Presentation on Turkish Economy by Turkish Treasury

1. 111
This indicator set is prepared for users to give up-to-date information about
different areas of Turkish Economy.
This document is updated at the first day of every week.
Last update: July 10 , 2017

2. July 2017
TURKISH ECONOMY
Undersecretariat of Treasury

3. 333
CONTENTS
 Turkish Economy in the World.................................................................4
 Demographic Profile.................................................................................7
 Growth....................................................................................................11
 Employment............................................................................................28
 Inflation...................................................................................................40
 Foreign Trade and Balance of Payments...............................................52
 Public Finance........................................................................................72
 Debt Management..................................................................................81
 Financial Sector....................................................................................115
 Market Indicators..................................................................................127
 Investment Environment.......................................................................138
 Relationship with the IMF and EU........................................................144
 Social Security......................................................................................147
 Labor Market.........................................................................................156
 R&D......................................................................................................168
 Energy Sector.......................................................................................183

4. 444
TURKISH ECONOMY IN THE
WORLD

5. 555
World’s Biggest Economies
(GDP based on Purchasing Power Parity, Trillion Dollar, 2016)
0 5 10 15 20 25
China
United States
India
Japan
Germany*
Russia
Brazil
Indonesia
United Kingdom
France
Mexico
Italy
Turkey
Korea
Saudi Arabia
Spain
Canada
Iran
Australia
Thailand
Egypt
Source: IMF, World Economic Outlook, April 2017
* Estimate

6. 666
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Germany
United Kingdom
France
Italy
Turkey
Spain
Poland
Netherlands
Belgium
Sweden
Switzerland
Romania
Austria
Norway
Ukraine
Europe’s Biggest Economies
(GDP based on Purchasing Power Parity, Trillion Dolar, 2016)
Source: IMF, World Economic Outlook, April 2017

7. 777
DEMOGRAPHIC PROFILE

8. 888
25.7
15.8
15.6
15.1
15.1
15.0
14.5
14.7
14.9
13.7
63.5
65.2
61.5
63.9
65.7
63.9
64.3
61.4
61.5
59.9
10.8
19.0
22.9
21.0
19.2
21.1
21.3
23.9
23.7
26.4
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Turkey
Russia
Europe
Romania
Slovak Rep.
Poland
Ukraine
Hungary
Czech Rep.
Bulgaria
0-14 Age 14-60 Age 60+ Age
Favourable Demographics
Demographic Profile* (as of 2013)
(*) Estimates
Source: UN

9. 99
17.1
16.1
16.4
15.4
14.8
14.8
16.0
14.0
13.9
13.8
54.4
53.2
56.2
51.0
52.5
48.7
50.8
50.6
49.4
49.4
28.5
30.8
27.3
33.6
32.7
36.5
33.2
35.4
36.7
36.7
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Russia
Ukraine
Turkey
Europe
Hungary
Bulgaria
Czech Rep.
Slovak Rep.
Poland
Romania
0-14 Age 14-60 Age 60+ Age
Source: UN
Favourable Demographics
Demographic Profile (as of 2050)

10. 101010
Turkey: Population Prospects (Million People)
78.6 79.4 80.2 80.9
50.0
60.0
70.0
80.0
90.0
2016 2017 2018 2019
Source: Ministry of Development, Medium Term Economic Programme 2017-2019

11. 111111
GROWTH

12. 121212
GDP Growth Rates (%, YoY)
-16
-12
-8
-4
0
4
8
12
2001Q1
Q3
2002Q1
Q3
2003Q1
Q3
2004Q1
Q3
2005Q1
Q3
2006Q1
Q3
2007Q1
Q3
2008Q1
Q3
2009Q1
Q3
2010Q1
Q3
2011Q1
Q3
2012Q1
Q3
2013Q1
Q3
2014Q1
Q3
2015Q1
Q3
2016Q1
Q3
2017Q1
Source: TURKSTAT

13. 131313
3.0
4.2
6.4
0
1
2
3
4
5
6
7
8
1999-2004 2005-2010 2011-2016
Source: TURKSTAT, Undersecretariat of Treasury
GDP Growth Rate (Annual Average, %)

14. 141414
Source: Ministry of Development, Medium Term Economic Programme 2017-2019.
GDP Growth Rate Projections (%)
4.4
5.0 5.0
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5.0
5.1
2017 2018 2019

15. 151515
Volatility of Growth
(Coefficient of Variation of the Growth Rates)
2.03
1.41
0.50
0
1
2
3
1999-2004 2005-2010 2011-2016
Source: TURKSTAT, Undersecretariat of Treasury

16. 161616
3,581
4,698
5,961
7,304
7,906
9,656
10,931
8,980
10,560
11,205
11,588
12,480
12,112
11,014
10,807
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Per Capita GDP (USD)
Source: TURKSTAT

17. 171717
Per Capita GDP, 2015
(Purchasing Power Parity, EU-27=100)
Source: EUROSTAT
Trend line: moving average
0
30
60
90
120
150
180
210
240
270 Luxembourg
Ireland
Switzerland
Norway
UnitedStates
Iceland
Netherlands
Austria
Denmark
Sweden
Germany
Belgium
Finland
UnitedKingdom
France
Japan
Italy
Malta
Spain
Slovenia
Cyprus
Portugal
Slovakia
Lithuania
Estonia
Poland
Greece
Hungary
Latvia
Turkey
Croatia
Romania
Bulgaria
Montenegro
FormerYugoslav…
Serbia
BosniaandHerzegovina
Albania

18. 181818
Source: Ministry of Development, Medium Term Economic Programme 2017-2019.
21,367
22,666
24,077
20,000
20,500
21,000
21,500
22,000
22,500
23,000
23,500
24,000
24,500
2017 2018 2019
PPP Adjusted Per Capita GDP Projections (USD)

19. 191919
Source: OECD
Comparison of Europe and Turkey:
Real GDP Growth (2001=100)
70
80
90
100
110
120
130
140
150
160
170
180
190
200
210
220
230
240
250
2001Q1
Q3
2002Q1
Q3
2003Q1
Q3
2004Q1
Q3
2005Q1
Q3
2006Q1
Q3
2007Q1
Q3
2008Q1
Q3
2009Q1
Q3
2010Q1
Q3
2011Q1
Q3
2012Q1
Q3
2013Q1
Q3
2014Q1
Q3
2015Q1
Q3
2016Q1
Q3
Turkey Hungary Poland Spain Portugal Italy Euro Area

20. 202020
Contribution to GDP Growth (%)
-12.0
-7.0
-2.0
3.0
8.0
13.0
18.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Private Cons. Gov. Cons. Total Investment Net Export GDP Growth
Source: TURKSTAT
*It's temporary data. Calculated as the sum of quarters. Independent Annual Gross Domestic Product of 2016 will be
issued in September.

21. 212121
Components of Demand in Europe and Turkey: (2001=100)
90
100
110
120
130
140
150
160
170
180
190
200
210
220
230
2001Q1
Q3
2002Q1
Q3
2003Q1
Q3
2004Q1
Q3
2005Q1
Q3
2006Q1
Q3
2007Q1
Q3
2008Q1
Q3
2009Q1
Q3
2010Q1
Q3
2011Q1
Q3
2012Q1
Q3
2013Q1
Q3
2014Q1
Q3
2015Q1
Q3
2016Q1
Q3
Turkey Hungary Poland Spain
Portugal Italy Euro Area
80
100
120
140
160
180
200
220
240
260
280
300
320
2001Q1
Q3
2002Q1
Q3
2003Q1
Q3
2004Q1
Q3
2005Q1
Q3
2006Q1
Q3
2007Q1
Q3
2008Q1
Q3
2009Q1
Q3
2010Q1
Q3
2011Q1
Q3
2012Q1
Q3
2013Q1
Q3
2014Q1
Q3
2015Q1
Q3
2016Q1
Q3
Turkey Hungary Poland
Spain Portugal Italy
Euro Area
50
80
110
140
170
200
230
260
290
320
350
380
410
440
470
2001Q1
Q3
2002Q1
Q3
2003Q1
Q3
2004Q1
Q3
2005Q1
Q3
2006Q1
Q3
2007Q1
Q3
2008Q1
Q3
2009Q1
Q3
2010Q1
Q3
2011Q1
Q3
2012Q1
Q3
2013Q1
Q3
2014Q1
Q3
2015Q1
Q3
2016Q1
Q3
Turkey Hungary Poland Spain
Portugal Italy Euro Area
Source: OECD
Private Consumption Export
İthalat
Gross Fixed Capital Formation Import
80
100
120
140
160
180
200
220
240
260
280
300
320
340
2001Q1
Q3
2002Q1
Q3
2003Q1
Q3
2004Q1
Q3
2005Q1
Q3
2006Q1
Q3
2007Q1
Q3
2008Q1
Q3
2009Q1
Q3
2010Q1
Q3
2011Q1
Q3
2012Q1
Q3
2013Q1
Q3
2014Q1
Q3
2015Q1
Q3
2016Q1
Q3
Turkey Hungary Poland Spain
Portuga l Ita ly Euro Area

22. 222222
Productivity Index of Total Industry
Source: TURKSTAT, Undersecretariat of Treasury

23. 23232323
Productivity and Real Wages in Total Industrial Sector
(Per Hour Worked)
Source: TURKSTAT, Undersecretariat of Treasury
70
80
90
100
110
120
130
140
150
160
05Q1
05Q3
06Q1
06Q3
07Q1
07Q3
08Q1
08Q3
09Q1
09Q3
10Q1
10Q3
11Q1
11Q3
12Q1
12Q3
13Q1
13Q3
14Q1
14Q3
15Q1
15Q3
16Q1
16Q3
17Q1
Productivity Index Real Wage Index Real Unit Wage Index

24. 24242424
Industrial Production Index (Seasonally Adjusted)
70
80
90
100
110
120
130
140
2005Q1
Q2
Q3
Q4
2006Q1
Q2
Q3
Q4
2007Q1
Q2
Q3
Q4
2008Q1
Q2
Q3
Q4
2009Q1
Q2
Q3
Q4
2010Q1
Q2
Q3
Q4
2011Q1
Q2
Q3
Q4
2012-Q1
Q2
Q3
Q4
2013-Q1
Q2
Q3
Q4
2014-Q1
Q2
Q3
Q4
2015-Q1
Q2
Q3
Q4
2016-Q1
Q2
Q3
Q4
2017-Q1
Q2
24
Source: TURKSTAT
Latest data as of May 2017

25. 25252525
Capacity Utilization Rate of Manufacturing Industry
(Seasonally Adjusted, %)
Source: CBRT 25
As of June 2017

26. 26262626
Real Sector Confidence Index
Source: CBRT 26
As of June 2017

27. 27272727
Consumer Confidence Index
Source: TURKSTAT 27
As of June 2017

28. 282828
EMPLOYMENT

29. 2929
Unemployment Rate * (%)
9.5
9.0 9.2
10.0
13.1
11.1
9.1
8.4
9.0
9.9
10.3
10.9
10.1
11.7
7
8
9
10
11
12
13
14
15
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016
March
2017
March
Source: TURKSTAT
* The Household Labor Force Survey has started to report a new series of data since the period of February 2014 within the framework of the
European Union criteria. Results regarding the periods 2005-January 2014 are estimated by an econometric model.

