MINISTRY of ECONOMY
ECONOMIC OUTLOOK
MARCH 2015
Recent Update: 24/03/2015
OUTLINE
A- MACROECONOMIC OUTLOOK……………………………………………………
4
B- FOREIGN TRADE OUTLOOK……………………………………………………..
19
1) MERCHANDISE…………………………………………………………...
20
2) SERVICES……………………………………………………………………..
33
C- INVESTMENTS , FOREIGN CAPITAL and INCENTIVES………………….
38
D- FREE ZONES in TURKEY……………………………………………………………
44
E- BILATERAL, REGIONAL, PLURILATERAL and MULTILATERAL TRADE 49
March 2015
Ministry of Economy
2
A- MACROECONOMIC OUTLOOK
March 2015
Ministry of Economy
3
Growth Forecasts for Selected Countries/Country Groups (%)
Growth Forecast for Selected Countries/Country Groups(%)
Euro
World Turkey Area
US
Brazil Russia India China
IMF
OECD
WB
2014
2015
2014
2015
2014
2015
3,3
3,5
3,3
4
2,6
3,0
3,0
3,4
3,0
3,2
3,1
3,5
0,8
1,2
0,8
1,4
0,8
1,1
2,4
3,6
2,2
3,1
2,4
3,2
0,1
0,3
0,3
-0,5
0,1
1,0
0,6
-3,0
0,3
0,0
0,7
-2,9
5,8
6,3
5,4
7,7
5,6
6,4
7,4
6,8
7,3
7,0
7,4
7,1
Source: IMF, OECD, WB
 In 2013, Turkish economy grew by 4,1%.
 According to the IMF, Turkish Economy is expected to grow by 3% in
2014 and %3,4 in 2015.
March 2015
Ministry of Economy
4
Forecasts for Merchandise Trade Growth (%)
Years
IMF
WTO
2014
2015
2014
2015
Forecasts for Merchandise Trade Growth(%)
Exports
Imports
World Trade
Advanced Emerging Advanced Emerging
Volume
Economies Economies Economies Economies
3,6
3,9
3,4
4,5
3,1
4,6
5,6
4,5
6,2
3,8
2,5
4,0
3,4
2,6
3,1
3,8
4,5
3,7
4,5
4,0
Source: IMF and WTO
 According to the IMF estimates, global trade volume of merchandise and
services is expected to increase by 3,1% in 2014 and 3,8% in 2015.
 According to the WTO estimates, global trade volume of merchandise and
services is expected to increase by 3.1% in 2014 and 4% in 2015.
March 2015
Ministry of Economy
5
Top 20 Economies (Current, PPP)
Source: World Bank
 Turkey ranks as the 17th largest economy in the World and 6th in Europe.
March 2015
Ministry of Economy
6
Economic Targets of 2015-2017 Medium Term Program
2013* 2014 2015 2016 2017
GDP (Billion $, Current Prices)
822
810
850
907
971
GDP Per Capita($)
10.807 10.537 10.936 11.541 12.229
Real GDP Growth
4,1
3,3
4,0
5,0
5,0
Unemployment Rate(%)
9,0
9,6
9,5
9,2
9,1
Tourism Income (Billion $)
28,0
29,5
31,5
33,5
35,5
Current Account Balance (Billion $) -65,1
-46,0 -46,0 -49,2 -50,7
Current Account Balance/GDP(%)
-7,9
-5,7
-5,4
-5,4
-5,2
*Actual
(Medium Term Program, Ministry of Development – October 8, 2014
 Medium Term Program which covers 2015-2017 period aims to
increasing growth performance while continuing to reduce the
current account deficit gradually and reaching the inflation target
and thus strengthen macroeconomic and financial stability
March 2015
Ministry of Economy
7
Real GDP Growth of Selected Countries/Country Groups (2013)
Source: TURKSTAT, IMF
 Turkish Economy expanded by 4.1% in 2013 and 2.8% in the first nine months of
2014.
March 2015
Ministry of Economy
8
Annual Economic Growth Rates (2002-2013)
Source:TURKSTAT
 Mean annual growth rate between 2003 and 2013 was 5%.
 Real GDP growth for 2013 realized as 4,1% and 2.8 in first 9 months of 2014.
