turkey fact pack

SWEDISH TRADE COUNCIL 2012-05-10

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SWEDISH TRADE COUNCIL

TURKEY – COUNTRY FACT PACK

Swedish Trade Council

Istanbul, March 2012

2012-05-10

2012-05-10 SWEDISH TRADE COUNCIL

AGENDA

Swedish Trade Council – Who are we?

Introduction to Turkey

An impressive economic development and a bright future

Sweden in Turkey

Interesting sectors

3

Strategic and hands-on assistance in all phases

SWEDISH TRADE COUNCIL 4

THE SWEDISH TRADE COUNCIL MAKES IT EASIER FOR

SWEDISH COMPANIES TO GROW INTERNATIONALLY

Operations

Source: Swedish Trade Council (STC)

Sweden

− Headquarters in Stockholm, 100 employees

− 22 regional export advisors

− All Trade Commissioners regularly visit different parts of Sweden

Istanbul

− 12 employees

− Responsible for Kazakhstan, Azerbaijan, Israel, Kyrgyzstan, Tadzhikistan, Turkmenistan and Uzbekistan

Vision of the Istanbul office:

STC in Istanbul is the primary consulting partner for Swedish companies doing business in

Kazakhstan, Azerbaijan, Israel, Kyrgyzstan, Tadzhikistan, Turkmenistan and Uzbekistan

Swedish Trade Council – Who are we?

2012-05-10

SWEDISH TRADE COUNCIL

TURKEY IN BRIEF

Source: State Institute of Statistics, Invest I n Turkey; Eurostat

5

• Area: 783 562 km²

• Inhabitants: 74 million (2011)

• Religion: Islam

• Capital city: Ankara

• Financial center: Istanbul

• Inflation rate: 6.5% (2011)

• GDP: 772 Billion USD (2011)

• GDP per capita: 10 444 USD (2011)

• Exports value: USD 135 billion (2011)

• Imports value: USD 241 billion (2011)

• Constitution: Parliamentary democracy

• President: Abdullah Gül

• Prime minister: Recep Tayyip Erdogan

• Official language: Turkish

• Currency: Turkish Lira (TRY)

13.6 million

(18.2%)

Ankara

Istanbul

Bursa

Adana

2.1 million

(2.8%)

4.8 million (6.6%)

2.6 million

(3.6%)

Izmir 3.9 million

(5.3%)


2012-05-10

2012-05-10 SWEDISH TRADE COUNCIL 6

A COUNTRY OF STRONG DEMOGRAPHIC INDICATORS Growing population of highly educated people

Education and Age distribution

Source: Turkstat

Edu

catio

n 30% 64% 91%1

…are highly educated …have high school

education

…are literate

1 Literacy rate, adult total (% of people aged 15 and above)

Turkey has a young and educated workforce – 60% of Turkey’s population is under 35 years

Age

Dis

trib

utio

n

0-14 25,3%

15-64 67,4%

65+ 7,3%

• Turkey has the largest proportion of young people compared

to other EU countries

• Median age: 29.7 (2011)

• Labor force: 26.7 million (2011)


Largest imports partners 2011


GERMANY & RUSSIA ARE THE LARGEST TRADE PARTNERS Turkey’s largest trade partners – proportion of total exports and imports

Largest export partners 2011

Source: Turkstat, SCB

Germany; 10,1%

England; 6,4%

Italy; 5,7%

France; 5,3%

Iraq; 5,3%

Russia; 4,1%

USA; 3,3%

Russia; 12%

Germany; 10%

China; 9%

USA; 7%

Italy; 6%

France; 4%

Turkey was Sweden’s 16th largest export partner and 21st largest import partner 2011

100% = USD 135 Billion1 100% = USD 241 Billion2

1 Other countries constitute 60% and are not shown in the graph 2 Other countries constitute 53% and are not shown in the graph


Comments


TURKISH IMPORTS

Turkish imports 2011

Source: UNComtrade

100% = USD 241 Billion

Machines and

Transport Equipment

; 29,1%

Manu-factured Goods; 16,4%

Prod. Chemicals and Allied Industries;

14,2%

Mineral fuel,

lubricating oil and

electricity; 14,1%

Other; 26,0%

Turkey imports mainly Energy, Machines, Transport equipments, and Manufactured good

Professionals are

raising concerns

about the country’s

dependency on

import products.

USD 106 billion

Trade deficit 2011


Comments


TURKISH EXPORTS

Turkish exports 2011

Source: UNComtrade, Hurriyet Daily News

100% = USD 135 billion

Machines and

Transport Equipment;

28,2%

Manu-factured Goods; 28,0%

Miscellan-eous Manu-

factured Articles ; 17,0%

Food and Live

Animals; 8,9%

Other; 17,4%

Machines, Transport equipment and Manufactured goods are the most export-oriented sectors

• Turkey’s exports increased to a

record level of $135 billion 2011,

marking a raise of 19 percent

compared to 2010.

• The automotive industry was the

sector with largest exports $1.78

billion, followed by chemicals and

related by-products with $1.4 billion.

The steel and ready-wear sectors

ranked third with more than $1.32

billion exports each.