30. 30
Youth Unemployment Rate (Seasonally Adjusted, %)
Source: OECD

31. 313131
Employment * (Seasonally Adjusted, Million People)
Source: TURKSTAT
31
20
21
22
23
24
25
26
27
28 2008-1
3
5
7
9
11
2009-1
3
5
7
9
11
2010-1
3
5
7
9
11
2011-1
3
5
7
9
11
2012-1
3
5
7
9
11
2013-1
3
5
7
9
11
2014-1
3
5
7
9
11
2015-1
3
5
7
9
11
2016-1
3
5
7
9
11
2017-1
3
*As of March 2017.
The Household Labor Force Survey has started to report a new series of data since the period of February 2014 within the framework of the
European Union criteria. Results regarding the periods 2005-January 2014 are estimated by an econometric model.

32. 31.4
3.6
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
22
23
24
25
26
27
28
29
30
31
32
2008-1
4
7
10
2009-1
4
7
10
2010-1
4
7
10
2011-1
4
7
10
2012-1
4
7
10
2013-1
4
7
10
2014-1
4
7
10
2015-1
4
7
10
2016-1
4
7
10
2017-1
Labor Force (Million People) Unemployed (Million People, right axis)
Labour Force Indicators * (Seasonally Adjusted)
32Source: TURKSTAT
*As of March 2017.
The Household Labor Force Survey has started to report a new series of data since the period of February 2014 within the framework of the
European Union criteria. Results regarding the periods 2005-January 2014 are estimated by an econometric model.

33. Labour Force Indicators * (Seasonally Adjusted)
33Source: TURKSTAT
*As of March 2017.
The Household Labor Force Survey has started to report a new series of data since the period of February 2014 within the framework of the
European Union criteria. Results regarding the periods 2005-January 2014 are estimated by an econometric model.

34. 3.5
4.0
4.5
5.0
5.5
6.0
6.5
2008-1
4
7
10
2009-1
4
7
10
2010-1
4
7
10
2011-1
4
7
10
2012-1
4
7
10
2013-1
4
7
10
2014-1
4
7
10
2015-1
4
7
10
2016-1
4
7
10
2017-1
Agriculture Employment (sea. adj.) Agriculture Employment
Agriculture (million people)
Employment Developments by Sector *
34
3.8
4.0
4.2
4.4
4.6
4.8
5.0
5.2
5.4
5.6
2008-1
4
7
10
2009-1
4
7
10
2010-1
4
7
10
2011-1
4
7
10
2012-1
4
7
10
2013-1
4
7
10
2014-1
4
7
10
2015-1
4
7
10
2016-1
4
7
10
2017-1
Industry Employment (sea.adj.) Industry Employment
Industry (million people)
0.9
1.1
1.3
1.5
1.7
1.9
2.1
2.3
2008-1
4
7
10
2009-1
4
7
10
2010-1
4
7
10
2011-1
4
7
10
2012-1
4
7
10
2013-1
4
7
10
2014-1
4
7
10
2015-1
4
7
10
2016-1
4
7
10
2017-1
Construction Employment (sea.adj.) Construction Employment
Construction (million people)
9.5
10.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
14.0
14.5
15.0
15.5
2008-1
4
7
10
2009-1
4
7
10
2010-1
4
7
10
2011-1
4
7
10
2012-1
4
7
10
2013-1
4
7
10
2014-1
4
7
10
2015-1
4
7
10
2016-1
4
7
10
2017-1
Services Employment (sea.adj.) Services Employment
Services (million people)
Source: TURKSTAT
*As of March 2017.
The Household Labor Force Survey has started to report a new series of data since the period of February 2014 within the framework of the
European Union criteria. Results regarding the periods 2005-January 2014 are estimated by an econometric model.

35. 35
Sector Shares in Total Employment (%)
Sectoral Transition of Employment
-4
-2
0
2
4
6
8
10
2010-1
4
7
10
2011-1
4
7
10
2012-1
4
7
10
2013-1
4
7
10
2014-1
4
7
10
2015-1
4
7
10
2016-1
4
7
10
2017-1
Agriculture Industry Construction Services
Sector Contributions to Employment Growth(% points)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Agriculture Industry Construction Services
Source: TURKSTAT

36. 36
Employment Status at Work (%)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Unpaid Family Worker Own Account Worker/Employer Regular Employee/Casual Employee
Source: TURKSTAT

37. Informal Employment Rate (%)
37
32
35
38
41
44
47
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Informal Employment
20
22
24
26
28
30
32
34
36
80
81
82
83
84
85
86
87
88
89
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Agriculture Non‐Agriculture (right axis)
Source: TURKSTAT

38. 38
Labour Force Participation Rate (%)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Female 23.3 23.6 23.6 24.5 26 27.6 28.8 29.5 30.8 30.3 31.5 32.5
Male 70.6 69.9 69.8 70.1 70.5 70.8 71.7 71 71.5 71.3 71.6 72
Total 46.4 46.3 46.2 46.9 47.9 48.8 49.9 50 50.8 50.5 51.3 52
0
10
20
30
40
50
60
70
80
Source: TURKSTAT
40
45
50
55
60
65
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015

39. Labour Force Participation Rate by Education Level (2016, %)
39
Male Female
Higher
Education
Note: The balloon size reflects the labour force share of the relevant group.
Higher
Education
Source: TURKSTAT

40. 404040
INFLATION

41. 414141
Average Inflation in Periods (%)
Source: TURKSTAT

42. 424242
8.5
6.5
5.0 5.0
0
1
2
3
4
5
6
7
8
9
2016* 2017 2018 2019
Year End CPI Forecasts in 2017-2019 (%)
(*) Realization.
Source: Ministry of Development, Medium Term Economic Programme 2017-2019, October 2016.

43. 434343
Food, Energy and Core Inflation
(June 2006 – June 2017, year-on-year percentage change)
Inflation: Recent Developments
Source: TURKSTAT
-5
0
5
10
15
20
25
30
35
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-12
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Food Energy Goods excluding energy and food

44. 444444
Inflation: Recent Developments
Services Inflation and Selected Sub-items
(June 2006 – June 2017, year-on-year change, percent)
Source: TURKSTAT
0
5
10
15
20
25
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-11
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Services Transport Services Rent Restaurants and Hotels

45. 454545
Inflation – Overall Trend*
0.00
2.00
4.00
6.00
8.00
10.00
12.00
2006-1
4
7
10
2007-1
4
7
10
2008-1
4
7
10
2009-1
4
7
10
2010-1
4
7
10
2011-1
4
7
10
2012-1
4
7
10
2013-1
4
7
10
2014-1
4
7
10
2015-1
4
7
10
2016-1
4
7
10
2017-1
4
(%) Inflation Trend
(January 2006 – June 2017, percentage change)
(*) As of June 2017. Monthly change of seasonally adjusted SCA-C index (3 month moving average) .
Source: TURKSTAT, CBRT

46. 28.6
8.9
11.2
51.3
0
10
20
30
40
50
60
Food
Energy
Tobacco
Others
464646
Average of 2004 – 2016 June 2017
Inflation – Main Determinants
Contribution to CPI Inflation
(Percentage Share)
Source: TURKSTAT, Undersecretariat of Treasury
29.2
14.6
8.0
48.2
0
10
20
30
40
50
Food
Energy
Tobacco
Others

47. 4747
Inflation and Expectations*: (Annual % Change)
8.32
7.90
10.90
2
4
6
8
10
12
14
2007-1
4
7
10
2008-1
4
7
10
2009-1
4
7
10
2010-1
4
7
10
2011-1
4
7
10
2012-1
4
7
10
2013-1
4
7
10
2014-1
4
7
10
2015-1
7
2016-1
7
2017-1
7
2018-1
7
2019-1
CPI
12 Months
24 Months
Source: CBRT, TURKSTAT
(*) CBRT’s Survey of Expectations as of June 2017.
CBRT’s Survey of Expectations has been released once a month since January, 2013.
2017 Target: 5.0 %
2018 Target: 5.0 %

48. 484848
0
4
8
12
16
20
24
28
32
1
03
4 7101
04
4 7101
05
4 7101
06
4 7101
07
4 7101
08
4 7101
09
4 7101
10
4 7101
11
4 7101
12
4 7101
13
4 7101
14
4 7101
15
4 7101
16
4 7101
17
4 7101
18
4 7101
19
4
12
months
24
months
Inflation Expectations (June 2017)
End year 9.55
12 months 8.32
24 months 7.90
Annual Inflation and Expectations (%)
Source: CBRT’s Survey of Expectations
Year End Target

49. 494949
50
150
250
350
450
550
650
750
850
950
1050 2004-1
4
7
10
2005-1
4
7
10
2006-1
4
7
10
2007-1
4
7
10
2008-1
4
7
10
2009-1
4
7
10
2010-1
4
7
10
2011-1
4
7
10
2012-1
4
7
10
2013-1
4
7
10
2014-1
4
7
10
2015-1
4
7
10
2016-1
4
7
10
2017-1
4
Energy Metal Wheat Rice
EnergyMetal
Wheat
Rice
Source: IMF
Price Index of Selected Commodities (2005=100)*
*As of May 2017.