March 2015
Ministry of Economy
9
GDP Per Capita
Source: Dollar value is from TURKSTAT, PPP GNI value from World Bank
 Since 2002 GDP per capita has tripled from 3,492 USD to 10,807 USD in
2013. According to Purchasing Power Parity (PPP) GNI per capita reached
19 thousand USD in 2013.
March 2015
Ministry of Economy
10
Capacity Utilization Ratio (%)
Source: CBRT
 Capacity utilization ratio in February 2015, down
percentage points, realized as 72.8%
March 2015
Ministry of Economy
0.9
11
Industrial Production Index (2010=100)
Source: TURKSTAT
 Industrial production index decreased by 1.8% year-over-year to 112.3
(2010=100) in January 2015.
March 2015
Ministry of Economy
12
PMI
 PMI decreased to 49.6 in February 2015, and fall below the previous month.
March 2015
Ministry of Economy
13
Inflation (Annual Percent Change)
Source: TURKSTAT
 Inflation in February 2015 was realized as 7.6% and 3.1% according to CPI
and PPI, respectively.
March 2015
Ministry of Economy
14
Unemployment Rates (%)
Source: TURKSTAT
 In December 2014, unemployment rate was 10.9% . In 2014, unemployment rate was 9.9%.
 Seasonally adjusted unemployment rate in Euro Area was 11.2% and 9.8% in (EU28) in January
2015. In terms of unemployment ratio Turkey outperformed 7 EU members according to
current data.
 After Russia, Germany, England and France, Turkey has the 5th largest labor force among the
European countries. (2013, World Bank)
March 2015
Ministry of Economy
15
CDS Premiums (March 23rd, 2015)
Source: DB Research
* Higher CDS premiums indicate higher risk levels.
 CDS premium of Turkey indicates a medium level of risk.
March 2015
Ministry of Economy
16
Central Government Budget Deficit/ GDP (%)
Source: Eurostat,TUİK
 Central government budget deficit/GDP ratio was 1.2% in Turkey in 2013 and
Turkey satisfied the Maastricht criteria of 3%. Turkey also outperformed 22
EU Countries.
 In January-February 2015 period, central government budget surplus is 1,4
billion TL compared to 3,6 billion TL surplus in the same period of 2014.
March 2015
Ministry of Economy
17
Government Debt / GDP (%)
Source: Eurostat
 Debt/GDP ratio of Turkey was 36.2% in 2013 which was below the level in the
Maastricht Criterion (60%). Turkey also outperformed 25 EU countries.
March 2015
Ministry of Economy
18
B- FOREIGN TRADE OUTLOOK
March 2015
Ministry of Economy
19
I) MERCHANDISE
March 2015
Ministry of Economy
20
Targets in Merchandise Trade
(Billion $)
Exports
Imports
Volume of trade
Balance of trade
Exports/Imports (%)
2013*
151.8
251.7
403.5
-99.9
60.3
2014* 2015** 2016** 2017**
157.6 173.0 187.4 203.4
242.2 258.0 276.8 297.5
399.8 431.0 464.2 500.9
-84.5 -85.0 -89.4 -94.1
65.1
67.1
67.7
68.4
2023***
500.0
625.0
1125.0
-125.0
80.0
* Actual (Source: TURKSTAT)
**Forecast: Medium Term Programme, Ministry of Development, 2015-2017)
***The Exports Strategy of Turkey For 2023
March 2015
Ministry of Economy
21
Turkey's Share in Global Merchandise Exports (%)
 Turkey’s share in global merchandise exports was %0.81 in 2013.
March 2015
Ministry of Economy
22
Turkey's Share in Global Merchandise Imports (%)
 Turkey’s share in global merchandise imports was %1.33 in 2013.
March 2015
Ministry of Economy
23
Foreign Trade Developments
2013 - 2014 / January 2014 - 2015
Annual (Billion $)
Export
Energy Export*
Gold Export
Import
Energy Import*
Gold Import
Foreign Trade Volume
Foreign Trade Balance
Balance excl. Energy
Export/Import (%)
Periodic (Billion Dollar)
2013
2014
2014 / JAN
2015 / JAN
151.8
6.7
3.3
251.7
55.9
15.1
403.5
-99.9
-50.7
60.3
157.6
6.1
3.2
242.2
54.9
7.1
399.8
-84.5
-35.8
65.1
12.4
0.5
0.2
19.3
4.9
0.4
31.7
-6.9
-2.5
64.3
12.3
0.4
1.3
16.6
3.7
0.2
29.0
-4.3
-1.0
74.1
Change (%)
2014/2015
-0.6
-23.9
513.1
-13.7
-24.5
-42.6
-8.6
-37.5
-60.6
15.3
* Energy corresponds to Chapter 27.
