Turkish Economy - News & Updates

[Attila the Hun]

NEVER!!!!!!!!!!!!!!!!!!!!!!!!!

Turkish Airlines in talks to acquire local carrier’s Embraer 190 fleet

Turkish Airlines (THY) is set to start acquisition talks with carrier BoraJet to buy the airliner’s Embraer 190 fleet and employ its flight crew following the latter’s announcement on April 24 that it temporarily suspended all of its operations for a restructuring process.

Turkish Airlines Board Chairman İlker Aycı confirmed the talks to private broadcaster CNNTürk during an interview with Doğan TV Ankara Representative Hakan Çelik, but said the publicly held company could not make a statement unless the acquisition was official.

Turkish Airlines would be interested in the acquisition if “the conditions were provided that met our fleet perspective,” Aycı said.

Aycı also made remarks in regards to the currently employed 76 pilots and 120 cabin attendants of BoraJet. “Our CEO Bilal Ekşi is managing the talks with the company [BoraJet] quite well. If needed, we can employ pilots and cabin attendants that meet our standards. We can evaluate the human resources,” he said.

On April 24, BoraJet Airlines announced the temporary suspension of operations to prepare itself for Istanbul’s new airport. At the time of the announcement, the company had a total of 10 Embraer 190/195 range aircrafts, including six with spare parts requirements.

The company said around 30,000 customers with already-booked reservations with BoraJet would be able to use their reservations on Turkish Airlines flights. Aycı also confirmed this issue, noting that such customers would not suffer as a result of the suspended flights.

Turkish Airlines currently has 337 aircrafts and flies to 298 destinations - 249 international and 49 domestic.

Turkey’s flag carrier was chosen as Europe’s Best Airline for the sixth time and the Best Airline in southern Europe for the eighth consecutive time in a 2016 Skytrax survey.

The airline increased its total number of passengers by 2.5 percent year-on-year to reach 62.8 million in 2016, according to a stock exchange filing report published on Jan. 11.

http://www.hurriyetdailynews.com/tu...leet.aspx?pageID=238&nID=112567&NewsCatID=349

Better now my child?

 

[xenon54 out]

Better now my child?

They are right, big font isnt nice to read.

 

[Attila the Hun]

They are right, big font isnt nice to read.

I know

 

[Attila the Hun]

Turkey’s exports soar in April

Turkish exports advanced four percent year-on-year to reach almost $11.9 billion in April on the back of performances by the steel, automotive, mining and jewelry sectors, the country’s main exporters’ association said on May 1.

The Turkish Exporters’ Assembly (TİM) said total exports in the first four months of the year also surged by 6.7 percent from the same period last year.

TİM revealed Turkey’s value of total exports in the last 12 months rose by four percent to stand at almost $145.7 billion compared to the previous 12 months.

In April, the highest increase among all sectors was seen in steel exports with a $326 million rise, according to TİM.

Other prominent export sectors that climbed in the month was the automotive sector with a $253 million hike, followed by the mining and jewelry sectors’ increases of $112 million and $100 million respectively, according to TİM figures.

However, agricultural sector exports decreased 1.3 percent in the month. The drop in the ready-made textile sector’s exports - 1.1 percent - had a limiting effect on the country’s increase.

In the first four months of the year, the automotive sector made the highest exports - a nearly $1.7 billion increase - compared to the same period last year.

Exports to the European Union, Turkey’s main trading partner, rose by 3.2 percent in the month; they had increased by $2.1 billion in the first four months of the year compared to same period last year.

Turkey’s exports to its second-biggest trading partner, North America, jumped by 28.7 percent in the month compared to April 2016.

The most remarkable increases were seen in Turkey’s exports to Malta by 351 percent, the United Arab Emirates by 99 percent and Canada by 50 percent, TİM said.

In April, Turkey’s exports to Russia also rose by 5.4 percent year-on-year; these constituted 30 percent of the increase seen between January and April of this year.

“Although Turkey focused on its referendum agenda, it achieved an increase in its exports in April. We will focus on the economy now,” TİM President Mehmet Büyükekşi said.

Büyükekşi said his organization was expecting an economic recovery with what he described as the disappearance of uncertainty and the realization of postponed investment and consumption decisions.

“We believe that [Turkey’s] exports will have a stronger increasing trend in the upcoming periods,” he added.

http://www.hurriyetdailynews.com/tu...----.aspx?pageID=238&nID=112606&NewsCatID=345

 

[Attila the Hun]

Construction of Finance Technopark to begin this year

Borsa Istanbul (BIST) Chairman Himmet Karadağ provided updates on the latest development in the Finance Technopark project, which will come into action in cooperation with Boğaziçi University, within the framework of the Istanbul International Finance Center's (IIFC) construction.

