REPUBLIC OF TURKEY UNDERSECRETARIAT FOR FOREIGN TRADE. ECONOMIC OUTLOOK OF TURKISH ECONOMY AND TRADE & INVESTMENT RELATIONS BETWEEN TURKEY AND EGYPT. Alexandria, 14 October 2008. EGYPT. WWW.COUNSELLORS.GOV.TR. TURKEY ON THE CROSSROADS OF CONTINENTS.
REPUBLIC OF TURKEY
UNDERSECRETARIAT FOR FOREIGN TRADE
ECONOMIC OUTLOOK OF TURKISH ECONOMY
TRADE & INVESTMENT RELATIONS BETWEEN
TURKEY AND EGYPT
Alexandria, 14 October 2008
TURKEY ON THE CROSSROADS OF CONTINENTS
RECENT DEVELOPMENTS IN TURKISH ECONOMY
GROSS DOMESTIC PRODUCT (GDP)
GDP Growth 5,3% 9,4% 8,4% 6,9% 4,5%
Economic growth has been robust and registered around 6,6% on average during the last three years. GDP per capita (PPP) reached to 9,333 US $
Turkey has become 6th biggest economy in Europe and 17th biggest economy in the world.
According to OECD, Turkey is the 13th most industrialized country in the world.
In 2007, services constitutes the main part with approximately 70% and followed by Industry and Agriculture.
in 2007, majority of the workforce was employed in the services sector by 55%
INTEREST RATES ARE DIMINISHING
Since 2002 interest rates in Turkey have been decreasing despite the minor increasesin 2007 and 2008
INFLATION IS IN A DECREASING TREND
In 2007 CPI (Consumer Price Index) was 8,4.
CURRENT ACCOUNT BALANCE OF TURKEY (million US $)
current account deficit of38 billion US$ in 2007
The current account deficit stems mainly from the one in foreign trade deficit.
The current account deficit is covered by tight fiscal policy and foreign investment in Turkey.
FOREIGN DIRECT INVESTMENT IN TURKEY (Billion US $)
While the FDI inflows to Turkey on a yearly average basis were about 1.1 billion dollars between the 1993-2002 period, this figure increased to 9.7 billion in 2005, 20 billion in 2006, and 22 billions in 2007.
FOREIGN DIRECT INVESTMENT IN TURKEY
FDI in Turkey in 2007: 22 billion US$
EU countries are by far the largest investor in Turkey.
ADVANTAGES OF INVESTING IN TURKEY
Total (Cumulative) : 10,3 Billion $
PRIVATIZATION IN TURKEY
- İzmir Port - İskenderun Port
In 2006 privatizations revenues reached a historical level of 9,5 billion US$.
2004 : 17,5 million
2007 : 23,3 million
2010 Target: 30 million
1984 : 65.000
2006 : 800.000
2010 Target : Above 1 million
TOURISM IN TURKEY
TOURISM REVENUES IN TURKEY
Turkey aims to reach 30 billion US $ tourism revenue in 2010
Turkey’s Proximity to the Huge Markets
TURKEY IS AN ENERGY CORRIDOR
BETWEEN SUPPLIERS AND CONSUMERS
B. Under Construction
Kazakh Oil (BTC)
TURKISH FREE ZONES
20 free zones operational
642 with foreign participation
24,5 billion US$
TUBITAK-MAM TECHNOLOGY (2002)
İst. Ataturk Airport (1990)
İst. Leather and Industry (1995)
Eastern Anatolia (1995)
İzmir Menemen (1998)
Adana –Yum. (1998)
Bulk of the export: to the EU
TURKISH FREE ZONES OFFER
TURKEY’S ROLE AS A TRANSIT AND HUB COUNTRY
Turkey is not only an energy corridor but also an important energy terminal.
Future projects will enhance Turkey’s role in energy.
FOREIGN TRADEOF TURKEY
Today, Turkey is the 22nd biggest exporter and the 15th largest importer of the world.
EXPORTS OF TURKEY
BY COUNTRY GROUPS IN 2007
The EU is the biggest trade partner of Turkey.In 2007, EU-27 accounted for 56 % of total exports of Turkey. The share of EuroMed in Turkey’s export is around 6 %.
IMPORTS OF TURKEY
BY COUNTRY GROUPS IN 2007
The EU is the biggest trade partner of Turkey, in terms of imports. EuroMed has % 3 share in Turkey’s imports.
