Featuring as the trend in the entire world, the natural stone texture the surface of the product clear and contrast effects emerge to print technology in the sizes of 30x60 and 45x45 in two different In the collection; with Albis, Palermo, Magic and Como series, natural stone texture and aesthetic details reverberate on surface of Albis meets with magic of white, drastic aesthetic of gold and Produced as wall tile in 25x75 cm sizes, the chic décors of the series Aesthetic details in the designs of Perle and Insignia decors address super pleasures when being united with the attraction of gold and As for matt white and bright white wall tiles when used with pvd borders with metal effects in addition to Perle and Insignia

Number of total shopping malls to reach by 330 units in Turkey

print technology in 45x45 cm size, Palermo series harmonizes with nature, in particular, on outside Thanks to glazed granite feature, it has durability against external effects and provides use easiness on areas where there is intensive Having inspired by antique era mosaics in its design, the series has walnut, beige and gray color Magic design features traces from Produced by digital print technology as wall tiles in 25x40 cm in colors of cream, brown and gray, Magic series carries traces from nature with its design which is made up bright pebbles with As for its glazed granite feature allows use possibility on outdoor Como goes out of usual patterns with stone textures different from Produced by digital print technology in 33x33 cm size in gray and beige colors as glazed series in different natural stone textures integrates with natural ambience of outdoor places such as quartette, the geometric design

A

s of the end of this year 2 to 3 shopping malls would be shut, but instead 10 to 20 ones to be opened, Hakan Kodal, Chairman

When we look at the potential, there

He added that there was no trouble in by number of 500 thousand employKodal indicated 102 shopping malls operate in Istanbul, as for across Turkey 330 shopping malls will be acting

$35 billion, I guess we would exceed

He also recorded that Turkey still

He said this year they foresee 12 percent growth as sq meters, 15 percent in turnovers, adding that the sector

“Currently, there are a total of 8,2 million sq meters rentable area in shopaverage amount in Europe is 250 sq

shopping malls’ investments requires long term such as 2 – 3 years, Kodal Gaining turnover worth 35 million TL in 2011, the sector predicts 48,5 bil-

shopping malls and retail sector in and increase of consumers’ purchasing power parity are the factors that

Kodal noted that shopping malls would reach by saturation level after

Visa liberalization between Turkey and Egypt to be initiated Egyptian Minister of Tourism Hisham Zaazou announced that visa liberalization between Turkey and Egypt may be

WavinQuickStream Siphonic rainwater discharge system on Kutahya Zafer Airport’s roof

L

eading plastic pipe producer of the world, Wavin continues to introduce its innovative, project solution products with increasingly diversifying in the market with Having offered under the Wavin quality to the Turkish market, QuickStream Siphonic rainwater discharge System has seen intertal advantages compared to the conventional rainwater drainage system Siphonic system is preferred in Turkey in many projects with increasing coning used widespread in the wide roofed commercial projects such as shopping centers, factories, airports, schools, hospitals, the Siphonic system ensures turnkey delivery solutions based on projStreamSiphonic Rainwater Discharge System which entered the Turkish market in 2012, Kütahya Zafer Airport’s roof application was completed in August and the system was delivered as op-

heater and 22 unit metal urgent heaters even can active in minus 20 degrees Celsius which have application both main discharge system and urgent-situation rain collecting system have been installed on the roof of the building having a total area of 12,850 Pipelines were lied down with All connections were welded via Advantages of WavinQuickstreamSiphonic System compared with conventional Rainwater Discharge System: pipes for slope, it requires less be discharged from roof with

is provided in small connection plied to main rain line with less horizontal excavation in founda-

ranging from roof up to main While being accomplished by the teams approved by Wavin, the Siphonic system application of Zafer Airport, which will serve to the provinces of Kutahya, Afyon and Usak, the projection was prepared in the own

reason it provides application of maintenance is in minimum

gyptian Minister of Tourism Hisham Zaazou said that visa liberalization between Turkey and

E

“We would like to see Turkish citizens travel to Sharm el-Sheikh like they go to

Minister Zaazou stated that they were working on visa procedures to remove

Egypt takes only 2 hours, everybody in Egypt would wait for you; we are broth-

“All sectors in the Egyptian economy -

Over the question, why Turkish people travel to Egypt, he said that Egypt features culture, history, beautiful seas,

