Turkish Economy - News & Updates

[SouI]

I see it an opportunity, i would take that risk. Besides, they shouldn't become a failed state, i believe.

You believe that, but it is not you who decides such things.

People don't know what socialism actually is:

: a way of organizing a society in which major industries are owned and controlled by the government rather than by individual people and companies

Venezuela was a real socialist state. The state took over the control of factories and companies.

Socialism is a failed ideology that will always fail. You believing that a country should not fail doesn't change the fact that if the subjected country adopts socialism, it will regardless become a failed state. There is just no other way around it.

That is what happened to all those companies after the venezuelan government took them over. The (dumb) nation was cheering, applauding, celebrating and praising the state for it.. But the companies started to fail due to socialism's unfunctionality.


Now here we are, after a strong slap of reality right into the faces of venezuelans who thought life was that easy to go along and everyone else was stupid and they were the only ones genius enough to figure that great idea of socialism..

Failed nations will produce failed actions, which in return will lead to failed reactions, leading their countries to turn into a failed state.

 

[Deliorman]

It is great that our Account deficit is shrinking but so are our exports this year- the same as our revenues from tourism (which generates enormous money for so many people and businesses around the country) so things are not looking really bright. Also a big part of the money we pay for imports are mainly for petrol and natural gas which are probably 60-70% lower than their price from 2 years ago. Also imports are decreasing because of the Turkish lira losing value compared to the big currencies and rising inflation in Turkey. If you see our balance in trade with countries like Russia, Germany, China, France, USA, Japan, South Korea and with most other big world economies you won't really like the picture.

 

[SouI]

Trade with Pakistan :-/

2016

Turkey's imports are decreasing in general:

Current account deficit is shrinking:

Could you throw a link of all these infos please?! I want to check them out myself too! Things look too good so far like this!

It is great that our Account deficit is shrinking but so are our exports this year- the same as our revenues from tourism (which generates enormous money for so many people and businesses around the country) so things are not looking really bright. Also a big part of the money we pay for import stuff are mainly for petrol and gas which are probably 60-70% lower than their price from 2 years ago. Also imports are decreasing because of the Turkish lira losing value compared to the big currencies and rising inflation in Turkey. If you see our balance in trade with countries like Russia, Germany, China and other big world economies you won't really like the picture.

Balance in trade with individual countries is completely irrelevant to macro-economics. Please don't mention that nonsense again.

What matters is the current account balance which is shrinking. Total trade balance is also important too but tourism has a similar impact on economies as trade, same as FDI, so taking current account balance into account is enough in that regard.

And yes, the world economy is shrinking slowly. Less international trade is happening in the rest of the planet. Less tourists are rolling around the planet.

It is not only our county mind you. Economical policies are changing and political conditions for such are being adopted all around the world.

@KediKesenFare

Your optimistic shares however actually seem pessimistic when you look at the bigger pie:

Current Account Balance History:

Trade Balance History:

Take a closer look at the dates, AKP pretty much all alone fucked up all our economics themselves. Starting from 2002, economical policies apparently started to fail..

Also this:

Government Debt (look at the 2002):

 

[Deliorman]

Balance in trade with individual countries is completely irrelevant to macro-economics. Please don't mention that nonsense again.

What matters is the current account balance which is shrinking. Total trade balance is also important too but tourism has a similar impact on economies as trade, same as FDI, so taking current account balance into account is enough in that regard.

And yes, the world economy is shrinking slowly. Less international trade is happening in the rest of the planet. Less tourists are rolling around the planet.

It is not only our county mind you. Economical policies are changing and political conditions for such are being adopted all around the world.

Do you realize that trade with individual countries forms the exports and imports of a country which eventually forms the account balance? The thing that you actually told is what matters? So how can you say that trade between countries is irrelevant to macro- economics in the beginning? I also don't think that you follow the world economic tendencies as closely as you might think as most sectors of the world economy are growing, the same as most countries except for those who depend on exporting natural resources... Some of your other observations are probably closer to the truth though. I also think that AKP is paving the way for a "Greek scenario" for Turkey with such economic policies especially combined with the mentality of the majority of people in the country.