"We are expanding the project's reach with the participation of Boğaziçi University, Istanbul Technical University (ITÜ) and Istanbul Commerce University. At the moment, a study is ongoing about the partnership structure among the universities. Once it is done, we will continue ahead with the project," said Karadağ.

"If they finish it this week or next week, we will sit down and figure out how to proceed with the new partnership. We want to start construction this year," Karadağ added.

The Ministry of Science, Industry and Technology has approved Borsa Istanbul and Boğaziçi University's joint application to establish a Technopark to host firms that develop financial software, systems and products within the context of IIFC, which is set to become one of the world's top 10 financial centers.

The Finance Technopark Technology Development Zone will be established to help Turkey's financial sector gain a more competitive edge and boost its share in global markets.

Moreover, the finance-themed project will not only be a first in Turkey, but also serve as a new model in the international arena, showing that effective technology development is possible through collaboration between a university and a stock exchange.

https://www.dailysabah.com/finance/2017/05/01/construction-of-finance-technopark-to-begin-this-year

 

[Attila the Hun]

Turkey's exports, imports rise in April, trade deficit hits $4.9B

Turkey's year-on-year trade deficit rose by 15.8 percent in April to over $4.9 billion, according to a preliminary estimate revealed by the Customs and Trade Ministry yesterday.

Exports for the month rose to $12.83 billion, which is a 7.83 percent increase from April 2016, according to the estimate. Imports also increased by 9.58 percent to $17.74 billion.

The volume of foreign trade surged by 3.65 percent reaching $30.5 billion and the foreign trade deficit increased by 15.7 percent, recorded at $4.9 billion.

Motor vehicles, bicycles, motorcycles, tractors and other vehicles led the exports with a volume of approximately $2 billion, which was followed by precious and semiprecious stones with $1.1 billion. In April, the third most exported item was machines, mechanical devices and nuclear reactors with $1.07 billion.

The most imported item in April was mineral fuels and lubricants which saw a $1.2 billion in value.

The highest increase in exports to UAE

While Germany led the way as the recipients of Turkish goods abroad, exports to the United Arab Emirates (UAE) amounted to $1.2 billion, recording a 237 percent increase. Exports to UAE were recorded at 302 million in April 2016, while the value of exports to UAE increased to $1.01 billion in April 2017.

Iraq ($857 million), the U.K. ($736 million) and the U.S. ($719 million) were the other main recipients of Turkish goods abroad.

China ($1.65 billion), Germany ($1.63 billion) and Russia ($1.46 billion) were the main sources of imports.

On Friday, the Turkish Statistical Institute (TurkStat) revealed that Turkey's foreign trade deficit narrowed by 10.3 percent year-on-year in March to reach $4.5 billion.

Meanwhile, Turkish exports advanced 4 percent year-on-year to reach almost $11.9 billion in April on the back of performances by the steel, automotive, mining and jewelry sectors, the country's main exporters' association Turkey Exporters Assembly (TİM) said on Monday.

https://www.dailysabah.com/economy/...-imports-rise-in-april-trade-deficit-hits-49b

 

[Attila the Hun]

Turkey manufacturing activity sustains upturn in April: Index

Turkish manufacturing activity expanded again in April, as output, new orders, exports and employment all continued to grow, a business survey showed on May 2.

The manufacturing Purchasing Managers’ Index (PMI) was at 51.7 in April, down from March’s three-year high of 52.3 but staying above the 50-point line that separates expansion from contraction, the Istanbul Chamber of Industry and IHS Markit stated.

Underpinning the overall upturn of the sector in April was a further rise in the volume of new orders. The rate of growth was slightly slower than in March but nonetheless the third-strongest in over three years, according to the report.

“Turkey’s manufacturing upturn was sustained in April, with further solid growth rates signaled for output, new orders and exports. Buoyed by this, manufacturers expanded their workforces and purchasing activity. The latest survey results also signaled a further moderation in price pressures in the goods-producing sector,” said Trevor Balchin, Senior Economist at IHS Markit.

New export business increased for the fourth successive month. New business contributed to a further increase in output, which rose for the third consecutive month. The rate of growth eased since March but was the second-fastest in over three years.

Firms were also able to continue to deplete their backlogs of work during the month, according to the report.

