Made In Turkey January 2013 by İstmag Magazin Grubu

Study to locate 3rd nuke plant to begin

2013 to be a better year for Turkey

ttending TGRT News televise program moderated by Batuhan Yasar along with Ihlas Media Group Chairman Nihat Elibol and Kanal 7 TV Representative Mehmet Acet, Turkey’s Development Minister Cevdet Yilmaz reminded that terror had damaged to Turkey’s development, improvement, as well as assigning qualified human resources, making investments in the region in a great deal for 30 years. Page 8

ISSN 1300-2260

Turkish Energy Minister Taner Yıldız

nergy Minister Taner Yıldız says Turkey has already lost much time in picking a partner to build a nucelar power in the Black Sea province of Sinop. The company that wins the contest for Turkey’s second planned nuclear plant will also conduct a study on the location of a third one, Energy Minister Taner Yıldız said. South Korea, one of the bidders along with Japan, Canada and China, is lagging behind, he also said during a meeting with journalists in Ankara.Picking a location for a nuclear plant requires a 1.5 or two years of study, Yıldız said, adding that the country has already lost time choosing the partner to build its second plant in the Black Sea region of Sinop. Page 7

www.img.com.tr

Turkey has turned out to be an island of stability in 2012 T

Euro crisis hits world like WW II

he cost of the ongoing euro area crisis is at the same level with the World War II, or even surpassed it, says Turkey’s Deputy PM Ali Babacan. He warns over large debts of the developed countries T h e

it,” Babacan said at the inauguration of the sixth Turkish Sectoral Economy Council in Ankara. “The growth rates of developing countries are also revised as decreasing, despite the fast growth after the 2009 crisis. It is anticipated to recover the rates after 2016.” Babacan also said that the target for the period of 2013 to 2015 was to increase the growth rate to a new potential level, to battle inflation, to maintain the decrease in current accounts deficit, to raise the employment and domestic savings. Turkey will rank first in growth rate among OECD Turkish Deputy Prime Minister Ali Babacan countries in the 2011 to 2030 period, eurozone crisis cost compares with the according to report of OECD and the financial consequences of the World War country is expected to grow by average II for the globe, Deputy Prime Minister 4.5 percent,” said Babacan. The minisAli Babacan has said. ter also said the government expected to “The debts of developed countries had decrease current accounts deficit to 6.5 not risen this much since World War II. percent of the gross domestic product in The cost of the crisis is at the same level 2015. with the World War II, or even surpassed “Even current account deficit rate reached

10 percent [of the GDP], the stability is continuing. The essential reason of deficit is dependence on energy import.” The decrease in inflation will remain and it is anticipated to decrease to 5 to 6 percent by the end of 2012, Babacan said. The minister also referred to the prime minister’s call on families for three children, by reminding that Turkey has risk of the decrease in young population after 2035. Speaking at the same event, TOBB chairman Rifat Hisarcıkloğlu said Turkey has already surpassed the pre-crisis levels in investments, production, employment and exports. Meanwhile, Central Bank Governor Erdem Başçı announced the 2015 inflation target and growth estimation for 2013 during a press conference. The Central Bank forecasted 2015 inflation target kept unchanged at 5 percent. As this year-end inflation target was forecasted as 5 percent too, the Bank aims to keep inflation around 5 percent for three more years to enable price stability. The inflation rate in 2012 will be announced next week. The Central Bank expects growth over 4 percent for 2013. “This year’s growth was export-led but we anticipate 2013’s growth to be both export

Turkey’s exporters achieve record-high $151.9 bln in 2012 urkish Economy Minister Zafer Caglayan revealed the export figures at a press conference in the Turkish capital of Ankara. Turkey had its largest export earnings in the history of the Turkish Republic with nearly $152 billion in 2012, Minister Caglayan said. The exports rose by 12,6 percent to $152 billion in 2012 over the previous year, the minister said. According to data provided by the Turkish Exporters’ Assembly (TIM), the country gained $11.8 million in exports in December 2012. Page5

Turkey contributes worth $2.3 bn for development abroad

n his speech at the 5th Turkish Ambassadors Conference Deputy Prime Minister Bozdag briefed about Turkey assistances, investments abroad, as well as problems of Turkish expats. “Turkey is possibly the only country across the world to extend a helping hand to those in need together with its state resources and private individual donations. Somalia, Myanmar and Pakistan are the best examples for that joint drive. Our country has made development aid worth some $2.63 billion until now,” Bozdag told the meeting as part of a conference of Turkish ambassadors held in the Turkish capital, Ankara. Page 11

and domestic demand-led,” Başçı said. The Bank does not foresee holding daily foreign exchange buying and selling auctions in 2013, according to a note by BCG Partners Chief Economist Özgür Altuğ. “The ongoing export credits, which are some sort of buying auctions from the real sector, will continue in 2013;” he said in a note to investors. A report by the US Congressional Research Service (CRS) this week classified Turkey as one of the “rising economic powers” in the world, citing the country’’s continued economic growth despite a global slowdown. The report, titled “Rising Economic Powers and the Global Economy: Trends and Issues for Congress,” included Turkey among the developing world’’s best performing economies, citing its young population, growing trade volume and robust growth. The report put China, India and Brazil on top of the development list, stating: “While the growth reached practically every region of the world and encompassed dozens of developing countries, a handful of large developing countries -- led by China, India and Brazil -- accounted for a major share of the global growth. Page 5

Turkish Minister of Finance Mehmet Simsek

Turkish parliament passes Budget Law for 2013

urkish parliament passed law on the Turkish Central Management Budget for 2013. Turkish parliament adopted a law on the Turkish Central Management Budget for 2013. According to the law, central management budget expenses (except shares of Treasury and income) are envisaged worth 403.9 billion Turkish Lira, while income is foreseen as 370 billion TL. The law targets the ratio of total budget expenses to gross domestic product as 25.7 percent. Page 8

Rhythmic diplomacy for Izmir’s EXPO’20 candidacy

Turkish Economy Minister Zafer Caglayan

January 2013 Year: 12 No: 124

Turkish Foreign Minister Ahmet Davutoglu

urkish Foreign Minister Ahmet Davutoglu said that they extended full support to the western province of Izmir’s candidacy to achieve EXPO 2020. Turkish Foreign Minister Ahmet Davutoglu told his remarks about EXPO 2020 at a press conference held regarding the Fifth Ambassador Conference in the western

province of Izmir. Izmir Governor Cahit Kirac hosted a banquet in honor of Davutoglu, Swedish Foreign Minister Carl Bildt and the ambassadors who attended the Fifth Ambassadors Conference.Davutoglu said they fully supported the candidacy of Izmir, featuring as an economic and cultural center of its region, asking Turkish ambassadors to

exert efforts on Izmir’s EXPO 2020 candidacy in countries where they are serving. Turkey’s Foreign Minister Davutoglu reminded that they had hosted Swedish FM Carl Bildt and Brazilian FM Antonio Patriota, adding that they, as three ministers, made a decision to maintain negotiations by setting up a consultative mechanism. Page8

2013: A year for giant projects

TÜSİAD head urges fair price for energy bill

he year 2013 will be a year for giant projects, this year 102 new projects will be launched, 434 projects’ construc- Turkish Minister of Transport tion will continue, 111 projects Binali Yıldırım to be completed and enter into service, Binali Yildirim, Minister of Transport, Maritime and Communication, said. Minister Yildirim said they have been maintaining the activities to accomplish Turkey’s infrastructure and superstructure works in terms of transport and accession in high quality and comfort since 2003 to date. “Within 10 years, we invested worth a total of 140 billion TL for the transport, maritime and communication services. Page 7

mit Boyner attends the presentation of World Energy Outlook 2012, urging on reasonable energy prices to improve competititveness. High quality energy sources should be provided at reasonable prices and used efficiently in order to improve the competitiveness of sectors, the president of the Turkish Industrial and Business Association (TÜSİAD) president said. “Turkey ranked top among OECD countries in terms of the fastest growing demand of energy in the last ten years, although it is ranked 21st in primary energy consumption,” said Ümit Boyner TUSIAD Chairwoman at the presentation of World Energy Outlook 2012 Umit Boyner Page 7 report in Istanbul.

Made in Turkey Economic Newspaper, January 2013

Letter From The Editor Mehmet Soztutan Editor-in-Chief

Turkey’s export-drive prospers

urkey’s exports has showed a remarkable performance in 2012. The export performance of the country has exceeded the targets. “Turkish Exports Strategy for 2023” was initiated by the Ministry of Economy and Turkish Exporters Assembly in 2009. The main purpose of this strategy is to reach 500 billion dollars of exports volume in 2023, the centenary anniversary of the Turkish Republic, with an average of 12% increase in exports annually. Becoming one of the world’s 10 largest economies in 2023 and taking 1,5% share from the world’s trade are also being targeted. Furthermore, it is planned to reach 80% exports/imports ratio in 2023. This strategy has a long term perspective rather than focusing on short term targets. In order to reach the long term targets, the new strategy encompasses both production and exports components. In this respect, the exports strategy of Turkey establishes a production plan towards export performance. Basic elements of this strategy are shifting production from low technology sectors to high value added areas and achieving new investments in high-tech sectors. A total of 2,321,979 enterprises were active in Turkey in 2010, said Turkey’’s Statistical Institute, TurkStat. Releasing the temporary results of the annual industry and service indices for 2010, TurkStat said 40.5% of those enterprises were in wholesale and retail trade; repair of motor vehicles and motorcycles, 17.7 % was in transportation and storage; 12.9 % was in manufacturing industry. In industry and service sectors total employment was 10,196,254 individuals in 2010. In 2010, 28% was in manufacturing industry; 26.3% of the total employment was in wholesale and retail trade, repair of motor vehicles and motorcycles; 9.2% was in transportation and storage. Manufacturing industry sector was at the top with the allocation of 33.9% of overall value added factor cost. This was followed by and retail trade, repair of motor vehicles and motorcycles with 20.2% and construction with 7.1% respectively in the same period. To sum up, “Turkey’s Export Strategy for 2023” aims modern and flexible export structure that is based on advanced technology and R&D (research and development) to respond the demands of today’s and future’s business environment by modernizing the structure of our exports.

Turkey ranks 17 on int’l gold reserve list

urkey slid into 17th place with 319.9 tons gold in the World Gold Council’s list of gold reserves as of October 2012. Turkey saves 15.1 percent of its foreign reserves in gold, according to statistics. The United States tops the list, which was formed with data taken from the International Monetary Fund’s International Financial Statistics (IFS). The leading country holds 8,133.5 tons of reserve in gold, which is 76.1 percent of total foreign reserves. The U.S is followed by Germany with 3,391.3 tons of gold reserves and by IMF

with 2,814 tons. The statistics also displays the amount of the gold reserves in the world and in the eurozone. According to the table, there are a total of 31,491.1 tons of gold reserves in the world while 10,783.3 tons in the eurozone, including the reserves of the European Central Bank. The International Financial Statistics table does not list all gold holders: countries that have not reported their gold holdings to theIMF in the six months of 2012 are not included, while other countries are known to hold gold but they do not report their holdings publicly.

Turks pay 50 mln euros annually for Schengen visa

isa seekers wait in queue in front of the German Consulate in İstanbul. As Turkey struggles to ease visa requirements for European Union countries, European Commission data has shown that approximately 700,000 Turkish citizens pay a total of 50 million euros annually to obtain Schengen visas. While the visa application process has been accepted as “unfair” by many European Union countries’ courts – notably the European Court of Justice – in general, Schengen countries require a 60-euro application fee and about 20 additional euros for other operations. The Schengen countries earn about 50 million euros in visa applications from Turkish citizens every year, the data for

2011 has shown. The Commission’s data also reflects that Schengen visa applications from Turkey increased to 624,361 by an 11.5 percent increase from 2010 to 2011. The 5 percent of these applications that were rejected did not have their application fees refunded. The commission’s report said Turkey ranked fourth – after Russia, Ukraine and China – among countries whose citizens apply for Schengen visas. However, Russia and Ukraine, the first and second countries on the list, have signed visa facilitation agreements with the European Union that reduce visa application fees and the rate of rejections. Turkish citizens apply for visas to the French Consulate most often, with 106,060 applications.

Letters to the Editor turkey@ihlas.net.tr

The fiscal cliff

Fall over the cliff

The fiscal cliff is a concern for investors since the highly partisan nature of the current political environment could make a compromise difficult to reach. This problem isn’t new, after all: lawmakers have had over a year to address this issue, but Congress – mired in political gridlock – has largely put off the search for a solution rather than seeking to solve the problem directly. In general, Republicans want to cut spending and avoid raising taxes, while Democrats are looking for a combination of spending cuts and tax increases. Although both parties want to avoid the fiscal cliff, compromise is seen as being difficult to achieve – particularly in an election year.

If Congress and President Obama do not act to avert this perfect storm of legislative changes, America will, in the media’s terms, “fall over the cliff.” Among other things, it will mean a tax increase the size of which has not been seen by Americans in 60 years. The Tax Policy Center reports that middle-income families will pay an average of $2,000 more in taxes in 2013. Many itemized deductions will be subject to phase-out, and popular tax credits like the earned income credit, child tax credit, and American opportunity credits will be reduced. 401(k) and other retirement accounts will be subject to higher taxes.

B. Tran/ Berlin

Who actually first uttered

H. Mrian/ Paris

“While we set for sails towards the global markets in line with huge targets, primarily we should try to realize where the world goes and analysis global trends well,” Tanil Kucuk, Chairman of Istanbul Chamber of Industry (ISO), said. Speaking at the close of “11th Industry and Innovation Exhibition” which was held with the theme entitled “Sustainable Competition Power: Regional Production, Global Power”, Kucuk said, “Turkish industry and Turkish companies have gained a crucial experience and accumulation because of existing in the global competition struggle in a long time.” “In the scope of the congress, even though markets and consumer’s profiles steadily resemble to each other; it is nec-

essary to take into account demands, pleasures, purchasing power, their needs and diversifying of products according to those conditions in order to be successful,” Kucuk said. “We have seen the importance being able to make up partners, local leaders, local teams, being able to get harmonization to the local market in the countries where we are going to. We have perceived that the necessity of producing solutions, developing policies in the issues that would not come to mind in the first time such as personal structure, spoken languages. We have remembered once again a suitable production obligation for the issues such as global competitive power, social responsibility, environment and sustain-

ability, global consumer sensitivities. We confirmed that determining the country where we may go, a good commercial intelligence based on a good world analysis, importance of a sound foreign trade policy,” Kucuk recorded.Kucuk also pointed out that regional production and global power vision require being ready, adding that since the beginning the industrialists fight to exist at all congress, being able to helpful to recognize the global competition conditions closely, to determine opportunity and threats of the global economy which is steadily getting complexity in the hyper competition condition, so in line with these findings they aim being able to contribute to open a space for new ideas and visions in their minds.

Karabel told Anatolia news agency in an interview. Karabel stated that 98.5 percent of the investments were for social housing and the rest for profit, adding that TOKİ is to balance housing prices in Turkey and that the administration carries out these projects without any financing from the Treasury. “We initiated the tenders for 95 schools, three sports halls, three stadiums, 27

commerce centers, 60 places of worship, 35 hospitals, seven family health centers, three nurseries, 59 police stations and six public buildings.” TOKİ’s president stressed that the administration opted for approximately 21,000 housing projects mostly in eastern regions. The state-run property developer also constructed 15,341 disaster homes after the earthquake in the eastern prov-

ince of Van. Karabel announced future projects for 2013 that aim to construct a total of 237,000 houses, including 76 hospitals, 41 student residences, 34 guesthouses, 108 public buildings, 119 schools and 114 sports halls. TOKİ has also set aside part of their budget for the restoration of cultural assets and university buildings, Karabel said.

would be built at Afyonkarahisar when the train departs from Ankara. “Thanks to high speed project, the economy life of Afyonkarahisar would enliven, its horizon will broaden, and its future will be illuminated. Tourism, trade and social life will get a great acceleration. Afyonkarahisar almost will become a neighborhood of Ankara. Workers and students can travel daily between the cities. For this I

thank General Manager Karaman,” Governor Balkanlioglu said. Once the project will be completed travel time between Ankara and Afyonkarahisar to shrink by 1 hour 15 minutes. Karman said they have also renewed inherited railways which have been built before Republic. Karaman noted they witnessed high speed train has affected social life positively, adding that Turkey was 8th country

in high sped train across the world, in Europe 6th one. Turkish State Railways aims to raise the share of railway transit among transportation in general to surpass 1.5 billion passengers in inter-city rail transport and carry 200 million tons of cargo per year. Another key target is to manufacture high speed train vehicles and normal railway vehicles in Turkey.

State firm launches 9 bln lira home projects

he value of housing projects launched by Turkey’s Housing Development Administration (TOKİ) this year reached 9 billion Turkish Liras, the president of the state-run body has said. “The housing and social reinforcement projects in 310 construction sites were worth 9 billion liras in 2012. This means 44,000 houses in total,” Ahmet Haluk

15 provinces to meet with high speed train

araman visited Governor Irfan Balkanlioglu related with the railway which will pass through the province of Afyonkarahisar in the framework of Anakara-Izmir project the railway. Governor Balkanlioglu said that high speed railway would be also built in Afyonkarahisar which is located on a region where highways are intersected. He noted the first station of Izmir-Ankara railway

G. Yring/ Milan

Exit strategy

Who actually first uttered the words “fiscal cliff” is not clear. Some believe that it was first used by Goldman Sachs economist, Alec Phillips. Others credit Federal Reserve Chairman Ben Bernanke for taking the phrase mainstream in his remarks in front of Congress. Others credit Safir Ahmed, a reporter for the St. Louis Post-Dispatch, who in 1989 wrote a story detailing the state’s education funding and used the term “fiscal cliff.”

“We should focus on global trends well”

Turkish Chairman of Istanbul Chamber of Industry Tanil Kucuk

It is critical that emerging markets have a credible exit strategy. Monetary policy should not be loosened too quickly, as a rapid reversal would damage credibility. The same holds for fiscal policy interventions, where the stimulus should not be withdrawn too soon but may require a credible exit strategy that places government finances on a longterm sustainable footing. This would help contain the costs of financing the short-term stimulus, and have an additional benefit of strengthening investor confidence and facilitating the resumption of capital inflows in the recovery phase.

T. Trlen/ Basel

Defense industry exceeds $1 billion worth of exports

urkey’s defense industry accomplished $1 billion worth of exports. “Defense industry experiences continuously renovation. It requires investment in high ratio. Of course every country acts in this area. A country which does not possess domestic market potential cannot develop its own industry,” Ismet Yilmaz, Minister of Defense, said at a meeting which was held by Defense and Aviation Industry Exporters’ Association. He noted that Turkey has been in a very lucky position; adding that opening markets abroad helps increase the competition power. Minister Yilmaz underlined that defense industry sector had been in a critical position in line with the targets for 2023, highlighting that sector expands its exports continuously. He recorded that current export proportion should be brought in a sustainable condition. He said that business demands of the defense industry sector do not finish, so the exports come to a pivotal position. “For this reason, I thank to the members of defense industry. They maintain operation within the common wisdom,” Yilmaz noted. Stating that defense industry was growing with every passing day, Yilmaz noted the objective of the sector for exports was $25 billion. “Turkey’s exports target for 2023 is worth $500 billion. Defense industry constitutes 5 percent of the overall exports in accomplishing targeting exports for 2023. I believe we will also exceed this figure. The leading countries would like to enter the Gulf countries via our country due to Turkey has a market advantage and dignity in this issue,” Minister Yilmaz concluded.

Made in Turkey Economic Newspaper, January 2013

“High government debt threatens growth prospects”

Policymakers in advanced economies will have to resolve the problem of high government debt or they may face low growth prospects, a panel of economists said.

session at the annual American Economic Association conference in San Diego January 4–6 heard that debt levels have exploded across the advanced economies since the financial crisis, and are now at unprecedentedly high levels. High debt levels are a potential drag on growth, the session was told. At the conference, economists from the IMF, academia, and a broad range of other institutions acknowledged that, five years after the start of the Great Recession, economists are still struggling to find solutions to the mounting debt and high unemployment the crisis has triggered. Recessions caused by financial crises are a different animal from typical recessions, said Kenneth Rogoff of Harvard University, and growth does not usually bounce back quickly following a downturn of this type. Several presenters at the meeting noted that the current uncertainty is compounded by the use of new tools, and that in some ways—for example, with U.S. interest rates at the zero lower bound—economists are now in uncharted territory. “The past few years have highlighted how little we actually know,” stressed Donald Kohn, a former Vice Chair of the U.S. Federal Reserve who is currently at the Brookings Institution. With the advanced economies mired in crisis, policymakers should look to the past for insights, but in light of the global economy’s new complexity, they should also learn and adapt as they go, the conference heard.