Istanbul to several new Egyptian destina-

Made in Turkey Economic Newspaper, October 2012

15

Japanese Sumitomo Rubber to launch a joint venture business

S

umitomo Rubber Industries is establishing a new joint venture company in Turkey as part of our Group’s efforts to expand and develop its global

a protocol whereby the two companies would jointly build a new facility in the northern province of Turkey’s Abdulkadir Ozcan Automotive Tires Company (AKO) and tries Corporation on signed a protocol whereby the two companies would jointly erect a new facility in the northern province of Can-

kiri, one that will be worth around

for markets in Europe, the state-

-

The company will begin construction of the plant in 2013 and plan-

Sumitomo Rubber Group is ex-

The protocol ceremony was held in an Ankara hotel and attended

by Turkish Minister of Economy Zafer Caglayan, in his speech said, lize incentives as granted to the

dustries company is going to build a plant in Turkey’s north central The plant will produce tires for Turkish and European markets, ac-

tire sales in emerging markets, such as the Middle East, North Africa, and Russia, and “we believe that supplying tires from Turkey, which is nearer to these markets in addition to Europe, will enable us of lead times and transportation

The new company will serve as a strategic base for both production and sales of tires bound for the Middle East, North Africa and Russia, where we anticipate continued market growth, as well as

owned automobile makers also expected to increase production in Turkey, we can also look forward to increased sales of both OE and replacement tires in the Turkish

will also receive support for social In addition to Minister Caglayan, also Chairman of the Turkish Prime Ministry Investment Support and Promotion Agency Ilker Ayci, Sumitomo Rubber’s CEO Ikuji Ikeda and CEO of AKO Mus-

Kudret Onen, President of OSD

Automotive market recovers: OSD

A

this period, the overall production became 694 thousand units, automobile production to 344 thousand

the total production has reduced 11 percent with regard to lowering do-

Kudret Onen, President of the OSD, commented the issue by saying, “In 2011, we have faced with a record demand because of macroeconomic

ccomplishing the year 2011 with a record demand, the automotive market is normalizing same with the level of 2010, according to the report of Turkish Automotive Manufactur-

Turkish Automotive Manufacturers’ Association has prepared a report based on the data “Production-

T

urkish statistical Institute (TurkStat) released motor vehicles statistics registered

motor vehicles increased with a ra-

-

and 24,465 units, tractors with

small trucks, trucks, motorcycles, special purpose vehicles increased

number of motor vehicles in traf-

Small buses, buses, trucks, special purpose vehicles constituted the

The number of motor vehicles regmonth while the number of registered motor vehicles decreased by 2012, the number of registered veThe number of cars registered to the same month of the previous it was followed by motorcycles

number of motor vehicles in Turkey became 16 million 666 thouber motor vehicles the ratio of cars, small trucks, motorcycles, tractors, trucks, small buses, buses and special purpose vehicles

motorcycles, special purpose vehicles and tractors decreased with

cars are using LPG considering Among 8,434,368 registered cars,

passenger cars that the fuel type is 352,496 vehicles were hand over

(20,733) and tractors with the ratio

As for The distribution of the trademarks of the cars registered

Number of 352,496 vehicles hand Small buses, buses, trucks and special purpose vehicles constituted In proportion to the previous month, the number of registered

of registered vehicles surged by 577,264 While 65,501 motor vehicles were withdrawn, 642,765 motor

lowed by small trucks with the

The automotive industry saw plunge in terms of production in August 2012 in conjunction with exports and domestic market total domestic market decreased 15 percent to 486 thousand units

As for the exports of automotive supplier industry and automobiles plunged 10 percent to 476 thousand units compared with the same period previous year, automobile exWith regard to the condition both in the domestic and market abroad, the total automotive production decreased 11 percent; automobile

of 2012, opposite of high demand in 2011, the market has begun to get Due to the policies for cooling the global economy, demand in the market continues to this case, the demand is underway in a Towards end of the year, along with the increasing production, we guess that the demand would accomplish Kudret Onen indicated that the basic reason of the setback in exports was production suspension stems from maintenance at the plants in August, adding that another reason for production decline was 8 percent demand slump in the European Union which is the main export market of Turkish automotive

