Turkey is the 18th largest economy in the world. In 2013. Turkish economy grew by 4%.

1. INFLUENCE OF EXTERNAL ENVIRONMENT FOR BUSINESSINFLUENCE OF EXTERNAL ENVIRONMENT FOR BUSINESS
COMPANY IN TURKEYCOMPANY IN TURKEY
Presented by Mithat Eroğlu

2. Demographic of Turkey
Population: 80,694,485
Primary Language: Turkish
Currency: Lira
Capital City: Ankara
2

3. Demographic: Population Between Turkey and
Other Countries 2013

4. Political Environment
Turkey is strategically positioned at the crossroads of Europe, Asia
and the Middle East.
As bridge between Europe and Asia, and the protector of the straits
between the Black Sea and the Mediterranean, Turkey is often
referred as “the most important country in the region".

5. Social And Cultural Environment
Toleration of different religious beliefs and cultures
Combined characteristics of Europe and Asia
A warm and friendly
Hospitable Turkish culture

6. Economical Environment
Currencies in a number of emerging economies depreciated
by the greatest amount in May-June 2013, particularly in
Brazil, India, Indonesia, South Africa and Turkey, at the
same time that capital inflows to these economies declined.
Turkey is the 18th
largest economy in the world.

7. External Debt
Percentage of GDP
India and Turkey have the highest external debt to-GDP
ratio of about 20%.

8. ECONOMIC OUTLINEECONOMIC OUTLINE
A- Macroeconomic Outlook

9. Growth Forecasts for Country Groups (%)
In 2013, Turkish economy grew by 4%.
According to the IMF, Turkish Economy is expected to
grow by 2.3% in 2014.
World Turkey
Euro
Area
US Brazil Russia India China
IMF
2014 3.6 2.3 1.2 2.8 1.8 1.3 5.4 7.5
2015 3.9 3.1 1.5 3.0 2.7 2.3 6.4 7.3
OECD
2014 3.6 3.8 1.0 2.9 2.2 2.3 4.7 8.2
2015 3.9 4.1 1.6 3.4 2.5 2.9 5.7 7.5
WB
2014 3.2 2.4 1.1 2.8 2.4 1.1 6.2 7.6
2015 3.4 3.5 1.4 2.9 2.7 1.3 6.6 7.5

10. Forecasts for Merchandise and Services Trade
Growth (%)
According to the IMF estimates, global trade volume of
merchandise and services is expected to increase by 4.3% in 2014
and 5.3% in 2015.
According to the WTO estimates, global trade volume of
merchandise and services is expected to increase by 4.7% in 2014
and 5.3% in 2015.
Exports Imports
World
Trade
VolumeYears
Advanced
Economies
Emerging
Markets
Advanced
Economies
Emerging
Markets
IMF
2014 4.2 5.0 3.5 5.2 4.3
2015 4.8 6.2 4.5 6.3 5.3
WTO
2014 3.6 6.4 3.4 6.3 4.7
2015 4.3 6.8 3.9 7.1 5.3

11. Economic Targets of 2014-2016 Medium Term
Program
Medium Term Program which covers 2014-2016 period
aims to reduce the current account deficit gradually and
increase the growth rate by minimizing the effects of global
uncertainty.
2013 2014 2015 2016
GDP (Billion $, Current Prices) 820 867 928 996
GDP Per Capita ($) 10,782 11,277 11,927 12,670
Real GDP Growth 4.0 4.0 5.0 5.0
Unemployment Rate (%) 9.7 9.4 9.2 8.9
Tourism Income (Billion $) 32.8 31.0 32.0 34.5
Current Account Balance (Billion $) -65.0 -55.5 -55.0 -55.0
Current Account Balance / GDP (%) -7.9 -6.4 -5.9 -5.5

12. Government Debt / GDP (%)
Debt/GDP ratio of Turkey was 36.3% in 2013 which was
below the level in the Maastricht Criteria (60%). According
to recent data (The EU’s data are for 2012); Turkey
outperformed 25 EU countries.