Dealing with debt At a session on sovereign debt crises, IMF Chief Economist Olivier Blanchard asked the panelists—who included Rogoff, Simon Johnson of the Massachusetts Institute of Technology, and 2011 Nobel laureate Thomas Sargent of New York University—to consider three questions. How does one decide when debt restructuring becomes needed? What is the cost of not doing anything about debt overhang? Should there be new debt restructuring rules—some form of sovereign debt restructuring mechanism or international bankruptcy court? Simon Johnson retraced the history of U.S. government attitudes toward fiscal discipline to illustrate the current period’s dramatic break from the past. Throughout time, he said, the American attitude has been one of fiscal responsibility that focused on paying federal government debts even during major political shifts—a virtue, he suggested, that helped propel the United States to global predominance. In the past decade, Johnson said, all this has changed. Politics is partly to blame, but the fiscal fallout from the 2008 financial crisis was the real game-changer. Now, he stressed, the U.S. government must take fiscal adjustment seriously if it is to retain its position in the global economy. Debt and financial crises Citing his research with Carmen Reinhart, Rogoff observed that three years after a systemic financial crisis, a country’s debt tends to rise on aver-

age 86 percent from its original level, in part because hidden debt surfaces. What can policymakers do to lower debt? Economic growth, fiscal adjustment, explicit sovereign default, and inflation are all possible solutions, though some are more viable than others, he noted. As for Europe’s debt, Rogoff noted that the status quo in Europe was untenable. Evoking Johnson’s discussion of U.S. history, he observed that “the United States couldn’t really operate under the Articles of Confederation; it really needed a Constitution. Europe is very much in that situation—you need a governance system to decide things.” That, he said, is the big question for the future of Europe. Incompatible promises Sargent outlined a sequence of theoretical models on debt by Robert Barro and others that can help economists think about debt and make more informed decisions. Echoing the other panelists’ views, he stressed that, in the end, politics play a decisive role. “Fiscal crises involve either incompatible promises that have been made to people, or incompatible understandings,” he said. “You can’t simultaneously promise that you’re going to have a low-tax state and a high government expenditure state.” The challenge, Blanchard noted, is to reconcile these theoretical models and the actual discussions on debt restructuring taking place around the world. IMF participation At the meeting, a number of discussions were held on the pace of fiscal

adjustment. In a session on the effects of fiscal policy on deep recessions, Blanchard and IMF economist Daniel Leigh presented a paper “Growth Forecast Errors and Fiscal Multipliers.” In a discussion of fiscal stimulus, Carlo Cottarelli, Director of the IMF’s Fiscal Affairs Department, explained the thinking behind the IMF’s fiscal policy recommendations in response to the crisis in Europe. The papers outlined a pragmatic, flexible, and country-specific approach to fiscal consolidation – one that allows for tightening where possible but takes care to support short-term growth. In a session on capital controls and the international monetary system, Jonathan Ostry, Deputy Director of the IMF’s Capital Markets Department, spoke about the evolution of the IMF’s views on the use of capital controls. In December 2012, the IMF adopted a comprehensive, flexible, and balanced view on the management of global capital flows.

Some 2.3 million enterprises active in Turkey In industry and service sectors total employment was 10,196,254 individuals in 2010.

total of 2,321,979 enterprises were active in Turkey as of 2010, released by Turkey’s Statistical Institute (TurkStat). Releasing the temporary results of the annual industry and service indices for 2010, TurkStat said 40.5 percent of those

enterprises were in wholesale and retail trade; repair of motor vehicles and motorcycles, 17.7 percent was in transportation and storage; 12.9 percent was in manufacturing industry. In industry and service sectors total employment was 10,196,254 individuals in

2010. In 2010; 28 percent was in manufacturing industry; 26.3 percent of the total employment was in wholesale and retail trade, repair of motor vehicles and motorcycles; 9.2 percent was in transport and storage.

Manufacturing industry sector was at the top with the allocation of 33.9 percent of overall value added factor cost. This was followed by and retail trade, repair of motor vehicles and motorcycles with 20.2 percent and construction with 7.1 percent respectively in the same period.

Turkey’s strategic cooperation councils with 13 countries Turkey has signed agreement for high-level strategic cooperation councils with 13 countries to strengthen bilateral relations.

he councils help setting future policies, as well as implementing medium and long term projects between the countries. Turkey maintains to set up councils since 2006, in this scope the country has signed 281 agreements with 13 coun-

tries. First high-level strategic cooperation council was established between Turkey and Brazil on January 19, 2006. Turkey then set up councils with Iraq, Syria, Russia, Greece, Azerbaijan, Lebanon, Pakistan, Ukraine, Kyrgyzstan, Egypt,

Bulgaria and Kazakhstan. Also a quartet high-level strategic cooperation council was formed between Turkey, Syria, Jordan and Lebanon on June 10, 2010. A total of 25 council meetings have been held in the past seven years. A total of 281 agreements have been

signed during the meetings. The agreements include the fields of commerce, science, technology, industry, energy, defense, banking, visa procedures, tourism, health, agriculture, infrastructure, transportation, development, education, communications, culture and environment.

Turkey’s foreign trade deficit down 5.5 percent to $7.1 billion The country’s foreign trade deficit dropped by 5.5 percent to $7.1 billion in November 2012.

urkey’s exports surged by 24.8 percent to $13.8 billion, as for the imports increased by 12.5 percent to $20.9 billion in November 2012 over the same month of 2011, according to the statement of Turkish Statistical Institute (TurkStat). According to the provisional data, produced with the cooperation of Turkish Statistical Institute and Ministry of Customs and Trade, in November 2012; exports increased by 24.8% and reached to 13,829 billion Dollars and imports increased by 12.5% and reached to 20,986 billion Dollars compared with November 2011. At the same month, foreign trade deficit decreased from 7,571 billion Dollars to 7,158 billion Dollars.

Calendar adjusted exports increased by 13.1% and imports decreased by 0.3% compared with November 2011. Seasonally and calendar adjusted exports decreased by 2.5% and imports increased by 0.7% compared with previous month. In November 2012 exports imports coverage ratio was 65.9% while it was 59.4% in November 2011. Exports to EU increased to 17.8% in November 2012 As compared with the same month of the previous year, exports to EU were 5,816 billion dollars increased by 17.8%. The proportion of the EU countries was 42.1% in November 2012 while it was 44.6% in November 2011.

In November 2012, the main partner country for exports was Germany with 1,219 billion dollars and increased by 11.1%. For exports, Germany was followed by Iraq (1,094 billion dollars), the United Kingdom (939 million dollars) and United Arab Emirates (813 million dollars). For November 2012, the top country for Turkey’s imports was Russia (2,270 billion dollars), records for imports range from China (2,097 billion dollars), Germany (2,010 billion dollars) and Italy (1,202 billion dollars). Vehicle other than railway are forefront in exports according to chapters For November 2012, “vehicle other than railway or tramway rolling-stock,

parts thereof” has by far the highest value exported at 1354 Dollars and then, “precious stones and metals” (1,201 billion dollars), “boilers, machinery and mechanical appliances, parts thereof” (1,140 billion dollars) and “electrical machinery and equipment” (887 million dollars). At the same period, the top categories for imports were “mineral fuels and oils” (5,330 billion dollars) and then “boilers, machinery and mechanical appliances” (2,469 billion dollars), “electrical machinery and equipment” (1,700 billion dollars) and “iron and steel” (1,540 billion dollars)

Made in Turkey Economic Newspaper, January 2012 Made inTurkey Turkey Economic Newspaper, January Made in Economic Newspaper, May 20122013

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Top priority the world: Food and job Can ripple of effect be inYear” Eurozone “Turbulent

T W

heGroup globalofeconomic systemwas has effect As ifofthis haslike seemingly he Eight meeting thatglobal crisis change on nations Spain e left the year 2011 behind toare continuously scanning to evaluate the been trying to weather the crisis. turned into a global economic crisis.low held at Camp David retreat in and Italy that are struggling with gether with the bad and good conditions. According to the developBecause of dynamics of economy Since the great depression which apWashington to find solution for growth and big debts. events. One of the foremost ments, one of the most feared regions is does not act effectively in some econopeared in 2008, the global economic the top issues with which the world has Investors fear any refusal by Athens to events was that called eurozone that would bethereby faced mies confronted of thepolitical world.in uprising crisis cannot be overwhelmed, been recent years. The seemingly impose deep spending cuts agreed under Arab spring hassome beennations’ experienced in with the economic slowdown in 2012. In the world, economic of recovery cannot foremost issues include economic instaafull bailout deal could resultbeinachieved. the country some of the Middle Eastern and North January, nine ofeurozone activities have not achieved stable poFollowing ironnations curtain, the bility, food safety and lack of asecurity in In quitting the collapsing bloc 17 of countries that had use African countries. their credit rating downgraded ratsitioncountries. regarding unresolved basic global the European some euro. Union has launched anbyexpanEven though significant hasa been Standardin& Greece, Poor’s (S&P), problems. sionagency campaign. Following the meeting distance G8 issued dec- ings After the elections if the taken onwethe way towards a democratic causing theof euro to fall to its lowest level When look at some examples for this, Majority those countries the laration detailing their commitment to elected parties would achieveentered to form order in nations some ofis the countries in the re- against the dollar since 2010. France and one of Syria. There are no ecoEU. ensuring adequate energy and dealing a government and then they would not gion, unfortunately the process the Austria lost their flawless AAA the ratings nomical activities regard food toofpolitiSo some analysts with climate change;with providing se- want to carry out comment austerity that plan of euro the Arab spring isthat continuing in persisting some of the and arecrisis now rated AA+. As for Portugal’s cal uprising has been for area finds its roots in the curity and nutrition in Africa; promot- EU, in that case Greece may exitcredit the countries. and Cyprus’s cut to following “junk.” some two years. booms seen ratings in manywere countries ing democratic transitions in the Middle eurozone. This would trigger other exits Especially in Syria,example uprisingfor which start- The sovereign debt crisis Europe, Another drastic economic the introduction of the euro in in 1999. East; and supporting political transition in the took eurozone region. Theseindeveloped in March 2011 still continues. The which a turn for the worse August and social collapsing is Afghanistan. The economy experts also comment the in Syria.between the government’s forces 2011, ments coincides can also deepen the current ecoclashes with slowing growth This country is suffering from strife and major developed economies related into Majority of the troubles are centering in several nomic crisis and activate countries a bigger one in and opposition group maintain its viomajor terror for over 30 years. problems leftdeveloping unresolved in the (BraafterEurope and the Middle East. Sovereign Europe and the world. lence. India to a lesser extent, of Russia, Another painful example has been per- zil, math of and, the Great Recession 2008debtthe crisis has been occupying Eurozone Another top issue was Iran; they reiterIn is Iraq sisting region in Iraqanother for overcountry 20 years, since South 2009.Africa and Turkey), mainly reflectfor 1 to 2 years. With regard to this viated “grave concern” over Iran’s nuclear which stages blasts with of ing policylast tightening begun in late 2010 the first Iraq predominantly war that was started During 5 years the leading advanced tal issue, heads of state and government program and the need to ensure adbombs killing tens of people, in addition and early 2011 to combat rising inflaregard to the invasion of Kuwait by Iraqi economies of the world could an not be have been lost their posts equate oil supply. to many disabled every tionary pressures from army and then Iraq war able to get rid of the one by onethen in Europe. The Tough on Iran day. overly-fast growth, acII, since this country crisis sanctions completely. country which is mostly are slated to take effect The biggest problem of cording to the statement cannot be able to hold an The principal problems staying the agenda and June 28, and a full em-of Iraq andon other countries of World Bank. order. inthemany economies emerging to in the forefront bargo ofBank Iranian oil by in region is the being adSo foresees Astheknown, region, thethe global world, which because inthe Union is ministered similar that the world economy Palestineofisbyeconomic thethe most strikareEuropean struggling, are unstability is Greece. The set for July regime characterizes lack in 2012 is 1. set to ing example and bleedemployment thatgrow reof and been unfair by just 2.5 aspercent, country going to thein There ishigh, concern aboutas ingdemocratic soreisthat has mains well election. weighed down by ripple second election due to whether a sufficient the war condition over 60 fiscal problems, carryPeace, and stabileffects from the and 2008meafipolitical parties could notto supply ofausterity oil oil years comfort and struggling ing out ity are basic principles of nancial crisis. achieve to form the govproducts from other win an independent state sures, spending cuts or economic development. The developing counernment, because of any countries will make up statute even though the tax hikes. Ibrahim Kupeli Ibrahim IbrahimKupeli Kupeli Wars, strife and political tries seem lesser risky ofUN them had not possessed for a lack of Iranian oil. has approved. In addition, there are ikupeli@img.com.tr ikupeli@img.com.tr ikupeli@img.com.tr uprising push the related than the developed counSome countries in both Afsovereign debt disenough seat in previous one. Aalso “peaceful resolution countries with the entries. Growth inand the weak derica result and along Asia suffer from de- and tress, fragile banking sectors The of continents election, which will be a political transition is preferable” tire world into the economic slowdown. veloping countries for 2012 is forecast stabilization and strife. demand. repeated in June, will also determine inaggregate Syria, this is the wish of the G8. But Now theofstruggles, whichofare being 5.4situation percent, theSyria Bank has also lowered In addition, some whether parts theremain worldexare Without growth, the future of the global destiny Greece to in at the in involves tougher erted by the international monetary instiits growth forecast for high-income punctuated by the disasterpresifrom actions. economy is regarded in jeopardy. couneurozone or exit. EUnatural Commission tutions, to stabilize economy. in 2012 to and -0.3 timeJose toaim time, soBarosso the global global economic As for how to 1.4 overwhelm the crisis and dent Manuel in his speech tries Another top issue ispercent Afghanistan thatperhas Following 2008-09 economic crisis, after cent for the high-income Euro Area. has beensaid volatile. restore growth, be done atsituation the G8 meeting they had only A been suffered for the longthings years.must A timetable some two-year break, the economic crisis thelisted worsening condition in the globalof Thusto the strife and In completing plan keeppolitical Greece uprising, in the region with toare withdrawlike allthis; of the alliance’sreform combat iswars expected to show its devastating impact economy lets eyes turnand to Asia which is and natural disasters in the world the financial sector; addressing instipulation implementing austerity pro- troops from Afghanistan would be 2014. inhave the year 2012, too. Some says thisintime, seen the robust economy inclusive in the world. blockaded the achievement ecoequality and building growth gram of the EU. There was agreement among the leaders itnomic would activities be worse of than previous one. Theorder International Monetary (IMF) nations... to generate jobsfurther andFund food for the G8 leaders also highlighted their wish toinlet North Korea face isolation The World Bank predicts 2012 would be is looking to work ever more closely with There is also a global change in the millions of unemployed. for a strong and cohesive eurozone, if it continues its pursuit of a nuclear proa world ‘turbulent year’. Asia to lessen the impact of the global that has experienced for gram. The euro zone and United States are reglobal stability andbeing recovery; the leaders In addition to the political turbulent es- crisis on the andfragile to helpeconomies promote over two decades. the region foremost insisted their point of view for remaining Ingarded conclusion, when growth the Greek governpecially in the MENA region, there are sounder and stronger globally, acThe last two decades ofwhile the 20th century ment because ofnot fiscal cliff.toEven if out solutions Greece in the eurozone respecting will accept carry ausalso expectations turbulentevents. in the Thanks global cording to David Lipton, IMF First Depwere staged outstanding can be found to the crises in the Middle its commitments. The anxiety is would that if terity plan, then ups and downs can be economy. Unstable developments Managing Director. to advanced communication technolo- uty East and Europe, economic growth is the country would departure from the experienced in economies, besides less affect the entire world economy less or As for the situation terms ofgradually Turkey, gies and transparency, iron curtain coun- expected to stagnateinand then eurozone, it would “result in widespread according growths, increase in joblessness. At the more. Because of the interconnected to the officials, Turkey’s econtries were divided into many countries. return with some further strengthening defaulteconomy, on privatefor sector as well no as soversamewould time sanction on Iranian crude oil global this reason counomy not be affected much from Winds of restructuring have been main- in 2014. eign euro-denominated obligations. would cause price-hikes. This developtry and noitsregion be immune from the crisis as much asthe Eurozone and taining effect.would Thereby change across Inglobal conclusion, currently global econAnother concern due to economic tur- other ment can also lead to instigate economic that catastrophe. developed countries; a 4-5 percent the world has gotten acceleration in omy seems to get full recovery in 2015, moileconomics in Greece has rating the potential ripple development indicators in is thepredicted negativeinside. The 2012. terms of politic,and economicorganizations and social. according to the interpretations.

Humor Humor Humor

THOUGHT OF THE THOUGHT OFTHE THE THOUGHT MONTH OF A consultant is someone MONTH MONTH

who takes the watch off your wrist and tells you experts! the time.

Always listen to slower than you is Anybody going They’ll tell what can’t be done and THINGS A CONSULTANT SHOULDN’T 2. Worried that he who dies with the most freanTO Aidiot, and anyone miles going faster SAY CLIENT wins why. Then do it! quent-flyer 3. Use so many “buzz words” in conversa-

than you is a maniac.

1. That was my first guess as well, but then I hen the man in the street says: thought about it “If it ain’t broke, don’t fix it,” the 2. You should see the hotel I’m staying at lawyer writes: 3. Hey, I just realized that I was in junior high “Insofar asow manifestations ofWhere functional Toworking Identifyhere A Driver when you started deficiencies are agreed by any and all Is From 4. I like this office space. I’ll have them put me concerned parties to be imperceivable, and · One hand on wheel, one hand on in here when you’re gone are so stipulated, it is incumbent upon said 5.horn: My rental car is nicer than that junker you’re Chicago heretofore mentioned parties to exercise driving · One handof on wheel,pertinent one finger out the deferment otherwise 6.window: Sure it’llNew work; I learned it in business York maintenance procedures.” school · One hand on wheel, one hand on **************** 7. So what do you need me to tell you ? In thecourse USA, everything that ison not accelerator: prohibited 8.newspaper, Of it’sfoot right;solidly the spreadsheet says so by law is permitted. Boston 9. I could just tell you the answer, but we’re In· One Germany, is not permitted hand cradling cell phone, committed toeverything aonsixwheel, monththat contract by law is prohibited. 10. What you, stupid California. ? brick onare accelerator: With gun In Russia, everything is prohibited, even if in lap: Riverside permitted by law.SHOULDN’T SAY AT A THINGS YOU Both hands on wheel, eyes even shut,ifboth In· France, everything is permitted, CONSULTANT INTERVIEW feet on brake, quivering in terror: Ohio, prohibited by law. but driving in California. In I’m Switzerland, everything thatperson is not 1. a t-shirt and jeans kinda · Do Both inis air, prohibited by law obligatory. 2. youhands pay overtime ?gesturing, both feet ********************* on accelerator, head turned to talk to 3. I hate flying A junior partner in a firm was to a a night someone in back Italysent 4. I’m useless withoutseat: ten hours of sleep far-away state to a and long-term 5. are lies, damn statistics · There One hand onrepresent latte,lies, one knee on wheel, client ofphone, robbery. After days of mind 6. Areaccused your cell rental cars covered collision ? cradling foot onfor brake, trial, the case was won, the client acquitted 7.on College me working in teams is great game:taught Seattle andslackers released. Excited about his success, for · One handtelegraphed on wheel, one hand“Justice on hunting the the firm: 8. I attorney think three letter acronyms are for people rifle, alternating between both feet being prevailed.” too stupid to remember whole phrases on the accelerator and both on the brake, The senior partner replied 9. Two words: family first in haste: “Appeal throwing a McDonalds bag out the immediately.” 10. Call it what you want, it still means firing *********************** window: Texas city male people How manyhand lawyers does it takerefocusing to change a the · One constantly light bulb? WAYS TO TELL YOU’VE CONrearview mirror to GOT showTHE different “How manyBUG SULTING angles of can the you BIGafford?” hair, one hand going It only takes one to change your bulb...to his. between mousse,it and brush, and rattail to Two. One to change onedon’t to keep 1. Can’t stop using words that exist

tion, friends think you’re speaking a foreign interrupting by standing up and shouting language “Objection!” 4. Constant urge to give advice on subjects you Three. One to do it and two to sue him for know nothing about malpractice. thehyphenating helmet hair going, both feet on 5.keep Always words that-don’t-needThree. One to turn the bulb, steering one to shake the accelerator, poodle thehim car, to-be-hyphenated off the ladder, and the third to sue the ladder .38 your revolver withlist mother pearl 6.chrome Compose grocery usingofbullet company. points inlaid handle in the glove compartment: Three. One to sue the power company for 7.Texas Can fit the thematic undercurrents of War female insufficiently supplying power, or negligent and Peacewheel into a drive two-by-two matrix shotgun · Four pickup failure to prevent the surge thattruck, made the 8. Tired of having a social life beyond work mounted ininrear window, beerto cans bulb burn out the first place, one sue theon 9. A two-page story in Business Week is all it electrician who wired the house, and one to floor, squirrel tails attached to antenna, takes to make you an expert sue the bulb manufacturers. cousin/spouse in passenger seat: Arkansas 10. Firmly believe that an objective viewpoint Fifty four. Eight argue, one toexperience get blue a · Two hands gripping wheel, hair means more thanto any real work continuance, oneabove to object, one tolevel, demur, barely visible window driving two to research precedents, one to dictate a A THINGS YOU’LL NEVER HEAR 35 on the interstate in the left FROM lane with letter, one to stipulate, five to turn in their CONSULTANT the left blinker on: Florida. time cards, one to depose, one to write A universitytwo committee was selecting interrogatories, settle,you one to order 1. You’re right; we’retobilling way too a new dean. They had narrowed a secretary to change the bulb, and twenty- the much for this candidates down a mathematician, an eight billI for professional services. 2. Bettoyou can go a to week without saying “on How many lawyers does it take to screw in a economist and a lawyer. board” or “value-added” light bulb? Each was this their 3. How aboutasked paying mequestion based on during the success None, lawyers“How of the project ? only screw interview: muchus. is two plus two?” You Might Be a Lawyerisif... 4. This whole strategy based on aanswered Harvard The mathematician ·business youcase are charging someone for reading I read about immediately, “Four.” these jokes. the only difference is that I charge 5. Actually, thought for several · Thethan youeconomist believe more they dothat a forty words’ sentence minutes and finally answered, “Four, plus is aI short 6. don’t one. know enough to speak intelligently or minus one.” · you about that have a daughter named Sue and a Finally up, writing peered son named the Bill. lawyer 7. Implementation ? I onlystood care about · around you can at aand contract and instantly the look room motioned silently long reports tell whether it’s written. 8. I can’t theverbal credit.orIt was George your for thetake committee members to ingather · close your a BMW. conspiratorial MIS department to other him. car In ais hushed, · Thewhen you is, look inhave a mirror, you see a for 9. you too much work tone, problem he replied, “How much do you want lawyer. too few people Everything looks OK to me, it to be?” you’re doing just fine

THE ECONOMIST THE THEECONOMIST ECONOMIST

What’s thelisten between Always to experts. What’s adifference recession? How doa we psychotic neurotic? know ifand we’re in one?