Made in Turkey Economic Newspaper, October 2012

16

“I have a high growth understanding” Turkish Economy Minister Zafer Caglayan

growing understanding, Zafer Caglayan, Minister

assertive incentive system across the world, he

In his speech at the Turkish – Slovenian Business Form, Minister Caglayan said the two countries can be able to do business in the third countries by using the advantage of sectorial and regional of their business world, it is necessary to appraise by bringing together different advantages of the two countries in the third

Istanbul takes 4 hours of

“Turkey provides very serious possibilities for

T

urkey’s economy grows and devel-

year’s growth performance does not make me happy much; I have a high

have similar incentive systems, but our incentive system is the most

1,5 billion people live in these 56 countries, Caglayan said, adding that one third of the world economy is available in

He said that whatever there is that can be hindrance in front of the growth between Slovenia and Turkey has been an also gratitude to Slovenia regarding showing closeness to Turkey in is-

world economy the developed economies have now begun to lose their

Caglayan reminded that they had scheduled Turkey’s economic perfor-

happened from north to south, now including Turkey and the countries which we call emerging markets will trade 65 percent of the world trade within next 10 years,”

In this framework, they aim to boost the exports worth$500 billion, being $772 billion worth of GDP in 2011 to rise by $2 trillion, as for the current installed energy capacity at least to double and cur-

rent 55 thousand megawatt installed power to 110-120 thousand megaTurkey’s Economy Minister Zafer Caglayan concluded his speech by saying, “For this reason, Turkey’s investment amount is worth $130 We will also develop our We will build 10 thousand kilometers length both energy and transport areas, Turkey would invest worth $250 billion offer business opportunity only in the two sectors

Nearly 870 million people chronically undernourished: UN hunger report

A

lmost 870 million people, or one in eight, are suffering from chronic malnutrition, according to a new United Nations report released today, which shows a sharp decline in the number of undernourished people over the past two decades, but warns that immediate action is still needed to tackle hunger particularly The State of Food Insecurity in the World 2012 (SOFI), which was jointly published by the Food and Agriculture Organization (FAO), the International Fund for Agricultural Development

(IFAD) and the World Food Programme (WFP), reveals that the number of hungry declined more sharply between 1990 and 2007 than previously beare based on an improved methodology and data for the last two decades, the agencies said in a news The world has the knowledge and the means to eliminate all forms of food insecurity and malnutrition Between the periods of 1990-92 and 2010-2012, the number of hungry people declined by 132

However, since 2007 global progress in reducing hunger has slowed and leveled off, which requires countries to take appropriate measures if they are to meet the Millennium Development Goal (MDG) of reducing the proportion of people who suffer from hunger by half by 2015, the re“If the average annual hunger reduction of the past 20 years continues through to 2015, the percentage of undernourishment in the developing countries would reach

per cent, but much closer to it than previously estiThe revised numbers of hunger released today use updated information on population, food supply, food losses, dietary energy requirements and -

tential, and that childhood malnutrition is a cause of death for more every year,” says the report’s foreword, written

by FAO Director-General

“In today’s world of unprecedented technical and economic opportuniacceptable that more than 100 million children unand therefore unable to realize their full human and socio-economic po-

has the knowledge and the means to eliminate all forms of food insecurity and malnutrition,” they

“We note with particular concern that the recovery of the world economy from the recent global

appeal to the international community to make extra efforts to assist the poorest in realizing their basic human right to ad-

Many governments also succeeded in cushioning the shock and protecting vulnerable populations from the effects of rising Page 12

estimation of food distri-

I

n August 2012, according to foreign trade indices, based on the year 2003, produced by the provisional foreign trade data, compared to the corresponding month of the preceding year, the overall export unit In the same month, compared to August 2011, while the export unit value index for agriculture and forestry,

In August 2012, while the import unit value index for -

The new estimates suggest that the increase in hunger during 2007-2010 was less severe than previously thought, and that the 2008-2009 economic crisis did not cause an immediate economic slowdown in many developing countries as

IFAD President Kanayo ecutive Director Ertharin

Exports index boost in August

In August 2012, the overall export volume and the import compared to the corresponding month of the preceding

compared to the corresponding month of the preceding

In the same month, by the corresponding month of the preceding year, while the export volume index for ag2012, while the import volume index for agriculture and tively, the import volume index for mining increased by