Turkish manufacturing employment increased for the eighth time in nine months in April, and goods producers also expanded their purchasing activity during the period. Average input and output prices continued to rise in April, although the respective rates of inflation eased further to the slowest since last October.

http://www.hurriyetdailynews.com/tu...ndex.aspx?pageID=238&nID=112632&NewsCatID=344

 

[Attila the Hun]

Russia will launch a mutual investment fund of up to $1B with Turkey

The second stop of President Recep Tayyip Erdoğan's series of meetings with world leaders in May proved very productive as he met with his Russian counterpart Vladimir Putin on Tuesday in Russian Black Sea resort town of Sochi.

The two leaders reached agreemens on a number of topics such as the joint investment fund of $1 billion, TurkStream project, Akkuyu nuclear power plant and tourism.

In a joint press conference with Erdoğan, Putin said Russia will launch a mutual investment fund of up to $1 billion with Turkey.

The Russian president added that Russia will also invest $22 billion in Turkey's first nuclear power plant under construction in Akkuyu, southern Mersin province.

Putin said that Russia also agreed to fully lift all trade restrictions with Turkey, which were imposed after the jet downing incident on Nov. 24, 2015. "We have agreed on all topics, except tomato exports," Erdoğan added.

Putin said that Moscow stood ready to help Turkey improve security measures at its tourist resorts.

Russia will also invest $22 billion in construction of Turkey's Akkuyu Nuclear Power Plant, Putin revealed.

https://www.dailysabah.com/economy/...utual-investment-fund-of-up-to-1b-with-turkey

Arçelik, LG plan 200 mln lira investment in commercial air conditioning sector

A partnership of Turkish white goods maker Arçelik and LG Klima will produce commercial air conditioners with the LG brand, extending their agreement until 2023, it said on May 3, as reported by Reuters.

The partnership plans an investment of some 200 million liras ($57 million) in commercial air conditioners and new technology, Arçelik Turkey CEO Can Dinçer said in a statement.

He said the air conditioning market has an around $1 billion value in Turkey and around one-fourth of this is owned by commercial sector. “Nearly all of these products are imported from foreign countries. Our aim is to create indigenous products in this market. In this vein, we will make a fresh technology investment together with our South Korean partner in line with the changing market needs and trends,” Reuters quoted him as saying at a press meeting in Istanbul.

He noted that they want to create an additional $200 million value for the Turkish economy in the short-run.

Arçelik and Koç Holding signed a joint venture agreement to manage operations of the Arçelik-LG Klima partnership at the end of October last year. Arçelik and LG Electronics have then extended their joint venture deal until the end of 2023.

Under the deal, Arçelik obtains the exclusive rights to sell LG branded commercial air conditioners in Turkey, effective from April 2017.

http://www.hurriyetdailynews.com/ar...ctor.aspx?pageID=238&nID=112683&NewsCatID=345

 

[Attila the Hun]

Turkey’s Ziraat Bank launches new operation in Georgia

Turkey’s state-run Ziraat Bank will offer services in neighboring Georgia under a new institution called JSC Ziraat Bank Georgia, it announced on May 2.

Ziraat Bank, which had maintained operations in Georgia from offices in Tbilisi, Marneuli and Batumi since 1998, aims to expand its branch network and become a local bank.

It also aims to improve foreign trade between Turkey and Georgia, applying Turkey’s banking experience in the Caucasian country, a company statement read.

Boosting its share in Georgian retail banking by providing internet banking, personal loans and card products are among JSC Ziraat Bank Georgia’s strategic targets.

http://www.hurriyetdailynews.com/tu...gia-.aspx?pageID=238&nID=112684&NewsCatID=345

Turkey’s sovereign wealth fund ‘signs’ Islamic mortgage deal with IDB

Turkey’s new sovereign wealth fund has signed a framework agreement with an Islamic Development Bank (IDB) unit to develop Islamic mortgages as well as different types of cooperation, the fund’s head has stated, Reuters and Anadolu Agency reported on May 3.

Turkey’s government has already transferred stakes worth billions of dollars in Turkish Airlines, major banks and other companies to the controversial new fund, which was set up last year partly to help finance big-ticket infrastructure projects.

“The Turkish Wealth Fund [TVF] has signed a framework agreement with the Islamic Development Bank. In the framework of the agreement, it is planned to offer interest free [Islamic] mortgages with long-term installment plans to potential property buyers by establishing an Islamic mortgage company. Some derivative instruments will also come online,” TVF chairman Mehmet Bostan told reporters late on May 2.

Bostan noted that the parties aim to complete the establishment process of the related structure in the next three months.

“We want to make it online in the next one-year period,” he added.

Bostan noted that the European Bank for Reconstruction and Development (EBRD) has also voiced interest in cooperating with the Turkish fund.

$40 billion in market value

Responding to a question about how much the fund’s market value is worth, Bostan said its market value is more than $40 billion and it has over $200 billion in assets.