A recession is when your Aneighbor neurotic knows two They’llloses tell his what can’ttwo be job.and are four butwhy. he hates done--and Thenit. do it A depression is when you

Well! Well! Well!

lose your job.

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Made in Turkey Economic Newspaper, January 2013

Turkey has turned out to be an island of stability in 2012 Turkish Deputy Prime Minister Ali Babacan

Continued From Page 1 ther emerging economies with large populations, such as Indonesia, Mexico, Russia, Turkey and Vietnam, also grew at a rapid pace.” The report singled out Turkey’’s sustained 6 percent average growth in GDP between 2003 and 2008 as sign of the robustness of its economic transformation. The CRS report concurred with a report made

by HSBC bank earlier this year that Turkey would likely be the world’’s 12th largest economy by 2050. Meanwhile, the use of Turkish Liras in foreign trade increased 24 percent in the first 10 months of the year compared with the same period in 2011, reaching $11.1 billion. Lira use in exports was the main driver of the trend, with trade with Germany and Iran leading the transactions.

The lira was used in $3.7 billion of Turkey’s total $126.3 billion exports in the January-October period, according to the Turkish Statistical Institute data gathered by Anatolia news agency. The total value of liras used in exports was $2.9 billion for the same period in 2011 year, so the amount has risen 31 percent. Meanwhile, the value of the lira used in imports was $7.4 billion among the $195.8 billion total imports in the first 10 months of 2012, which was $6.1 billion in 2011 showing a 20 percent raise. Therefore, the use of the lira in foreign transactions has reached almost $11.1 billion, with an increase of 24 percent. The total value of Turkish

liras used in foreign trade transactions was $3.7 billion in 2007, but this figure had risen three-anda-half times for the same period of 2012. The rate of use of the lira in foreign transactions was 1.5 percent in 2007 and had risen to 3.4 percent in 2012. Germany, a prominent foreign trade partner for Turkey, was the leading country for mutual trade transactions in liras, with a total value of $1.3 billion. Iran and China followed with $863.7 million $762.3 million respectively. The pharmacy sector topped the usage of lira in imports with $1.7 billion, followed by $1.41 billion worth of motorized land vehicles and their trade in their parts. The lira used in imports was highest for

the carpet sector, with a value of $304 million Meanwhile, the number of investment incentive certificates issued in the July-November period increased 24 percent, while the fixed investment volume rose 23 percent, as a result of the new incentive system, Economy Minister Zafer Çağlayan has said in a written statement. Between June 20 and end of November, 925 investment incentive certificates had been issued, provisioning 23.6 billion liras in fixed investments and 77,889 new employment positions, said Çağlayan. He also said that 11.5 billion liras of the 23.6 billion lira fixed investment volume was for the manufacturing sector, 7 billion for services, 3.9 billion for energy and 1.3 billion for the mining sector.

OPEC discusses global supply and demand projections for 2013 The 162nd Meeting of OPEC reviewed the oil market outlook, as presented by the Secretary General, in particular the supply/demand projections for 2013

he 162nd Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) was held in Vienna, Austria, 12 December 2012. The Conference reviewed the Secretary General’s report, the report of the Economic Commission Board (ECB), the report of the Ministerial Monitoring SubCommittee (MMSC) – whose Members the Conference again commended for their continued and appreciated efforts on behalf of the Organization – and various administrative matters, according to the statement of OPEC. The Conference exchanged views on, inter alia: developments in multilateral environment mat-

ters, including the outcome of COP18/CMP8 held in Doha, Qatar, earlier this month; the status of the Organization’s ongoing energy dialogue with the European Union (EU); its continued cooperative work for the G-20; and its dialogue with the Russian Federation. The Conference congratulated the Government and people of Qatar on the successful hosting of COP18/CMP8, noting with satisfaction that the event’s positive conclusion paved the way for a new course of action for designing the future climate change regime. In this connection, Ministers applauded the work being done in this important area by climate change negotiators from around the world.

The Conference reviewed the oil market outlook, as presented by the Secretary General, in particular the supply/demand projections for 2013. Ministers noted that the price volatility witnessed throughout 2012 remained mostly a reflection of increased levels of speculation in the commodities markets, exacerbated by geopolitical tensions and, latterly, exceptional weather conditions. The Conference observed: the mounting pessimism over the global economic outlook, with downside risks continuing to be presented by the sovereign debt crisis in the Euro-zone; high unemployment in the advanced economies, especially the Eurozone; and inflation risk in the emerging economies. Indeed, the biggest challenge facing global oil markets in 2013 is uncertainty surrounding the global economy, with the fragility of the Euro-zone remaining a major concern. The Conference further noted that, although world oil demand is forecast to increase slightly during the year 2013, this is likely to be more than offset by the projected increase in non-OPEC supply and that projected demand for OPEC crude in 2013 is expected to contract to 29.7 mb/d.

Given the demand uncertainties, the Conference decided to maintain the current production level of 30.0 mb/d. The Conference also agreed that Member Countries would, if necessary, take steps to ensure market balance and reasonable price levels for producers and consumers. In taking this decision, Member Countries confirmed that they will swiftly respond to developments that might have a detrimental impact on an orderly oil market. Since it is vital to remain vigilant in the face of the uncertainty surrounding the outlook for the world’s major economies, as well as the implications of the enduring weaknesses in the international financial system that are expected to continue to pose downside risks for both the global economy and the oil market, the Conference directed the Secretariat to maintain its close monitoring of developments in supply and demand, as well as non-fundamental factors, such as macroeconomic sentiment and speculative activity, keeping Member Countries abreast of developments at all times. The Conference decided that its next Ordinary Meeting will convene in Vienna, Austria, on 31 May 2013.

Turkish Economy Minister Zafer Caglayan

Turkey’s exporters achieve record-high $151.9 bln in 2012 Turkey accomplished its largest export ever in the history of the Turkish Republic with nearly $152 billion in 2012, Turkish Economy Minister Zafer Caglayan announced

Continued From Page 1 aglayan said Turkey has come to a position that real interests move towards negative rate, not borrowing from IMF but lending to IMF. He also said an important process is being passed; EU, USA and many countries have called for this issue. Minister Caglayan reminded Turkey is one of the countries to guide to the world economy, adding that as long as economy grows towards positive movement would develop more. “2012 was a more troubled year than 2011, the economic crisis is still continuing in Euro zone. Fiscal cliff has been overcome in the USA for a few months. China did not grow enough. The political negativeness in the Mideast and Africa marked in 2012. Turkey was also affected from these negative developments, however successes in economy made Turkey separate from the entire world. Except the global crisis period in 2008, Turkey got nonstop growth for

27 quarters, as for following the crisis in 2008 growth continued for 12 quarters,” Minister Caglayan said. Caglayan said imports in the first 11 months decreased 1.6 percent to $216,7 billion over the same period previous year. “You know in Medium Term Program (OVP) our prediction was $239,5 billion. While In the first ten months 2011 we had current account deficit worth $65 billion. In 2012 at the same period the deficit plummeted by $41 billion. It seems that this figure would be $50 billion as of end of the year. As for service exports would reach by $41 billion by the end of the year. Service imports decreased 1.5 percent to $19 billion in the first 10 months.” Foreign Direct Investment became $10,6 billion in the first 10 months 2012. Together with the services’ exports the total exports of Turkey would reach by $194 billion in 2012, Minister Caglayan said.

Oil exploration period of TPIC extended TPIC’s search license period has been extended by Turkish Petroleum Affairs General Directorate (PIGM) by 1st February, 2015.

Number of vehicles in traffic hits some 17 million in Turkey

umber of 86,333 motor vehicles registered to the traffic in October 2012 and total vehicle has reached by 17 million in Turkey. Cars took the first place with the ratio 54.7% (47,250) followed by small trucks 17.7% (15,294), motorcycles 16.4% (14,177) and tractors 4.8% (4,130). Minibuses, buses, trucks and special purpose vehicles constituted 6.3% (5,482) of the registered motor vehicles in October 2012. The number of registered motor vehicles increased by 1.8% in October compared to the previous month.

Compared to the previous month, the number of registered motor vehicles increased 1.8%. Cars, small trucks, trucks and tractors increased by 16.7%, 2%, 3.7% and 11.1% respectively. Minibuses, buses, motorcycles and special purpose vehicles decreased by 22.6%, 41.7%, 24% and 38.2% respectively. The number of registered motor vehicles decreased by 4.8% compared to the same month of the previous year. The number of registered vehicles to the traffic decreased by 4.8% in October 2012 compared to the same month of the previous

year. Buses, small trucks, trucks, motorcycles, special purpose vehicles and tractors decreased by 0.9%, 14.1%, 22.6%, 13.6%, 6.7% and 31.1% respectively. Cars, minibuses increased by 6.6%, and 5%. In January - October 2012, total number of vehicles registered to the traffic increased by 812,257. While 92,880 motor vehicles were withdrawn, 905,137 motor vehicles were registered in January-October 2012. Hence, the total number of motor vehicles in traffic increased by 812,257. By the end of October, the total number of motor vehicles became

16,901,785. In the total number of motor vehicles the ratio of cars, small trucks, motorcycles, tractors, trucks, minibuses, buses and special purpose vehicles became 50.6%, 16.4%, 15.7%, 8.9%, 4.4%, 2.3%, 1.4% and 0.2% respectively. As for the distribution of trademarks for the registered cars in October 2012 are as follows; The distribution of the trademarks of 47 250 cars registered in October 2012 is; Renault 12%, Opel 10.9%, Volkswagen 10%, Tofaş-Fiat 8.7%, Hyundai 8.6%, Ford 7.5%, Toyota 6.7%, Dacia 5.2%, Nissan 3.6%, Honda 3.1% and the other trademarks 23,7%.

urkish Petroleum International Company (TPIC), will explore oil in Turkey’s Mediterranean offshore field for two more years, the official Gazette reported. State-controlled TPIC’s application to extend the duration of its search licenses was approved by PIGM. The national fuel sector body has decided that TPIC’s five licenses for oil exploration in the Antalya Petroleum Region of the Mediterranean offshore field will be valid from Feb. 1, 2013 to Feb. 1, 2015. Turkish Petroleum International Company (TPIC) was established in 1988 as a subsidiary of the Turkey Petroleum

Corporation (Turkiye Petrolleri Anonim Ortaklıgı-TPAO) as to operate in all value chains of the oil industry. TPIC operates in all fields of the oil industry from exploration to production and from the oil rig field services to the oil product trade and distribution. TPIC intends to increase all kinds of its activities in the countries holding a great portion of oil reserves of the world such as Iraq, Syria, Azerbaijan, Turkmenistan, Kazakhstan, Ecuador, Colombia, and Venezuela through getting strength from the experience and technical possibilities that TPAO, our main company has acquired in more than 50-year duration within the region.

Made in Turkey Economic Newspaper, January 2013

Turkey aims to attract 33 mln tourists in 2013

he number of tourists visiting Turkey will increase to 33 million next year, Basaran Ulusoy, the chairman of the Association of Turkish Travel Agencies (TURSAB), has estimated. Ulusoy told Anatolia news agency that tourism revenues were expected to be around $25.5 billion in 2013 and the most visited places would be the southern province of Antalya followed by Istanbul, the Aegean provinces of Muğla and Aydın and Cappa-

docia. “Although 2012 was a difficult year for the world and our country in terms of economic issues, we haven’t experienced sharp decreases in the tourism sector,” said Ulusoy regarding the 2.4 percent drop in the number of foreign tourists in the January-October period of 2012 compared to the previous period. ISTANBUL - Anatolia News Agency Nearly 1,200 participants from 55 countries attended the United Nations Tourism Summit in Istanbul. Turkey has become one of the top 10 countries for tourism, said Turkish Union of Chambers and Commodity Exchanges (TOBB) President Rifat Hisarcıklıoğlu at the United Nations Tourism Summit at Istanbul’s Haliç Con-

gress Center. The event was jointly organized by the Culture and Tourism Ministry, the Turkish Union of Chambers and Commodity Exchanges (TOBB). The sector’s annual 10 percent growth i n Tu rk e y surpasses the world aver age at 3 percent, Hisarcıklıoğlu said. The global tourism growth will present $300 billion of revenue opportunity in the next seven years, he said. Nearly 1,200 participants, more than 300 of which were foreign,

from 55 countries making up 91 percent of the global tourism sector attended the event. Turkey has been involved in the tourism sector for about 25 years, Tourism and Culture Minister Ertuğrul Günay, said at the event. “Tourism will be one of the founding sectors of the 21st century,” he said. The global number of tourists hit 1 billion, Appointed Executive Director of the UN-HABITAT Joan Clos said, adding that the tourism sector was a part of the economy of today and tomorrow.

Turkish florists exported 50 million branches of flowers to 48 countries accounting for worth $10 million in December 2012.

Istanbul surges atop in congress tourism

stanbul Metropolitan Municipality Mayor Kadir Topbas was decorated with the award regarding Istanbul has raised atop in the congress tourism. Murat Yalcintas, Chairman of Istanbul Chamber of Commerce (ITO) and Istanbul Congress and Visitor Bureau (ICVB), presented an award to Istanbul Mayor Kadir Topbas due to Istanbul surged to first rank in congress tourism. In his speech at the award ceremony, Kadir Topbas told, “In the meaning of congress tourism, we have struggled much. Now we should

build a congress campus. It has been both in my dream and ideal. We foresee a new facility for those who come to congress along with their families to lodge.” ITO Chairman Murat Yalcintas said, “We have launched an initiative entitled, “Let’s become an envoy for congress in Istanbul” in 2007 in order to make Istanbul to become in a better position in congress organizations. He noted they had helped to every section which brings congress to Istanbul. “We have ripened the first fruits of its in 2010 and we ranked in first 10 in congress area. In 2012, we raised leading position. Now Istanbul is an attraction area. Some 8 million of over 31 million tourists who came to Turkey visited Istanbul,” Yalcintas recorded. He said there was one congress center by 2009 in Istanbul we as ICVB, we could not find place those who would come to the

Istanbul Metropolitan Mayor Kadir Topbas

Municipality

country, adding that since 2009 two congress centers have been opened, capacity of congress organizations increased threefold. Yalcintas also noted that Istanbul Metropolitan Municipality had taken remarkable steps for tourism. Pointing out thanks to activities that they managed along with civil society organizations the congress tourism has settled atop, Topbas said Istanbul has recorded outstanding progresses in tourism sector. He also added ho-

Turkey’s florists sell 50 million branches of flowers

tels in the city enjoyed 98 percent occupancy rate in 2012. Mayor Topbas reminded that their investments reached by worth TL52 billion, 55 percent of its accounting for transport sector. “We have obtained world championship with Halic Congress Center and Istanbul Congress Center from the 44th line. Topbas noted they would struggle to stay at the top in congress tourism, adding that they wish Istanbul to host 2020 Olympic Games.

he Central Anatolia and Ornamental Crops Exporters’ Union Chairman Osman Bagdatlioglu announced that they had enjoyed a period in cut flowers’ exports that makes face of florists smile. Due to the global economic crisis, this year flower cultivation has experienced a constriction up to 30 percent in the world, however in Turkey enjoyed a table fully reverse of the world, Bagdatlioglu said. “Having a younger and more dynamic cultivation period has played a crucial role in this achievement. Besides, in Turkey cultivation areas have enlarged and in line with this flowers’ exports have increased. The figures of flowers’ exports of Turkey were the same with last year but in shipments regarding new year increase has been enjoyed,” Bagdatlioglu noted. He added that Turkey’s florists exported 400 million branches of flowers per annum, mostly to the countries such as Britain, Germany, the Netherlands, Russia and Ukraine and gerber daisy and carnation flowers are preferred mostly. British and Dutch preferred carnation, as for Ukraine and Russia preferred gerbera daisy. “When we have a look at last five years, in Turkey exports of flowers have raised as the second sector increase, ship-

ping Turkish flowers to every corner of the world both we have promoted Turkish brand and developed the flower sector. Some 80 percent exports of cut flowers through the resort province of Antalya, as for the rest part exports via western provinces of Izmir and Yalova,” Bagdatlioglu recorded. In the sector, 25 thousand people is employed, in addition inoculating love, peace to millions of people gives us power, Bagdatlioglu said. Bagdatlioglu n o t e they could b e able to a na lys i s

countries’ economies according to the exports of flowers, the countries which feature the crisis their demand for flowers decreases. “We can see effect of crisis at anywhere and country depending on demand of flowers.”

Turkey’s ski resort, Palandoken features a competitive power in world “We are assertive in winter tourism. We compete with the countries of France, Italy, Switzerland and Austria, despite it is a tough competition however we will win,” Sebahattin Ozturk, governor of Erzurum province, said. He added that they were also assertive in this season in winter tourism as in every season. Governor Ozturk said the facilities would be operated in the coordination of the governorship, noting that last year the facilities were operated by another federation this year they would be in their operation. “Skiing season has been open in Palandoken ski resort, the facilities are in operational. Committees and tour operators will be coming from Ukraine, Poland, and Austria in January. We will do lots of things in terms of promotion issue. Erzurum is an absolute-

ly perceived location. Winter tourism is the important thing for us. We try to attract more tourists to the resort. We rank 18th in 46 foremost ski center across the world. This increases our visibility and recognition of ours,” Governor Ozturk noted.

Made in Turkey Economic Newspaper, January 2013

Turkey’s steel exporters eye $55 billion worth of exports

2013: A year for giant projects

Turkey’s steel exporters’ objective is to accomplish exports worth $55 billion by 2023, Namik Ekinci, Chairman of Turkey’s Steel Exporters’ Association, said.

e added, in order to achieve this target increasing production amount and diversity and finding new markets are the stipulation. Meanwhile, the vision to become high value-added production base in ironsteel and nonferrous metals sector entitled, “Iron-Steel and Nonferrous Metals’ Sector Strategy Document and Action Plan” was announced by Nihat Ergun, Minister of Science, Indus-

try and Technology. In his speech at the opening of the meeting, head of the association Ekinci stated due to deepening economic crisis in Europe and political uprising in some African countries and Mideast countries remarkable recessions have been experienced in the global markets. He added that increase in the world steel production has also pressed on the prices of steel.

Ekinci stated the steel sector ranked second following automotive in exports and said, “As the sector we aim to accomplish $55 billion worth of exports by 2023. In order to reach this target finding new markets are must as well as increasing production amount and diversity.” Ekinci also said exports potential could not be evaluated enough. “As steel exporters association, we have held various

events in the framework of Developing and Supporting of International Competitive regulation. We give importance to the precautions in line with boosting competitive power of the sector,” he noted. Istanbul Iron-Steel and Nonferrous Metals’ Exporters Union Deputy Chairman Cetin Tecdelioglu in his speech stated that the sector had made outstanding investments in design, R & D and innovation.

“As the association, our aim is to exceed middle income group as the country, and being authority in the world economy, guiding in innovation and technology, achieving to enter into high income group,” Tecdelioglu said. Tecdelioglu added they supply goods to the foremost producers ranging from NASA to automotive giants across the world, he added that they would raise upper levels.

EIB finance for climate action and smart growth in Turkey

he European Investment Bank (EIB) is renewing its support with a EUR 300 million total finance package for climate action, small and mediumsized enterprises (SMEs) and mid-sized companies (mid-caps) in Turkey. EIB Vice-President Pim van Ballekom commented on this occasion at the EIB’s headquarters in Luxembourg: “I am particularly happy to announce that our support for Turkey remains steady

and strong. Today, we are signing a package of EUR 300 million in loans for entrepreneurship and climate action in the country. I am delighted that after the afforestation and erosion control project we financed in 2011, we are now signing our second operation in Turkey to underpin the country’s efforts to adapt to the effects of climate change, namely by further strengthening its flood prevention and protection infrastructure. Furthermore, we are con-

tinuing to blend our financial means and expertise as the largest multilateral financing institution with the know-how of our local banking partners for the benefit of the flourishing entrepreneurial activity in Turkey. In this respect, the operation with Vakifbank in support of SMEs and mid-caps will improve the conditions offered to the end-beneficiaries of EIB funding, especially in terms of the maturity of the loans provided.”

