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Turkish Economy - News & Updates

What is the driving force behind Turkish Economic problem?

  • The on going Trump attack on Turkish Economy

    Votes: 29 19.9%
  • Jewish Agenda to weaken adjacent countries to Israel

    Votes: 36 24.7%
  • Internal Turkish economic problems

    Votes: 50 34.2%
  • Falling Exports for Turkey

    Votes: 5 3.4%
  • Loss of Tourism income for Turkey

    Votes: 1 0.7%
  • External Loans or Debt impacting Economy

    Votes: 25 17.1%

  • Total voters
    146
Despite steadly increasing in export, as percantege the ratio of total Turkey's export to EU contries decreased from 60% to 45%. in recent years....in respond export to Africa, ME and other countries regularly grow...But due to ME riots export not increased as expected...

Most growing sector of current year is agriculture....both in production and export Turkey beated record of its all time..
export of 500 Billions USD up to 2023 is very an ambitious target..If turkey not make a jump in high tech and industry within 10 years that target bill be dreams in 2023..

So AKP government have to fund R&D by billions USD every year...Just with some tax deduction Turkey does not assign important steps in tech...
 
Turkey must close democracy deficit, bosses’ club cautions

With a cautious smile on her face, Ümit Boyner, the chairwoman of Turkey’s Industry and Business Association (TÜSİAD), tries to formulate her words in a way not to lead to yet another polemic starting between the top investors’ club in Turkey and the government. Given the fact that some of her criticism regarding the economic and political aspects of the investment environment have been slammed by members of Prime Minister Tayyip Erdoğan’s Justice and Development Party (AK Parti) government, Boyner wants to keep her title safe as one of the few TÜSİAD chairmen who have not been sued by the former governments’ members before she completes her three-year term in slightly more than a month.

TÜSİAD, with nearly 600 selected members (owning some 4,000 companies) paying a 23,000 Turkish Lira (app $13,000) yearly fee, deserves to be called the Club of Bosses in Turkey. They produce 50 percent of added value in the country, paying 85 percent of the corporate taxes and employing 60 percent of the registered workforce, other than public servants and agriculture workers.

“When I was elected as chairwoman in 2010,” she says during a dinner in Istanbul with a group of journalists on Dec. 19, “We declared two of Turkey’s main problems as the current accounts deficit and democracy deficit. Despite some positive developments we have to say after three years that Turkey has still a lot of things to do in both areas.”

But TÜSİAD faces “Why are you commenting on issues other than the economy?” from Erdoğan and his ministers. “Because Turkey is a middle income and middle democracy country and we do not want it to be trapped at this level,” Boyner answers. “As a civil society institution having responsibilities, our vision should not be limited to the economy alone. Capitalism is transforming itself by trying to answer the question of who is to pay the bill for the economic crisis. That is why we see the re-election of Barack Obama in the U.S. as a turning point. Therefore, we see freedoms and a state of law in the same context as economic growth.”

In the field of economy TÜSİAD appreciates the performance of the government in certain areas. She points out the “remarkable” 36 percent of public debt to gross national product in 2012 was targeted to be dragged down to 31 percent. In wealth distribution TÜSİAD thinks Turkey is in better shape than before; the ratio of household debt to GNP is now 20 percent, she adds. “There is a risky 2013 ahead of us and if Turkey continues to rely on export markets only, the growth might be under the 3 percent target, which may put unemployment under more pressure.

And for the “democracy deficit,” as she defines it, the Parliamentary effort to write a new Constitution might be a chance. She underlines five main topics to close the democracy deficit:

1- Freedom of religion: Individuals could be as pious or not as they want, but the state should be secular and the Religious Affairs Directorate should embrace all religions.

2- Kurdish problem: The new Constitution should handle it as an identity issue to free the problem from two extremes; forced assimilation and separatism.

3- Freedom of expression and press: The criticism regarding the situation in Turkey including the journalists in jail should not be ignored.

4- Separation of powers: Is a basic issue for democratic life. The executive, legislative and judicial branches should be separate but complementary, not alternatives to each other.

5- Fair representation: The 10 percent election hurdle should be lowered and the political parties law should be changed to allow in-house democracy.

“Turkey should not fall into the mid-income, mid-democracy trap,” Boyner says, “That’s why we need a qualitative jump, in addition to a quantitative one.”

Source
 
Turkish Airlines (THY) has grown by 20 percent according to third-quarter data, Anatolia News Agency reported.

"Our profitability has increased 665 percent compared to the same period last year and we have earned 868 million Turkish Liras of profit this year." Hamdi Topçu, the chairman of the executive board said.

Topçu also talked about the company's new flight destinations, the cities of Yaounde and Douala in Cameroon.

"These new destinations will reinforce ties between Turkey and Cameroon. Cameroon is one of the most important countries on the African continent. Our government's increasing interest in Africa forced us to be active in the region also." he said.

THY aims to continue increasing its growth and to be one of the world's 10 biggest airlines.