Source: Ministry of Economy
In January 2015, compared to same month of 2014, exports decreased by
0.6% and imports decreased by 13.7% respectively.
March 2015
Ministry of Economy
24
Monthly Exports/Imports
In January 2015 compared to same month of 2014, exports have decreased by
0.6% and realized as 12.3 billion dollars and imports have decreased by 13.7%
down to the level of 16.6 billion dollars.
March 2015
Ministry of Economy
25
Distribution of Foreign Trade in Broad Economic Categories
EXPORT
(Million $)
Investment Goods
Intermediate Goods
Consumption Goods
Others
TOTAL
Annual
2013/2014 Monthly (January) Share (%, 2014/2015 Jan.
2013
2014
Change%
2014
2015
2015 Jan.)
Change %
15.592
16.109
3,3
1.059
1.145
9,3
8,2
74.817
75.188
0,5
6.221
6.213
50,4
-0,1
60.732
65.102
7,2
5.068
4.922
39,9
-2,9
661
1.244
88,2
52
50
0,4
-4,8
151.803 157.642
3,8
12.400
12.331
100,0
-0,6
IMPORT
(Million $)
Investment Goods
Intermediate Goods
Consumption Goods
Others
TOTAL
March 2015
Annual
2013/2014 Monthly (January) Share (%, 2014/2015 Jan.
2013
2014
Change%
2014
2015
2015 Jan.)
Change %
36.771
35.996
-2,1
2.564
2.536
15,2
-1,1
183.811 176.721
-3,9
14.665
12.265
73,7
-16,4
30.416
29.012
-4,6
2.028
1.803
10,8
-11,1
663
453
-31,6
29
31
0,2
7,6
251.661 242.183
-3,8
19.286
16.636
100
-13,7
Ministry of Economy
26
Main Export Items
Periodic (January) Million Dollar
Rank
1
2
3
4
5
6
7
8
9
10
Code
71
87
84
61
72
85
62
73
39
08
Description of Chapter
PRECIOUS STONES, PRECIOUS METALS, PEARLS AND ARTICLES THEREOF
VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING-STOCK, PARTS THEREOF
BOILERS, MACHINERIES AND MECHANICAL APPLIANCES, PARTS THEREOF
KNITTED AND CROCHETED GOODS AND ARTICLES THEREOF
IRON AND STEEL
ELECTRICAL MACHINERY AND EQUIPMENT, PARTS THEREOF
ARTICLES OF IRON AND STEEL
NON KNITTED AND CROCHETED GOODS AND ARTICLES THEREOF
PLASTIC AND ARTICLES THEREOF
EDIBLE FRUITS, NUTS, PEEL OF CITRUS FRUIT
LIST TOTAL
TOTAL
EXPORT
2014 2015
537 1.707
1.213 1.437
1.041 935
825
727
795
599
742
589
523
494
530
449
460
417
331
389
6.997 7.743
12.400 12.331
IMPORT
BALANCE
2014 2015 2014
2015
454
288
84
1.419
765
813
447
624
2.200 1.909 -1.160
-974
82
69
742
658
1.650 1.233 -855
-634
1.458 1.501 -716
-912
171
153
353
342
210
189
321
260
1.217 966
-757
-549
38
44
292
345
8.246 7.165 -1.248
578
19.286 16.636 -6.886 -4.305
CHANGE %
2014/2015
217,8
18,5
-10,2
-11,8
-24,7
-20,7
-5,5
-15,3
-9,5
17,5
10,7
-0,6
* Percent change is related to the annual change in exports in 2013.