The EUR 300 million in new EIB finance for climate action and smart growth in Turkey consists of: EUR 100 million in support of a programme of investments to finance flood prevention and protection works undertaken by the State Hydraulic Works (DSI) in various river basins across Turkey. The project is expected to generate wider economic benefits by protecting people and their livelihoods from the impacts of

Study to locate 3rd nuke plant to begin

Turkish Energy Minister Taner Yıldız

Continued From Page 1 “Such a study will be conducted at least in four or five locations,” he said, naming İğneada, a seaside town close to the Bulgarian border, while answering questions. However, the firm to undertake the study would not necessarily be the operator of the facility, he added. Speaking about the South Korean bid, he said, “Their current offer is not very appropriate if they

do not come up with a totally new offer.” Russia’s Rosatom is building Turkey’s first nuclear plant in the Mediterranean province of Mersin. Turkey expects the U.S. to extend its waiver on Turkey’s crude oil imports from Iran, as the Turkish oil refiner Tüpraş has continued to import crude oil from Iran, the minister said. “We think that [the U.S.] will revive the second extension of six months,

which also includes Turkey, and extend it,” he said. European countries bought 3-5 percent of their oil imports from Iran, but Turkey met almost half of its needs from this country in 2011, the minister said. “Therefore Iran is a crucial import point for us,” Yıldız noted. Following the U.S. and EU sanctions on Iran, Turkey has made up for declining crude imports from Iran through purchases from countries such as Libya, Saudi Arabia and Russia, he added. Turkey will continue purchasing natural gas from neighboring Iran even as Western countries increase sanctions on Iran due to its disputed nuclear program, the minister also said.

“It is out of the question for us to take a step backward,” Yıldız said, adding that Turkey had not been asked to take such a step. Iran is Turkey’s secondbiggest natural gas supplier after Russia, and the minister said Tehran supplied 18-20 percent of the gas that Turkey consumes. On Nov. 30 the U.S. Senate unanimously approved new economic sanctions aimed at further crippling Iran’s energy, shipping and port sectors a year after Congress passed tough restrictions against Tehran. On Dec. 7 the United States extended exemptions from sanctions designed to choke Iran’s oil exports to nine major economic powers, including Turkey, China, Taiwan, India and South Korea.

TÜSİAD head urges fair price for energy

Continued From Page 1 urkey has seen the second fastest demand increase after China in electricity and natural gas since 2002. Boyner said the security of the energy supply depended on a balanced composition and competitive prices for sustainable development, which is the present generation’s duty to future generations. “For this reason, quality energy sources should be provided to sectors - most notably industry - at reasonable prices to improve competitiveness, and this

should be used efficiently,” Boyner said. She also said the security of energy supply and sustainable development were vital issues facing states. “Despite economic progress, we still do not benefit enough from our renewable energy resources. It looks difficult to reach the targeted capacity by using just energy from the wind and the sun. We should accelerate investment in domestic resources, particularly renewable energy, in order to achieve sustainable development

and a current account balance,” she said. In order to provide security of energy supply, Boyner stressed that production and infrastructure investments should be implemented as planned. She also said an energy exchange protocol had been signed between the Turkish Electricity Transmission Company (TEİAŞ) and the European Energy Exchange, adding that this would create Turkish energy exchange in accordance with the European system. “It is important to

form a reference price within a free market. An energy exchange is the most efficient way to form a transparent and marketbased reference price,” Boyner said. The other essential condition for energy supply security in long term predictability is stable markets, said Boyner, emphasizing that the privatizations in the electricity production sector should be completed urgently. However, this process should not limit competition or consumers’ rights and should raise efficiency, she said.

floods. By appropriately raising protection levels, the project will also contribute to Turkey’s adaptation to the effects of climate change. A further EUR 200 million for Vakifbank in the form of a credit line for financing small and medium-sized investments by SMEs and mid-cap companies mainly in the manufacturing, trade and services sectors, thereby contributing to the economic development of the country and job creation.

Binali Yıldırım Turkish Minister of Transport

Continued From Page 1 e have turned Turkey into a construction site by new ports, airports, double ways, railways, fiber optic networks. Today the double-ways’ length has exceeded 22 thousand 200 kilometers. In 2012, we built some 1 thousand double-ways. As for length of highway, it has reached by 2 thousand 236 kilometers. In 2012, we made groundbreaking of the longest tunnels of our country such as Ovit, Cankurtaran, Kop, Salmankas, Ilgaz Mount. As the main factor of the development indicators, our country’s railway network has reached by 9 thousand 931 kilometers in the last ten years. In addition, our country has met with the high speed train comfort.” Besides, highways and railways, Turkey’s airways have entered into a great change, Minister Yildirim said. Use of airway has surged 241 percent compared with the year 2003. In 2011, while 117 million 347 thousand people benefited from the airlines, this year in the first 11 months 122 million 433 thousand passengers used airlines. Number of active airports rose from 25 in 2002 to 49 units,” he said. Minister Yildirim added that they had opened the first regional airport, Zafer Airport to the service, together with continuing airport constructions number of airports would reach by 56 in a near time. Yildirim said, they were maintaining the works in line with to transform Turkey into information society, he added for that the essential factor was to install the

infrastructures to serve in the wanted sped and quality as nonstop across the country. Thanks to the investments at the end of the works within the last ten years, developments occurred beyond predictions in Turkey’s information society indicators, Yildirim said. “Developments in informatics sector have shown itself in the economic indicators such as employment, share in GDP, turnover per annum. In 2003, the total informatics incomes which were $11,5 billion, will exceed $44 billion in 2012. In 2013, this figure expected to surpass $50 billion. We have made up both legal infrastructure and physical infrastructure with the aim transforming Turkey into an information society. In 2012, we have set up Cyber Security Board. We have spread e-state implementations. Offering 276 various services in 2011, we have raised number of services by 512 in 2012. Also launching social and education projects such as Sighted Eye, FATIH projects, we have taken crucial steps in the sector,” Minister Yildirim said. He underlined that Anakra-Istanbul High Speed Train and Marmaray Project which is a dream for 1,5 centuries would enter into service in 2013. The tender of third airport project in Istanbul would be held in 2013 and to enter into service in 2016, with 150 million passenger capacity. The 3rd Strait Bridge’s construction will start in 2013. In maritime fleet Turkey has jumped 15th stop by surging a few steps.

Made in Turkey Economic Newspaper, January 2013

2013 to be a better year for Turkey

Turkish Finance Minister Mehmet Simsek

Turkish Development Minister Cevdet Yilmaz stressed that they would increase figures of employment and exports in 2013. that they were combating with terror in an inclusive method including diplomatic efforts, socioeconomic policies and physiological efforts and along with some different instruments. GAP Project He said that GAP (South-Eastern Anatolia Project) would Turkish Development Minister Cevdet Yilmaz accomplish with the two projects one is irContinued From Page 1 rigation dam, ‘Silvan e added despite Dam’, as for power dam, this, “We have ‘Ilisu Dam’, when it would invested as the be finished 90 percent government.” However do of GAP power potential we use our potential 100 %? No! Because of terror. would be used. “Together Within the last 4 years, we with Silvan Dam we are have set up some 400 thou- going to exceed critical sand more jobs,” Minister thresholds in irrigation isYilmaz said. He noted sue. So GAP is going to

accomplish. However development of GAP will continue, we will continue to take advanced steps. We are managing the GAP not only as an irrigation project, but also as integrated, sustainable and focusing on human being. Along with the social support projects, education, healthcare,” Minister Yilmaz said. Touching exports which were achieved worth $152 billion in 2012, Yilmaz said that in 2013 the objective is $158 billion according to Medium Term Program. He recalled that they predict a better relative year in 2013. “Turkey has entered 2013 a healthier macroeconomic indicators. After this, Turkey will

go towards a better condition. The year 2013 will be better in the aspect of the world conjuncture and Turkey’s macroeconomic indicators. Employment will continue to raise, exports and growth will continue,” Yilmaz recorded. Briefing about spending for R & D studies, Minister Yilmaz said, while in 2002 spending in R & D was $1,2 billion, the figure rose by $6,5 billion in 2012. In defense industry domestic manufacturing rate has rose by 50 percentages. Highlighting social policies in the period of Ak Party governments within the last ten years, Yilmaz said, the richest share which accounts for 20 percent in the upper

FM Davutoglu: Carry out rhythmic diplomacy for Izmir’s EXPO’20 candidacy

Turkish FM Ahmet Davutoglu

Continued From Page 1 “Brazil is a close friend, but it is a rival against us in EXPO 2020. Our relations are not affected from this competition. We have promulgated a campaign in EXPO issue. We want from the ambassadors who attended to the meeting to knock doors of the

officials over and over in the countries, where they are incumbent, to request their vote in favor of Izmir. Turkey’s western province of Izmir lost the previous voting with a little difference. We will maintain a close marking up to the last minute. Every moment we should rhythmic

diplomacy being in action. Here I call on authorities in Izmir. If required, call to our ambassadors continuously and chase them. Do not quit up to the last minute. We are at the discard of Izmir. There is no stop up until to win EXPO 2020,” FM Davutoglu said.

level has decreased from 50 percent to 45 percent, in addition, all income groups’ share has raised. “The group which was spending under $4,5 a day plunged from 30 percent up to 2.8 percent. This is an exceptional achievement. In other words, We, as Ak Party government, not only let the economy grow, we have achieved two things at same time as enlarged economy and

distributed it in a fair way. As long as we grow and enlarge our bread we will also share this in a more just way. We take these into consideration in our all policies. One of them is the tax policy. We should get tax income more from the highest groups. We should oversee wide societal sections. In fact, this approach is in favor of all sections,” Minister Yilmaz concluded.

Turkey's industrial production breaks record in November

TurkStat said that the largest increase was in manufacturing industry. In the sub-sectors level of industry, mining and quarrying sector index increased 7.5 percent, manufacturing index increased 13.3 percent, and electricity, gas, steam & air conditioning supply index decreased 2 percent in November 2012 when compared November 2011. Calendar adjusted production index in November 2012 increased 3.1 percent when compared to same month in 2011, and seasonal & calendar adjusted industrial production index increased 1.5 percent when compared to previous month.

Turkish parliament passes Budget Law for 2013

Continued From Page 1 udget deficit is predicted as 33.8 billion TL, and primary surplus as 19.1 billion TL. The ratios of budget deficit and primary surplus to gross domestic product are planned as 2.2 percent and 1.2 percent respectively. Turkish Prime Minister Recep Tayyip Erdogan in his speech said they would all together continue to move up Turkey along with stability, confidence, brotherhood and solidarity in 2013. As for Turkish Finance Minister Mehmet Simsek said that they expected the budgetary spending would become 404 billion Turkish liras (TL), budgetary income to be 370.1 billion TL and the budget deficit to be 34 billion TL in 2013. Delivering remarks on a draft law on the Turkish Central Management Budget for 2013 at the Turkish Parliamentary General Assembly, Mehmet Simsek stated that they expected the Turkish gross domestic product to be 1.5 trillion TL in 2013. “We expect our imports to be worth $253 billion and exports to be $158 billion in 2013,” Simsek noted adding that growth would be 4 percent and the consumer price index to be 5.3 percent. Minister Simsek highlighted, “The budget aims to protect fiscal discipline and macroeconomic stability; support growth, employment and investments as well as give priority to education, health and infrastructure in 2013.”

Turkey planning to build 12 new marinas by 2015

Turkey has built 11 marinas so far through build-operate-transfer (BOT) system which contributed 377 million Turkish liras to national economy.

hile construction of 5 yacht ports, of which tenders were completed by the Ministry of Transport, Maritime and Communication, is continuing, countdown for 7 projects has begun. Currently existing ports for 17 thousand 500 unit yachts, Turkey aims to enhance its number of yacht-port capacity to 20 thousand

by 2015 and 30 thousand by 2023. Turkey plans to build 12 new marinas to increase the country’s docking capacity for yachts and motor boats to at least 20 thousand by 2015, according to data from Turkey’s Transport and Maritime Ministry. The marinas will be constructed through build-operate-transfer system, or

BOT, which would spare the government from investment, operating and maintenance expenses. The plans also include bringing the capacity up to 30 thousand by 2023 in a highly competitive Mediterranean market dominated by France, Spain and Italy, which claim a combined 75 percent share. It is said that making

up infrastructure for the yacht tourism and determining country’s privileged role in the aspect of tourism that has a great importance through the models of BOT as well as public possibilities and private sector’s dynamics. Turkey has built 11 marinas so far through BOT system which contributed 377 million Turkish liras to the national economy.

“We see Turkey a strategic marketing office”

memorandum of understanding was signed between Japanese Sumitomo Mitsui Banking Corporation (SMBC) and Republic of Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT) in order to promote business exchange be-

tween Turkey and Japan. Speaking at the press conference, SMBC European Chairman and General Manager Hiroyuki Iwami, indicated they had opened a representative in Istanbul, and said, “We support finance sector with products including project financing, corporal finance,

syndication and securitization. Since February 2012, we have supplied finance worth some $1 billion.” He stated they see Turkey as a strategic marketing office and a gateway to neighboring countries, adding that in 2013 infrastructure fund would get importance.

SMBC has taken place lastly in Istanbul Strait Eurasia Highway Tunnel Passage which will be built by Build Operate Transfer (BOT) which has investment budget worth $1,3 billion. The project will be built underneath Istanbul Strait for highway passage.

Banking sector increases its profit remarkably

anking Regulation and Supervision Agency (BDDK) announced that banking sector expanded its net profit 19.3 percent. According to the temporary data of the banks which is sent to the feedback of the BDDK, Turkish banking sector’s size of assets became TL1 trillion

335 billion 794 million as of November 2012. The total assets of the sector accomplished 9.7 percent increase to TL118 billion 99 million compared to the end of 2011. As of November 2012, as the biggest item, the loans showed balance worth TL774 billion 679 million and securities showed

TL273 billion 617 million. In this period, nonaccrual loans have increased 25.2 percent to TL4 billion 787 million. As of November 2012, while the sector’s net profit accomplished TL21 billion 786 million, the rate of profit increased 19.3 percent to TL3 billion 529 million over the same pe-

riod last year.

Made in Turkey Economic Newspaper, January 2013

Automotive sector optimistic for 2013 “The year 2013 will be also a normalization year in the aspect of automotive sector, noting that they predict the market in 2013 would accomplish paralleling in general trend of economy similar the market happened in 2012, Ibrahim Aybar, General Manager of Renault Mais said.

“In 2012, one of the most important issues which have affected the sector was slowdown in economy in a checked way within the framework of the policy to get soft landing in economic growth. The record growth which was enjoyed in 2010 and 2011 became in the length of unsustainable. In 2012, imports increase speed has reduced, exports – imports coverage ratio has raised and current account has also reduced in paralleling the expectations. Diminish in growth rate, so that limited increase in the national income has made a restricting effect in demand as in all sectors and let the market shrunk 10 percent over the previous year in the automotive sector,” Aybar said. Despite negativeness in the world economy and in particular stagnation in the European economies to which Turkey’s exports are made in the rate of some 70 percent, Turkey’s economy would focus on sustainable growth target in 2013, and growth would become some 4 percent, Aybar said. Toyota Marketing and Sales CEO Ali Haydar Bozkurt recorded, in 2012 addiction to oil and negative indicators which still maintain in the European economy had affected Turkish automotive sector directly. He added revision in tax rates also affected automotive market speed-

ing up. He foresaw that automotive market would reach by 800 thousand units in 2012, he added that they had scheduled the year 2013 as a transient year and sale target of 30-35 thousand units has determined we hope that we will accomplish this sale target”, he said. Bozkurt noted in 2013 along with interest rates’ reduction, consumers’ loans would raise and would reflect to the automotive sector positively. Bozkurt added that environmentally friendly vehicles should be encouraged, in addition every kind of stimulus packet ranging from manufacturing to consumption would motive automotive sector and make Turkey attractive in terms of investments. “Presumably our country would come into a logistics center for emerging markets regarding its position; all possibilities would be mobilized in order to new investments to expand in our country. In case, we can attract automotive investments to our country, our economy would gain an outstanding value added in terms of both additional employment, supplier industry’s development, exporting cars which are manufactured in our country,” Bozkurt recorded. Fiat Brand Director Okan Bas said that light commercial vehicles’ market last year accomplished number of 865 thousand featuring a historical record as for 2012; the market would reach by 780-790 thousand units. He noted tax revision’s effects in the commercial vehicle would be seen

more in 2013, developments either in the global or national economy the market would track a course under 2012. Hyundai Assan General Manager Umit Karaarslan said high interest of The Central Bank in order to cool economy and mutual policies, in addition deepening on the crisis in Europe were the essential factors that reduced growth speed, however interest reductions in recent months would show the positive effect within 4-6 months and in 2013 expansion would be experienced. He noted automotive market in 2013 would near to the year 2012. Karaarslan also said the new enacted leasing and franchising law would contribute positively to operational renting. Nissan Turkey Deputy General Manager Ilkim Sancaktar said, “If very important developments would happen in the sector’s dynamics, the automotive market would accomplish in the level of 2012 in 2013. 2012 and 2013 years will be the year we will experience some firsts. This year is the model transition year which will be applied first time this year; we will see together how to be affect December and first months of 2013. Some tax increase in 2012 was not reflected to the consumer prices. As Nissan, we also did not get tax difference. But in 2013, we think that tax increase will be reflected to the prices. New models in the market, activity in the fleet market, transitions between segments, foreign currency and consumer interest rates that are the factors should be taken

Suheyl Baybali, Chairman of Audit Board of TAYSAD

into consideration in the market that draw our attention as well. We consider the agenda of automotive would shape in movement of these variabilities’.” Ford Otosan General Manager Haydar Yenigun said, “Automotive market will rank second highest market despite all difficulties. In 2013, approximately will be the same with 2012.” Skoda Turkey General Manager Mahmut Kadirbeyoglu said, “Despite some negative conditions, the year 2012 should be accepted successful. Instead of 2012 which was accepted as an extraordinary year, when 2010 taken as base, a more mild growth was enjoyed and the total sales were 760 thousand 913 units, this year will be some over 2010 and some under 2011, so that the total sale figures show that the sector has left behind a successful year.”

Credit rating agency expects more acquisitions in Turkish banking sector

nternational credit rating agency Fitch has said foreign banks were likely to seek Turkish bank acquisitions in 2013 in an attempt to benefit from the country’s “strong economy and banking sector.” In a press release, Fitch said Turkey’s

banking sector’s “healthy credit fundamentals, market size (including a large bankable population) and the broadly favorable outlook for Turkey’s economy make it particularly attractive, adding that further consolidation of the sector was likely.

“Turkey’s medium-sized banks are the most likely acquisition targets because of uncertainty about the long-term sustainability of their operations as independent entities,” Fitch said. It said the country’s banking sector

had good liquidity, held up by a stable retail deposit funding base, low leverage, still wide margins by international standards and strong credit demand, however, warned that a return to rapid loan growth could lead to a build-up of risks in the system.

objectives for 2023 of Turkey which has focused on innovation, technological progress and investments in railways. He reminded that some 17 thousand GE locomotives are used across the world. “We share our knowledge and accumulation with TULOMSAS. We work together with the Turkish engineers and technicians in the production of state-of-the-art technological locomotives. Being a main center target is being born in the area of Turkey’s scientific and innovation, Simonelli, CEO of GE Electrictric, said. Simonelli, said annually there are

3500 to 4000 locomotive sales in the world.Simonelli replied the questions of reporters in Eskisehir where he came for the publicity and customer-supplier meeting of “PowerHaul locomotive” which was produced by the strategic cooperation agreement between General Electric and Turkey Locomotive and Motor Industry A.S. (TULOMSAS). Upon a question about what was the position of General Electric in the locomotive market, Simonelli said, “First of all, we are a producer of diesel-electric engines and we are the market leader in the world. GE has more than 17 thousand working engines all around the world at the

moment. When we look forward, we see a positive growth in the locomotive market. Railways are the best way to carry cargo. The system is the most effective as they are affordable as well as being environment friendly. That is why we are happy to have partnership with the TULOMSAS. This partnership will strengthen our existence in the Europe, North Africa, Middle East and Turkey.” Furthermore, Director General of TULOMSAS, Hayri Avci said that the PowerHaul locomotive has 9 percent less fuel consumption compared to its kinds. Avci noted that they targeted to produce 100 locomotives a year.