In Turkey’s Exports Egypt ranks at the
25th place while Turkey is the 9th country in Egypt’s overall Exports
In Turkey’s Imports Egypt ranks at the
38 th place while Turkey is the 14 th country in Egypt’s overall Imports
Most of Turkish exports are composed of manufactured products, which have accounted for 82 % of the total.
SECTORAL BREAKDOWN OF TURKEY’S IMPORTS (2007)
Manufactured products again has the biggest share in Turkey’s imports with 62%.
TOP 10 CHAPTERS IN TURKEY’S EXPORTS
TOP 10 CHAPTERS IN TURKEY’S IMPORTS
TURKEY’S ALIGNMENT WITH THE EU’S PREFERENTIAL REGIMES
Agreements in Force
1- EFTA (1992)
2- Israel (1997)
3- Macedonia (2000)
4- Croatia (2003)
5- Bosnia (2003)
6- Tunisia (2005)
7- Palestine (2005)
8- Morocco (2006)
9- Syria (2007)
10- Egypt (2007)
11- Albania (2008)
EU’s New Strategy: Global Europe
- S. Africa
Trade & Investmet Relations
Turkey and Egypt
DEVELOPMENTS OF TURKEY’S FOREIGN TRADE WITH EGYPT (million US $)
MAIN IMPORTS OF TURKEY FROM EGYPT
MAIN EXPORT ITEMS OF TURKEY TO EGYPT
FTA entered into Force on 1 March 2007
FREE TRADE AGREEMENTBETWEEN TURKEY & EGYPT
Turkey abolished all custom duties on imports applicable to industrial goods originating in Egypt upon the entry into force of this Agreement.
Egypt will gradually abolish custom duties applicable on industrial goods originating in Turkey over a transitional period of up to 15 years .
Since the signing up of the FTA in 2005, Turkish investments in Egypt have boosted. Recently, Egypt appears as foremost the leading country to attract the Turkish investments.
In early days of 2006, 23 Turkish companies had around 40 Million US Dollars of investment in Egypt. In the last 3 years, we witnessed 190 new companies being established in various cities of Egypt.
Today, more than 190 companies and around 1 billion US Dollars of investment. Turkey has become a major donor of investments in Egypt.
EFFECTS OF FTA ON TURKISH INVESTMENTS IN EGYPT
Turkish investors has created 50 thousand new jobs in Egypt since 2005.
150 companies are also carrying out feasibility researches in Egypt and start of their investments in the short term is expected to bring another 1 Billion $ of Turkish invesment.
Activities of Turkish Industrial Zone in 6 October City, 5 Contracting Companies and 28 Retail Shops are not included in these figures.
It should also be mentioned that 80% of the Russian and Ukranian tourists visiting Egypt are transfered through Turkish Operators.
EFFECTS OF FTA ON TURKISH INVESTMENTS IN EGYPT
MAIN INDUSTRIAL SECTORS IN TURKISH ECONOMY
Turkey is among the leadng countries in the field of exporting high quality marbles, deposits where the total exports reached to 1.2 billion $ in 2007
TURKISH CERAMIC PRODUCTS
TURKISH TEXTILES INDUSTRY
TURKISH CLOTHING INDUSTRY
Although highly fragmanted among a large number of small workshops, wooden furniture and metal office furniture exports reached to 1.5 billion $
TURKISH LEATHER ARTICLES INDUSTRY
4th in Exports of Leather Garments in the World and 2nd in Europe
TURKISH AUTOMOTIVE AND SPARE PARTS INDUSTRY-1
TURKISH AUTOMOTIVE AND SPARE PARTS INDUSTRY-2
TURKISH SHIPBUILDING INDUSTRY
TURKISH GLASS AND GLASSWARE INDUSTRY
TURKISH JEWELLERY INDUSTRY (Including precious metals and stones)
TURKISH IRON AND STEEL INDUSTRY
TURKISH MACHINERY INDUSTRY
Turkey produces High European Quality Machinery both for Consumer and Industrial Market, including CNC Machine Tools to much reasonable prices.
In 2007, the exports of machinery sector reached to 9 billion US Dollars
TURKISH ELECTRICAL EQUIPMENTS AND
AGRICULTURAL SECTORS IN TURKEY
SERVİCES SECTOR IN TURKEY
TURKISH CONTRACTING SERVICES
105 billion US $.
The volume of the contracting services of Turkish companies reached to 19,4 US dollars in 2007.
OF CONTRACTING SERVICES (2007)
Country Million US $Share
Saudi Arabia 9825%
Ireland 550 3%
Total 19.495 100%