50. 505050
Inflation Developments in the World
-2
0
2
4
6
8
10
12
14
Mar-05
Aug-05
Jan-06
Jun-06
Nov-06
Apr-07
Sep-07
Feb-08
Jul-08
Dec-08
May-09
Oct-09
Mar-10
Aug-10
Jan-11
Jun-11
Nov-11
Apr-12
Sep-12
Feb-13
Jul-13
Dec-13
May-14
Oct-14
Mar-15
Aug-15
Jan-16
Jun-16
Nov-16
Turkey
World
Developing
Countries
Developed Countries
Source: IMF, TURKSTAT

51. 5151
Turkey’s Rank According to Inflation Figures
The total number of countries is 177 as of June, 2016. The ranking is in descending order.
Source: IMF

52. 525252
FOREIGN TRADE and
BALANCE OF PAYMENTS

53. 5353
36.1
47.3
63.2
73.5
85.5
107.3
132.0
102.1
113.9
134.9
152.5151.8
157.6
143.8142.5
148.1
0
25
50
75
100
125
150
175
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Annual Exports (Billion USD)
Source: TURKSTAT
(*) Annualized as of May

54. 545454
Annual Imports (Billion USD)
Source: TURKSTAT
51.6
69.3
97.5
116.8
139.6
170.1
202.0
140.9
185.5
240.8236.5
251.7
242.2
207.2
198.6
207.6
0
25
50
75
100
125
150
175
200
225
250
275
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
(*) Annualized as of May

55. 555555
Export and Import Growth
(Annualized Percentage Change over the Previous Year)
-40
-30
-20
-10
0
10
20
30
40
50
2003-1
4
7
10
2004-1
4
7
10
2005-1
4
7
10
2006-1
4
7
10
2007-1
4
7
10
2008-1
4
7
10
2009-1
4
7
10
2010-1
4
7
10
2011-1
4
7
10
2012-1
4
7
10
2013-1
4
7
10
2014-1
4
7
10
2015-1
4
7
10
2016-1
4
7
10
2017-1
4
Exports Imports
Source: TURKSTAT

56. 565656
Exports in Europe and Turkey (2001=100)
Source: OECD
80.0
100.0
120.0
140.0
160.0
180.0
200.0
220.0
240.0
260.0
280.0
300.0
320.0
2001Q1
Q3
2002Q1
Q3
2003Q1
Q3
2004Q1
Q3
2005Q1
Q3
2006Q1
Q3
2007Q1
Q3
2008Q1
Q3
2009Q1
Q3
2010Q1
Q3
2011Q1
Q3
2012Q1
Q3
2013Q1
Q3
2014Q1
Q3
2015Q1
Q3
2016Q1
Q3
Turkey Hungary Poland
Spain Portugal Ita ly
Euro Area

57. 575757
4.2
2.8
6.4
8.1
3.6
4.3
0
4
8
12
World Euro Area Developing
Asia
Middle East
and North
Africa
Latin America Turkey
Export Performance
(Average Annual Growth Rate, 2005-2016)
Source: TURKSTAT, IMF World Economic Outlook April 2017

58. 585858
153.3
170.0
193.1
0
25
50
75
100
125
150
175
200
225
2017 2018 2019
Exports Targets (FOB, Billion USD)
Source: Ministry of Development, Medium Term Economic Programme 2017-2019

59. 595959
0
5
10
15
20
25
30
35
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Capital goods Intermediate goods Consumption goods
Imports (% of GDP)
Source: TURKSTAT

60. 6060
Brent Oil Price (USD/bbl)
20
40
60
80
100
120
140
160
Jun-02
Oct-02
Feb-03
Jun-03
Oct-03
Feb-04
Jun-04
Oct-04
Feb-05
Jun-05
Oct-05
Feb-06
Jun-06
Oct-06
Feb-07
Jun-07
Oct-07
Feb-08
Jun-08
Oct-08
Feb-09
Jun-09
Oct-09
Feb-10
Jun-10
Oct-10
Feb-11
Jun-11
Oct-11
Feb-12
Jun-12
Oct-12
Feb-13
Jun-13
Oct-13
Feb-14
Jun-14
Oct-14
Feb-15
Jun-15
Oct-15
Feb-16
Jun-16
Oct-16
Feb-17
Jun-17
Source: Reuters

61. 616161
Impact of Energy Prices to Imports (Billion USD)
38.5 41.7 44.5 43.8 46.2 50.2 49.7
0.0
12.5
15.6
12.1 8.7
-22.6
-12.3
-30
-20
-10
0
10
20
30
40
50
60
2010 2011 2012 2013 2014 2015 2016
Reel Energy Imports with 2010 Prices Price Effect Total Enegy Imports
Source: TURKSTAT, Undersecretariat of Treasury

62. 626262
Machinery Imports (Billion USD)
29.4
42.6
47.9
46.1
43.2
47.4 46.6
43.9
35.9
12.2
15.7
21.9
26.1
29.9
35.9 36.4
0
10
20
30
40
50
60
1996-
2002
Average
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Source: TURKSTAT
(*) Annualized as of May

63. 636363
Trend line: Moving Average
-40
-30
-20
-10
0
10
20
30
40
Ireland
CzechRepublic
Netherlands
Germany
Russia
Hungary
Belgium
Slovenia
Switzerland
Norway
Denmark
Italy
SlovakRepublic
Poland
Japan
Sweden
Finland
Austria
Spain
France
UnitedStates
Lithuania
Bulgaria
Portugal
Romania
Iceland
Turkey
Estonia
Latvia
UK
Luxembourg
Greece
Morocco
Cyprus
Malta
Foreign Trade (% of GDP, 2016)
Source: WTO, IMF World Economic Outlook April 2017

64. 646464
-2.4
-3.5
-4.2
-5.7 -5.5 -5.1
-1.8
-5.8
-8.9
-5.5
-6.7
-4.7
-3.7
-3.8
1.0
-0.3
-0.5
-1.1
-1.2
0.2
2.3
-1.4
-3.2
0.5
-1.5
0.6
0.1
-1.0
-12
-10
-8
-6
-4
-2
0
2
4
CA Balance/GDP CA Balance/GDP (Excluding Energy)
Current Account Balance / GDP (%)
Souce: CBRT, Undersecretariat of Treasury

65. 65
-10
-5
0
5
10
15
Switzerland*
Netherlands
Germany*
Denmark*
Iceland
Slovenia*
Malta*
Luxembour
Ireland
Sweden*
Norway*
Hungary*
Bulgaria
Japan
Italy*
Estonia
Austria
Spain*
Russia
Latvia
CzechRep.*
Belgium*
Portugal
Slovak
Poland
Greece
Lithuania
Finland
France
Cyprus*
Romania
USA
Turkey
Morocco*
UK
6565
Trend line: Moving Average
(*) Figures represent IMF estimates.
Source: IMF World Economic Outlook April 2017
Current Account Balance (% of GDP, 2016)

66. 666666
Financing of Current Account Deficit (Billion USD)
Source: CBRT
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2016
January-
April
2017
January-
April
Current Account Balance -31.2 -36.9 -39.4 -11.4 -44.6 -74.4 -48.0 -63.6 -43.6 -32.1 -32.6 -11.0 -11.6
Capital Inflows (Excluding
Reserves)
48.5 48.8 49.7 -3.5 49.1 51.4 68.7 67.6 41.4 25.2 27.9 15.9 14.1
Foreign Direct Investment 20.2 22.0 19.9 8.6 9.1 16.2 13.3 12.4 12.8 17.6 12.3 3.5 3.6
Non-Bank Private Sector’s Net
Credits
17.1 29.3 26.4 -13.0 -2.8 8.3 7.2 5.8 6.2 12.5 12.8 4.9 1.7
Other (Net) 11.2 -2.5 3.5 0.9 42.8 26.9 48.1 49.4 22.4 -4.8 2.8 4.9 5.1
Net Errors and Ommissions -0.9 -0.3 2.0 2.3 -0.5 8.3 -0.9 1.4 2.0 10.2 10.9 0.9 -6.2
Bank’s Currency and Deposits 10.3 3.5 13.3 -12.7 -8.8 -12.9 -1.0 -4.5 0.3 15.1 5.4 3.3 4.1
Change in Reserves 6.1 8.0 -1.1 0.1 12.8 -1.8 20.8 9.9 -0.5 -11.8 0.8 2.5 -7.8

67. 676767
1.1 1.7
2.8
10.0
20.2
22.0
19.9
8.6 9.1
16.2
13.6
12.9 12.8
17.6
12.3 12.4
0
5
10
15
20
25
1993-2002
Average
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017*
Foreign Direct Investment Inflows (Billion USD)
Source: CBRT
67
(*) Annualized as of April

68. 686868
-20 -10 0 10 20 30 40 50 60 70 80
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017*
Short-Term Capital Long-Term Capital
Direct Investments (Net) Portfolio Investments
Capital Inflows (Billion USD)
68
Source: CBRT
(*) Annualized as of April

69. 696969
Central Bank’s Gross FX Reserves (Billion USD)
(*) As of June 30, 2017.
Source: CBRT
10
20
30
40
50
60
70
80
90
100
110
120
J02
M
S
J03
M
S
J04
M
S
J05
M
S
J06
M
S
J07
M
S
J08
M
S
J09
M
S
J10
M
S
J11
M
S
J12
M
S
J-13
M
S
J-14
M
S
J-15
M
S
J-16
M
S
J17
M
$90.2 billion*

70. 707070
-32.0 -31.7 -31.2
-40
-30
-20
-10
0
2017 2018 2019
Source: Ministry of Development, Medium Term Economic Programme 2017-2019
Current Account Balance Targets (Billion USD)

71. 717171
Current Account Balance Targets (% of GDP)
-4.2
-3.9
-3.5
-5
-4
-3
-2
-1
0
2017 2018 2019
Source: Ministry of Development, Medium Term Economic Programme 2017-2019

72. 727272
PUBLIC FINANCE

73. 737373
Central Government Budget Deficit (% of GDP)
(*) Provisional
2017-2019: Medium Term Program targets
Source: Ministry of Finance, 2017-2019 MTP
11.6
11.2
8.6
5.0
1.0
0.6
1.6 1.8
5.3
3.5
1.3
1.9
1.0 1.1 1.0 1.1
1.9
1.6
1.3
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* 2017 2018 2019

74. 747474
General Government Budget Deficit Excl. Privatization
(% of GDP)
(*) 2017-2019: Medium Term Program targets
Source: Ministry of Development, 2017-2019 MTP
12.2
10.6
7.8
4.2
0.6
0.2
1.5
2.4
5.6
3.2
0.6
1.3 1.3 1.1
0.6
2.4 2.4
1.9
1.2
0
2
4
6
8
10
12
14

75. 757575
Maastricht Criterion: 3.0 %
EU Defined General Government Budget Deficit (% of GDP)
Source: Eurostat

76. 767676
General Government Deficit (% of GDP, 2015)
Source: Eurostat
-1.7
-4
-2
0
2
4
6
8
Ireland
Greece
UK
Portugal
Spain
Latvia
Poland
Slovakia
Lithuania
France
Romania
Slovenia
S.Cyprus
Netherlands
CzechRep.
Italy
Austria
Germany
Hungary
Croatia
Belgium
Malta
Bulgaria
Turkey
Denmark
Finland
Luxembourg
Estonia
Sweden
Maastricht criterion: 3 %

77. 7777
Public Sector Borrowing Requirement (% of GDP)
(*) 2017-2019: Medium Term Program targets
Source: Ministry of Development, 2017-2019 MTP
7.0
11.8
9.7
7.1
3.5
-0.1
-1.8
0.1
1.5
4.8
2.2
0.1
0.9
0.4 0.5
0.0
1.7 1.5 1.4
0.9
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
1990-
2000
Avg.
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* 2017* 2018* 2019*

78. 787878
2003-2015 Average: 2.1
Public Sector Primary Surplus (Program Definition)
(% of GDP)
(*) 2017-2019:Medium Term Program targets
Source: For pre-2012 Undersecretariat of Treasury, for 2012 and onwards Ministry of Development
0.5
4.6
5.3
4.6
4.3
3.0
1.5
-1.0
0.7 1.6
0.9 0.9
0.5 0.6
-1.2
-0.6
0.0
0.9
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0