TULOMSAS – GE Electric partnership in locomotives production

press meeting was held regarding “PowerHaul locomotive” production between General Electric and Turkey Locomotive and Motor Industry A.S. (TULOMSAS). Lorenzo Simonelli, President and CEO of General Electric (GE), in his speech at the meeting said fuel efficiency would be gotten by PowerHaul locomotives in a great deal as well as obtaining low emission. He added that number of 50-100 unit locomotives was being scheduled per annum. Between 30 to 70 units of them would be exported worth $1,5 billion. Simonelli noted that the partnership would contribute to the

Istanbul Stock Exchange yields maximum profit

In November 2012, maximum monthly real profit was gained through Stock Exchange according to Consumer Price Index.

n November 2012, Stock Exchange, one of the financial investment tools, yielded the highest monthly real profit with the rates 1.79% and 3.09% according to Producer Price Index and Consumer Price Index respectively. According to Producer Price Index, investors of Gold (ingot), Euro, US Dollar and Deposit Interest lost by 3.65%, 3.25%, 2.13% and 1.15%. According to Consumer Price Index, the monthly real profit rate of investors of Deposit Interest was 0.11%,

while investors of Gold (ingot), Euro and US Dollar lost by 2.42%, 2.01% and 0.89%. Maximum real profit was gained by Stock Exchange investors quarterly, biannually and annually according to PPI and CPI. Investors of Stock Exchange made the highest real profit with the rates of 6.67% according to PPI and 6.14% according to CPI, quarterly. The real profit rate of Stock Exchange was 23.57% according to PPI and 21.74% according to CPI biannu-

ally. In the same period, Investors of US Dollar made the highest loss with the rates of 2.15% and 3.60% according to PPI and CPI respectively. In November 2012, financial investment tools were listed in descending order with respect to their yearly real profit rates as follows: Stock Exchange, Deposit Interest, US Dollar, Gold (ingot) and Euro. The real profit rates of Stock Exchange and Deposit Interest were 27.87% and 3.35% according to PPI, respectively, however in the same period US Dollar, Gold

(ingot) and Euro lost by 4.74%, 5.04% and 9.65% respectively. According to CPI, the real profit rates of Stock Exchange and Deposit Interest were 24.54% and 0.66%, whereas in the same period, US Dollar, Gold (ingot) and Euro lost by 7.22%, 7.51% and 12.01% respectively. In 2012, The Istanbul Stock Exchange (IMKB) gained 52.55 percent, surpassing other investment tools in a year when the Turkish Lira also valued against the U.S. dollar.

TAYSAD considers to open an office in China “Turkish automotive sector has proved its quality, Li Jiang, Trade Attaché of Chinese Consul General to Istanbul, said. “We aim to get supply needs of Chinese automotive industry from Turkey,” he noted. According to the statement from Association of Automotive Parts & Component Manufacturers (TAYSAD), exporting 70 percent of its export goods to European countries, Turkish automotive industry set to eye the Chinese market which is one of the quickest growing markets of the world in the scope of market diversification of the Turkish automotive supply association. In this context TAYSAD is planning to open an office in China in 2013. So TAYSAD has taken the first step by holding a workshop about China. Briefing its members about developments in China, TAYSAD has lied on table how to cooperate with Chinese manufacturers. Attending to the workshop of TAYSAD, Li Jiang, Trade Attaché in Chinese Consul General to Istanbul, said; “Turkish automotive sector has proved its quality. We aim to meet automotive supplies of Chinese automotive industry from Turkey.” “In 2012 a trade agreement was made between the two countries for worth $10 billion 640 million. Some $4 billion 320 million of it

was realized, we want to improve trade more,” Li Jiang said. Li Jiang reminded $420 million worth of investment made from China to Turkey, as for Turkey $130 million direct investment made in China; in 2020 trade volume between in the two countries would reach by $100 billion, noting that they would like to expand their imports in the automotive industry. In his speech at the meeting Suheyl Baybali, Chairman of Audit Board of TAYSAD, said, “Today, we experience troubles regarding exporting to a single market in our EU centered exports. Because of the crisis in the EU, we have some constriction in our exports. We can reduce our risks via diversifying our markets. For this reason, we have chosen Chinese market as a target market.” Featuring one of the speediest growing countries of the world, China is foreseen would be bigger economy than the USA in 2030 and become the most important global power. TAYSAD tries to raise its business relations with this country to the upper level. The year 2013, regarding being “Turkish Culture Year” in China, foreseeing business relations would raise upper level; so TAYSAD is planning to open an office in China in 2013.

Turkey-Canada trade relations up Enes Kula, Executive director of TCCC

Turkish tradesmen explore new destinations and Turkish exportation focuses on North America, says executive director of TCCC Enes Kula.

nes Kula, the Executive Director of Turkish Canadian Chamber of Commerce (TCCC), added that the trade figures between Turkey and Canada have changed in favor of Turkey after a long time. Also being the Toronto investments region representative of Business Development Bank of Canada (BDC), Kula assessed the trade relations between Turkey and Canada and informed. Kula stressed that Turkish tradesmen started to succeed more in trading lately and said, “Traders in Anatolian part of Turkey produce, sell and export now.” He added that in the past decade, the integration of Turkish tradesmen with the globe was impres-

sive. He mentioned Turkish Airlines’ politics on extending its destinations which cleared the path for Turkish businessmen, so investors and businessmen could go abroad and carry on with their trade in different countries. Kula indicated that 60 percent of Turkish exports were focused on European markets however since the economic recession; Turkey changed its route and started to focus its exportation to North Africa and North America. He said that when the free trade agreement was signed between Turkey and Canada after negotiations, the trade relations between two countries would be shaped differently.

Made in Turkey Economic Newspaper, January 2013

Turkey achieves record-high of hazelnut exports T

urkey achieved a record-high figure in hazelnut exports with 265,000 tons in 2012. Turkey accomplished a record-high figure of hazelnut exports in 2012 accounting for 265,000 tons, according to data provided by the Trabzon Commodity Exchange in the Black Sea Region, the heart of the hazelnut sector in Turkey. Trabzon Commodity Exchange announced that 265,000 tons of hazelnuts had been the record-high export figure in the history of Turkey’s hazelnut exports, adding that Turkey earned $1.8 billion which had been the second highest income compared with export revenue gained in 2005. In 2005, exports of hazelnut were worth $1.9 billion. Turkey holds a large part of world’s hazelnut production and export, said Trabzon Commodity Exchange, adding that Turkey was exporting hazelnuts nearly to 100 countries.

Vegetables, fruits production up in 2012

n 2012, cereals production decreased by 5.2% and vegetables and fruits increased with rates of 0.7% and 4.8% respectively. Production quantities of cereals, vegetables and fruits in 2012 are occurred approximately as follows; 33.4 million tons for cereals, 27.8 million tons for vegetables and 18 million tons for fruits. Cereal production decreased in 2012 when compared with the previous year. In 2012, cereal production decreased with a rate of 5.2% and become 33.4 million tons when compared with the previous year. Wheat production decreased by 7.8% to 20.1 million tons, barley production decreased by 6.6% and became 7.1 million tons; rice in the husk production decreased by 2.2% and became 880 thousand tons. Maize production increased by 9.5% and became 4.6 million

tons, when compared with the previous year. In the pulses group, an increase occurred in chick peas by 6.3% and production became 518 thousand tons, red lentil increased 7.9% and became 410 thousand tons, potatoes, one of tuber crops production increased by 3.9% and became about 4.8 million tons. In the group of oil seeds, sunflower production increased by 2.6% and became 1.4 million tons. Tobacco production happened 80 thousand tons with an increasing rate of 76.1% and cotton (raw) production decreased by 10.1% and approximately became 2.3 million tons, sugar beets production decreased by 7% and became 15 million tons. Vegetable production increased in 2012 according to the previous year. In 2012, vegetable production occurred approximately 27.8

million tons with an increasing rate of 0.7% when compared to the previous year. When examining production of subgroups of vegetables, root and tuberous vegetables production decreased by 11.2% while vegetables not elsewhere classified with a rate of 0.6% and vegetables cultivated for their fruits increased with a rate of 2.6%. The production of some important crops in vegetables; increments happened in tomatoes production by 3.1%, in carrots by 18.6%, in pepper (green) by 3.5%, in pepper (bell) by 5%, in pepper (for processed) by 2.5%, in melon by 2.5% and in watermelon by 4.1% respectively, while decrements happened as 22.1% in dry onions, 2.7% in eggplant production and 4.8% in squash production, respectively. Fruit production increased in 2012

when compared with the previous year. In 2012, Turkey’s fruit production became approximately 18 million tons increasing by 4.8% when compared to the previous year. When examining productions of some important fruits, increases were seen in apple figures with a rate of 7.8%, in apricots by 16.9%, in peaches by 12%, in plums by 11.7%, in cherries by 7.4%, in pomegranates by 44.8% and in olive production with a rate of 4% respectively, when compared to the previous year. In the citrus group, orange production decreased by 4 % and in lemon production by 10.1%. From nuts, hazelnuts production increased by 53.5% and pistachios by 33.9%. Grape production decreased by 2.6%, while fig production increased with a rate of 5.6%.

Green tea production increased by 1.5% became approximately 1.2 million tons. Cut flower production increased in 2012 compared to the previous year In 2012 cut flower production increased by 3.2% when compared to the previous year. Carnation, gerbera daisy and rose (cut) production cover 79.8% of the total cut flower production. When the shares of these flowers in the total cut flower production are examined, it is seen that carnation has a share of 57.8%, gerbera daisy 11.6% and rose (cut) has 10.4%, making the first three important cut flowers. In 2012 carnation and rose (cut) productions increased by 5.8% and 6.1% respectively, while gerbera daisy production decreased by 8.3%, when compared to the previous year.

Turkey’s olive exports up 11 percent Turkey's olive exports were up 11 percent in first two months of the exporting season.

urkey’s olive exports were up 11 percent in the first two months of the export season (October and November) over the same period previous year. In the first two months of the export season, Turkish exports of olives were 12.2 tons. In this olive exporting season begins on 1 October 2012, in the first two months olive exports reached by 12,2 thousand tons with 11 percent rise as amount, as for the value raised by worth $19 million over the same period last year. This season additional countries in the olive exports were Algeria, Guinea, Tanzania, Uganda, Colombia, New Zealand, Lithuania, Malta, Albania, Kuwait, Uzbekistan, Tajikistan. In the first two months the highest increase in exports was enjoyed in Jordan with 393 percent, Turkmenistan with 138 percent and Canada with 109 percent rise respectively.

Made in Turkey Economic Newspaper, January 2013

Turkish Central Bank Governor- ‘Governor of the Year’

Turkey achieves sustainable economic growth and stability

urkish Minister of Environment and Urbanization Erdogan Bayraktar said Turkey achieved a major economic progress in the past few years. He added, "Turkey raised its national income to $774 billion from $230 billion since 2002."

Bayraktar went on that Turkey accomplished a fast-paced growing and developed lately, noting that Turkish exports reached $152 billion. Bayraktar said that they would do their best to keep this growth and highlighted that Turkey broke a historical record in exports area.

"We made the record of Republic time in the field of exports. In 2002, total exports were $36 billion and in the end of 2011, this rose to $135 billion. Despite the global economic recession, in 2012, we scored $152 billion of exports," he emphasized. "We have reduced the rate of inflation. We have achieved

the lowest rate of inflation in 2012 with 6.16 percent. All these great success belong to our country," he stressed. Bayraktar highlighted that Turkey was developing and concluded, "Turkey has been in a big move of development. It's growing and improving. the country has been in a huge and positive change."

Turkey’s largest lender Isbank ready for foreign challengers The increasing interest of foreign lenders in the Turkish market will help improve competition, says Isbank Chairman Adnan Bali. The crisis in the eurozone is still posing risks for the local banking system and the overall economy but the country will grow more than 4 pct this year, he foresees. More foreign lenders in Turkey will improve the local competition, supporting efforts to make the country a finance hub, according to the chairman of Isbank, largest local lender by assets. Structurally strengthening capital markets, a decrease in the gray economy and sectorial dynamism have revitalized foreign lenders’ interest in the market, Adnan Bali noted. “I think that the activities of foreign banks in Turkey will positively affect the local sector and raise the level of competition, while contributing to the perception about Turkey as a finance center in its region,” Bali added. Turkey’s Banking Regulation and Supervision Agency (BDDK) approved

last month The Bank of Tokyo-Mitsubishi UFJ’s application to launch a Turkey branch. This was the second such approval by the regulator after Lebanese Bank Audi’s Odeabank, which last year became the first new bank in Turkey since the crisis in 2002. Several Gulf banks have largely made their interest in Turkish lenders public. Despite the ongoing Eurozone risks, Turkey will differ from many economies with more than 4 percent growth, Bali forecasted. Still, the euro crisis will still be the main source of uncertainties for the global economy, with the ongoing problems in Greece, Ireland, Italy, Portugal and Spain, he said. “The weak outlook on the global economy poses risks for the Turkish economy as well as any other country and this brings to the agenda expectations on some monetary ease by the leading central banks.” However the effects on Turkey would be limited, he said.

Another international rating agency may upgrade Turkey to investment level, following Fitch’s move in November, which granted the country its first investment level after 14 years. Due to the small amount of domestic savings, Turkish banks generate financing with foreign loans and by issuing bonds abroad, the banker noted. “This increases fragility for the Turkish banking sector and the economy in general appears against any shift in the route of international capital flows.” An increase in the ratio of domestic savings is crucial for sustainable growth in both the banking sector and the country’s overall economy, he noted. “Thus we think that the sector will tend to products that will encourage savings,” he said. The lender, with assets of 166.8 billion Turkish Liras according to official thirdquarter figures for 2012, plans to open 40 to 50 branches this year. The bank aims at to increase its market share and profitability, Bali said.

Turkey contributes worth $2.3 bn for development abroad Turkish Deputy Prime Minister Bekir Bozdag said that Turkey had aided for development abroad worth $2.63 billion to date.

Continued From Page 1 ozdag reminded Turkey's aid efforts in Somalia were financed almost completely by private donors in Turkey, adding that Turkey has also opened an embassy in the country and the Turkish Airlines had launched direct flights to Mogadishu. Bozdag said Turkey's international development and cooperation agency TIKA had 33 coordination offices in more than 100 countries, noting that

TIKA has enlarged both its number of country and activity areas over 2002. “When we look at donations from Turkey through TIKA, we see that in 2002 were some $86 million, in 2012 sum of official development donations has surged by $2 billion 263 million. By 2002, while TIKA has repaired and put into 2 thousand 241 works and projects into force, as for after 2002, 10 thousand 86 projects have been accomplished. The efforts and activities made via TIKA are met with appreciation in

all countries. Chairman of the OECD’s Development Assistance Committee (DAC) has invited Turkey to DAC and Turkey’s assistances in this area continue to become honor of Turkey and allow Turkey become powerful abroad,” Bozdag recorded. Bozdag also recorded; in 2011, 805 projects of TIKA were accomplished in Caucasia and Central Asia, 425 ones in the Balkans and 202 in Mideast and Africa. He also noted those who see TIKA abroad remember Turkey.

European Commission tries to unleash Europe’s entrepreneurial potential

o return to growth and higher levels of employment, Europe needs more entrepreneurs. With 4 million new jobs formed every year, new companies, especially small and medium sized enterprises (SMEs), generate the most new jobs in Europe. Therefore, European Commission Vice President Antonio Tajani presented an action plan to support entrepreneurs and revolutionise entrepreneurial culture in Eu-

rope. The plan stresses the key role of education and training to nurture new generations of entrepreneurs, and includes specific measures to help budding entrepreneurs among young people, women, seniors, migrants, and the unemployed. The high level of EU unemployment leaves untapped human resources, especially amongst women and young people. The plan also tackles obstacles to entrepreneurship such as ambitious mea-

sures to facilitate startups and new businesses, make transfers of business ownership more successful, improve access to finance, and give honest entrepreneurs a second chance after bankruptcy. European Commission Vice President Antonio Tajani, responsible for entrepreneurship and industry, said: “To make it very clear: more entrepreneurs mean more jobs, more innovation and more competitiveness. Becoming an entrepreneur and mak-

ing a vision come true takes a lot of personal risk and effort. Entrepreneurs are the heroes of our time. Entrepreneurship is also the most powerful driver of economic growth in economic history. Therefore, we want to make entrepreneurship an attractive and accessible prospect for European citizen. This is the key message of our action plan. If we can unleash Europe’s entrepreneurial potential, we can bring back growth to Europe.”

Current accounts deficit down to $45.2 billion

urkey’s current accounts deficit was down to $45.2 billion in the first eleven months of 2012, according to official data. The Central Bank said that the gap was down fell by $25.1 billion when

compared with the January-November period in 2011. The year-on-year deficit in November fell 33.4 percent to $4.5 billion. However, it increased to $4.5 billion from $1.9 billion in October.

Vakıfbank said in a note to investors that the figure was slightly below the market expectation. The goods account gap widened rose to $5.5 billion while the services account posted a $1.2 billion in surplus.

he Banker, a prestigious English-language monthly operated by the Financial Times, has chosen Turkish Central

Bank Gov. Erdem Basci as the world’s and Europe’s central bank governor of the year. The magazine said this year’s awards were granted to officials who successfully managed

the economy through the turbulence in the economy in 2012. The magazine praised the Central Bank’s role in aptly managing foreign inflows. Canada’s Mark Carney, the Philippines’ Amando Tetangco, Saudi Arabia’s Fahad

al-Mubarak and Angola’s Jose Massano were picked as the best governors in the Americas, Asia-Pacific, Middle East and Africa, respectively. Mexico’s Agustin Carstens was chosen as the central bank governor of 2011.

Turkish bank plans massive loan for Greece

urkey’s state-run Ziraat Bank, also active in Greece, has suggested loaning conditional credit to Greek farmers, industry workers and businessmen in a project to support the Greek economy, according to a statement sent to Greek officials from Turkey’s embassy in Athens.

Turkey aims for Ziraat Bank, which has affiliates in four cities in Greece, to extend credit to Greek citizens in a time when Greek Banks have limited their credit capacity due to a decrease in government bonds during the ongoing economic crisis. If the Greek government accepts this suggestion, Ziraat Bank will allocate credit worth between 40 and 50 million Euros in the first phase. This project will first apply to the pilot area of West Thrace, where the Turkish minority is largely

situated. The bank will issue loans to Greek citizens via its two affiliates in the region, Xanthi and Komotini. All Greek farmers, industry workers and businessmen could borrow credit upon meeting required conditions. The General Manager of Ziraat Bank, Huseyin Aydin, said the lender was continuing its routine credit procedures in accordance with banking rules. They would provide special credits to Greek citizens if the Treasury assumedresponsibility and refunded Ziraat’s financial loss. The

cabinet has the last word on approving the decision, Aydın said, telling that the lender has not received such a demand. Turkey will cooperate with the United Nations Development Program by providing expert services in approving credit, assisting Greek citizens in completing the credit application and providing them with information. Additionally, Turkey could seek a partnership with a Greek bank.