Source
 
New capital markets code takes effect today

Turkey’s new Capital Markets Board (SPK) Code, which was published on the Official Gazette yesterday, brings significant changes to the market, including the board’s relocation in Istanbul and the transformation of the Istanbul Stock Exchange (İMKB) into a joint stock company along with a shift in the top seat.

The code will come into force today.

“This code forms the legal frame, but it authorizes the Capital Markets Board to deal with most of the issues with secondary codes that raise the importance of completing succeeding regulations,” said Atilla Köksal, the president of Capital Market Intermediary Institutions Association (TSPAKB), Anatolia news agency reported. Expressing his appreciation with the law during his previous statements to BloombergHT, he also said these regulations will increase the inclusion of small investors into the capital market by assuring them.

The reformed SPK, with 920 employees, will be located in Istanbul, as one of the major steps within the government plans of making Istanbul a regional and global financial center.

With the new law, the İMKB will merge with the Istanbul Gold Exchange and become a joint stock company under Borsa Istanbul within six months as soon as the regulations and principles of the new company are prepared by the SPK.
 
Mitsubishi Heavy Industries Ltd and French utility Areva SA are preparing to place a bid for an upcoming order to build a nuclear power plant in Turkey, a Turkish government official recently told the Nikkei.

Mitsubishi Heavy and Areva plan to sell the Atmea 1, a midsize nuclear reactor the two sides have jointly developed, through negotiations between the Japanese and Turkish governments, Dow Jones Newswires reported.

The bid for the NPP to be built in Turkey's Black Sea city of Sinop will be the French-Japanese alliance's second attempt to export nuclear reactors to a country in the Middle East, following the successful sale of reactors in Jordan.

Prior to the March 2011 nuclear accident in Japan, Toshiba Corp. was part of a separate consortium that tried to sell reactors in Turkey.

However, those negotiations ground to a halt when Tokyo Electric Power Co. quit the consortium in the wake of the nuclear crisis.

Firms from other countries, including China, South Korea and Canada, are also bidding for the project in Turkey.


how about the result now?
 
I think the Japanies wil win the contract. Because they proof them self with earthquake and other nature disasters.
 
The total value of projects the Turkish construction industry secured abroad in 2012 was $26.1 billion, the largest amount the industry has seen in a 12-month period and a 31 percent increase over 2011, Economy Minister Zafer Çağlayan announced in a written statement on Tuesday.




The figure was $19.46 billion in 2011.

Noting that contractors secured 433 projects in 100 countries last year, Çağlayan said, “Our construction industry has achieved historic success; this [26.1 billion dollars] is a record figure.”

The success that the construction industry scored abroad is not limited to the total value of projects secured overseas. In recent years, the average worth of a construction project the companies secured in foreign countries was $40 million, while this figure increased to $60 million in 2012, representing a 50 percent jump.

Observers said Turkish contractors have started to secure more sophisticated and expensive projects abroad following the quality work they have performed in recent years. “This serves to demonstrate the high quality of Turkish construction work in the world,” Çağlayan emphasized.

In the list of countries where contractors won projects, Turkmenistan and Iraq stood out as the leaders. In terms of the share of projects by country, Turkmenistan tops the list with 18.8 percent, while Iraq's share, which comes second, is 16.8 percent. Companies in 2012 undertook 80 projects worth $4.9 billion, representing the biggest total figure ever achieved in Turkmenistan by Turkish construction companies, while Iraq is the country where companies undertook the most construction projects -- 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 will get in Libya will increase in the following years.

Construction companies got projects for the first time in 2012 in Colombia, Papua New Guinea, Somalia and Peru, increasing the total number of countries where construction companies have had contracts to 100.

Major projects that stood out for companies in 2012 include a railroad project in Ethiopia, second-phase work on an Olympic Village – designed for possibly hosting the Olympics -- in Turkmenistan, the northern St. Petersburg highway project in Russia and the expansion of the Abu Dhabi airport. The contracts firms win in foreign countries also contributes significantly to Turkey's export of construction materials, which rose in the first 11 months of 2012 to $20.5 billion, representing a 7.4 percent increase over the same period of the previous year.

So far, the construction industry has undertaken 6,969 projects worth $237.4 billion in 100 countries. In the year 2023, the 100th anniversary of the foundation of the Turkish Republic, the industry aims to have increased the total value of projects to $100 billion.

Having built on improved political relations with a number of countries, particularly in the Middle East and Africa along with the Turkic republics, Turkey saw the total value of its overseas contracting projects grow to $19.46 billion in 2011 from $1 billion in 2000. The government promotes construction companies abroad, while foreign customers can contact the Economy Ministry to help them find Turkish contractors for their projects or as partners in projects in third countries.

Turkey was ranked second in terms of number of contracting companies in the 2009 “Top 225 International Contractors” list issued by the Engineering News-Record (ENR) weekly magazine. Turkey had 33 construction firms on the ENR list in 2009, making it second after China, with 54 such companies.
 