79. 797979
Privatization Implementations (Billion USD)
8.2
59.8
0
10
20
30
40
50
60
1986-2003 2004- 2016
Source: Privatization Authority

80. 808080
Medium Term Program (% GDP)
Source: Ministry of Development, Medium Term Program 2017-2019
2016 2017 2018 2019
Central Government Budget Balance -1.6 -1.9 -1.6 -1.3
Central Government Revenues 25.4 24.9 24.2 23.8
Central Government Expeditures 27.0 26.8 25.9 25.1
Central Government Primary Balance (IMF Definition) -0.9 -0.6 0.0 0.6
Central Government Revenues (IMF Definition) 23.7 23.9 23.6 23.3
Central Government Primary Expenditures (IMF
Definition)
24.7 24.4 23.6 22.7
Rest Of Public Primary Balance (IMF Definition) -0.2 0.0 -0.1 0.2
Total Public Sector Primary Balance (IMF Definition) -1.2 -0.6 0.0 0.9

81. 818181
DEBT MANAGEMENT

82. 50.8
38.1
43.8
40.0
36.4
32.6
31.3
28.6
27.5 28.3 28.9
57.7
44.7
38.2
72.1
65.7
25
30
35
40
45
50
55
60
65
70
75
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Q1
828282
General Government Gross Debt Stock
(EU Defined, % of GDP)
Source: Undersecretariat of Treasury
Maastricht Criterion: 60 %

83. 838383
General Government Gross Debt (% of GDP, 2016)
Maastricht Criterion: 60 %
Source: Eurostat (Updated: May 03, 2017), Undersecretariat of Treasury (As of March 31, 2017)
For USA, Japan, Canada: IMF World Economic Outlook (April 2017)
0
40
80
120
160
200
240
280
Japan
Greece
Italy
Portugal
Cyprus
Belgium
UnitedStates
Spain
France
Ireland
Canada
UnitedKingdom
Austria
Slovenia
Hungary
Germany
Netherlands
Malta
Finland
Slovakia
Poland
Sweden
Latvia
CzechRepublic
Denmark
Romania
Latvia
Turkey
Bulgaria
Luxembourg
Estonia

84. 848484
EU Defined Debt Stock (% of GDP)
Source: Eurostat, (Updated: 03-05-2017); Undersecretariat of Treasury, (As of March 31, 2017)
2010 2011 2012 2013 2014 2015 2016
Euro Area (18 countries) 84.0 86.3 89.6 91.6 92.2 90.4 89.3
EU (27 countries) 78.5 81.2 83.9 85.7 86.7 84.9 83.5
Greece 146.2 172.1 159.6 177.4 179.7 177.4 179.0
Italy 115.4 116.5 123.4 129.0 131.8 132.1 132.6
Portugal 96.2 111.4 126.2 129.0 130.6 129.0 130.4
Belgium 99.7 102.6 104.3 105.6 106.7 106.0 105.9
Spain 60.1 69.5 85.7 95.5 100.4 99.8 99.4
France 81.6 85.2 89.5 92.3 94.9 95.6 96.0
United Kingdom 76.0 81.6 85.1 86.2 88.1 89.0 89.3
Austria 82.8 82.6 82.0 81.3 84.4 85.5 84.6
Hungary 80.5 80.7 78.2 76.6 75.7 74.7 74.1
Germany 81.0 78.7 79.9 77.5 74.9 71.2 68.3
Netherlands 59.3 61.6 66.4 67.7 67.9 65.2 62.3
Turkey 40.0 36.4 32.6 31.3 28.6 27.5 28.3

85. 858585
EU – Defined Debt Stock Targets
(% of GDP)
32.8
31.9
31.0
29.9
28
30
32
34
2016 2017 2018 2019
Source: Ministry of Development, Medium Term Economic Programme 2017-2019, October 2016

86. 868686
Public Net Debt Stock (% of GDP)
Source: Undersecretariat of Treasury
25.5
30.3 29.0 30.0 26.5 25.1 24.1
28.5 26.6
20.2 18.4 15.3 12.9 9.7 9.8 9.6
34.4 23.2
18.5
10.0
6.2
3.1 2.7
2.5
0.8
0.5
-3.1 -4.4 -3.8 -2.8 -1.4 -0.9
59.9
53.6
47.6
40.1
32.7
28.2 26.8
30.9
27.3
20.8
15.3
10.9
9.1
6.9 8.4 8.7
-10
0
10
20
30
40
50
60
70 2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017Q1
TL FX Denominated/Indexed

87. 878787
Public Net Debt Stock (Billion TL)
Source: Undersecretariat of Treasury
2010 2011 2012 2013 2014 2015 2016 2017 Q1
I- Public Gross Debt Stock 496.8 546.0 562.7 622.9 649.9 722.1 819.5 853.4
• Central Government 474.1 519.1 532.9 586.2 612.5 678.2 759.7 793.4
• Rest of the Public Sector 22.6 27.0 29.8 36.7 37.4 43.8 59.8 60.0
II- Assets and Public Sector Deposit 179.3 256.4 322.3 425.6 463.1 561.1 600.6 621.3
• Central Bank Net Assets 86.2 143.2 189.5 271.1 304.4 376.2 397.1 411.6
• Public Sector Deposits 47.2 59.8 71.6 84.2 77.4 91.8 100.3 103.0
• Unemployment Insurance Fund 45.9 53.5 61.2 70.4 81.4 93.1 103.2 106.7
III- Public Net Debt Stock 317.5 289.6 240.5 197.2 186.8 161.0 218.9 232.1

88. 888888
Public Net Debt Stock (Billion TL)
Source: Undersecretariat of Treasury
215.3
250.8
274.5
270.1
257.9
247.9
267.1
309.0
317.5
289.6
240.5
197.2
186.8
161.0
218.9
232.1
130.0
150.0
170.0
190.0
210.0
230.0
250.0
270.0
290.0
310.0
330.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Q1

89. 898989
Central Government Interest Payments / GDP (%)
14.4
12.5
9.8
6.8
5.8 5.5
5.1 5.3
4.2
3.0 3.1 2.8
2.4 2.3 1.9
0
5
10
15
20
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Source: Ministry of Finance
(*) Forecast

90. 909090
Central Government Interest Payments / Tax Revenues (%)
85.7
70.9
56.3
38.2
33.4 31.9 30.1 30.9
22.9
16.6 17.4 15.3 14.2 13.0
11.0
0
10
20
30
40
50
60
70
80
90
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Source: Ministry of Finance
(*) Provisional

91. 919191
48.9 53.8 50.2 54.0 55.8 57.0 53.4 56.0 59.2 59.8 61.5 65.2 67.6 69.8 71.5
51.1 46.2 49.8 46.0 44.2 43.0 46.6 44.0 40.8 40.2 38.5 34.8 32.4 30.2 28.5
0
25
50
75
100
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
May
Fixed Floating
Interest Composition of Central Government Gross Debt (%)
Source: Undersecretariat of Treasury

92. 929292
53.7 58.5 62.4 62.8
68.7 66.2 70.9 73.3 70.4 72.7 68.8 67.7 65.0 61.7 60.8
46.3 41.5 37.6 37.2
31.3 33.8 29.1 26.7 29.6 27.3 31.2 32.3 35.0 38.3 39.2
0
25
50
75
100
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
May
TL Foreign Exch.
Currency Composition of Central Government Gross Debt (%)
Source: Undersecretariat of Treasury

93. 939393
Sensitivity of General Government Debt to Shocks
2001 2016
Change in real exchange rate app/dep
by 5 percentage points
+ / - 2.1 points + / - 0.6 points
Change in TL interest rate by 500bp + / - 1.6 points + / - 0.8 points
Change in GDP growth rate by
2 percentage points
+ / - 1.6 points + / - 0.5 points
Change in Primary Surplus/GDP ratio
by 1 percentage point
+ / - 1.0 points + / - 1.0 points
Note: The effects of scenarios on “General Government Debt Stock/GDP” ratio (as defined by EU standards) measured
by deviations from baseline scenarios based on end-2001 and end-2016 stock realizations.
Source: Undersecretariat of Treasury

94. 949494
Share of Foreign Residents in Domestic Debt Stock (%)
Source: Central Bank of Turkey
4.4
7.1
10.3
13.6 13.4
10.3
8.6
12.4
17.3
23.2
21.5 21.5
17.3 17.3
18.6
0
4
8
12
16
20
24
28

95. 959595
Average Maturity of Borrowing
Domestic Borrowing (months) Eurobond Issuance (years)
(*) As of May, 2017
(**) As of June, 2017
Source: Undersecretariat of Treasury
9.4
11.6
14.8
27.728.0
34.0
31.7
35.3
44.144.7
60.8
74.3
68.5
71.8
67.4
68.4
0
10
20
30
40
50
60
70
80
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017*
8.2
9.5 10.1
12.2
9.9
8.0 8.0
17.6
16.5
22.4
14.214.8
9.1
20.620.2
16.4
19.7
14.414.9
10.0
9.0
6.6
5.0
15.3
15.7
7.0
8.6
10.0
20.0
10.0
0
5
10
15
20
25
30
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017**
Euro Dollar Yen

96. 969696Source: Undersecretariat of Treasury
Duration of TL-Denominated Domestic Debt Stock* (Months)
6.6
8.0
8.2
10.2
8.1
7.5
10.6
12.5
15.0
23.1
28.9
30.3 30.7 30.9 30.7
32.1 31.8
31.4
6
10
14
18
22
26
30
34
Dec.04
Dec.05
Dec.06
Dec.07
Dec.08
Dec.09
Dec.10
Dec.11
Dec.12
Dec.13
Dec.14
Dec.15
Dec.16
Jan.17
Feb.17
Mar.17
Apr.17
May17
(*) Macaulay duration

97. 979797
Source: Undersecretariat of Treasury
Duration of External Bond Stock* (Months)
49.2
58.6
67.0
70.7
73.8
71.0
75.8 76.1
77.5
76.2
77.6 78.0 77.3
76.9
78.8 78.4 77.5
79.3
45
55
65
75
85
Dec.04
Dec.05
Dec.06
Dec.07
Dec.08
Dec.09
Dec.10
Dec.11
Dec.12
Dec.13
Dec.14
Dec.15
Dec.16
Jan.17
Feb.17
Mar.17
Apr.17
May17
(*) Macaulay duration

98. 989898
Time to Maturity of Cash Domestic Debt Stock (Months)
Source: Undersecretariat of Treasury
12.8 12.4 11.8
19.6
22.3
25.7 24.4 25.0
30.9 31.1
33.7
47.0
55.0 55.1
51.9 51.0
0
10
20
30
40
50
60
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
May-17