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

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

Foreign automakers increase their investments in Turkey

Made in Turkey Economic Newspaper, January 2013 Made in Turkey Economic Newspaper, May 2012

Turkish Foreign Minister Ahmet Davutoğlu

Major foreign autopartnership manufacturers, like U.S.of FordFAO and Japanese Mazda, Strategic and ACP Ministry to theirhold Farmers plant 20 Nissan and Toyota will increase investmentstender in the Turkish market against andvolatility. malnutrition Export volume in 2012 despitehunger the global economic pct more garlic for third Istanbul airport index increases M The largest leap will be nent. French car makers prefer to buy brand new and lack of maintenance Continued From Page 1 azda, another with the Skyactiv motor like PSA Peugeot Citroen cars due to their safety costs. food insecurity retary-General Ban Ki-moon at Fund, Trust Funds, the Global Renault expect a lull Japanese auto Mazda3, which will come andandmalnutrition, hunger, natural resourcthis event. Environment Facility and other maker, plans to to the Turkish market in in sales. Such stagnation that national delays arepartbeairport. Sustainable intensification Tayyip Erdoğan firstinternational an- Noting and ISTANBULAtatürkAirport was cur- andat the es management climate boost its offerings in Tur- 2013. The Mazda3 will could also affect auto pro100 million capacity nounced that the governcoming more frequent at Transportation Minister rently change functioning at douchallenges,” said plans FAO forSpecific key by focusing on new have a 1.3 liter diesel en- ducers’ the Turk-areas for collaboration ners. will hold a tender for ment planned to build a the Atatürk Airport, MinisBinalı Yıldırım says the ble its Director-General capacity, because ofJosé“We under the FAO-ACP agreement Graziano da Silva reaffirmed motor technology. Mazda gine, which will be capa- ish Graziano market. of include a third promotion new airport, capableFAO’s of ter Yıldırım the daily government is planning to ongoing renovations and the construction da Silva. will of food support to said, national efhas been relatively quiet in ble of using only 3.3 liters Meanwhile, there has airport in Istanbul within holding 100 million people, flights at the facility have hold a tender this year for capacity restructuring at On behalf of the ACP Group, security; promotion of sustainforts to move towards more inTurkey over the past five of gas per 100 km. been a drop in second this year,” Yıldırım added. in Turkey’s started exceeding the construction of a third the airport. Secretary General hand Mohamed of crop and largest tensive,already but sustainable producto six years . Now, howev- “We plan to boost Mazda auto salesable in intensification TurAt the city. 1,000. airport for Istanbul to ease “We are directing some Ibn Chambas said: “Building on livestock; promotion of fishtion systems that are resilient to er, the company has plans sales from the current key with all the attractive Istanbul’s Atatürk “Building a new runway the air traffic at Istanbul’s flights existing to other cooperation, airwe shall eries and aquaculture producclimate change.”In many ACP to revamp its technology 2,200 vehicles per year to yearend sales and offers. Airport hostedcountries, 20.3 herethe is processes not the solution,” two main airports. p o r t sbe, acting as strategic partners tion; food crisis early warning of cliand bring forth a new era a minimum of 10,000 per Mersin’s Auto Salesmen AO and African, million internaYıldırım said.exacerbating “The cost of Passengers go the through a n on d priority areas for action to systems; detection and preven- mate change are in auto production, said year. Turkey will become Foundation Head (MODCaribbean passengers a planned runway security control atand Istan-Pacific we will about freedom from hun- Kış tion of he transboundary tional plant and the risks already parallel facing people. Nurkan Yurdakul, manag- the hubbring of Mazda sales to ER) Hüseyin said and had interna- is 5 billion Turkish Liras. bul’s (ACP) Atatürkgroup International r ov i d e of states pare ger and Yurdakul. poverty.” thinks there willanimal ing director at Mazda Mo- Europe,” added be a pick-diseases; disaster risk We see this in the Sahel, the tional commer- The ministry was also new airport more optoAirport. becomeA strategic partners Memorandum management; development of Horn of Africa and other parts Mazda The currently has 30 upof inUndertor Turkey. second-hand auto cial flight traf- working on renewing parkfor against Istanbulhunger will and por tuniinplanned the fight standing was signed by after Chamimproved “We plan to introduce our distribution centers in sales the New Year. food products, stan- of Africa, for example,” he said. fic of around 8 ing to ease the7 traffic, he for have theand capacity hold ties poverty for thetosustainable da Silvatheat New dards marketing; food99and Island but and onlyGraziano 12 of “With new technology Mazda Turkey,bas 7and 27 6“The 8 1 Small 53 24said. 45 “Some 62 Developing 9 of36the 79de-1 8Year, 4 3 3 4 5 8 2 16 51178,817 in 2010. also 100 million people. scheduled management of natural resourctheactive. 7th Summit of ACP nutrition education; and promoof the Caribbean and CX-5 to the Turkish mar- these are The commanyLeaders of the special offers 36 58 figures 7States 3 29 lays 25 19are 76related 54 81with 63 that,” 47 8 9 1 5 2 7 8 1 4 3 64 92These l ig ht s,” Transportation f of esTurkish plans to increaseEquatorial this and promotions ketinas the soon79-member as this April,”blocpany in Malabo, Guinea will tion come of sustainable forest manSouth Pacific are particularly 9 22 55op-4 6 1 5 2 9 7 2 8 39 73 were 14 411.8 Minister Binal Yıldırım Y ı l d ı r ı m 4 16 he 76 said. 87 33 The 98 1airport countries. 5 8 milYurdakul told . “After number.from 13-14 December. to The an end and agement. there6 are ACP vulnerable to the rise of sea lev-9 6 7 2 4 3 lion and 94,887 erator is working new told reportsaid on April 21 that the 8 1 7 9 4 6 2 3 5 Under an agreement signedDespite in Group 7 9 3 6 1 45 on 88 a21 7 8 5resources 3 4 2 for 9 proj1 6 ambitious investthis model we will launch alwaysDevelmore second-hand includes 40 Least Financial els5 due to global warming. This parking area at the military government was planning ers in Istanrespectively for doDecember 2012, “FAO the plans, 2012 could auto sales in the summer,” 2 6 7 1 55 37 48 82 1 2 38 69 71 52 47 38 94 16 5 3 9 9 6 4 the our two liter diesel mo-and ment agreement will is leading to a lossThe of construcproductraffic. The airport nearby. bul. oped Countries and 36 Small ects ounder p e 4n - 5 mestic to open a of tender for theGroup Secretariat the ACP 53 plot 3 1 9 87 mobilized 24 65 73 9tive year for auto he said. He did, tor Mazda6 that uses our be a rough howev1 land 44 and 98 reducing 89 21 56 the 77 62 3 1identified 2 6 8 and Island States. be about ing of the Trump Towers hosted more than 36 mil- tion work there is resilconstruction of atheir thirdcollaboraair- He said these shall strengthen Skyactiv technology at the makers,Graziano especiallydathose say the overall 2 3 funding 7 8 1 4 3sources 91 85includ57 69 4ience Silva er, isMall also repthrough he2 9 74ofto11coastal 66 28 ecosystems,” 39 minister 74 55 83also 2trend 6 passengers lion in 2011, acfinish, the were short or medium-term in Istanbul on April port in Istanbul. tion on theresenting European United conti- Nations endtoofbetter 2012.”address continuing showed Secthat customers ing the European Development added. 9 8 3 7 5 2 1 4 6 4 8 6 5 2 1 7 9 3 7 2 said. 3 5 1 8 6 4 9 6 1 9cording 7 3 to 8Yıldırım. 2 4 Yıldırım said Istanbul’s measures to relieve traffic 19, Prime Minister5 Recep

ASTAMONU – There has been a 20 percent increase in the planting of garlic bulbs in the region compared with last year, according to Taşköprü Garlic Producers Union President Abdullah Eligüzeloğlu. Because of prevailing weather conditions, Eligüzeloğlu explained that there had been a delay in garlic planting as temperatures were in the normal rage and there was sufficient rainfall in the Taşköprü region in Turkey’s Black Sea coast near Kastamonu. These factors helped to foster quick growth, he told Anatolia news agency. Eligüzeloğlu also said that because of the influx of Chinese garlic last year, local producers had been hurt. In order not to suffer a similar outcome this year, they plan to pay a n November 2012, according to foreign trade indices, with the 2003 visit with the Kastamonu Member of Parliament to Turkey’s Agriculture base year, produced by the provisional foreign trade data, compared Minister Mehdi Eker, to ask for the implementation of a customs tax on the corresponding month of the preceding year, the overall export importedto garlic. unit value and import unit value indices decreased by 1.7%, 3%, respectively, according to the statement of Turkish Statistic Institute (TurkStat). In the same month, compared to November 2011, while the export unit value index for agriculture and forestry, fishing, manufacturing de4 5 7 9 9 3 2 6 5 78 46 83 11 2 6 45 82 45 91 76 23 19 38 7 creased by 8%, 7.3%, 1.4% respectively, the export unit value index for Difficulty level: 9 Difficulty level: 6 MEDIUM EASY EASY MEDIUM mining, increased by 1.7%. MEDIUM EASY 1 4 5 2 3 6 9 8 7 9 5 2 8 7 3 4 1 6 Crossword Puzzle Solved Crossword Puzzle Solved 2 9 6 4 3 1 7 8 5 1 3 9 2 5 4 7 8 6 In November 2012, the import unit value index for agriculture and for8 3 6 1 7 9 5 4 2 68 4 9 4 7 1 3 8 2 5 33 3 53 8 6 21 1 567 5 919 9795 2872 62 8 8251 1536 6248 745 6227 979 363 7491 14 4 7 84 1 6 4 estry, mining and manufacturing decreased by 12.9%, 3.5%, 1.3%, re9 7 2 5 8 4 6 1 3 89 6 7 217 8 2 443 6 5 232 3 9 368 7 7 1 25 7 5 8 18 4 9 146 9 1 563 5 4 9 33 2349 725 8199 9761 5544 8618 6135 4272 86 spectively, as compared with the corresponding month of the preceding 4 1 5 3 2 6 7 8 9 26 8 3 552 9 8 268 3 9 113 1 4 475 8 8 6 41 3 3 7 76 2 7 691 7 2 949 4 5 5 74 1416 2765 5877 6339 9481 1892 2928 5356 43 year. 5 2 1 4 9 3 8 6 7 57 1 1 135 7 9 924 4 4 769 2 7 686 5 Foreign Trade Indices 5 8 18 4 2 5 39 9 4 328 6 3 216 3 7 8 95 667 5978 3322 2643 1835 4157 8481 2714 99 The overall export volume index increased by 26.9%. 793 9269 6647 2165 7312 5853 3974 4581 8428 1 642 8388 3369 7971 512 2477 3218 9594 1646 5 9 1 3 6 8 4 7 5 2 2 6 9 5 8 4 3 7 1 European 2012, automobile market contracted byindex 7.3 percent in import volInheNovember the overall export volume and the 961 3472 4868 5584 1793 8679 2245 6152 7331 9 751 9573 484 8198 6489 1261 5326 7237 6952 3 the first quarter of 2012 from the same quarter in 2011, accord7 9 6 3 2 8 1 5 4 5 9 1 4 6 3 2 7 8 ume indices increased by %26.9, 16%, respectively, compared to the cor132 2553 7781 1347 3868 9212 8456 5674 6999 4 119 5724 791 9766 4528 8339 7434 5625 8863 2 ing to the data released by the Automotive Distributors Foun3 8 4 1 9 5 6 2 7 7 2 6 8 9 1 4 3 5 responding month of the preceding year. 7 2 3 5 1 8 6 4 9 5 6 1 9 7 3 8 2 4 9 8 3 7 5 2 1 4 6 4 8 6 5 2 1 7 9 3 dation (ODD). Auto sales in the first three months of 2012 registered 3 6 9 2 1 7 4 5 8 32 69 24 41 96 75 58 87 13 Calendar adjusted the overall export volume index and the overall im5 2 1 7 4 6 8 9 3 6 83 43 24 87 92 55 76 19 1 4 7 9 2 5 8 6 3 1 6 5 8 4 9 7 2 1 3 at roughly 3.4 million, down from 3.7 million in the first three months Difficulty 4 58level:9914 36 65 71 47 83 12 2 2 44 82 65 31 56 93 79 18 7 port volume index increased by 13.7%, 8.6%, compared to the correof 2011. FIENDISH FIENDISH HARD HARD FIENDISH HARD sponding month of the preceding year. While Calendar and seasonally The contraction, which began in the fourth quarter of 2011, Luxembourg on import thecontinued subject. Davutoğlu said the govern11 993 589 272 855 734 347 428 166 6 42 119 264 945 832 513 76 869 538 7 adjusted export volume index and decreased by %4.8, volume index in the ment first quarter of 2012. Davutoğlu said if human culture wanted to make Is74 428 156 363 691 547 989 715 832 2 58 725 316 668 175 27 949 383 491 4 increased by 4.9%, compared to previous month. Germany witnessed a slight 1.3 percent increase inencompassed sales, while Italy tanbul a center for politics were to be in three year, In the same month, by the corresponding month of the preceding 37 662 745 828 489 116 251 593 374 9 63 834 977 389 791 454 618 125 252 6 Francewitnessed a 21 percent andcities, 21.6 percent drop, respectively. andand diplomacy as a “U.N. city.” “We Istanbul would be one of and while the export volume index for agriculture and forestry, mining 28 874 393 736 247 651 112 969 485 5 27 341 525 157 469 641 82 998 376 3 Portugal, at 48.4 percent, at 32 Itpercent, registered the want allmanufacturing countries’ flagsincreased to and waveGreece, inby 14.9%, them. was crowned the European 30.3%, 27.8%, respectively, export sharpestIt’s drop in sales. Other countries that saw a contraction include Istanbul. a diplomatic perspecCapital of15.8%. Culture in 2010. 85 141 462 519 974 328 733 256 697 8 99 466 758 232 323 85 167 451 714 9 volume index for fishing decreased by Belgium, Slovenia, Holland, Ireland, At Denmark and Sweden. Con- meetthe annual ambassadors’ tive. 59 216 637 985 562 893 474 341 728 1 84 698 131 593 916 78 24 537 645 2 In November 2012, the import volume index forestry, versely countries that saw a marked in for theiragriculture auto sales and ingincrease held in Istanbul, Davutoğlu said “We aim the to make Istanbul a U.N. mining and manufacturing increased by 43.5%, 5.7%, 18.5%, respec66 737 928 644 313 289 895 172 551 4 75 557 889 411 244 366 393 212 967 8 were Iceland, at 101.1 Romania, at 44.3 percent; Finland, he was proud to giveand Istanbul Mayor center for issues of percent; mediation, tively, as compared with the corresponding month of the preceding year. 93 385 811 457 128 972 566 634 249 7 11 272 692 776 58 939 431 644 883 5 at 34and percent. peace issues concerning the fu- Kadir Topbaş the year 2011 award ture of humanity,” Davutoğlu said. honoring a Turkish statesman’s con42 559 274 191 736 465 628 887 913 3 36 983 443 824 687 192 55 776 129 1 “We agree with the U.N. on these tributions to diplomacy. matters and determined we have an At the ambassadors’ conference, important place [in these discus- Turkey signed an agreement to be the host country for the Cooperation sions].” The foreign minister also said the Council of Turkic Speaking States government hopes Istanbul will be- (CCTSC). come a center for finance, a main Davutoğlu said the CCTSC headcenter for global economic influx quarters will be in Istanbul under isiting Africa by the or- with mayors, representatives of astonished due to owning rich gold the construction sector and he said, and a main station for transporta- the agreement, contributing to the ganization of Gaziantep economy establishments and bod- and uranium beds which have left “Because people live in huts and tion lines. He said Turkey has al- effort to make Istanbul a center for ANKARA Turkey might revise its 4 into hunger and pov- mud-bricks homes. As long as rich- ready had talks with Switzerland international organizations. Enterpriser - Businessmen ies as be wellforced as touringtosome facili-down these people n opportunity for profit- also surprise by affordable pricNKARA Economy Minister Zafer Europe showed that the affects of the Euro- said. Association (GAPGIAD), the busi- for ties.2012 if the debt crisis in erty,” Konukoglu ness will increase we saw that an percent growth target able business, full access es! Çağlayan says he expects $150 billion pean economic crisis are waningEurope and that the nessmen committee negotiated for “When said Africa we looked at He stated that people in Burkina expansion in the construction secto global furniture trends Distinguished for high-quality in Turkish exports for the year 2012. European markets are bouncing back. continues, says Deputy PM Babacan saystofor theFaso first time. cooperation and investment pos- through some hesitation date. needed water to survive, drill- tor would happen.” and a close look at the rich con- materials and original designs, The Import Expectations Index and the Exsibilities. GAPGIAD Executive However, after fetching we have ing water well was cost for this He also negotiated about cotton, tent of the Turkish furniture mar- Turkish furniture products are port Expectations Index went up for the Inincrease the second quarter, the Export Continued From Page 1both on Expectations various Board Member Mahmut Konuko- seen that Africa waitsintothe be import discov- taxreason theretextile was need of drilling noting that trade could be considket... renowned for the good price/cost second quarter of 2012, according to the ForSurvey predicted that exports to all country of 4they percent and we the could rise in cigarette glu“Growth said that paidina2012 visitwould to mean ered. that After products going there machines.prices, he ered with the country. With more than 350 exhibitors balance. Operating in an effective groupings would go up, in comparison with eign Trade Expectations Survey for the quar2012 would have to be asbusinessgood a yearhave as 2011, added. Burkina Faso with a ten seen everything clearer. We Konukoglu said in the region an Konukoglu advised Turkish busilast quarter, when the survey only expected terif released by the Economy Ministry. IMOB’13 – the 9th Istanbul Furand professional manner, Turkish better,” said Babacan said there likely to an men not committee for 5Babacan days. at the Independent saw how people live inalso poverty and was intensive andbe demand expansion nessmen visit the country to Turkish Deputy PM would Ali Babacan The Export Expectations Index increased by exports to Africa and the Turkic republics to niture Fair will be opening the furniture companies always offer Industrialists’ Businessmen’s improvement account defDuring the visit,andthey negotiated Association scarcity. In fact, we wereinsoTurkey’s much current could be experienced especially in negotiate for businesses. go up. 17.1 points from 97.9 to 115 for the second doors of the finest home furnishbest quality at best prices. (MÜSİAD) meeting at the Rixos Hotel in An- icit and in the past four to five months they specific to the Turkish case. quarter expectations were up once again. The quarter of 2012 and the Import Expectations Imports from Asia strong ings, interior designs and furTurkey is where all markets join! kara. had seen substantially more direct investment Meanwhile, in evaluating 2011 and spellsurvey also found that the greatest issues facIndex also witnessed an 11.1 point increase Similarly, the Import Expectations Survey niture trends for 2013 between Turkey is a strategic location for Inflation target realistic without a serious outflow of capital from Tur- ing out its 2012 expectations, MÜSİAD said ing firms were high energy costs, followed by ustafa Bayraktar,– Chairman of sons which affect thefrom demand, Bayraktar from 104.6 to 115.7. predicted that imports from Europe, India, 29th January 02nd February in all markets Europe to Asia, The current inflation rate in Turkey was key. Turkey’s growth costs rate was five times that of high raw material and high transportathe Turkey’s Automotive Dispointed out that consumer purchasing “We will easily be able to achieve $150 bilIndonesia, South Korea, Japan, other Asian Istanbul Expo Center, Turkey. from Middle East to Africa. around 10.45 percent, but a 5 percent inflation The Turkish Central Bank had sold a large the U.S. and Europe and had surpassed other tributor Association (ODD), power and confidence would deliver be lowerfast lion in exports,” said Economy Minister Zafer anddollars, the U.S. increase com- in tion costs. Why Turkish Furniture? Turkish companies target was certainly achievable, Babacan said. countries amount of he would said. “The volatility BRIC countries bringing it on par with China. Minister Çağlayan is currently in the U.S. compared with the last year. said that the automobile and lightweight Çağlayan in inflation a written reading statement following the pared to previous quarters. While lastdeTurkey is a country that makes and on time! the lira is less than what you see in in the other This high was, in his opinMÜSİAD praised Turkey’s employment meeting withalso businessmen to promote Turcommercialfurniture! vehicle market which broke Opposite of foreign currency rise, whichand release of the results. He noted that importers’ quarter, survey takers expected a drop in imProximity to all markets ion, temporary and not a result of monetary veloping countries,” said Babacan, adding that record saying unemployment was equivalent key’s new incentive system. was expected to affect the demand, did record with the sales of 864,439 units in expectations that they would import more tothe ports from devaluation the Middle was Easta and Africa, thisall More than 60,000 companies op- power derived from new technolcurrency problem facing policy but rather developments regarding to U.S. figures and less than the current unem2011, would constrict 10 percent due to not affect the demand much, Bayraktar erate in the group Turkish in- with ogiesa 414-kilometer and qualified highway labour makes exchange rate, rise in electricity prices, an developing countries and not a phenomenon ployment seen in Europe. STANBUL small of furniture peo- regions insaid, “The general special consumption slowing down–inAeconomy in 2012. dustry, including manufacturers it possible to deliver rapidly and ple demonstrate in front of Turkey’s cluding the third Bosphorus bridge. Bayraktar announced that the automo- tax increase affected 10 percent of the urkish software sector has TL3.1 billion as of the end of 2011. 9,000 people are employed in these ish software companies export toHighway and retailers. Istanbul,onAnkara, ontender time. for the Northern MarAuthority in Ankara totalfirst sales. Change did not happen in the bile and lightweight commercial vehicle The boosted 75 percent to TL3,1 The sector’s growth is expected to companies. When other software 50 countries and 12 free zones.April 20 protesting Kayseri, Inegol and Izmir are Turkish furniture brands offer the plan to build a mara Highway on market achieved 13.61 percent rise with majority of the Project segment.took The 5place percent billion worth of growth, this reach worth TL3.5 billion by the companies, out of technology de- According to the statement, third Tur- bridge over Turkey’s leading furniture proconcept integrity! Istanbul’s 9, 2011. first to receive the sales of 864,439 units Bosphorus. in 2011. While March increase effect The is felt in date the light comhas also reflected to the export fig- end of 2012. velopment zones, are taken into key has a huge domestic potential locations. Increasing uti- Turkish furniture brands Fivepassenger firms of duction the 11 firms that had reapplications had been set as Aug. 23,offer but a NKARA - Foreign direct investment The Turkish government has laid its hopes on same period last year. cars’ sales became 593,519 mercial vehicles’ sales.” ures. Informatics market in Turkey account, the number of software in software sector. Turkey also has lization capacity each year with wide range of products and ceived saidcommercial they would Nov. 22 and 10.serworth of ex-comprehensive incen- Foreign investments in the community, soumber of and exporting recently-announced in the health social workbillion indus-629a million units,authorization as for lightweight ve- was Thethen tax delayed rise wastointroduced in Jan. the veAccording to data from Ministry of grows 14 percent averagely every companies across Turkey reaches market potential abroad regarding new investments, Turkey exports vices marked by concept integparticipate in the April270,920 20 tender that over juncture, certain firms for provinces overall$1other bil- sectors ports in last tives year.scheme to attract more direct investment cial and personal service activities rose from tries outshined 1600cc cars and in asked the comhicles’ sales became unitsfor last Athicles Turkish Industry Techyear. 2,316rating units.agen- $3 million to $45 million its geopolitical position, 173 countries 5 rity ranging from sittingThere sets to theyear. “Northernfurniture MarmaratoHighway Proj- aon three-month or October six-month delay. lion raised by &16 in The northwestern province of and in the miningas a memterms ofScience, FDI for the January-February 2012 from abroad, while international mercial vehicles 2011. nology, exports software A total ranked ofcies 1,060 software compaSomerating 46 percent software comber of the$5 Customs Eu- which includes continents worldwide. sets, dining room the heavy third Bosphorus applications in from the Jan. 10 tenthe year 2011. of The figure ofand 16 beverages, Bursa third exporting quarrying industry from million Union to $22 withect,” period. Manufacturing, foodsector still hesitate to lift Turkey’s to an ofand “When 45,000 unit weight ve- were no bedroom expanded 75 percent within the nies run in 32 technology developpanies are operating in Istanbul, rope, as well as the Turkic Republic Technology the world invents tosets to items for teenager rooms bridge. The actual tender will be schedder. provinces’ exports also composed $12 billion million. tobacco and chemicals witnessed goods impres- worth investment grade. 538 hicles are added, the total market will last four years $109,6 and reached worth ment zones in Turkey, and nearly whilemanufactur20 percent inThe Ankara. Turk- gasand markets. day is usedunits in Turkey at the the same and even including furniture aculedreach at a by later date. totally worth billion, ac- million. sive increases Foreign investments in Turkey’s electricity, andMideast water supply indus910 thousand and so to day! cessories. “We have received five bids and will counting for 81 direct percent of the inBy the addition of Konya Net total foreign investment Turkey ing industry rose byand a striking 97.7 percent to tries collectively registered a 73 percent drop sales of a 1 million units have been apManufacturers in Turkey closely Furniture demand increases with examine these for missing documents. overall January exports and of Turkey. onto previduring February 2012 Trabzon rose 25 provinces $352 million in the January-February period, in foreign direct investment, falling from $267 proached,” Bayraktar noted. follow the global furniture techa dynamic and continuously deAfterward, we will send an invitation The data from the Turkish ous year’s provinces Istanbul, percent, reaching nearly $1.7 billion. This fig- from $178 million in the same period last year. million in the January-February period of Bayraktar continued, “In 2012 regardto the firms to submit their price bids,” nologies, continuously renewing veloping structure! Exporters’ Assembly (TIM) Kocaeli, Bursa, Izmir, Ankara, ure is up from $1.35 billion during the same Food, beverages and tobacco industries at- 2011 to $72 million this year. ing the economic growth would be lower said Tender Commission President İhsan their machine fleets and using A young and educated consumer showed that the province of Gaziantep, Manisa, Denizli, period last year, with manufacturing, health tracted a total of $56 million this year, up from Financial intermediation activities were anthan 2011, the general market to plunge. Akbıyık. Those firms that are missing state-of-the-art technologies. group, increasing standards of Istanbul ranked atop with $59 Hatay, Sakarya, Adana, Kayurkishwork, packaging sector in-renting The bepackaging industry has chemicals In 2011,manufacexports of other the sector wereindustry, As forshrinking importsbyof42the and social and real estate $5 million last which year. The wounded per-sector, inIn my opinion, some 10 percent freefall the proper documentation will be exTurkish furniture design is alliving and an ever developing billion 49 million worth of exseri, Mersin and Antalya, the creased its production and according reached aturing foreign tradeis volume worth $2,95 billioncent increasing 24million creased 7.8 percent $3 billion in from $366 to $213 million, to while ing the most attractive industries, industry another star among manucould happen. But we can see bigger cluded from the tender. ports inreleased 2011. 8bypercent, number of provinces which ways in sync with the trend! structure increased the demand to dataturnover the Ministry of Economy. facturing sub-industries, as it witnessed $45 the transport, storage and communications 14 per- worth $12 billion in 2011, in 2012 percent compared to the previous 2011 over the previous year. In imshrink in the first half. It will go on by Mustafa Bayraktar, Chairman of the The five firms and consortia which subIstanbul was followed by the export goods over $1 billion Closely following developments for furniture Inmillion of foreign direct investments, almost industries collectively contracted by 80 perNet foreign direct capital investments totaled cent respectively in 2011 compared the foreign trade volume of the sec- year. ports of raw materials or semi-prorecovering from the middle of the year.” Turkey’s Automotivesubstantially. Distributor mitted bids are the following: Mapa province of Kocaeli with $12 reached by 16. worldwide, Turkish furniture decreased purchases of furniture $1.28 billion, with a 14.7 percent increase quadrupling the $12 million in the Januarycent from $76 million to $15 million. Foreign to the previous year. According to tor is expected to become $14-15 Turkish packaging sector exports to duced constituted majority of items Telling that there were two main reaAssociation İnşaat, Yapı signers Merkezi-Doğuş İnşaat-“trendy” also increased the contribution always produce investment in the local construction industry frompackaging $1.1 billion during the same period in February period last year. 191 countries including this, production became billion. Germany, mostly from Germany, Italy, United China Communication designs… Corporation-ArThousands of young of Turkish furniture brands to while in local realreport Realis estate, renting, that and business was the $24 Nethermillion thisStates year, receding by 60China, per- France, 62011, million tonsforeign and asinvestments for the total In the also indicated Britain, activities France, Iran, of America, kon Yapı Joint Venture, Cengiz İnşaatdesigners educated in design pro- the domestic economy and the also expanded, by almost 120 percent to $202 cent from last year. estates was at $305 million during the first two turnover was $12 billion in 2011. the trade channel which contrib- lands, Italy, Israel, Russian Federa- South Korea, Finland, Spain and Limak-Makyol-Kalyon Joint Venture, million from $92 million. There are a total of 29,579 foreign businesses months of the year. grams offered by 35 universities furniture industry has risen in According to the report prepared by uted to the packaging sector was tion and Greece. Belgium. Salini-Gülermak Joint Venture, Astaldi Investments in the “health and social work” currently active in Turkey, according to tentaForeign investment is a crucial issue for the add dynamism to the industry. the world. Yearly construction Turkish Packaging Industry entitled e-trade, in recent 5 years 15 firms In 2011, plastic packaging share In the report is also marked per İçtaş Joint Venture. Mapa is the only Turkish economy, as the soaring current acindustry outshined every other industry or tive official data. More than 18,000 European The Turkish furniture industry is of 600 thousand residences in ‘Turkish Packaging Report 2012’, which act in electronic trade, took took 68 percent in the total export- capita packaging consumption is a company that submitted a solo bid. sub-industry as a total of $273 million during firms dominate these businesses, while firms count deficit has become a foremost factor on its way of becoming a global line with the increasing educated packaging keeps a crucial place in place in the list of 300 firms in ed packaging products, paper-card- sign of standard of living. Per capita The project, worth $5 billion, will concasting a shadow on an impressive growth rethis year’s first two months. There were no infrom near and Middle Eastern countries foltrend with its outstanding deand dominant population in the marketing in line with various agri- Europe with turnovers per annum board-corrugated cardboard pack- packaging consumption is predictnect Turkey’ssigns. Adapazarı and Tekirdağ vestments at all in this sub-industry during the low with more than 6,000 firms. cord in last two years. domestic market increases furnicultural and food products and out ranging between $154 million and aging products got 19 percent share ed to rise from $160 in 2011 to $300 Designs of impressive quality ture investments considerably. of food products’ packaging. $7 million. in the total exports of the sector. in 2023.