Turkey must close democracy deficit, bosses’ club cautions

With a cautious smile on her face, Ümit Boyner, the chairwoman of Turkey’s Industry and Business Association (TÜSİAD), tries to formulate her words in a way not to lead to yet another polemic starting between the top investors’ club in Turkey and the government. Given the fact that some of her criticism regarding the economic and political aspects of the investment environment have been slammed by members of Prime Minister Tayyip Erdoğan’s Justice and Development Party (AK Parti) government, Boyner wants to keep her title safe as one of the few TÜSİAD chairmen who have not been sued by the former governments’ members before she completes her three-year term in slightly more than a month.

TÜSİAD, with nearly 600 selected members (owning some 4,000 companies) paying a 23,000 Turkish Lira (app $13,000) yearly fee, deserves to be called the Club of Bosses in Turkey. They produce 50 percent of added value in the country, paying 85 percent of the corporate taxes and employing 60 percent of the registered workforce, other than public servants and agriculture workers.

“When I was elected as chairwoman in 2010,” she says during a dinner in Istanbul with a group of journalists on Dec. 19, “We declared two of Turkey’s main problems as the current accounts deficit and democracy deficit. Despite some positive developments we have to say after three years that Turkey has still a lot of things to do in both areas.”

But TÜSİAD faces “Why are you commenting on issues other than the economy?” from Erdoğan and his ministers. “Because Turkey is a middle income and middle democracy country and we do not want it to be trapped at this level,” Boyner answers. “As a civil society institution having responsibilities, our vision should not be limited to the economy alone. Capitalism is transforming itself by trying to answer the question of who is to pay the bill for the economic crisis. That is why we see the re-election of Barack Obama in the U.S. as a turning point. Therefore, we see freedoms and a state of law in the same context as economic growth.”

In the field of economy TÜSİAD appreciates the performance of the government in certain areas. She points out the “remarkable” 36 percent of public debt to gross national product in 2012 was targeted to be dragged down to 31 percent. In wealth distribution TÜSİAD thinks Turkey is in better shape than before; the ratio of household debt to GNP is now 20 percent, she adds. “There is a risky 2013 ahead of us and if Turkey continues to rely on export markets only, the growth might be under the 3 percent target, which may put unemployment under more pressure.

And for the “democracy deficit,” as she defines it, the Parliamentary effort to write a new Constitution might be a chance. She underlines five main topics to close the democracy deficit:

1- Freedom of religion: Individuals could be as pious or not as they want, but the state should be secular and the Religious Affairs Directorate should embrace all religions.

2- Kurdish problem: The new Constitution should handle it as an identity issue to free the problem from two extremes; forced assimilation and separatism.

3- Freedom of expression and press: The criticism regarding the situation in Turkey including the journalists in jail should not be ignored.

4- Separation of powers: Is a basic issue for democratic life. The executive, legislative and judicial branches should be separate but complementary, not alternatives to each other.

5- Fair representation: The 10 percent election hurdle should be lowered and the political parties law should be changed to allow in-house democracy.

“Turkey should not fall into the mid-income, mid-democracy trap,” Boyner says, “That’s why we need a qualitative jump, in addition to a quantitative one.”

Source

TUSAID is not as influential in today's Turkey as it used to be before. Its outgoing head Umit Boyner tried her level best to pressure the Government to sign IMF loan deal in 2009 but government first delayed and later rejected it flatly and came out well from economic crisis.

TUSAID is considered by many Ruling party ideologues as more of and business branch of Opposition CHP and not the whole hearted flag bearer of democracy. It will be of very importance that how the newly elected TUSAID head will role put this business club’s agenda in coming future. I am sure that in coming years MUSAID will also start playing an important role in Turkish business scenario.
 
Everything in Turkey is polarized, even business associations. The government pushes MÜSIAD hard.
explorer9 you're well informed, are you doing business with Turkey or just reading a lot?
 
Export hit $152b in 2012
Showing a growth rate of 12.9% compared to 2011
if Turkey could achieve an average 11.44% growth per year from now in export then:

2012 152
2013 169
2014 189
2015 210
2016 234
2017 261
2018 291
2019 324
2020 362
2021 403
2022 449
2023 500

the $500b export goal will be fulfilled by 2023. In My opinion, 11.44% as an average is a bit high. This will need a huge reform in all aspects to achieve.
 
Everything in Turkey is polarized, even business associations. The government pushes MÜSIAD hard.
explorer9 you're well informed, are you doing business with Turkey or just reading a lot?

Just out of love mate:)
 
The report "Structural Reforms to Boost Turkey's Long-Term Growth" provided by Organization for Economic Co-operation and Development (OECD) has concluded that:

Turkey should sustain two sources of growth:

i) broadening employment opportunities, notably for the low-skilled majority of the working age population

ii) sustaining productivity growth, notably by accelerating the shift of resources to higher productivity activities.

According to the scenarios presented in this article, such reforms could boost Turkey’s level of output and incomes by as much as 25% relative to a baseline by 2030.

Long-term growth scenarios:
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The link to download the article
(Please click on "PDF" link on the page)
 
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