 

[SouI]

So how can you say that trade between countries is irrelevant to macro- economics in the beginning?

Re-read what I wrote, I said "the trade balance with individual countries doesn't matter to macro-economics" as it is completely irrelevant.

Mind you, "individual" countries I wrote, which is what you are missing.

 

[Zulkarneyn]

Soul, all the charts you've presented leave out the most important part: the economy has since 2002 quadrupled in size. You don't look at account balance and government debt independent of the total economy. If i have 100 dollars and owe 80, is worse than if i have 100.000 and owe half of it. In other words, look at the percentage compared to the total

 

[xenon54 out]

Soul, all the charts you've presented leave out the most important part: the economy has since 2002 quadrupled in size. You don't look at account balance and government debt independent of the total economy. If i have 100 dollars and owe 80, is worse than if i have 100.000 and owe half of it. In other words, look at the percentage compared to the total

Still a rising account deficit is bad no matter how big your ecenomy is, in fact account deficit is also bigger in a bigger economy which makes it harder to close the gap.

Trade with Pakistan :-/

2016

Turkey's imports are decreasing in general:

Current account deficit is shrinking:

Why did out exports to Pakistan decreased to 1/8 of 2011?

 

[OguzSenturk]

Why did ourt exports to Pakistan decreased to 1/8 of 2011?

Bro our exports increased 217$ million to 289$ million from 2011 to 2015 according to that picture

 

[xenon54 out]

Bro our exports increased 217$ million to 289$ million from 2011 to 2015 according to that picture

Hmm, then what was Pakistan exporting to Turkey worth 800 million $ back in 2011?
They have no oil so it seems strange to me.

 

[KediKesenFare3]

Hmm, then what was Pakistan exporting to Turkey worth 800 million $ back in 2011?
They have no oil so it seems strange to me.

I'm afraid that Pakistan is falling back:

Exports are decreasing since years. I hope they'll fix this problem asap.

Pakistan: The secular decline in exports
http://www.dawn.com/news/1284002/the-secular-decline-in-exports

 

[what]

What are we importing from Pakistan? Thats a pretty huge decline.

 

[KediKesenFare3]

What are we importing from Pakistan? Thats a pretty huge decline.

http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/tur/pak/show/2014/

 

[flamer84]

Turkish economic growth slows in second quarter amid fall in investments, foreign demand

Turkish gross domestic product grew by 3.1 percent in the second quarter of 2016, lower than forecasts of around 3.4 percent, amid a decline in industrial investments and foreign demand, data from the Turkish Statistics Institute (TÜİK) showed on Sept. 9.

http://www.hurriyetdailynews.com/tu...mand.aspx?pageID=517&nID=103752&NewsCatID=344

 

[xenon54 out]

Turkish economic growth slows in second quarter amid fall in investments, foreign demand

Turkish gross domestic product grew by 3.1 percent in the second quarter of 2016, lower than forecasts of around 3.4 percent, amid a decline in industrial investments and foreign demand, data from the Turkish Statistics Institute (TÜİK) showed on Sept. 9.

http://www.hurriyetdailynews.com/tu...mand.aspx?pageID=517&nID=103752&NewsCatID=344

Im surprised Turkey has any growth at all considering the events of last year with terrorist attacks, drop in tourism, attempted coup, fight with Gülen and his structures small war with pkk and big war in Syria.
Honestly 3.1% isnt bad at all for those conditions.

 

[CrimsonFury]

Im surprised Turkey has any growth at all considering the events of last year with terrorist attacks, drop in tourism, attempted coup, fight with Gülen and his structures small war with pkk and big war in Syria.
Honestly 3.1% isnt bad at all for those conditions.

The fact that 2 major rating agencies still valuate us as an investment grade country and several other factors such as a strong banking system, young population and domestic spending still make Turkey one of the most attractive EM country. But I think the government should start with their economic reforms (the ones they talk so much about these days) that will lay the foundation for our future economic architecture ASAP...we can't keep delaying it otherwise down the road things will get ugly very quickly