Source: TURKSTAT
March 2015
Ministry of Economy
27
Main Import Items
Periodic (January) Million Dollar
EXPORT
IMPORT
2015
2015 2014
2014
Description of Chapter
Rank Code
355
467
3.690
4.885
27 MINERAL FUELS, OILS, DISTILLATION PRODUCTS, ETC
1
935
1.909 1.041
2.200
84 MACHINERY, NUCLEAR REACTORS, BOILERS, ETC
2
589
742
1.501
1.458
85 IRON AND STEEL
3
599
795
1.233
1.650
72 ELECTRICAL, ELECTRONIC EQUIPMENT
4
417
460
966
1.217
39 PLASTICS AND ARTICLES THEREOF
5
1.213 1.437
813
765
87 VEHICLES OTHER THAN RAILWAY, TRAMWAY
6
33
44
393
447
29 ORGANIC CHEMICALS
7
54
52
364
365
90 OPTICAL, PHOTO, TECHNICAL, MEDICAL, ETC APPARATUS
8
61
54
329
285
30 PHARMACEUTICAL PRODUCTS
9
1.707
537
288
454
71 PEARLS, PRECİOUS STONES, METALS, COİNS, ETC
10
13.726 11.486 5.404 6.187
LIST TOTAL
19.286 16.636 12.400 12.331
TOTAL
BALANCE
2015
2014
-4.419 -3.334
-974
-1.160
-912
-716
-634
-855
-549
-757
624
447
-360
-403
-310
-313
-268
-231
1.419
84
-8.322 -5.299
-6.886 -4.305
CHANGE %
2014/2015
-24,5
-13,2
2,9
-25,3
-20,6
6,2
-12,1
-0,1
15,7
-36,5
-16,3
-13,7
* Percent change is related to the annual change in imports in 2013.
Source: TURKSTAT
March 2015
Ministry of Economy
28
Main Export Items (Annual)
Annual (Million Dolar)
Rank
1
2
3
4
5
6
7
8
9
10
Code
87
84
61
85
72
71
73
62
27
39
Description of Chapter
VEHICLES OTHER THAN RAILWAY, TRAMWAY
MACHINERY, NUCLEAR REACTORS, BOILERS, ETC
KNITTED AND CROCHETED GOODS AND ARTICLES THEREOF
ELECTRICAL, ELECTRONIC EQUIPMENT
IRON AND STEEL
PEARLS, PRECİOUS STONES, METALS, COİNS, ETC
ARTICLES OF IRON AND STEEL
NON KNITTED AND CROCHETED GOODS AND ARTICLES THEREOF
MINERAL FUELS, OILS, DISTILLATION PRODUCTS, ETC
PLASTICS AND ARTICLES THEREOF
LIST TOTAL
TOTAL
EXPORT
IMPORT
2013
2014
2013 2014
17.000 18.064 16.808 15.736
12.989 13.595 30.157 28.104
9.245
10.029
941
985
9.544
9.693
17.759 17.949
9.919
9.246
18.691 17.576
6.999
7.717
16.234 8.121
6.148
6.356
2.758 2.618
5.714
6.234
1.863 1.883
6.725
6.112
55.917 54.895
5.609
6.098
13.881 14.151
89.892 93.145 175.009 162.016
151.803 157.642 251.661 242.183
BALANCE
CHANGE %
2013
2014 2013/2014
192
2.328
6,3
-17.167 -14.509
4,7
8.304
9.044
8,5
-8.214 -8.255
1,6
-8.772 -8.330
-6,8
-9.236
-404
10,3
3.390
3.738
3,4
3.851
4.351
9,1
-49.193 -48.783
-9,1
-8.272 -8.052
8,7
-85.117 -68.871
3,6
-99.859 -84.541
3,8
Source: TURKSTAT
March 2015
Ministry of Economy
29
Main Import Items (Annual)
Annual (Million Dollar)
Rank
1
2
3
4
5
6
7
8
9
10
Code
Description of Chapter
27 MINERAL FUELS, MINERALS OILS AND PRODUCT OF THEIR DISTILLATION
84 BOILERS, MACHINERY AND MECHANICAL APPLIANCES, PARTS THEREOF
85 ELECTRICAL MACHINERY AND EQUIPMENT, PARTS THEREOF
72 IRON AND STEEL
87 VEHICLE OTHER THAN RAILWAY OR TRAMWAY ROLLING-STOCK, PARTS THEREOF
39 PLASTIC AND ARTICLES THEREOF
71 PEARLS, PRECIOUS STONES, PRECIOUS METALS AND ARTICLES THEREOF