99. 999999
Cost of External Borrowing (%)
EURODOLLAR
4.5 4.2
3.4
5.0
6.0
5.45.3
6.3
9.9 9.9
3
4
5
6
7
8
9
10
11
12
13
2002
2003
2004
2005
2006
2007
2010
2011
2012
2013
2014
2015
2016
2017*
(*) As of June, 2017
Source: Undersecretariat of Treasury
10.7
7.0 7.3
6.2
5.8
4.9
4.3
5.8
4.9
5.7
4.7
10.1
8.1
6.9
7.37.3
3
4
5
6
7
8
9
10
11
12
13
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017*

100. 100100100
TRY Denominated Zero Coupon Borrowing Rates
(Comp. Ann., %)
Source: Undersecretariat ofTreasury
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
J
02
M S J
03
M S J
04
M S J
05
M S J
06
M S J
07
M S J
08
M S J
09
M S J
10
M S J
11
M S J
12
M S J
13
M S J
14
M S J
15
M S J
16
M S J
17
Monthly Average Yearly Cumulative

101. 101101101
Real Interest Rates (Comp. Ann., %)
Note: - The real interest rates are calculated by using 12 months ahead CPI rates. Calculations are based on zero coupon Treasury auction results and
Survey of Expectations of CBRT.
- Before 2013, the calculations are only based on zero coupon bonds however, as of 2013 they’re based on zero coupon bonds and 2-year fixed coupon
bonds together.
Source: CBRT, Undersecretariat of Treasury
-10
0
10
20
30
40
50 2002-1
5
9
2003-1
5
9
2004-1
5
9
2005-1
5
9
2006-1
5
9
2007-1
5
9
2008-1
5
9
2009-1
5
9
2010-1
5
9
2011-1
5
9
2012-1
5
9
2013-1
5
9
2014-1
5
9
2015-1
5
9
2016-1
5
9
2017-1
5
Real Interest Rate

102. 102102102
0.4 0.0
-0.6
2.6
8.0
5.0
-2.4
-3.6
-3.1
-2.6
1.0
-0.5
-1.4
-1.8
-1.3
-4
-2
0
2
4
6
8
10
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Net Financing from IMF (Billion SDR)
Source: Undersecretariat of Treasury

103. 103103103
Credit Outstanding to IMF (Billion SDR)
Source: Undersecretariat of Treasury
16.2
13.8
10.2
7.2
1.9
0.5
0.0
4.5
0.6
3.2
16.2
11.2
5.5
5.1
3.6
0
4
8
12
16
20
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

104. Treasury Guaranteed Debt Stock (Million USD)
Source: Treasury
104
4.000
5.000
6.000
7.000
8.000
9.000
10.000
11.000
12.000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017Q1
12.438

105. Treasury Guaranteed Debt Stock
Source: Treasury
105
Million USD 2017 Q1
PUBLIC 9.368
CENTRAL GOVERNMENT 300
LOCAL GOVERNMENTS 690
PUBLIC BANKS 7.565
SOEs 813
PRIVATE 3.070
BANKS 3.070
GENERAL TOTAL 12.438

106. 106
The Ratio of Undertaken Treasury Guarantees to Total
Guaranteed Payments (%)
* Annualized as of May 2017
Source: Treasury
1.5
2.62.83.4
51.9
27.3
18.1 16.7
19.7
24.7
16.4
22.1
8.2
3.9
6.4
5.4
0
10
20
30
40
50
60
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
May*

107. Undertakings from Treasury Guarantees (Million USD)
107
Source: Treasury
0
100
200
300
400
500
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
May.17
Local Administrations Local Adm.(Investment Guarantees) SOEs Other

108. 108108108
The Stock of Treasury Receivables (Billion TL)
Source: Undersecretariat of Treasury
5.9
8.8
12.9
8.0 7.1 7.3
8.2 9.0 8.3 8.6 7.9
5.0
0.4
3.9 3.8 4.0
13.4
12.4
10.0
13.3 15.3
13.6
17.4
19.1
17.0 15.9
13.9
15.0
16.3
13.8 13.8 13.6
0
5
10
15
20
25
30
Overdue projected
19.3
21.2
22.9
21.3
22.4
20.9
25.6
28.1
25.3
21.8
24.5
20.0
16.7
17.7 17.6
17.6

109. 109109
The Stock of Treasury Receivables (May 2017)
By Borrowers (%) By Source (%)
Source: Undersecretariat of Treasury

110. 110110110
Collections (Million TL)
Source: Undersecretariat of Treasury
417
35
1,561
1,937
104
2,188
1,970
1,503
5,249
2,053
3,198
3,084
1,794
2,641
1,872
2,606 2,446 2,492
1,118
1,667
532
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Non-Cash Cash

111. 111111111
Gross External Debt Stock (Billion USD)
Source: Undersecretariat of Treasury, CBRT
Billion USD 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1
TOTAL 208.0 249.9 280.8 268.7 291.6 303.7 339.5 389.7 401.7 395.9 404.9 412.4
SHORT TERM 42.9 43.1 52.5 49.0 77.2 81.6 100.2 130.3 131.6 101.9 98.0 102.2
LONG TERM 165.1 206.8 228.3 219.7 214.4 222.1 239.3 259.4 270.2 294.0 306.9 310.1
PUBLIC SECTOR 71.6 73.5 78.3 83.5 89.1 94.3 104.0 115.9 117.7 113.1 119.7 122.9
SHORT TERM 1.8 2.2 3.2 3.6 4.3 7.0 11.0 17.6 17.9 14.6 16.3 16.5
LONG TERM 69.8 71.4 75.1 79.9 84.8 87.3 93.0 98.3 99.8 98.5 103.4 106.4
CBRT 15.7 15.8 14.1 13.2 11.6 9.3 7.1 5.2 2.5 1.3 0.8 0.8
SHORT TERM 2.6 2.3 1.9 1.8 1.6 1.2 1.0 0.8 0.3 0.2 0.1 0.1
LONG TERM 13.1 13.5 12.2 11.4 10.0 8.1 6.1 4.4 2.1 1.2 0.7 0.7
PRIVATE SECTOR 120.7 160.6 188.4 172.0 191.0 200.1 228.4 268.5 281.6 281.4 284.4 288.7
SHORT TERM 38.5 38.7 47.4 43.6 71.4 73.3 88.1 111.9 113.4 87.2 81.6 85.6
LONG TERM 82.2 121.9 141.0 128.4 119.6 126.8 140.3 156.7 168.2 194.3 202.7 203.1

112. 112112112
Source: Undersecretariat of Treasury, CBRT
Gross External Debt Stock / GDP (%)
46.0
47.3
49.1
41.0
43.0
39.0
36.5
37.8
41.5
36.236.9
38.0
34.2
40.0
45.9
54.8
30
40
50
60
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017Q1

113. 113113113
Turkey’s Net External Debt (% of GDP)
Source: Undersecretariat of Treasury, CBRT
29.5
31.7
24.2
21.821.922.6
37.4
30.7
25.6
19.8 19.8 19.8 19.5
22.4
26.1
29.3
10
20
30
40
50 2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017Q1

114. 114114114
External Debt Ratios (%)
Source: Undersecretariat of Treasury, CBRT
(*) Source for export data is CBRT's Balance of Payments Statistics, April 2017.
(**) Source for reserves data is CBRT's International Investment Position Statistics, April 2017.
% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1
GROSS EXTERNAL DEBT STOCK / GDP 38.0 36.9 36.2 41.5 37.8 36.5 39.0 41.0 43.0 46.0 47.3 49.1
PRIVATE SECTOR GROSS EXTERNAL DEBT
STOCK / GDP
22.0 23.7 24.3 26.6 24.7 24.1 26.2 28.3 30.1 32.7 33.2 34.4
GROSS EXTERNAL DEBT STOCK / EXPORT
(FOB) (*)
243.2 233.0 212.7 263.1 256.1 225.1 222.7 256.7 254.9 275.2 284.1 283.0
PRIVATE SECTOR GROSS EXTERNAL DEBT
STOCK / EXPORT (FOB) (*)
141.2 149.7 142.7 168.4 167.7 148.3 149.8 176.9 178.6 195.7 199.5 198.1
CBRT RESERVES (GROSS) /
GROSS EXTERNAL DEBT STOCK (**)
29.3 29.3 25.3 26.3 27.7 25.8 29.4 28.5 26.6 23.5 22.8 21.5
CBRT RESERVES (GROSS) /
SHORT TERM GROSS EXTERNAL DEBT
STOCK (**)
142.1 169.9 135.2 144.4 104.5 96.2 99.8 85.1 81.3 91.2 94.1 86.6

115. 115115115
FINANCIAL SECTOR

116. 25.1
30.9
28.2
23.7
21.9
18.9 18.0
20.6
19.0
16.6
17.9
15.3
16.3 15.6 15.6 15.5
16.7
0
5
10
15
20
25
30
35
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016-
05
2017-
05
116116116
Banking Sector: Capital Adequacy Ratio (%)
Source: BRSA

117. 0
4
8
12
16
20
24
28
2006-01
2006-04
2006-07
2006-10
2007-01
2007-04
2007-07
2007-10
2008-01
2008-04
2008-07
2008-10
2009-01
2009-04
2009-07
2009-10
2010-01
2010-04
2010-07
2010-10
2011-01
2011-04
2011-07
2011-10
2012-01
2012-04
2012-07
2012-10
2013-01
2013-04
2013-07
2013-10
2014-01
2014-04
2014-07
2014-10
2015-01
2015-04
2015-07
2015-10
2016-01
2016-04
2016-07
2016-10
2017-01
2017-04
117117
Target Rate 12 percent
Legal Limit 8 percent
Operational
risk included
Banking Sector: Capital Adequacy Ratio (%)
Source: BRSA

118. 118118118
Banking Sector: Capital Adequacy Ratio in Selected
Emerging Markets (%, 2016*)
Source: IMF-FSI, BRSA
* Year-end figures or latest available.
20.6
18.8
17.8 17.6
17.2 17.2
16.7 16.5 16.4 16.0
15.1
14.0 13.8
13.1 13.1 13.0
6.0
10.0
14.0
18.0
22.0
Indonesia
Romanya
Thailand
Colombia
Poland
Brazil
Turkey
Malaysia
Hungary
CzechRep.
Mexican
Korea
Chile
China
Russia
India

119. 119119119
Banking Sector: Free Capital*/ Equity (%)
(*) Free Capital = Total Equity – (Fixed Assets + Affiliates, Subsidiaries and Joint Ventures)
Source: BRSA
36.3
51.0
56.0
65.7
72.6
75.3 77.0
79.6 81.4 81.6 82.0 81.6 81.1
77.6 77.6 77.4
0
10
20
30
40
50
60
70
80
90
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017-
05

120. 120120120
Banking Sector: Return on Equity (%)
Source: BRSA
11.3
18.2
15.8
12.1
21.0
24.8
18.6
22.8
20.0
15.5 15.7
14.2
12.3
11.3
14.3
5.3
6.9
0
10
20
30
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016-
05
2017-
05

121. 121121121
Banking Sector: Loans to Assets (%)
Source: BRSA
23.0
26.5
32.4
37.8
43.8
49.1 50.2
47.1
52.2
56.1
58.0
60.5
62.2 63.0 63.5 64.5
15
25
35
45
55
65
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017-05