Turkey aims to I make Istanbul European auto a ‘UN center’ market shrinks 7.3 percent

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

Trade foresees Turkeysurvey may revise down Businessmen in Gaziantep visit African market its growth target for 2012 rise in imports, exports

V A

Turkey’s software exports boost

Turkish software sector’s exports boosted 75 percent within the last four years.

Four groups set to Let’s discover Turkish race forfurniture Bosphorus at IMOB bridge tender

A Automotive sector may shrink 10 percent in 2012

I TNumber of exporting provinces reaches by 16 A N Net foreign direct investments soar by 25 percent in 2 months

Turkish packaging industry’s production booms

Made in Turkey Economic Newspaper, January 2013

Turkish construction projects abroad hit worth $26.1 billion The international deals signed by Turkish construction companies, which operate in 100 countries across the world, hit a record worth $26.1 billion in 2012, according to the data, Turkmenistan has been atop. Turkey had 33 construction firms on the ENR list in 2009, ranking second after China, with 54 such companies. in 2012 the total value of projects the Turkish construction industry obtained abroad amounted by $26.1 billion, the largest sum that the industry has seen in a 12-month period and achieved a 31 percent increase over 2011, according to the statement. Noting that Turkish contractors assured 433 projects in 100 countries in 2012, he added, “Our construction industry has achieved historic success; this [26.1 billion dollars] is a record figure.” The success that the construction industry accomplished abroad is not limited to the total value of projects secured overseas. Within recent years, the average worth of a construction project the companies secured in foreign countries was $40 million, while this figure in-

creased to $60 million in 2012, representing a 50 percent jump. Observers said Turkish contractors have started to secure more sophisticated and expensive projects abroad regarding they have performed quality work in recent years. In the list of countries where contractors won projects, Turkmenistan and Iraq appear as the leaders. In terms of the share of projects by country, Turkmenistan tops the list with 18.8 percent, while Iraq’s share ranks second with 16.8 percent. Companies in 2012 contracted 80 projects worth $4.9 billion, representing the biggest total figure ever achieved in Turkmenistan by Turkish construction companies, as for Iraq Turkish contractors signed 114 projects worth $4.4 billion. The average value of projects undertaken in Turkmenistan is $61.25 million, while the figure per project, in the case of Iraq, averaged $38.6

million. In Libya, which is the first foreign market in which construction companies won projects following the civil war in the country, companies restarted projects in the last two months of 2012. It’s expected that the number of contracts companies would rise in Libya in the upcoming years. In 2012, Turkish construction companies also signed projects

“Previously, we paid cash in return for gas we didn’t use, but now, we pay for one quarter of the amount we use. We managed a great gas trade with Russia as we erased our take-or-pays worth $3.6 billion with Russia,” he said. Minister Yildiz emphasized that demand is guaranteed when the investor is the owner of the gas, not the merchant, referring to recent talks

on Qatar investing in a liquefied natural gas (LNG) facility in western Turkey. The minister also revealed that Qatari investors prefer to partner with existing facilities Aliaga or Marmara Eregli. He said that the Aliaga facility operated with 2 BCM in 2012, whereas its capacity is actually 6 BCM. “The targeted production amount is 6 BCM and Turkey

RS’s report entitled, “Rising Economic Powers and the Global Economy: Trends and Issues for Congress” Turkey is one of rising economic powers across the world. According to the report, some developing countries with large population, increasing trade flow and fast growing economies have become important players of the world economy. The report showed China on the top of the “rising economic power” list and the report said, “While the growth reached practically every region of the world and encompassed dozens of developing countries, a handful of large developing countries-led by China, India, and Brazil-accounted for a major share of the global growth. Other emerging economies with large populations, such as Indonesia,

for the first time in Colombia, Papua New Guinea, Somalia and Peru, so the total number of countries increased to 100. So far, Turkish construction industry contracted number of 6,969 projects worth $237.4 billion in 100 countries. In the year 2023, the centenary of the foundation of the Turkish Republic, the industry aims to have increased the total value of projects to $100 billion.

ajority of exports were made to Russia with 143.07 million U.S. dollars in the mentioned period. Germany, Britain, Romania, the United States, Italy, Iran, Morocco, Poland and Spain followed Russia. Textile and ready-to-wear clothing exports from the northwestern province of Bursa exceeded $1.5 billion in the first 11 months last year. According to data by Uludag Exporter’s Associations, textile exports from Bursa expanded by 9.8 percent to $1.1 billion while ready-to-wear clothing exports dropped by 5.42 percent to $453.2 million in the first 11 months 2012 over the same period previous year. Majority of exports were accomplished to Russia with $143.07 million in the mentioned

will prioritize using the gas produced there,” he noted. However, he also recorded that Turkey would welcome any attractive offers coming from any country, including the U.S., and Qatar was not the only option, though Turkey would appreciate an order from Qatar. Recently, Turkey stressed interest to Libya as well in terms of oil exploration abroad.

Toll roads earn 800 million liras in 2012

urkey generates 800 million liras from vehicles’ passage across bridges and highways in 2012. The toll roads were privatized for 25 years. Turkey earned about 800 million Turkish Liras from 350 million vehicle crossings on toll bridges and highways in 2012, according to figures pub-

lished. General Directorate of Highways (KGM) data shows that last year’s revenue totaled 803,424,806 liras from 359,826,776 vehicle crossings. While the Bosphorus and Fatih Sultan Mehmet bridges earned 214,116,123 liras, the remaining amount, 589,308,683 liras, came from toll roads.

Figures from last December indicate that the 28,678,753 vehicles that crossed the bridges and used tollways generated 62,831,761 liras that month. Turkey’s highways and bridges were privatized by a tender won by a consortium of Koc Holding, Gozde Girisim and Malaysia’s UEM Group Ber-

had with a bid of $5.72 billion in December 2012. The consortium will have total rights to and revenues from toll roads, including the Edirne-Istanbul-Ankara highway and the Bosphorus and Fatih Sultan Mehmet bridges that connect the European and Asian sides of Istanbul, for a period of 25 years.

Public-private partnerships reach $35 bln

he volume of public-pr ivate partnership (PPP) projects, which provide funding for Turkey’s major infrastructure projects, has reached $35 billion, according to Development Ministry data. PPPs have been major financing method for implementing public service projects in many sec-

tors including transport, health, energy and agriculture. A set of laws that Turkey adopted throughout the 1980s and 1990s regulated and extended the usage of PPP projects. As direct public investments diminished, private involvement in public service provision extended on the development agen-

Mexico, Russia, Turkey, and Vietnam, have also grown in a quick pace.” In the Turkey part of the report, it was published that between the years of 2003 and 2008, with 6 percent of growth, Turkey was one of the countries, having the largest growth to sustain. The Congressional Research Service (CRS) serves the Congress throughout the legislative process by providing comprehensive and reliable legislative research and analysis that are timely, objective, authoritative, and confidential, thereby contributing to an informed national legislature. CRS approaches complex topics from a variety of perspectives and examines all sides of an issue. Staff members analyze current policies and present the impact of proposed policy alternatives.

Bursa achieves $1.5 bln of exports

Turkey ends take-or-pay with Russia ome 3.6 billion cubic meters (BCM) worth of natural gas in the take-or-pay relationship Turkey has with Russia has been nullified, meaning BOTAS, Turkey’s state-run pipeline company, is to increase its cash flow $1.3 billion in April, said Turkish Energy and Natural Resources Minister Taner Yildiz.

Turkey one of rising economic powers: CRS’s report

da of the country. Since then, public sector authorities and private companies have cooperated on 137 projects worth $35 billion. The most commonly used PPP model is the buildoperate-transfer method, which has been used for 83 projects so far. The total value of PPP projects in operation is

$26.04 billion. The economically largest partnerships are airport projects with $12.58 billion, followed by energy facility projects with $10.22 billion and port projects with $1.49 billion. Meanwhile, among the projects under construction, which are worth $9.34 billion, road projects lead with a value of $8 billion.

period. As for the countries exported via the city were Germany, Britain, Romania, the United States, Italy, Iran, Morocco, Poland and Spain following Russia.

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

Turkey collects 8.7 bln liras in tax fines

he Finance Ministry collected 8.7 billion Turkish Liras in tax fines in addition to an extra 4.5 billion liras in taxes from companies that declared smaller incomes or did not declare any at all, according to Minister Mehmet Simsek. The minister announced the results of the 2012 tax probe of the Tax Inspection Board, a sub-council of the ministry in addition to revealing the projections over tax audition

for 2013. Simsek praised the tax inspection units for conducting efficient inquisitions revealing a 4.5 million liras tax debt has not been decla red to the Tax Inspection Board by tax auditors. The ministry also collected an 8.7 billion li-

ras fine from taxpayers who caused tax loss and evasion. In 2013, inspections will be tightened as the technical infrastructure will be enhanced and the number of inspectors will be increased, said Simsek. The rate of smuggling is still considerably high despite the Turkish

government’s extensive battle against income loss because of smuggling by introducing stringent regulations. The police and the finance ministry have carrying a large campaign against oil and cigarettes smuggling. Smuggled cigarettes cause Turkey to lose between 4 billion and 5 billion liras in tax revenue every year, according to the Confederation of Turkish Craftsmen and Tradesmen (TESK).

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Made in Turkey Economic Newspaper, January 2013

European Commission to allocate over €661 million in humanitarian aid nearly 80 countries or regions. Based on an in-depth assessment of the needs of the most vulnerable populations in the world, the five largest hu-

he European Commission has just adopted its plan for the allocation of over €661 million in humanitarian aid funding for 2013. This so-called World-Wide Decision on Humanitarian Aid will be the financial backbone of the Commission’s humanitarian aid operational strategy for 2013. The Commission will fund humanitarian interventions run by more than 200 of its partner organisations in

manitarian operations will be in the Sahel region of West Africa, including further response to the conflict in Mali (€82 million), Sudan and South Sudan (€80 million), the Democratic Republic of Congo (€54 million), Pakistan (€42 million) and Somali (€40 million). All of these are large-scale, protracted crises resulting from conflict, food shortages or both. Geographically, the largest portion of aid will go

to sub-Saharan Africa to which €344.5 million, representing 52% of the Commission’s pre-programmed humanitarian funding, is targeted. Kristalina Georgieva, the European Commissioner for International Cooperation, Humanitarian Aid and Crisis Response, said: “The scope and size of the Commission’s world-wide humanitarian aid decision is a sober reminder of the extent of humanitarian needs around the world. For hundreds of millions of people crises are not rare events but recurrent, seemingly unavoidable hardships. Humanitarian aid is a vital expression of our humanity towards those who suffer. As well as the basic physical needs it fulfils, I have seen how it also serves as a source of hope for people who have lost nearly everything else. “As in the past, the EU will provide its humanitarian assistance solely based on where people’s needs are

most pressing, and independently of any political agenda. Over the past year, I have visited numerous conflict situations round the world – in Mali, in Syria and elsewhere - where aid could only get through to people in need because it is perceived as being neutral and not favouring one side or another. This will continue to be a fundamental principle for the EU in its emergency relief work.” As in previous years part of the budget is dedicated to forgotten crisis – populations that receive little media attention and for whom the Commission is often the only major donor. In 2013 the Commission has identified several populations in nine countries – Algeria, Bangladesh, Central African Republic, Colombia, India, Myanmar, Pakistan, Sri Lanka and Yemen - who meet these criteria. The only new crisis on this year’s list is the one caused by conflict and internal displacement in Pakistan. Other long-enduring forgotten crises include

the armed conflict caused by the Lord’s Resistance Army in Central African Republic, the Sahrawi refugees in Algeria, and the victims of conflict in Colombia. The Commissioner added: “New funding for old crises should not make us complacent in our efforts. Indeed I want 2013 to be a time to innovate, especially in the areas of enhancing the emergency response capacity of the sector, working with new donors, and building resilience to crises among the poorest communities through our nascent initiatives such as AGIR Sahel and SHARE for the Horn of Africa. The big challenges to making this aid matter will be in gaining secure access to those who most need it and ensuring the accountability of our aid both towards the EU taxpayer and the beneficiary. These are areas where coordination and leadership are crucial at a time of severe budget constraints and an ever-more challenging humanitarian landscape.”

Country representative of WB: Turkey will grow 4% in 2013

ollowing a soft landing in 2012 – a first in the country’s recent economic history -- accelerated structural reforms are key to increase potential growth. Economic growth in 2013 is forecast to accelerate to 4 percent according to the World Bank’s latest Turkey Regular Economic Brief issued in Ankara, but prospects for sustained growth over

the medium-term depend on accelerating structural reforms the international lender cautions. The brief analyzes Turkey’s recent economic developments, prospects, and risks. Highlighting the significant improvement in external imbalances, the brief points out that the current account deficit remains high and Turkey remains dependent on short-term financing.

Against this background, World Bank support in 2013 will focus on enhancing Turkey’s competitiveness and domestic savings through a proposed Development Policy Loan; improving energy efficiency in small and medium enterprises through a proposed Credit Line; proposed additional financing to BOTAŞ for the completion of the Tuz Gölü Gas Storage Facility; and further financial support for Turkish SMEs. The World Bank’s work in Turkey is based on a joint Country Partnership Strategy (CPS) for the period of 2012-2015. The CPS aims to sup-

port Turkey’s transition to high income with financing of up to US$ 4.45 billion during the four year period, as well as policy analysis and technical advice. Key objectives include enhanced competitiveness and employment, improved equity and public services and deepened sustainable development. Turkey’s successful economic and social reforms have attracted increasing attention in the region and globally. Hence the World Bank’s partnership with Turkey is evolving to include the sharing of knowledge and experience with a wider international audience.

Milk collected from farms was 575,292 tons. Collected cow’s milk from farms decreased by 2% in November 2012 while compared to the previous month. Drinking milk was 94,993 tons. Drinking milk production was decreased by 5.7% in November while compared to the previous month. Cheese production was 41,102 tons. Cheese production decreased by

2.9% in November while compared to the previous month. Yoghurt production was 82,077 tons. Yoghurt production decreased by 2.6% in November while compared to the previous month.