“After our valuation assessment, we have seen that the fund’s market value is around $40 billion and it has around $200 billion in assets. The market value is higher than our preliminary estimates,” he added.

Bostan said the TVF had the authority to support mega projects but its priority is investing in leading global industries in areas like technology, telecoms and energy.

On whether the fund would finance the planned Canal Istanbul project, Bostan said this issue is in the hands of the government.

“If the authorities ask for us to deal with the project [we will do so], but we have not yet received such an offer,” he added.

Financial technology is one of the fund’s areas of operation and it is working on a joint payment platform in mobile banking and may buy or establish a company in this area, Bostan stated.

The Turkish fund has received invites from other national funds and is negotiating with two of them after signing an agreement with the Russian Direct Investment Fund (RDIF), he added.

Bostan also noted that the fund management has been examining several wealth fund experiences across the world, mainly in Asian markets.

“For instance, the Singapore example suits very well what we want to achieve,” he said.

http://www.hurriyetdailynews.com/tu...-idb.aspx?pageID=238&nID=112676&NewsCatID=344

 

[Attila the Hun]

Turkey's manufacturing index upturn continues in April

Purchasing Managers’ Index for Turkey’s manufacturing sector stands above 50 points, signaling better business conditions

By Dilara Zengin

ANKARA

The Purchasing Managers’ Index (PMI) for Turkey’s manufacturing sector was 51.7 points in April -- the second-highest since December 2015, according to a report released by the leading financial analysis company, IHS Markit, on Tuesday.

The PMI report, which was carried out in collaboration with Istanbul Chamber of Industry, showed a 0.6-point decrease from the previous month.

In March, the PMI for the manufacturing sector was 52.3 points.

"The PMI remained above its long-run trend level of 50.7 in the latest period and was the second-highest since December 2015, signaling a further solid overall improvement in manufacturing operating conditions," the report said.

It noted that further rise in the volume of orders underpinned the overall upturn of the sector in April.

Although the rate of growth was slightly slower than in March, it was the third-strongest in over three years, it said.

New businesses contributed to an increase in output, which rose for the third-consecutive month, it added.

Turkish manufacturing employment also increased for the eighth time in nine months in April, it said.

IHS Markit Senior Economist Trevor Balchin said Turkey’s manufacturing upturn sustained in April, with further solid growth rates signaled for output, new orders and exports.

"Buoyed by this, manufacturers expanded their workforces and purchasing activity. The latest survey results also signaled a further moderation in price pressures in the goods-producing sector," Balchin added.

http://aa.com.tr/en/economy/turkeys-manufacturing-index-upturn-continues-in-april/809551

 

[Inspector Spacetime]

So we are still behind 4.5$ bln in March only... that's the important info in this whole article not that sweet headline they decided to put on top.

That info sounds pretty bad especially when we consider the fact that we are one of the countries with the worst foreign trade deficits in the world. This won't end without solving Turkey's main problems: getting more energy and resource efficient (here we can include all resources: money, time, working force etc...), without producing more things with higher added value, without improving our educational system- a system that will create much better specialists for all sectors of economy and science.

Unfortunately Turkey's leaders are not Korean, Japanese or Taiwanese.

The 4.5 figure is important, but what's more important is how it compares to the year before (the percentages). More importantly we gotta look at the yearly figures. Account deficit in 2016 was 32.6 billion, 2015 was 32.1 billion. I remember a time when our account deficit was 65 billion in 2013 if I remember correctly, and somewhere around 45 in 2014. Yes, current account deficit is a problem, but we can't expect it to diminish overnight. Account deficits usually occur in developing economies. India, Brazil, Mexico, Nigeria to name a few all have account deficits. Some of them have less, some of them have more.

One of the reasons account deficit goes up in these countries is purchasing power and power consumption of industry to keep up with growth. When purchasing power goes up, demand for (imported) goods go up as well. Usually to counter this, governments put extra tax on imported goods. Turkey and Brazil (I'm sure other developing countries as well) do this for instance. For instance a Playstation 4 is cheaper in EU and America, compared to Brazil and Turkey. Putting tax on exported material means that economic growth is kept artificially low. If this went unchecked, yes Turkey's economy would grow substantially, but so would its current account deficit.

We also got to analyze what sectors give an account deficit, I know energy is the biggest sector that gives an account deficit (among others). To counter current account deficit Turkey needs local production, that's why they include x% of local production for various tenders through various sectors, like the recent solar power plant tender which was won by a Turkish-Korean consortium. And incite to buy locally produced goods, which I occasionally hear about, but not sure if there is an official incitement in place.