122. 122122122
Banking Sector: FX Position (Million USD)
(*) As of June 30, 2017.
Source: BRSA
-549
187
-71 -63
141
-217
16
408
41
315
1,590
-363
-2,870
436
-1,381
350
-3300
-2600
-1900
-1200
-500
200
900
1600
2300
3000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

123. 123123123
Banking Sector: Asset Quality (NPL Ratio, %)
Source: BRSA
17.5
11.5
6.0
4.7
3.7 3.5 3.7
5.3
3.7
2.7 2.9 2.8 2.9 3.1 3.2 3.2
6.2
1.5
0.8 0.6 0.4 0.5 0.8 0.9 0.6 0.6 0.7 0.7 0.8 0.8 0.7 0.7
0
4
8
12
16
20
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017-
05
Gross Net

124. 124124124
Firms Total Debt / Shareholder’s Equity and Interest Coverage*
(Earnings Before Interest and Tax / Interest Expenses) Ratios (%)
(*) Provisional Statistics
Sorce: CBRT Company Accounts
0
50
100
150
200
250
300
350
400
450
Total Debt / Shareholder's Equity Interest Coverage Ratio

125. 125125125
Household Liabilities (% of GDP)
10
12 13
15
17 18 19 21 19 19 18
62 63 64
67 67 66 65 64
68 67 66
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Turkey Euro Area
Source: CBRT, ECB

126. 126126126
Total Housing Loans (% of GDP)
Source: FED, ECB, Eurostat, Bank of England, UK National Statistics, CBRT, TURKSTAT, BRSA, HDAT
(*) Total housing loans for 2010 comprises of housing credits extended by banks and consumer finance companies as well as
Household liabilities to HDAT due to HDAT’s housing sales with long term maturity.
83.6
71.8
40.7
6.2
0.2
60.3
52.1
29.6
0
20
40
60
80
100
UK US Euro Zone Turkey*
2001 2010

127. 127127127
MARKET INDICATORS

128. 128128128
Foreign Exchange Rates (TL/USD)
Source: CBRT
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3.0
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
Jan-03
Apr-03
Aug-03
Dec-03
Mar-04
Jul-04
Nov-04
Mar-05
Jun-05
Oct-05
Feb-06
May-06
Sep-06
Jan-07
May-07
Aug-07
Dec-07
Apr-08
Jul-08
Nov-08
Mar-09
Jul-09
Oct-09
Feb-10
Jun-10
Sep-10
Jan-11
May-11
Aug-11
Dec-11
Apr-12
Aug-12
Nov-12
Mar-13
Jul-13
Oct-13
Feb-14
Jun-14
Oct-14
Jan-15
May-15
Sep-15
Dec-15
Apr-16
Aug-16
Dec-16
Mar-17
Jul-17

129. 129129129
Interest Rates (%)
Source: Undersecretariat of Treasury
0
8
16
24
32
40
48
56
64
72 Jan-03
Apr-03
Aug-03
Dec-03
Mar-04
Jul-04
Nov-04
Mar-05
Jun-05
Oct-05
Feb-06
May-06
Sep-06
Jan-07
May-07
Aug-07
Dec-07
Apr-08
Jul-08
Nov-08
Mar-09
Jul-09
Oct-09
Feb-10
Jun-10
Sep-10
Jan-11
May-11
Aug-11
Dec-11
Apr-12
Aug-12
Nov-12
Mar-13
Jul-13
Oct-13
Feb-14
Jun-14
Oct-14
Jan-15
May-15
Sep-15
Dec-15
Apr-16
Aug-16
Dec-16
Mar-17
Jul-17
Domestic Debt Securities Secondary Market Rates

130. 130130130
BIST 100 Index
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Jan-03
Apr-03
Aug-03
Dec-03
Mar-04
Jul-04
Nov-04
Mar-05
Jun-05
Oct-05
Feb-06
May-06
Sep-06
Jan-07
May-07
Aug-07
Dec-07
Apr-08
Jul-08
Nov-08
Mar-09
Jul-09
Oct-09
Feb-10
Jun-10
Sep-10
Jan-11
May-11
Aug-11
Dec-11
Apr-12
Aug-12
Nov-12
Mar-13
Jul-13
Oct-13
Feb-14
Jun-14
Oct-14
Jan-15
May-15
Sep-15
Dec-15
Apr-16
Aug-16
Dec-16
Mar-17
Jul-17
Source: Borsa Istanbul

131. 131131131
Spreads on Turkey’s External Debt (bp)
Source: JP Morgan
-400
-200
0
200
400
600
800
1.000
1.200
J-03
J-03
N-03
A-04
S-04
F-05
J-05
D-05
M-06
O-06
A-07
S-07
F-08
J-08
D-08
M-09
O-09
M-10
A-10
J-11
J-11
D-11
M-12
O-12
M-13
A-13
J-14
J-14
N-14
A-15
S-15
F-16
A-16
J-17
J-17
(EMBI+ Turkey) - (EMBI+)
EMBI+
EMBI+ Turkey

132. 132132132
Secondary Market and CBRT Policy Rate
Source: CBRT, Treasury
2
4
6
8
10
12
14
16
18
20
22
24
26
Jan-05
Apr-05
Jul-05
Nov-05
Mar-06
Jun-06
Sep-06
Jan-07
Apr-07
Aug-07
Nov-07
Mar-08
Jun-08
Oct-08
Jan-09
May-09
Aug-09
Dec-09
Mar-10
Jul-10
Oct-10
Feb-11
May-11
Sep-11
Dec-11
Apr-12
Jul-12
Nov-12
Feb-13
Jun-13
Sep-13
Jan-14
Apr-14
Aug-14
Nov-14
Mar-15
Jun-15
Oct-15
Jan-16
May-16
Aug-16
Dec-16
Mar-14
Jul-17
CompoundedInterestRates(%)
Secondary Market Rates CBRT Policy Rates

133. 133133133
Credit Rating
Standard & Poor’s Credit Rating
Source: Bloomberg
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Jan-16
Jul-16
Jan-17
Jul-17
N
S
P
BB-
N
S
P
B
N
S
P
B-
N
S
P
BB
N
S
P
BB+
N
S
P
B+

134. 134134134
Rating Map (as of 10 July, 2017)
A2 Botswana, Poland, Slovakia A Iceland A Malta, Ireland
Bermuda
A3 Malta, Mexico, Peru, Lithuania, Latvia A- Botswana, Lithuania, Latvia, Saudi Arabia A- Poland, Latvia, Lithuania
Iceland, Ireland Malta Slovenia, Iceland
Baa1 Thailand, Mauritius, Oman BBB+ Thailand, Poland, Peru BBB+ Thailand, Mexico
Trianidad & Tobago, Mexico, Spain Peru, Spain
Baa2 Bulgaria, Italy, Panama BBB Panama BBB Kazakhstan, Oman, Panama
Spain, Uruguay, Colombia Colombia, Philippines, Uruguay Italy, Colombia
Philippines
Baa3 Namibia, India, Slovenia, South Africa BBB- Morocco, India, Kazakhstan BBB- Morocco, Namibia, India, Romania
Romania, Hungary Romania, Italy, Indonesia Indonesia, Philippines, Bulgaria
Indonesia, Kazakhstan, Bahamas Hungary Uruguay, Russia, Hungary, San Marino
Ba1 Turkey (negative), Morocco, Albania BB+ Bahamas, South Africa BB+ Turkey (stable), Azerbaijan, Bahrain
Guatemala, Portugal, Trianidad & Tobago Bulgaria, Russia, Oman South Africa
Russia, Paraguay, Azerbaijan Portugal, Azerbaijan, Cyprus
Ba2 Brazil, Croatia, Bahrain BB Turkey (negative), Guatemala BB Costa Rica, Guatemala, Croatia, Brazil
Costa Rica Crotia, Brazil
Ba3 Bangladesh, Georgia, Bolivia BB- Bangladesh, Georgia, Vietnam, Bahrain BB- Georgia, Suriname, Bolivia
Tunisia, Senegal Paraguay, Bolivia, Montenegro, Jordan Vietnam, Bangladesh, Cyprus,
Costa Rica, Dominican Republic Dominican Republic
B1 Sri Lanka, Jordan, Montenegro, Suriname B+ Senegal, Sri Lanka, Fiji B+ Sri Lanka, Rwanda, Tunisia, Maldives
Dominican Republic, Fiji, Cyprus Papua New Guinea
St Vincent/Grenadine, Vietnam, Angola Honduras, Albania
B2 Cambodia, Lebanon, Nicaragua B Bosnia Herzegovina, Cambodia, Jamaica, Pakistan B Ecuador, Egypt, Jamaica, Argentina, Angola
Papua New Guinea, Honduras, Rwanda
Tunisia, Angola, Rwanda,
Argentina, Suriname, Burkina Faso
B3 Moldova, Egypt, Pakistan, Argentina, Jamaica B- Belarus, Lebanon, Mongolia B- Lebanon, Ukraine, Mongolia
Bosnia Herzegovina, Ecuador, Belize Egypt, Ukraine, Greece, Belize, Ecuador Suriname
Caa1 Belarus, Mongolia, El Salvador CCC+ Barbados CCC+
Caa2 Cuba, Greece CCC Venezuela CCC Venezuela, Greece, El Salvador
Caa3 Venezuela, Ukraine, Barbados CCC- CCC-
Ca CC El Salvador CC
C C C
SD DDD
D/RD
Source: Bloomberg
Moody's Standard & Poor's Fitch

135. 135135135
EMBI+ Index: Comparison with Other Countries
Change (bp) (02.01.2008 – 10.07.2017)
Source: Bloomberg
1991
290
96
92
66
57
37
20
2
0
-119
-300 0 300 600 900 1200 1500 1800 2100 2400
Venezuela
Ukraine
S. Africa
EMBI+
Brazil
Turkey
Mexico
Argentina
Colombia
Russia
Phillipines

136. 136136136
Equity Markets (Emerging and Mature Markets)
% Change (02.01.2008 – 10.07.2017)
Source: Bloomberg
77.4
74.4
64.2
56.5
54.3
38
28.5
22.3
9.9
-0.8
-39.1
-45
-56.1
84.2
-80 -60 -40 -20 0 20 40 60 80 100
Turkey
S. Africa
Mexico
USA (DJI)
Russia
India
Hungary
S. Korea
Malaysia
Poland
Brazil
China
Japan
Chech Rep.