29 ORGANIC CHEMICALS
90 OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING CHECKING, PRECISION
30 PHARMACEUTICAL PRODUCTS
LIST TOTAL
TOTAL
IMPORT
2013
2014
55.917 54.895
30.157 28.104
17.759 17.949
18.691 17.576
16.808 15.736
13.881 14.151
16.234
8.121
5.314
5.833
4.559
4.878
4.151
4.428
183.471 171.671
251.661 242.183
EXPORT
2013 2014
6.725 6.112
12.989 13.595
9.544 9.693
9.919 9.246
17.000 18.064
5.609 6.098
6.999 7.717
598
534
661
716
754
806
70.798 72.582
151.803 157.642
BALANCE CHANGE %
2013 2014 2013/2014
-49.193 -48.783 -1,8
-17.167 -14.509 -6,8
-8.214 -8.255
1,1
-8.772 -8.330
-6,0
192 2.328
-6,4
-8.272 -8.052
1,9
-9.236 -404
-50,0
-4.716 -5.299
9,8
-3.898 -4.162
7,0
-3.397 -3.622
6,7
-112.673 -99.088 -6,4
-99.859 -84.541 -3,8
Source: TURKSTAT
March 2015
Ministry of Economy
30
Main Trade Partners (January 2015)
Main Export Partners (Share,%)
Main Import Partners (Share,%)
Source: TURKSTAT
March 2015
Ministry of Economy
31
Exports by Regions
January
(Million $)
2014
A- EU (28)
B- FREE ZONES IN TURKEY
C- OTHER COUNTRIES
1- OTHER EUROPE
2- AFRICA
North Africa
Other Africa
3- AMERICA
North America
Central America And Caraips
South America
4- ASIA
Near And Middle Eastern
Other Asia
5- AUSTRALIA AND NEW ZEALAND
6- OTHER COUNTRIES AND REGIONS
TOTAL
Share (%)
5,456
177
6,767
1,126
1,148
817
331
726
537
71
118
3,725
2,815
910
39
3
12,400
44.0
1.4
54.6
9.1
9.3
6.6
2.7
5.9
4.3
0.6
1.0
30.0
22.7
7.3
0.3
0.0
100
2015
5,271
151
6,909
1,721
934
638
296
757
552
63
142
3,444
2,743
701
47
6
12,331
Share (%) Change (%)
42.7
1.2
56.0
14.0
7.6
5.2
2.4
6.1
4.5
0.5
1.2
27.9
22.2
5.7
0.4
0.1
100
-3.4
-15.1
2.1
52.8
-18.6
-21.9
-10.4
4.2
2.8
-11.2
19.8
-7.5
-2.6
-23.0
19.9
92.8
-0.6
Source: TURKSTAT
March 2015
Ministry of Economy
32
Imports by Regions
January
(Million $)
2014
A- EU (28)
B- FREE ZONES IN TURKEY
C- OTHER COUNTRIES
1- OTHER EUROPE
2- AFRICA
North Africa
Other Africa
3- AMERICA
North America
Central America And Caraips
South America
4- ASIA
Near And Middle Eastern
Other Asia
5- AUSTRALIA AND NEW ZEALAND
6- OTHER COUNTRIES AND REGIONS
TOTAL
Share (%)
6,549
88
12,650
3,318
459
287
172
1,464
1,126
66
273
6,159
1,631
4,528
56
1,194
19,286
34.0
0.5
65.6
17.2
2.4
1.5
0.9
7.6
5.8
0.3
1.4
31.9
8.5
23.5
0.3
6.2
100
2015
5,741
96
10,799
2,494
398
195
203
1,199
856
67
275
5,740
1,293
4,447
20
949
16,636
Share (%) Change (%)
34.5
0.6
64.9
15.0
2.4
1.2
1.2
7.2
5.1
0.4
1.7
34.5
7.8
26.7
0.1
5.7
100
-12.3
8.6
-14.6
-24.8
-13.4
-32.2
18.2
-18.1
-24.0
2.8
1.0
-6.8
-20.7
-1.8
-64.4
-20.6
-13.7
Source: TURKSTAT
March 2015
Ministry of Economy
33
2) SERVICES
March 2015
Ministry of Economy
34
Targets in Services
March 2015
Ministry of Economy
35
Turkey's Share in Global Services Exports (%)
Source: WTO
 Turkey’s share in global exports of services was 0.95% in 2013.