Customs Union Map


TURKEY HAS BEEN A MEMBER IN THE EU CUSTOMS UNION

SINCE 1996

Source: Invest in Turkey

Turkey as a member of the Customs Union

Other trade agreements

Free Trade Agreements with Albania, Bosnia Herzegovina, Chile, Croatia, EFTA member countries

(Switzerland, Norway, Iceland and Liechtenstein), Egypt, Georgia, Israel, Jordan, Macedonia, Montenegro,

Morocco, Palestine, Serbia, Syria, Tunisia.

• Turkey’s trade with EU has increased the past ten

years due to the membership in the Customs Union.

• To prove that the goods produced in Turkey or in

Sweden can be freely circulated within EU, the

goods need an A.TR. Certificate.

• The Customs Union applies to all goods other than

some agricultural goods, iron and steel.



SPRINGBOARD TO THE MIDDLE EAST AND ASIA An advantaged strategic location


Access to almost 1.5 billion people within five hours' reach

Middle East & North Africa

GDP: $2.4 trillion

Population: 602 million

Europe

GDP: $18.3 trillion


Russia

GDP: $1.2 trillion


Central Asia & Caucasus

GDP: $230 billion



PROJECTS AS PART OF TURKEY’S EXPANSION PLANS

Source: Today’s Zaman, Hurriyet Daily News

High-speed railway

Double-track rails, the

first high-speed train

project.

Infrastructure

Marmaray to connect Asia and Europe

A 76-kilometer-long railway system between the European

and Asian shores of Istanbul. One of the biggest

transportation infrastructure projects in the world.

Infrastructure

The third Bosphorus

bridge

The strait’s longest

bridge at a length of

nearly 1.3 kilometers.

Will be connected to a

new 260-kilometer-

long motorway.

Nuclear power plant

A Turkish-Russian

consortium schedules

the start of the

construction of Turkey’s

first nuclear power plant

for 2013 at a cost of

$20 billion.

Sinop Nuclear power plant

Turkey is in talks with Japanese

companies Toshiba and Tokyo

Electric Company (TEPCO) on

the construction of its second

nuclear power plant.

Energy & Power

Energy & Power

Çandarli port project

Designated to rank among the world’s top

10 largest port terminals. Expected to admit

first vessel in 2013 and the first stage is

budgeted to $400 million.

Infrastructure

Infrastructure

Mersin international container port

Is proposed to form a strategic gateway, not only for Middle Eastern

countries (particularly Iraq) but also Caucasian, landlocked Asian and

the CIS countries. The port is scheduled to be operational by 2014.

Infrastructure

Mersin

Airports

The construction of seven new airports are expected

to be finalized before the beginning of 2013.

Infrastructure


Istanbul

Bursa

Izmir

Ankara

Adana


GDP GROWTH AND INFLATION IN TURKEY

The real GDP growth and the inflation in Turkey

Source: Eurostat

56,8% 47,0%

25,3% 10,1%

8,1% 9,3% 8,6% 10,4% 6,3%

8,6% 6,5% 7,0%

0%

20%

40%

60%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012f

5,3%

9,4% 8,4% 6,9% 4,7%

0,7%

-4,8%

9,0% 7,5%

3,0%

-10%

-5%

0%

5%

10%

15%

2003 2004 2005 2006 2007 2008 2010 2011 2012f

Real GDP growth

Inflation



THE ECONOMIC CRISIS 2007-2008 HAS NEGATIVELY

AFFECTED THE FOREIGN DIRECT INVESTMENTS TO TURKEY

The flow of foreign direct investments 2001-2010

Source: UNCTAD, Hurriyet Daily News

Turkey was the worlds 27th largest receiver of FDI in 2010

0

5

10

15

20

25

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Forecast 2011

Billion USD


“The Turkish economy might

reach $10 billion of foreign

direct investments by the end

of 2011 after recording a

significant growth of 11 percent

in the first quarter of the year” The new chairman of the International

Investors Association, or YASED.

Reaching a record FDI in 2007

of $22 billion, Turkey’s FDI

figure slumped due to the

global economic crisis in 2008.

2001 was the year of the

Turkish financial crisis

that affected the FDI for

the years to come.

2012-05-10 SWEDISH TRADE COUNCIL

SWEDISH EXPORTS TO TURKEY HAS STEADILY GROWN

SINCE 2002

The trade value between Sweden and Turkey

Source: SCB

Turkey is Sweden’s 16th largest export market

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Swedish Exports Swedish Imports

15

Million SEK Change year 2011/2010:

Exports: +23%

Imports: +13%

Sweden in Turkey


THE MOST PROMISING SECTORS

ICT

Real Estate

Transport-

ation

Energy

Finance

Automotive

Agriculture

The target is to produce over 2 million

vehicles within the upcoming 5 years The total amount of investments

needed to meet the energy

demand in Turkey until 2023 is

$130 billion

Istanbul is the first-

ranked real estate

development market

in Europe 2009

Investments of USD 26.7

billion is required until 2012

for the Southeastern Anatolia

Project

The highway

capacity is planned

to be tripled up until

2023 with 12

different projects

In 2009, the net profit of

the banking sector

increased by 50%

compared to 2008. The

real growth rate of the

financial sector of Turkey

was 8.5% in 2009 despite

the global financial crisis

The IT market growth

rate has exceeded

220% within the last

decade and reaches

USD 28.1 billion in

turnover

Interesting sectors

turkey fact pack

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