But government involved projects tend to go for local production if know-how is available, or x% of local production demand if know-how isn't sufficient enough, like the solar power tender or high speed train project. The Military sector for instance gives a current account surplus, but it took more than a decade to get to this point though. All other sector's need to use this example.

 

[Attila the Hun]

Turkey leaps toward upper middle-income economies, deputy PM says

Deputy Prime Minister Mehmet Şimşek stated Thursday that the Turkish economy had survived several severe shocks and was now back on track, increasing the national income to enter the league of upper-middle-income economies.

Speaking at a factory opening ceremony in the central Anatolian province of Konya, Şimşek said that the worst phase for Turkey had ended and that he was optimistic regarding the future growth of the global economy.

"Turkey truly rose from its position in the lower-middle-income-group to the upper-middle-income group thanks to structural reforms which began in the 2000's. Turkey took a leap," Şimşek said, adding that the government would continue to carry out important reforms.

Şimşek emphasized the fact that the Turkish economy had been confronted with a range of crises, but had proven to be resilient, fighting off the shocks it was exposed to during the past years, namely the global crisis, the European debt crisis, ongoing unrest in the Middle East, as well as shocks within Turkey, including the July 15 coup attempt.

Şimşek offered the figures of 5.7 percent growth for the period of 2002-2016, beginning with when the AK Party acceded to government in 2002, while former growth rates ranged around 4.5 percent.

During his speech, Şimşek also pointed out that Turkey's perception abroad was distorted, and that geopolitical tensions have played a role. He said that, taking the international crisis into account, 5.7 percent could be considered a remarkable performance and also pointed out that the relative growth rate of the Turkish economy was much higher than that of the EU and other comparable entities.

http://www.dailysabah.com/economy/2...-upper-middle-income-economies-deputy-pm-says

 

[Attila the Hun]

Employment mobilization crosses 1 million threshold in Turkey

Combatting the unemployment rate at a record 13 percent, Labor and Social Security Minister Mehmet Müezzinoğlu has said that since the beginning of the year, thanks to the employment mobilization, more than 1 million additional jobs have been created, and over 750,000 people in private businesses have been insured under Turkey's Social Security Institution.

Müezzinoğlu, who defined the 13 percent unemployment rate as the peak of the year in January, covering the period between January 2016 and February 2017 according to TurkStat data, reiterated that the single-household target was kept at the end of the year.

Speaking to state-run TRT Haber, the minister said, "More than 1 million new jobs were created between Jan. 1 and May 3, including 767,322 people in private businesses insured under the 4/A [Social Security Institution of Turkey] policy, excluding public and publicly hired employees."

With support provided under the scope of the employment mobilization initiated in January, the cost for employers who hire employees on minimum wage decreased by TL 773 ($200) to reach TL 1,404. While the cost of the package is estimated at TL 12.3 billion, TL 11 billion of the said amount is covered by the Unemployment Fund.

Target set as 2 million The employment mobilization was initiated at the beginning of January in order to eliminate the negative effects of slowdown in employment. Later, President Recep Tayyip Erdoğan also called for the mobilization on Feb. 7.

With the scheme, a total of 1.5 million people were expected to be employed, while 500,000 people would receive professional training.

https://www.dailysabah.com/economy/...ization-crosses-1-million-threshold-in-turkey

 

[Attila the Hun]

Turkish banks outpace 174 countries in assets

The total asset size of the Turkish banking sector as of the end of this March has passed the individual size of 174 economies around the world.

According to Anadolu Agency (AA), Turkey's Banking Regulation and Supervision Agency (BDDK) and the International Monetary Fund's (IMF) economic data for 2016 show that the total asset size of the Turkish banking sector reached TL 2.9 trillion ($815 billion) at the end of March, increasing by TL 135 billion from the end of last year.

Taking the March 31 exchange rate in consideration, the asset size stood at $786.8 billion, greater than the individual gross GDPs of 174 countries that come after Turkey in the IMF's 2016 year-end data.

Among the economies were some European countries including the Netherlands with $771.2 billion, Switzerland with $659.9 billion, Sweden with $511.4 billion, Belgium with $467 billion and Austria with $386.8 billion. In addition, the Turkish banking sector's asset size was almost four times larger than that of neighboring Greece's GDP.

Interesting results also emerged as the Turkish banking sector's asset size easily overtook the combined economic size of the world's 91 poorest countries at $774.5 billion.

https://www.dailysabah.com/finance/2017/05/05/turkish-banks-outpace-174-countries-in-assets

 

[Seyfullah]

https://twitter.com/x/status/860440017398669313