13. Unemployment Rates (%) 2013

14. Real GDP Growth of Selected Countries/Country
Groups (2013)
Turkish Economy expanded by 4% in 2014.

15. Annual Economic Growth Rates (2007-2013)
Real GDP growth for 2013 realized as 4%.

16. B- FOREIGN TRADE OUTLOOKB- FOREIGN TRADE OUTLOOK
1) Merchandise

17. Targets in Merchandise Trade
* Actual
**Forecast
(Billion $) 2012* 2013* 2014** 2015** 2016**
Exports 152.5 151.9 166.5 184 202.5
Imports 236.5 251.7 262 282 305
Volume of trade 389 403.5 428.5 466 507.5
Balance of trade -84.1 -99.8 -95.5 -98 -102.5
Experts /Imports (%) 64.5 60.3 63.5 65.2 66.4

18. Turkey's Share in Global Merchandise Exports(%)
Turkey’s share in global merchandise exports was %0.81 in
2013.

19. Distribution of Foreign Trade in Broad Economic
Categories
Export
Import
(Million $) Annual
2012 2013
201272013
Değ.%
Periodic (January-Feb)
2013 2014
2014 Feb
%Share
2013/2014
Change %
Investment Goods 13,734 15,601 13.6 2,344 2,358 9.2 0.6
Intermediate Goods 82,656 74,843 -9.5 12,092 12,923 50.5 6.9
Consumption Goods 55.56 60,764 9.4 9,335 10,201 39.9 9.3
Others 516 662 28.2 98 112 0.4 13.9
Total 96,906 151,870 -0.4 23,868 25,593 100.0 7.2
(Million $) Annual
2012 2013
2012/2013
Değ.%
Periodic (January-Feb)
2013 2014
2014 Feb
% Share
2013/2014
Change %
Investment Goods 33,925 36,760 8.4 5,414 5,135 13.7 -5.2
Intermediate Goods 174,930 183,812 5.1 28,483 28,104 74.9 -1.3
Consumption Goods 26,699 30,416 13.9 4,111 4,244 11.3 3.2
Others 990 663 -33.0 189 59 0.2 -68.6
Total 236,544 251,651 6.4 38.197 37,542 100.0 -1.7

20. Main Trade Partners (Jan-Feb 2014)
Main Export Partners (Share,%)
Main Import Partners (Share,%)

21. Foreign Trade Developments
In January-February period of 2014 compared to same period of 2013, exports
increased by 7.2% and imports decreased by 1.7% respectively.
Annual ( Billion $) Periodic ( Billion $)
2012 2013 2013/(JAN-FEB) 2014/(JAN-FEB) Change (%)
2013/2014
Export 152.5 151.8 23.9 25.6 7.2
Energy Export 7.7 6.7 1.1 1.0 -10.4
Gold Export 13.3 3.3 1.0 1.0 -0.8
Import 236.5 251.7 38.2 37.5 -1.7
Energy Import 60.1 55.9 9.1 9.4 3.5
Gold Import 7.6 15.1 1.7 0.6 -65.8
Foreign Trade Volume 389.0 403.5 62.1 63.1 1.7
Foreign Trade Balance -84.1 -99.8 -14.3 -11.9 -16.6
Balance exd. Energy -31.7 -50.7 -6.3 -3.5 -16.6
Export/Import (%) 64.5 60.3 62.5 68.2 *
2012 - 2013 / January-February 2013 - 2014

22. 2) Services

23. Tourism
Turkey’s share in global exports of services was 0.95% in
2013.
Turkey's Share in Global Services Exports (%)

24. Tourism Statistics (Quarterly)
Turkey ranks as the 6th in the world and the 4th in Europe
among the most favourite tourism destinations.
Turkey’s income per tourist increased by 3.6% in 2013
compared to 2012.

25. C- INVESTMENTS, FOREIGN CAPITAL and INCENTIVESC- INVESTMENTS, FOREIGN CAPITAL and INCENTIVES

26. Investment Climate in Turkey
10 REASONS TO INVEST IN TURKEY
 SOUND ECONOMIC PERFORMANCE  CENTRAL LOCATION
 YOUNG and DYNAMIC POPULATION  ENERGY CORRIDOR and TERMİNAL of
EUROPE
 QUALIFIED AND COMPETITIVE LABOR
FORCE
 LOW TAX RATES and INCENTIVE
FACILITIES
 LIBERAL and INNOVATIVE INVESTMENT
CLIMATE
 CUSTOMS UNION with EU and OPEN
ECONOMY
 INFRASTRUCTURE  DOMESTIC MARKET

27. The Sectoral Breakdown of Foreign Investments
* January-February
( Million $) 2012 2013 2013* 2014*
AGRICULTURE 43 49 3 45
INDUSTRIAL SECTORS 5,479 4,813 564 973
Mining and Quarrying 213 251 150 15
Manifacturing 4,342 2,010 187 849
Production and Distribution of Electricity, Gas, 924 2,516 227 109
SERVİCES SECTOR 5,237 5,337 983 665
TOTAL 10,759 10,199 1,550 1,683

28. Breakdown of Investments in Manufacturing
Industry (%)