137. 137137137
Currency Markets (Against USD)
% Change (02.01.2008 – 10.07.2017)
Source: Bloomberg
-208.5
-146.5
-95.6
-85.2
-64.1
-63.7
-56.5
-51.2
-29.8
-29.1
-27.6
-22.7
-4.2
6.7
-240 -210 -180 -150 -120 -90 -60 -30 0 30
Turkey
Russia
S. Africa
Brazil
Mexico
India
Hungary
Poland
Malaysia
Euro
Czech Rep.
S. Korea
Japan
China

138. 138138138
INVESTMENT ENVIRONMENT

139. 139139139
Starting a Business (Number of Procedures)
Source: World Bank Doing Business Report, 2014
13
13
12
9
6
6
6
5
5
5
4
4
4
4
0 4 8 12 16 20
China
Brazil
India
Czech Rep.
Mexico
Croatia
Turkey
Europe&Central Asia
South Africa
OECD
Poland
Hungary
Bulgaria
Thailand

140. 140140140
Starting a Business (Duration, Days)
33
30
27.5
27
19.5
19
18
15
12.8
11.1
8
6
6
5
0 10 20 30 40 50
China
Poland
Thailand
India
Czech Republic
South Africa
Bulgaria
Russia
Europe& Central Asia
OECD
Croatia
Mexico
Turkey
Hungary
Source: World Bank Doing Business Report, 2014

141. 141141141
Starting a Business (Cost, % of GDP Per Capita)
Source: World Bank Doing Business Report, 2014
1
1.3
2
3.6
4.6
6.7
6.7
8.2
8.6
9.3
12.7
14.3
19.7
0 5 10 15 20 25
Bulgaria
Russia
China
OECD
Brazil
Thailand
Europe&Central Asia
Czech Rep.
Hungary
Croatia
Turkey
Poland
Mexico

142. 142142142
Taxes on Income and Profit (% of GDP, 2012)
Source: OECD Factbook 2014
(*) 2011 Data
6.0
11.4
0
5
10
15
20
25
30
Mexico
SlovakRepublic
Turkey
Poland*
Hungary
Estonia
Slovenia
CzechRepublic
Korea
Chile
Greece
Portugal
Japan
Israel
Spain
Netherlands*
France
Germany
OECD*
UnitedStates
Ireland
UnitedKingdom
Austria
Switzerland
Luxembourg
Canada
Italy
Finland
Sweden
Australia*
Belgium
Iceland
NewZealand
Norway
Denmark

143. 143143143
Tax Revenue Comparisons (% of GDP, 2011)
(*) Includes Mexico, Korea, Czech Rep., Greece, Hungary, Ireland, Poland, Portugal, Slovak Rep. and Spain.
Source: OECD, Factbook 2014
0
5
10
15
20
25
30
35
40
Total Tax Revenue Income Taxes Taxes on Goods and
Services
Turkey OECD Comparative Group*

144. 144144144
RELATIONS with the IMF and EU

145. 145145145
Relations with the IMF
Arrangements Duration
Amount
Approved
(Million
SDR)
Amount
Drawn
(Million
SDR)
Repurchases
(Million SDR)
Projected
Payments
(Million
SDR)
17th Stand-By
Arrangement
(12.1999 - 02.2002) 15,038 11,739 11,739 0
18th Stand-by
Arrangement
(02.2002 - 02.2005) 12,821 11,914 11,914 0
19th Stand-by
Arrangement
(05.2005 - 05.2008) 6,662 6,662 6,662 0
TOTAL 34,522 30,315 30,315 0
Source: Undersecretariat of Treasury

146. 146146146
 For 1 Chapter
1- Science and Research
 For 12 Chapters
 For 2 Chapters
1- Education and Culture,
2- Economic and Monetary Policy
 For 8 Chapters
 Remaining chapters
EU Accession Process
Negotiations were opened and
provisionally closed
Negotiations were opened
provisionally but closing
benchmarks
Submission of our Position Papers
Opening benchmarks
Awaiting for the screening reports
I. Screening process: 3 October 2005 - 13 October 2006
II. Accession Talks :
1- Enterprise and Industrial Policy,2- Statistics,
3- Financial Control, 4- Consumer and Health Protection,
5- Trans-European Networks, 6- Company Law (fulfillment of opening benchmarks),
7-Intellectual Property Law (fulfillment of opening benchmarks)
8- Free Movement of Capital 9- Information Society & Media
10-Taxation, 11- Environment, 12- Food Safety, Veterinary & Phytosanitary Policy

147. 147147147
SOCIAL SECURITY

148. 148148148
Social Security Reform
 Uniform norm and standards for workers, civil servants and the self
employed.
 Gradual increase in retirement age to 65.
 Decrease in accrual rate to 2 %.
 The valorization of past earnings by CPI+30 % of GDP real growth
 Indexation of pensions by CPI.
 Universal health insurance (Covering entire population).
 Introduction of copayments for health care.
 Global budget in some health expenditures.
Main Features

149. 149149149
Decreasing Pension System Deficits
(2007-2075,% of GDP)
Source: World Bank, 2007
Before the Reform
After the Reform

150. 150
Budget Transfers to Social Security Institution* (% of GDP)
*Deficit Financing, State Contribution, Billed Payments, Employment Incentives, General Health Insurance
Premiums for Poor, Compensation for Tax Debate, Additional Allowance
MTP: Medium-Term Program
Source: SSI, Undersecretariat of Treasury
3.70
5.53
5.01 4.07
4.49 4.60 4.42
4.10
4.63
4.06
3.81
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
2008 2009 2010 2011 2012 2013 2014 2015 2016
MTP
2017
MTP
2018
MTP

151. 151151
Net Pension Replacement Rates (2014)
Net Pension Replacement Rate: The individual net pension entitlement divided by net pre-retirement earnings (OECD)
* The Half of Average Income
Source:OECD, Pensions at a Glance, 2015
Low Income Earner* Average Income Earner
98
74.3
0 20 40 60 80 100 120
Brazil
Denmark
Netherlands
Luxembourg
China
Turkey
Czech Republic
Austria
Iceland
Hungary
Spain
Portugal
Australia
Slovak Republic
Italy
Israel
New Zealand
Norway
Russia
Estonia
OECD ‐ Average
Ireland
United Kingdom
France
Greece
Finland
Korea
Belgium
Sweden
Canada
Switzerland
Slovenia
United States
Poland
Germany
Japan
Chile
Mexico
South Africa
104.8
62.8
0 20 40 60 80 100 120
Turkey
Netherlands
Austria
Hungary
Spain
Portugal
Luxembourg
Slovak Republic
Russia
Italy
China
Iceland
France
Brazil
Denmark
Israel
Czech Republic
Sweden
Finland
OECD ‐ Average
Belgium
Norway
Estonia
Slovenia
Australia
Greece
Poland
Germany
Switzerland
Korea
United States
New Zealand
Canada
Ireland
Japan
United Kingdom
Chile
Mexico
South Africa

152. 152152
Minimum Retirement Age for Men* (2014)
*Current retirement age for men who entered the labour force at age of 20
Source: OECD, Pensions at a Glance, 2015

153. 153153
Minimum Retirement Age for Women* (2014)
* Current retirement age for women who entered the labour force at age of 20
Source: OECD, Pensions at a Glance, 2015

154. 154154
Expected Years in Retirement for Men (2014)
Source: OECD, Pensions at a Glance, 2015

155. 155155
Expected Years in Retirement for Women (2014)
Source: OECD, Pensions at a Glance, 2015

156. 156156156
LABOR MARKET

157. 157157157
Labor Market Reform
 Increasing Flexibility of Labor Market
 Allowing for temporary employment relationship via private employment offices and off-site working.
 Part-time workers will be eligible for retirement benefits by paying the premium due for remaining working hours as to
restore full premium payments for regular working hours.
 Part-time workers are covered by Unemployment Insurance Fund as regular workers.
 The linkage between social assistance and employment
 Cash transfers from Social Assistance and Solidarity Promotion Fund will be cut off for a year in case beneficiaries do
not accept Turkish Labor Agency’s job offers, vocational trainings or active labor force programs in a third row.
 Giving premium incentive to employers who employ social assistance recipients.
 Active labor market programs
 The budget allocation for active labor market programs is raised from 30% to 50% of previous year’s premium income
of The Unemployment Insurance Fund.
 Reduction of labor cost
 5 percentage points of social security premium of the employers’ share are paid by the Government as an incentive.
 Employers are allowed to benefit from the above mentioned incentive concomitantly with other premium incentives.
 Employers’ share of social security premium for newly employed young and female workers is paid by Unemployment
Insurance Fund provided both employers and employees meet defined conditions.
 The coverage of short-term working allowance is extended to sectoral and regional crises together with general
economic crises.
 Daily short-term working allowance that was 40% of daily average gross income is increased to 60%.
 Obligation to employ ex-convicts is abolished.
 Sports facility, kindergarden, health and security unit’s requirements under the Labor Law are eased.
 Employers’ share of social security premium for disabled workers is paid by the Government.

158. 158158158
*Single person at 100% of average earnings, no child
Source: OECD Taxing Wages, 2016
Tax Wedge on Employment (2015)
38.3
36
0
10
20
30
40
50
60
Belgium
Austria
Germany
Hungary
Italy
France
Finland
Czech Rep.
Sweden
Slovenia
Portugal
Slovak Rep.
Spain
Greece
Estonia
Turkey
Luxembourg
Denmark
Norway
Netherlands
OECD ‐ Average
Poland
İceland
Japan
Canada
United States
United Kingdom
Switzerland
Korea
Israel
Mexico
New Zealand
Chile

159. 159159159
(*) Single without children at the income level of average worker (Share of total cost)
Source: OECD Taxing Wages 2016
Tax Wedge Distribution (2015)

160. Social Security Contributions (% of GDP)
160
8.48 8.48 8.63
8.86 8.84 8.89
9.00 9.11
5.49 5.22
6.06 6.05
6.53
7.76 7.51
8.03
4.75 4.64 4.63
4.83 4.67
4.61
4.76 4.82
14.87 14.97 14.83
14.22 14.57 14.64 14.77 14.79
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
2006 2007 2008 2009 2010 2011 2012 2013
OECD Turkey Canada Czech Republic
Source: OECD Statistics Database, 2016

161. 161
Number of Active Insured (Million)
*As of May
Source: Social Security Institutions, Montly Statistical Bulletin May 2016

162. 162
Social Security Coverage (Million)
(Employees and Dependents)
*As of May
Source: Social Security Institutions, Montly Statistical Bulletin May2016