March 2015
Ministry of Economy
36
Turkey's Share in Global Services Imports (%)
Source: WTO
 Turkey’s share in global imports of services was 0.51% in 2013.
March 2015
Ministry of Economy
37
Contracting Services Abroad
Contributions to the overall
economic performance: Creating
foreign exchange inflow, exports,
employment, technology transfer;
adding to the machinery stock,
facilitating internationalization
Regional Breakdown of Projects(%)
 42 out of the world’s top 250
contracting companies are Turkish.
 Turkey ranks as the 2nd country
(following China) in terms of the
number of top contracting companies.
March 2015
Ministry of Economy
38
C- INVESTMENTS, FOREIGN CAPITAL and
INCENTIVES
March 2015
Ministry of Economy
39
Foreign Direct Investment
Source: CBRT
 FDI reached to 149.3 billion USD in 2003-2014 period, while it
was 14.6 billion USD in 1984-2002 period.
 FDI increased 1.7 % in 2015 January with respect to previous
period and reached to 1.8 billion USD.
March 2015
Ministry of Economy
40
The Sectoral Breakdown of Foreign Investments
(Million $)
AGRICULTURE
INDUSTRIAL SECTORS
Mining and Quarrying
Manifacturing
Production and Distribution of Electricity, Gas,
SERVICES SECTOR
TOTAL
2013
47
4,819
242
2,207
2,334
5,000
9,866
2014 2014*
61
0
4,666
178
449
48
2,891
93
1,323
37
3,972
117
8,699 295
2015*
0
132
118
13
1
40
172
*January
Breakdown of Investments in Manufacturing
Industry (%)
7.7
7.7
0.0
Food, Beverage, Tobacco
7.7
Textile
Refined Petroleum
0.0
0.0
7.7
Chemicals and Man-made Fibers
Plastics and Rubber
Minerals other than Metallics
Basic and Fabricated Metals
46.2
Machinery and Equipment
Electrical and Optical Equipment
Vehicles
0.0
Others
Source: CBRT
March 2015
Ministry of Economy
41
Breakdown of Foreign Investments by Country
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Million $
Netherlands
England
Russia
Azerbaijan
Germany
Luxembourg
Italy
USA
France
Kuwait
Japan
Norway
Singapore
Swiss
United Arab Emirates
Greece
Hong Kong
Spain
Ireland
Austria
LIST TOTAL
TOTAL
2012
1.381
2.044
11
338
491
1.186
154
439
86
271
106
136
64
454
52
58
38
193
22
1.519
9.043
10.759
2013
918
300
875
803
1.968
278
146
326
217
185
439
30
22
204
176
68
13
506
7
656
8.137
9.866
2014
2.017
1.046
730
718
693
555
490
325
280
234
212
170
165
154
115
101
88
74
56
48
8.271
8.699
2015*
221
3
735
73
20
115
14
1
4
3
9
0
2
26
0
8
0
0
8
11
1.253
1.599
*January
Source: CBRT
March 2015
Ministry of Economy
42
Investment Incentive System
The current investment incentive system of
Turkey is structured in four sub systems:
 General Investment Incentive System
 Regional Investment Incentive System
 Investment Incentive System for Big Scale
Projects
 Encouraging the Strategic Investments
March 2015
Ministry of Economy
43
Investment Incentives
Certificates
Amount of Fixed
Issued
Investments (Million TL)
2012
2013
2014
2015*
Total
4.253
4.927
3.623
344
Total
57.889
96.059
61.779
26.880
Potential
Employment
(People)
Total
148.795
191.845
143.763
10.449
CERTIFICATES ISSUED
2012
2013
2014
2015*
Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Various
1.546
740
694
490
335
438
10
1.768
803
695
516
484
635
26
1.460
716
594
447
367
461
17
111
63
41
28
33
67
1
TOTAL
4.253
4.927
4.062
344
*January
Source: General Directorate of Incentive Implementation and Foreign Investment
March 2015
Ministry of Economy
44
D - FREE ZONES IN TURKEY
March 2015
Ministry of Economy
45
The Advantages of Free Zones for Users















Tax advantages for manufacturers
Medium-and long-term investment view
Availability to transfer profits
Commercial facilities
Exemption from customs duties
Acquisition of the documents relating to the free movement of goods under
the scope of Customs Union with the EU
Principle of equality
No time restrictions
Flexibility to adjust to the market needs and conditions
Reliable inflation accounting
Market access to domestic and foreign markets
Reduced bureaucratic procedures and dynamic business management
Strategic advantages
Affordable and compatible infrastructure
Supply chain opportunities
March 2015
Ministry of Economy
46
Free Zones in Turkey
 61,505 people have been employed in Free Zones of Turkey in 2014.