Turks, Chinese ally in $1.35 billion project

subsidiary of Turkey’s Ciner Group, Kazan Soda Electric, and China’s Tianchen Engineering Group signed a partnership deal Jan. 11 to build the Soda Ash and Cogeneration Facilities, with Energy Minister Taner Yildiz attending the signature ceremony. Ciner Group CEO Turgay Ciner stated that this investment would make them the top manufacturer of soda ash in the world, adding that it would bring net foreign currency inflows to Turkey by increasing its exports. These investments aim to raise the company’s exports to $1.75 billion, according to Kazan Soda Chairman Nedim Sener, who highlighted their exports of soda ash and concentrated copper, domestic resources worth $1 billion, in the last four years. The company’s goal is for soda exports, currently $1.3 billion of their total exports, to be worth $1.75 billion. The company signed a deal with the Transportation Ministry and Turkish State Railways (TCDD) in order to carry 8,000 tons of goods to ports per day via some four trains, Ciner said. “All of the goods will be exported, including to South America and Australia. We do not have any problems with

previous month and increased 27% when compared to same month of the previous year. 132,333 tons chicken meat was produced. Chicken production increased 3.3% in November when compared to the previous month and increased 23% when compared to same month of the previous years. Some 575,292 tons milk collected in November 2012

The minister said this partnership could contribute to sufficiently taking advantage of Turkey’s underground mines, stressing that domestic resources should be encouraged as opposed to imported resources, and that this deal would assist in decreasing energy imports. The governments of Turkey and the United Arab Emirates recently signed a deal worth $12 billion to jointly develop Turkey’s large coal fields in the south Afsin-Elbistan region at the start of this year.

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Number of slaughtered chicken raises gg production decreased 1.9% in November when compared to the previous month and increased 17.7% when compared to the same month of the previous year, Turkish Statistics Institute (TurkStat) released. Some 81 million unit chickens were slaughtered. Number of slaughtered chicken increased 2.7% in November 2012 when compared to the

sales as our products for 2013 have already been sold and 1.1 billion tons of trona [the mineral source of soda ash] reserved.” This agreement targets investments worth $1.35 billion, financed by Chinese banks. The construction of facilities would be completed around 2016 or 2017 and would produce employment for 2,200 workers. Soda ash, or sodium bicarbonate, is a raw material used in glass, chemistry and textile industries. Yildiz stated that Turkey draws more foreign investors and financing due to the political stability maintained in the country, adding that Ciner Group was one of the local firms that could benefit from this opportunity.

Drink made of yoghurt was 41,674 tons and its production decreased by 6.7% in November while compared to the previous month.

Olive oil exporters enjoy good season start

urkish olive oil exporters, benefiting from a harvest fall in Tunisia and Spain, increased their sales 139 percent in the last two months of last year from the same period a year earlier, according to data provided by the Aegean Olive and Olive Oil Exporters Union. The period refers to the first two months of Turkey’s olive oil season.

The country’s oil exports had already risen 65 percent to 20,000 tons in the previous season which ended on Oct. 31, 2012, generating $65 million in revenues with a 33 percent increase. Turkey sold 7,373 tons of olive oil in the first two months of this season, reaching a volume of $23.1 million. Exports to Austria and Bahrain increased 24 and 25 fold respectively.

Ali Nedim Gureli, head of the association, said the fall in harvest in Tunisia, a competitor country, and Spain, one of the world leaders, played a role in the jump in Turkish olive oil exports. “I have been an exporter for 35 years and it was only this season that I sold oil to Peru,” he said. Exports helped keep domestic prices higher, he added.

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Made in Turkey Economic Newspaper, January 2013

Istanbul to move faster with new Bosphorus tunnel

he Eurasia Tunnel will be built under the Bosphorus straits to easy for tens of thousands of commuters who have to use ferries or cross the Bosphorus by bridge. Now the European Bank for Reconstruction and Development is participat-

ing in a landmark infrastructure project – the Eurasia Tunnel – to be built under the Bosphorus straits. When completed, it will link Europe with Asia, Asia with Europe and make life easier for everyone living in or visiting this extraordinary city.

This deal is very important for us, both because of its benefits to Istanbul itself and because of the blueprint it provides for similar projects in the future. As for the project’s financing, we are investing US$150 million in debt in it. The EIB will finance it alongside us, funding a significant amount (US$350 million). A package of financing and guarantees will be also provided by Korea’s Eximbank and K-Sure with SMBC, Standard Charter and Mizuho participation. The hedging facility for the transaction is provided by some of the lenders as well as the Deutsche Bank. Work on the ground will be carried out by ATAS, a consortium established by a Turkey-Korea joint venture with one Turkish partner Yapi Merkezi and a leading Korean construction company SK Engineering and Construction. Currently, 400,000 vehicles and commuters per day are using the existing transport facilities across the Bosphorus. When this new project is in place, that capacity will be increased by another 100,000. For the average commuter it

will mean reduced journey times, less congestion and, without doubt, more choice in getting to and from work. The tunnel will be nearly five and a half kilometres long, be built 25 metres below sea level and is due to be completed in 2017. Besides linking the two continents, the project is symbolic on another level. It will, for example, be the first road PPP agreed under the new Turkish Public Private Partnership Initiative for infrastructure. So now the Turkish government will have a template for funding more of the projects required to fill the country’s infrastructure gap. The Bosphorus tunnel project also illustrates how attractive emerging markets such as Turkey are to investors. Europe’s financial troubles may make potential investors think long and hard about committing to the continent. But EBRD-supported infrastructure projects involving the private sector in Turkey or in Russia, the Eurasia tunnel in Istanbul or the motorway bypass project in St Petersburg, are exciting opportunities for all concerned.

Industrial turnover index increases 19.0% in November

Industrial turnover index in November 2012 increased by 19.0% compared with the same month in previous year, Turkish Statistical Institute (TurkStat) released.

n the sub sectors level of industry, Mining and Quarrying Index increased by 2.8%, Manufacturing Index increased by 19.7% in November 2012 compared with same month of the previous year. According to Main Industrial Groupings (MIGs) Classification, the highest increase in November 2012 over the same month of the previous year realized in durable consumer goods. In Sub sectors of Manufacturing Industry the highest increase real-

ized in repair and installation of machinery and equipment. When the change rates of Industrial Turnover Index in November 2012 compared with November of 2011 inspected, the highest increase was in repair and installation of machinery and equipment by 172.8%, it is followed by Manufacture of computer, electronic and optical products by 76.6% Industrial New Orders Index increased by 20.2% According to European Regula-

Turkey’s food sector grows 10 percent

he Federation of Food and Drink Industry Associations of Turkey (TGDF) Chairman Semsi Kopuz stated that Turkey’s food sector expanded 10 percent in 2012. In his statement, Kopuz noted that the food and beverage sector has accomplished worth 280 billion Turkish Lira in the country’s Gross Domestic Product (GDP). He added that positive foreign trade balance of the sector, which reaches by 185 percent, has not been in any other sector. Kopuz continued to say: “In Turkish food sector 10 percent growth gained last year. In the exports, increase was 8 percent, imports 2 percent as

for the sector growth was 10 percent. The capacity utilization raised by 74 percent.” As the food and beverage industrialists in the issue achieving objectives for the 2023 they were looking at the full side of the glass, Kopuz said. As of October 2011, the exports of the sector were worth $7 billion 179 million, as for the same period 2012, the exports of the sector became $7 billion 746 million. “This shows that despite constriction in the world economy, the sector achieved 8 percent increase,” he added. In imports, the sector imported worth $4 billion 121 million as of October 2011, in the

tions, Industrial New Orders Index with the base year 2005=100, according to NACE Rev.2. increased by 20,2% in November 2012 compared with the same month in previous year. According to Main Industrial Groupings (MIGs) Classification, the highest increase in November 2012 over the same month of the previous year realized in nondurable consumer goods. In Sub sectors of Manufacturing Industry

TGDF Chairman Semsi Kopuz

same period 2012 the imports of the sector became $4 billion 205 million. Kopuz foresees 11 percent increase in exports, 5 percent in imports, 6 percent growth for 2013, as for capacity utilization would become 75 percent.

“Big changes needed to strengthen capital positions of euro area banks”

uropean banks remain at the heart of the euro area crisis. Despite actions to strengthen banks and build a banking union, confidence in the euro area banking system remains weak, and is likely to remain so until underlying concerns over low capitalisation of some banks are addressed. Low bank capitalisation persists in many countries despite an EU requirement that banks reach in 2012 a ratio of a minimum 9% of the best quality “Core Tier-1” capital to riskweighted assets, in excess of the current international requirements. Why has this new benchmark not been sufficient to boost con-

fidence? In part, this is because it is based on risk-weighting of assets that likely understates risks, due to reliance on banks’ own internal risk models and, for example, the zero riskweight given to sovereign debt. The ratio of Core Tier-1 capital to unweighted assets of euro area banks currently falls well short of 5% in many cases. This standard has been identified as a benchmark for well-capitalised banks in a recent OECD paper and it is more demanding than the minimum Basel III leverage ratio that will apply from 2018. Increasing the capacity of European banks to absorb losses, by increasing their capital rela-

tive to assets, needs to be addressed in the coming years. If the euro area’s largest banks were to move to a 5% standard, the current capital shortage is estimated at around EUR 400bn (4¼ per cent of euro area GDP). This is not just a problem for banks in the “periphery” – there could be large capital needs in the major euro area countries. Future capital needs could be lessened if banks were required to separate commercial banking and market activities, reducing the total assets of the banking business. Moving towards a stronger banking system would help to rebuild confidence and get credit flowing again.

the highest increase realized in manufacture of basic pharmaceutical products and pharmaceutical preparations When the change rates of Industrial New Orders Index in November 2012 compared with November 2011 inspected, the highest increase was in manufacture of basic pharmaceutical products and pharmaceutical preparations by 129.1%, it is followed by manufacture of other transport equipment by 126.8%

Consumers confidence index decreases 0.2 % in December Consumer confidence index (CCI) dropped 0.2 percent in December compared to November in 2012, according to the statement by Turkish Statistical Institute (TurkStat).

he statement indicates a survey conducted by Turkish Statistical Institute (TurkStat) and Turkish Central Bank, the CCI, which was 89.2 in November, decreased to 89 in December. The decline was due to the setback of the evaluations on the consumer purchasing power in the current term, consumer purchasing power in the coming term, and buying time condition of durable goods in the current term. The survey measures consumers’ personal financial situations, their evaluations on general economy, and their expectations for the coming term and determines their spending tendencies in the near future. In monthly Consumer Tendency Survey, consumers’ assessments on current situation and their expectations for personal financial standing and general economic situation have been evaluated and their expenditure tendencies for near future have been measured. The consumer confidence index calculated from the survey results can take value between 0-200. It indicates an optimistic outlook when the index is above 100, but it gives a pessimistic outlook when it is below 100.

Made in Turkey Economic Newspaper, January 2013

‘World Economic Forum Annual Meeting focuses on ‘Resilient Dynamism’ Resilient Dynamism” is the focus of the World Economic Forum Annual Meeting, aiming to catalyse and facilitate global, regional and industry transformation in Davos-Klosters, Switzerland on 23-27 January 2013

o be resilient is to possess the ability to adapt to changing contexts, to withstand sudden shocks and to recover from them while still pursuing critical goals. The other new reality that we face is a prolonged global economic malaise, particularly in major economies experiencing economic austerity. Future growth in this new context requires dynamism – bold vision and even bolder action. Either attribute – resilience or dynamism – alone is insufficient as leadership in 2014 will require both, thus the theme of ‘Resilient Dynamism’,” Professor Klaus Schwab said.

For over 40 years, the mission of the World Economic Forum – committed to improving the state of the world – has driven the design and development of the Annual Meeting programme. The Annual Meeting remains the foremost innovative force for engaging leaders in collaborative activities focused on shaping the global, regional and industry agendas. Today, we live in the most complex, interdependent and interconnected era in human history. We are increasingly confronted by major adaptive challenges as well as profound transformational opportunities.

This new leadership context requires successful organizations to master strategic agility and to build risk resilience. More broadly, it requires fostering resilient dynamism in every sector of society. Consequently, “Resilient Dynamism” is the focus of the World Economic Forum Annual Meeting 2013, aiming to catalyse and facilitate global, regional and industry transformation as a trusted partner of our members and constituents. Dogus Group from Turkey joins as the strategic partner to the meeting. Founded in 1951, Dogus Group is one of Turkey’s largest conglomerates, with

an impeccable track record. Dogus Group is active in seven business lines: financial services, automotive, construction, media, tourism and services, real estate and energy, operating with 148 companies and a workforce of over 30,000. Dogus Group seeks to maximize the value of its brands not only in Turkey but also in regional and global contexts. The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.

Turkish Statistical Institute. The total value of liras used in exports was $2.9 billion for the same period last year, so the amount has risen 31 percent. Meanwhile, the value of the lira used in imports was $7.4 billion among the $195.8 billion total imports in the first 10 months of 2012, which was $6.1 billion last year, showing a 20 percent raise. Thus, the use of the lira in foreign transactions has reached

almost $11.1 billion, with an increase of 24 percent. Germany leads lira trade The total value of Turkish liras used in foreign trade transactions was $3.7 billion in 2007, but this figure expanded threeand-ahalf times for the same period o f 2012. The rate of use o f Turkish lira in foreign transactions was 1.5 percent in 2007 and have risen to 3.4 percent in 2012. Germany, a prominent foreign trade partner for Turkey, was

the leading country for mutual trade transactions in liras, with a total value of $1.3 billion. Iran and China followed with $863.7 million $762.3 million respectively. The pharmacy sector ranked atop in the usage of Turkish lira in imports with $1.7 billion, followed by $1.41 billion worth of motorized land vehicles and their trade in their parts. The lira used in imports was highest for the carpet sector, with a value of $304 million

Turkish Lira increases in foreign trade transactions T

he lira use in Turkish exports rose 30 percent in 10 months into 2011, according to the data. The use of Turkish Liras in foreign trade increased 24 percent in the first 10 months of the year compared with the same period in 2011, reaching $11.1 billion. Lira use in exports was the main driver of the trend, with trade with Germany and Iran leading the transactions. The lira was used in $3.7 billion of Turkey’s total $126.3 billion exports in the January-October period, according to the data from

Mukim Oztekin, BDDK Chairman

Customers inspect cars at a secondhand market in Istanbul. Car loans have contributed to Turkey’s credit growth.

urkey has already overcome a loan growth risk due to precautions by the banking regulator and the Central Bank, according to Turkey’s Banking Regulation and Supervision Agency’s (BDDK) chairman, Mukim Oztekin. However, one of the three leading credit rating agencies, Fitch – which had given the local economy a boost with a November upgrade – said in the report that Turkish lenders may risk their positive outlook with a stable high loan growth. Oztekin announced that despite the credit growth being at a high level between 2009 and 2011, a

Objectives for 2023 to be achieved through new markets Accessing to the new and alternative markets is one of the most important legs of our export strategy for 2023, Mehmet Buyukeksi, Chairman of Turkish Exporters’ Assembly (TIM), said.

n order to accomplish export target for the centenary of Turkish Republic in 2023, Turkish exporters will direct to the new markets such as the Middle Eastern, Commonwealth of Independent States (CIS), African and North American states. Achieving exports worth $152 billion which was determined as $150 billion at the beginning of the year, Turkish economy is advancing towards the targets worth $500 billion that have been determined for 2023 step by step. TIM Chairman Mehmet Buyukeksi in his statement said, they would carry out the strategy to open to the new markets in line with the targets for 2023. He added that new and strategic markets were very crucial in increase of the country’s exports; in line with this Turkish businessmen have invested in various places of the world. Buyukeksi recorded they had obtained increase in the alternative markets, and continued, “In the first 11 months of the year, our exports expanded 14 percent to CIS, 29 percent in Africa, 26 percent in North America,” he noted their exports decreased 7 percent in the EU countries.

“Providing more accession to the new and alternative markets is one of the most important legs of the targets for 2023. Thereby Turkish exporters are directing to the countries whose developing potential is high such as Mideast, CIS and Africa. On the one hand continuing growth in our present markets, on the other hand we will increase our share in the new and alternative markets to realize our objectives for 2023,” Buyukeksi said. Turkey’s exporters currently reach every geography and region, he said. Buyukeksi marked quick increase of the exports in recent terms because of they had given importance to the new and alternative markets. “Firstly it requires directing to innovation, R & D, design and the products based on fashion. Letting high in quality products reach customers with suitable price and conditions is another crucial stage of the work. In this stage, we believe necessity of researching new markets, exporting suitable products to those markets, following fairs closely and trade committees in those markets,” Buyukeksi concluded.

Istanbul, Antalya top in Turkish tourism list

Top regulator praises banks period when Turkey’s economy grew rapidly, he did not see the same problem. The BDDK took the required precautions to prevent loan growth, he said, adding that the essential point is the rate of deposits that are converted to credits. The banks have, as they were encouraged, found new alternative sources that could diversify, extend and change the structure of passives. He said both the BDDK and Central Bank aim to take measures to restrict loan growth, adding that the BDDK did not want to raise credit growth above 10 or 15 percent. ‘Sector grows positively’ Oztekin said the banking sector’s growth would continue positive progress. The profit margins rate would shrink, while banks’ profits rise would reach between 10 and 15 percent this year, he forecasted. The complaints about the sector are generally caused by individual credit and credit cards, said Oztekin, adding that while the individual credit volume was 5 billion Turkish Liras in 2001, it has jumped to more than 250 billion liras, a 52-fold increase.

TIM Chairman Mehmet Büyükekşi

stanbul, Turkey’s largest city, and Antalya, the heart of the sun-andsea tourism in the country attract some 80 percent of tourists to Turkey despite ongoing efforts to diversify destinations. Despite ongoing efforts to diversify tourism in terms of both geography and content, Turkey’s two traditional tourist destinations, Istanbul and Antalya, still dominate the sector with some 80 percent of foreign visitors. Istanbul hosted over nine million tourists last year, a 16 percent

increase from the period between 2011 and 2012, and Antalya hosted over 10 million tourists, a 1.6 percent decrease. The two cities took almost 20 million of the roughly 25 million foreign tourists that visited Turkey. German tourists comprised the highest share of total tourists both in Istanbul, with 1.7 million, and Antalya, with 2.6 million, followed by Russians and Americans. The tourism ministry and sector organizations are struggling to broaden the country’s conventional, religious and health tourism appeal in a bid to cut risks and maintain sustainable revenues. The all-inclusive system at hotels in Antalya is one of the main factors that brings foreign tourists to the

Draft on US ships to Turkey drops off agenda

he draft law that would authorize President Barack Obama to grant two guided missile ships to Turkey has dropped off the agenda, with the U.S. Senate did not vote on time on the draft amid a busy yearend due to the “fiscal cliff” talks. The draft law had been approved by the U.S. House of Representatives on Dec. 30, 2012, but it needed the approval of the Senate to come into force. However, the Senate closed the 112th legislative session without the draft being included on its agenda.

The move would give Obama the right to grant the provision of guided missile-firing naval vessels to Turkey, along with a number of other countries including Thailand and Mexico. Turkey is thus in danger of losing the possibility of receiving the USS Halyburton (FFG–40) and the USS Thach (FFG–43) ships, along with the other countries in the bill. The U.S. Congress left several draft laws off its agenda, while they spent the last days of the new year trying to reach a deal to move the American economy away from the “fiscal cliff.”

city. However, the system decreases expenses for tourists, in turn lowering local tourism revenue. The target of 2013 should be to raise tourism income along with tourist numbers, according to statements made by Zafer Alkaya, General Manager of Cornelia Diamond Golf Resort and Spa, during an Istanbul meeting. “Turkey needs tourists who spend money. Average spending decreased by between 3 to 6 percent from 2011 to 2012. Despite Antalya being the most successful region with an allinclusive system in the world, this causes expenses to decrease,” he said. Tourists in Istanbul hail from a diverse background including Germany,

Russia, the United Kingdom, France, Italy, Iran, Holland, Iraq, Libya, Azerbaijan, Spain, Ukraine, Japan and Saudi Arabia. Visitors from Arab countries showed more interest in Istanbul last year than in 2011, and their numbers reached 1.3 million in a 54 percent increase in 2012. Antalya also draws the attention of tourists from many countries, such as Germany, Russia, the United Kingdom, Ireland, Azerbaijan, Croatia, Spain, Japan, Latvia, Moldavia, Norway, Uzbekistan, Slovenia, Turkmenistan, Australia, Finland, Iran, Italy, Iceland, Turkish Cyprus, Canada, Kyrgyzstan, Poland, Slovenia, Syria and Greece. Kyrgyz tourist numbers increased the most last year, growing 19 percent.

Turk firm wins tender in Albania

Turkish company, Kurum International AS, has won the tender for the privatization of the four hydroelectric power plants in Albania with a bid of 109 million euros.The privatization was finalized after Albanian Prime Minister Sali Berisha approved the final report presented by the privatization commission. Kurum International purchased every share of the four hydroelectric power stations,

including Bistra 1 and Bistra 2, which are worth 52 million euros, and Ulez Skopet and Tiran Laabregas, which are worth 57 million Euros, according to a statement from the Albanian Cabinet. The decision for privatizations would come into force immediately, it said. The firm owns also Elbasan Steel Manufacturing Facilities, a lime manufacturing plant and a 120,000-square-meter shipyard in Durres Port in Albania.