163. Labor Indicators by Regions (2015)
Source: TURKSTAT, 2016
Van
163
Regions
Population 15 years and
over
Labour force Employed Unemployed
Labour force
participation rate
(%)
Unemployment
rate
(%)
Employment
rate
(%)
Not in labour
force
Türkiye Geneli 57 854 29 678 26 621 3 057 51.3 10.3 46.0 28 176
TR10 (İstanbul) 11 203 6 092 5 306 786 54.4 12.9 47.4 5 110
TR21 (Tekirdağ, Edirne, Kırklareli) 1 296 744 689 54 57.4 7.3 53.2 553
TR22 (Balıkesir, Çanakkale) 1 342 633 599 34 47.1 5.3 44.6 709
TR31 (İzmir) 3 264 1 745 1 483 262 53.5 15.0 45.4 1 519
TR32 (Aydın, Denizli, Muğla) 2 284 1 233 1 148 85 54.0 6.9 50.3 1 052
TR33 (Manisa, Afyon, Kütahya, Uşak) 2 325 1 222 1 172 50 52.6 4.1 50.4 1 103
TR41 (Bursa, Eskişehir, Bilecik) 2 932 1 474 1 360 114 50.3 7.8 46.4 1 457
TR42 (Kocaeli, Sakarya, Düzce, Bolu,
Yalova)
2 693 1 492 1 342 151 55.4 10.1 49.8 1 201
TR51 (Ankara) 3 951 2 064 1 833 231 52.2 11.2 46.4 1 887
TR52 (Konya, Karaman) 1 690 865 808 57 51.2 6.5 47.8 825
TR61 (Antalya, Isparta, Burdur) 2 209 1 226 1 108 118 55.5 9.6 50.2 983
TR62 (Adana, Mersin) 2 853 1 441 1 299 142 50.5 9.8 45.6 1 412
TR63 (Hatay, Kahramanmaraş, Osmaniye) 2 146 919 768 151 42.8 16.4 35.8 1 227
TR71 (Kırıkkale, Aksaray, Niğde, Nevşehir,
Kırşehir )
1 110 573 516 57 51.6 9.9 46.5 537
TR72 (Kayseri, Sivas, Yozgat) 1 761 862 778 84 48.9 9.7 44.2 899
TR81 (Zonguldak, Karabük, Bartın) 788 408 380 29 51.8 7.0 48.2 380
TR82 (Kastamonu, Çankırı, Sinop) 582 311 290 21 53.5 6.8 49.9 271
TR83 (Samsun, Tokat, Çorum, Amasya) 2 047 1 046 978 68 51.1 6.5 47.8 1 001
TR90 (Trabzon, Ordu, Giresun, Rize, Artvin,
Gümüşhane)
1 985 1 069 1 018 51 53.9 4.8 51.3 916
TRA1 (Erzurum, Erzincan, Bayburt) 751 383 361 23 51.0 5.9 48.0 368
TRA2 (Ağrı, Kars, Iğdır, Ardahan) 752 407 391 16 54.2 3.9 52.0 345
TRB1 (Malatya, Elazığ, Bingöl, Tunceli) 1 256 605 557 48 48.2 8.0 44.3 651
TRB2 (Van, Muş, Bitlis, Hakkari) 1 340 631 571 60 47.1 9.5 42.6 709
TRC1 (Gaziantep, Adıyaman, Kilis) 1 814 782 704 78 43.1 9.9 38.8 1 032
TRC2 (Şanlıurfa, Diyarbakır) 2 175 951 784 166 43.7 17.5 36.1 1 224
TRC3 (Mardin, Batman, Şırnak, Siirt) 1 307 499 376 124 38.2 24.8 28.7 808

164. 164164164
Source: OECD, Labor Force Statistics Database, 2016
Distribution of Employment by Economic Activity (2013)
Countries Agriculture Industry Services
Turkey 23.6 23.6 52.8
Mexico 13.4 23.9 62.7
Poland 11.7 30.4 57.9
Korea 6.1 24.4 69.5
Brasil 15.1 24.2 60.7
Spain 4.3 19.9 75.8
Italy 3.6 27.3 69.1
Japan 3.7 25.8 70.5
Czech Rep 3 37.6 59.4
Canada 2.2 19.9 77.9
United Kingdom 1 18.7 80.3
Germany 1.4 28 70.6

165. 165165165
Restrictiveness of Protection Legislation on Temporary
Employment (Index Scale of 0-6 from Least to Most Restrictive)
4.88
0
1
2
3
4
5
6
Canada
USA
UK
SlovakRep.
Ireland
Australia
Switzerland
CzechRep.
Hungary
Netherlands
Japan
N.Zeland
Denmark
Austria
Sweden
Korea
Germany
Spain
Poland
EU-19
Finland
Italy
Belgium
Portugal
Norvey
Greece
France
Mexico
Luxembourg
Turkey
1998 2008
OECD Avg. 1.77
Source: OECD Labour Force Statistics Database, 2010

166. 166166
Part-time Employment (%, 2015)
Source: OECD, Labor Force Statistics Database

167. 167167167
Severance Payments Burden (2016)
(As weeks of Payment for 10 Years Work)
Source: World Bank, Doing Business in 2017

168. 168168168
R&D

169. 169169169
 In 2002, 3 billion dollars.
 In 2015, 16.2 billion dollars.
 R&D expenditures increased by 440 % between 2002
and 2015
Turkey: R&D Expenditures (Current PPP, USD)
Source: TURKSTAT

170. 170170170
R&D Expenditure* (Million TL)

171. 171171171
R&D Expenditure per Capita (PPP, USD)
Source: TUBITAK

172. 172172172
 In 2002, 28,964 people.
 In 2015, 122,288 people.
 Number of R&D personnel increased by 322 %
between 2002-2015
Turkey: Number of FTE* R&D Personnel
(*) Full Time Equivalent
Source: TURKSTAT

173. 173173173
Turkey: Number of FTE R&D Personnel
Source: TURKSTAT
27,003
27,698
28,964
38,308
39,960
49,252
54,444
63,377
67,244
73,521
81,792
92,801
105,122 112,969
115,444
122,288
10,000
30,000
50,000
70,000
90,000
110,000
130,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

174. 174174174
 In 2002, 23,995 people.
 In 2015, 95,000 people.
 Number of researchers increased by 295.9 % between
2002-2015
Turkey: Number of FTE Researchers
(*) Full Time Equivalent
Source: TURKSTAT

175. 175175175
R&D Human Resources (1000 People)
Source: TUBİTAK

176. 176176176
 In 2002, 8,975 publications.
 In 2014, 27,276 publications.
 Number of scientific publications increased by 204 %
between 2002 and 2014
Turkey: Number of Scientific Publications
Source: TUBİTAK

177. 177177177
Turkey: Number of Scientific Publication
8,995
10,677
13,341
14,288
15,254
18,129
19,594
21,979
23,072
23,959
25,501 26,259
27,276
5,000
10,000
15,000
20,000
25,000
30,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: TUBİTAK

178. 178178178
Number of Scientific Publications per Million People
Source: TUBITAK

179. 179179179
 In 2002, 85 international patent applications.
 In 2014, 853 international patent applications.
 Number of international patent applications increased by
903,5 % between 2002-2014.
Turkey: Number of International Patent Applications
Source: WIPO, World Intellectual Property Indicators Report

180. 180180180
Turkey: Number of International Patent Applications
Source: WIPO, World Intellectual Property Indicators Report

181. 181181181
Patent Applications and Registries
Source: TPI
73 93 68 95 122
318 338 456
642
847
1025
1244 1251
1730
414 490
685
935
1,090
1,838
2,268
2,588
3,250
4,087
4,543 4,528
4,861
5,512
0
1,000
2,000
3,000
4,000
5,000
6,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
(Numberofpatents)
Domestic Patent Registries Domestic Patent Appliciations

182. 182182182
Model Applications and Registries
376
704 678
964
1,665
2,148
1,833
2,151
2,022
1,948
2,245
1,997
2,474
2,681
914
1,206
1,479
1,896
2,424
2,972 2,949
2,842
2,994
3,175
3,726
3,468 3,477 3,451
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
(NumberofModels)
Model Registrations Model ApplicationsSource: TPI

183. 183183183
ENERGY SECTOR

184. 184184184
Electricity Demand and Supply in Turkey (Billion kWh)
Source: TEİAŞ
* Temporary data
0
50
100
150
200
250 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Supply Demand
273.5267.6

185. 185
Source: Eurostat
0,0000
5,0000
0,0000
5,0000
0,0000
5,0000
Sweden
Denmark
Liechtenstein
Finland
BosniaandHerzegovina
France
Austria
Slovenia
Germany
Slovakia
Ireland
EuroArea
EU28
EU27
Luxembourg
Hungary
Netherlands
Croatia
Portugal
Serbia
Romania
Poland
Greece
Spain
CzechRepublic
Belgium
Italy
Latvia
Lithuania
UnitedKingdom
Estonia
Moldova
Ukraine
Turkey
Macedonia
Bulgaria
Without Tax Other Taxes VAT
Industrial Natural Gas Prices
(Euro / GigaJoule, For Consumers With 10.000 GJ - 100.000 GJ Annual
Consumption, 2016 2nd Half)

186. 186186186
Source: Eurostat
0
5
10
15
20
25
30
35
Sweden
Spain
Italy
Portugal
Liechtenstein
Netherlands
Denmark
EuroArea
Ireland
France
Austria
Greece
Germany
EU27
EU28
CzechRepublic
Slovenia
Belgium
UnitedKingdom
Slovakia
Poland
Luxembourg
Latvia
Lithuania
Croatia
Hungary
Bosniaand…
Estonia
Serbia
Romania
Bulgaria
Turkey
Moldova
Ukraine
Without Tax Other Taxes VAT
Household Natural Gas Prices
(Euro / GigaJoule, For Consumers With 20 GJ - 200 GJ Annual Consumption,
2016 2nd Half)

187. 0
5
10
15
20
25
30
Denmark
Germany
Italy
Cyprus
UnitedKingdom
EuroArea
Latvia
Malta
Portugal
EU27
EU28
Slovakia
Belgium
Ireland
Spain
Austria
Greece
Estonia
Lithuania
Croatia
Hungary
Netherlands
France
Slovenia
Poland
Romania
Norway
Moldova
Bulgaria
Finland
Turkey
Montenegro
CzechRepublic
Kosovo
Bosniaand…
Macedonia
Ukraine
Sweden
Luxembourg
Serbia
Without Taxes Other Taxes VAT
187187187
Source: Eurostat
Industrial Electricity Prices Comparison EU & Turkey
(Eurocent / kWh, For Consumers With 2.000 MWh - 20.000 Mwh Annual
Consumption, 2016 2nd Half)

188. 188188
-5
0
5
10
15
20
25
30
35
Denmark
Germany
Belgium
Portugal
Italy
Ireland
Spain
EuroArea
EU27
Eu28
Austria
Sweden
UnitedKingdom
Greece
France
Luxembourg
Liechtenstein
Norway
Slovenia
Latvia
Cyprus
Netherlands
Finland
Slovakia
Iceland
CzechRepublic
Poland
Croatia
Malta
Estonia
Romania
Turkey
Lithuania
Hungary
Montenegro
Bulgaria
Moldova
BosniaandHerzegovina
Albania
Macedonia
Serbia
Kosovo
Ukraine
Without Taxes Other Taxes VAT
Household Electricity Prices Comparison EU & Turkey
(Eurocent / kWh, For Consumers With 2.500 kWh - 5.000 kWh Annual Consumption,
2016 2nd Half)
Source: Eurostat

189. July 2017
TURKISH ECONOMY
Undersecretary of Treasury