March 2015
Ministry of Economy
47
Trade Flows of Free Zones
Million Dollar
From Domestic Market to Free Zones
From Free Zones to Abroad
From Abroad to Free Zones
From Free Zones to Domestic Markets
TOTAL TRADE VOLUME
2008
3,195
5,874
8,248
7,262
24,579
2009
2,177
4,913
5,493
5,173
17,756
2010
2,295
4,361
6,625
5,291
18,572
2011
2,668
6,924
7,253
5,801
22,646
2012
2,971
7,071
7,257
5,754
23,053
2013
2,887
7,701
7,490
5,162
23,240
2014
2,732
7,958
7,059
4,683
22,432
Source: General Directorate of Free Zones, Foreign Investments and Services
 In 2014 total trade volume of the Free Zones reached to 22,4
billion dollars, decreasing 3.5% annually.
March 2015
Ministry of Economy
48
Concentration in Free Zones by Industries
Istanbul Ataturk Airport FZ
Antalya FZ
Kocaeli FZ
Avrupa FZ
Mersin FZ
Bursa FZ
Izmir FZ
TUBITAK-MAM FZ
Adana-Yumurtalik FZ
Services and Software
Yacht-building, Medical Equipment
Ship-building
Ready-Wear
Ready-Wear
Automotive sub-industries
Leather
R&D Activities
Ship Repair and Maintenance
Source: General Directorate of Free Zones, Foreign Investments and Services
March 2015
Ministry of Economy
49
E - BILATERAL, REGIONAL,
PLURILATERAL and MULTILATERAL
TRADE
March 2015
Ministry of Economy
50
Trade Relationships of Turkey with Others
Bilateral Trade Relationships of Turkey
Europe, Asia-Pacific, Eurasia, Middle East and North Africa,
Sub-Saharan Africa, Americas
Regional and Multiple Trade Relationships of
Turkey
EU, ECO, D8, BSEC, OIC, COMCEC
Multilateral Trade Relationships of Turkey
WTO, OECD, G20
March 2015
Ministry of Economy
51
FTA Countries
1.
EFTA (Norway, Switzerland, Iceland,
Liechtenstein)
2.
Israel
3.
Macedonia
4.
Bosnia and Herzegovina
5.
Palestine
6.
Tunisia
7.
Morocco
8.
Syria (**)
9.
Egypt
11. Georgia
12. Montenegro
13. Serbia
14. Chile
15. Jordan
16. South Korea
17. Mauritius
18. Lebanon*
19. Kosovo*
20.Malaysia*
10. Albania
(*) Agreements that are in the approval process
(**) Pending
March 2015
Ministry of Economy
52
FTA Countries(On-going Negotiations)
1. Moldova*
9. Gulf Cooperation Council
2. Ghana*
10. Libya
3. Ukraine
11. MERCOSUR
4. Colombia
12. Faroe Islands
5. Ecuador
6. Democratic Republic of the
Congo
13. Japan
14. Singapore
7. Cameroon
15. Peru
8. Seychelles
16. Mexico
* Negotiations completed.
March 2015
Ministry of Economy
53
Multilateral Trade Relationships
Trade in Services Aggrement (TISA)
 Due to the stumble of Doha Development Round and ambitious targets of top services
exporters, TISA negotiations which continue between countries, who makes up 70% of
total world services, in order to increase liberalisation in services trade while Turkey is
included in the negotiations.
Non Agricultural Market Access (NAMA)
 NAMA refering to all products not covered by the WTO-Agreement on Agriculture
(manufacturing products, fuels and mining products, fish and fish products, and forestry
products) targets to further liberalization on these product by both reducing tariff and
non-tariff barriers.
G-20 Presidency
 The G-20 economies consisting of USA, Germany, Argentina, the European Union
Australia, Brazil, China, Indonesia, France, South Africa, South Korea, India, Britain, Italy,
Japan, Canada, Mexico, Russia, Saudi Arabia and Turkey represent approximately 90% of
the World GDP, 80% of the world trade, and two-thirds of the world population. The
presidency of the G-20 rotates annually and Turkey will assume the presidency of the G20 in 2015.
March 2015
Ministry of Economy
54
Regional Breakdown of Exports
(Million $)
EU-28
CIS
EFTA
Economic Cooperation
Organisation
Organisation of Islamic
Cooperation
Black Sea Economic
Cooperation
FTA Countries
OECD
Turkic Republics
TOTAL
Change Share (%)
(%)
(2014)
2013
2014
2014*
2015*
63.040
16.924
1.662
68.530
15.621
3.796
8,7
-7,7
128,4
43,5
9,9
2,4
5.456
1.189
265
5.271
878
1.112
11.898
11.720
-1,5
7,4
798
881
49.371
48.634
-1,5
30,9
3.824
3.596
20.368
19.691
-3,3
12,5
14.942
68.684
6.908
17.633
76.692
7.110
18,0
11,7
2,9
11,2
48,6
4,5
157.642
3,8
100
1.490
1.310
6.091
505
12.400
1.185
1.946
6.762
428
12.330
151.803
Change Share (%)
(%)
(2015*)
-3,4
-26,2
319,7
42,8
7,1
9,0
10,5
7,1
-6,0
29,2
-20,5
9,6
48,6
11,0
-15,2
15,8
54,8
3,5
-0,6
100
* January
Source: TURKSTAT
*January
** Except Lebanon and Kosovo
In January 2015, our exports to EFTA countries increased by 319.7% annually
and EFTA became the fastest growing export destination of the regions above.
March 2015
Ministry of Economy
55
Trade Representatives Abroad
179 trade representatives from the
Ministry are serving in 110
countries, 160 locations and 5 trade
offices abroad.
March 2015
Ministry of Economy
56
Locations of Trade Representatives
AMERİKA
Buenos Aires New York
Karakas
Sao Paulo
Mexico City Şikago
Ottava
Toronto
Santiago
Miami
Vaşington
San Francisco
Houston
Seattle
Los Angeles
AFRİKA
Abuja
Addis Ababa
Akra
Cezayir
Dakar
Darüsselam
Hartum
İskenderiye
Kahire
Nairobi
Pretoria
Rabat
Trablus
Tunus
Kazablanka
ASYA
Astana
Aşkabat
Bangkok
Bişkek
Cakarta
Duşanbe
Hanoi
İslamabad
Kabil
Kuala Lumpur
Manila
Pekin
Seul
Singapur
GEORGETOWN
Taşkent
Tokyo
Ulan Bator
Yeni Delhi
Almatı
Guangzhou
Hong Kong
Karaçi
Mumbai
Şangay
Georgetown
AVRUPA/KAFKASYA
AB
DTÖ
OECD
Atina
Bakü
Belgrad
Berlin
Bern
Bratislava
Brüksel
Budapeşte
Bükreş
Dublin
Helsinki
Kiev
Kişinev
Kopenhag
Lahey
Lizbon
Lefkoşa
Londra
Lubliyana
Madrid
Minsk
Moskova
Oslo
Paris
Podgorica
Prag
Priştine
Roma
Saraybosna
Sofya
Stokholm
Tiflis
Tiran
Üsküp
Varşova
Viyana
Zagreb
Barselona
Batum
Düsseldorf
Hamburg
Hannover
Kazan
Marsilya
Milano
Münih
Novorossisk
Odessa
Rotterdam
Selanik
St.
Petersburg
Stutgart
Birmingham
Krasnodar
Novosibirsk
Yekaterinbur
g
ORTA DOĞU
Abu Dhabi
Amman
Bağdat
Beyrut
Doha
Kuveyt
Manama
Muskat
Riyad
Sana
Şam
Tahran
Tel Aviv
Basra
Cidde
Dubai
Erbil
Halep
Kudüs
Musul
Tebriz
March 2015
Daimi Temsilci Yardımcılığı
Ticaret Müşavirliği
AVUSTRALYA
Ticaret Ataşeliği
Sidney
Melbourne
İrtibat Büroları
Ministry of Economy
57