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Made in Turkey September 17

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Monthly Economic Newspaper<br />

<strong>September</strong> 20<strong>17</strong><br />

ww.img.com.tr<br />

<strong>Turkey</strong> to expand capacity to meet energy<br />

needs with 3 nuclear power plants<br />

“Before the end of this year, we will<br />

lay the ground for the construction<br />

of the Akkuyu Nuclear Power Plant.<br />

The efficiency of nuclear energy<br />

exceeds 90 percent,” Albayrak said<br />

President Erdoğan urges Turkish<br />

bus<strong>in</strong>ess world to boost domestic<br />

<strong>in</strong>vestments<br />

We will work harder.<br />

It is time to make<br />

<strong>in</strong>vestments. Never<br />

delay do<strong>in</strong>g bus<strong>in</strong>ess.<br />

Do not lose your spirit<br />

of entrepreneurship<br />

and <strong>in</strong>vestment.”<br />

Automotive<br />

exports rise 41<br />

pct to $2.4B <strong>in</strong> July<br />

<strong>Turkey</strong>’s İhlas signs<br />

strategic partnership<br />

with Ch<strong>in</strong>ese company as part<br />

of project to revive Silk Road<br />

İhlas has become a partner of Ch<strong>in</strong>a’s groundbreak<strong>in</strong>g<br />

“One Belt One Road” <strong>in</strong>itiative to<br />

revive the ancient Silk Road. The company,<br />

which signed a strategic partnership with one<br />

of lead<strong>in</strong>g Ch<strong>in</strong>ese firms, the Ch<strong>in</strong>a Silk Road<br />

Group, will establish an jo<strong>in</strong>t company and<br />

will take an active role <strong>in</strong> the coord<strong>in</strong>ation of<br />

future projects. Hav<strong>in</strong>g signed a remarkable<br />

agreement, İhlas Real Estate Development<br />

will aim to br<strong>in</strong>g together Turkish companies<br />

seek<strong>in</strong>g to fund projects with Ch<strong>in</strong>ese companies.<br />

P7<br />

Energy and Natural Resources<br />

M<strong>in</strong>ister Berat Albayrak delivered<br />

an extensive elaboration of <strong>Turkey</strong>’s<br />

national energy strategy, featur<strong>in</strong>g<br />

the plan for the nuclear power plants set<br />

to be launched, drill<strong>in</strong>g operations <strong>in</strong> the<br />

Mediterranean, solar and w<strong>in</strong>d power plants,<br />

and the utilization of coal with clean technologies<br />

<strong>in</strong> a live broadcast on the Turkish TV<br />

P2<br />

Tourist arrivals <strong>in</strong><br />

<strong>Turkey</strong> jump 43.1<br />

percent <strong>in</strong> June<br />

channel Bloomberg HT. Emphasiz<strong>in</strong>g the<br />

importance of nuclear power for the national<br />

energy supply, M<strong>in</strong>ister Albayrak recalled his<br />

meet<strong>in</strong>g with university professors on nuclear<br />

power plants. Stat<strong>in</strong>g that the operational<br />

nuclear power plants will be greatly beneficial<br />

for the energy needs of the <strong>in</strong>dustry, the<br />

m<strong>in</strong>ister said that <strong>Turkey</strong> will be more active<br />

<strong>in</strong> the realization of nuclear projects. P5<br />

P4<br />

Turkish President Recep Tayyip Erdoğan<br />

called on Turkish bus<strong>in</strong>ess people, urg<strong>in</strong>g<br />

them to <strong>in</strong>crease their <strong>in</strong>vestments<br />

say<strong>in</strong>g, “Now, it is time to <strong>in</strong>vest.”<br />

In an address to the Turkish bus<strong>in</strong>ess world at<br />

the ord<strong>in</strong>ary General Assembly of the Independent<br />

Industrialists’ and Bus<strong>in</strong>essmen’s Association<br />

(MÜSİAD), President Erdoğan said, “I want<br />

to call on all bus<strong>in</strong>essmen, especially members<br />

of MÜSİAD: If we value our country, if we love<br />

our country, if we want to pay our debt to these<br />

lands, it is time to act now.”<br />

Address<strong>in</strong>g bus<strong>in</strong>esspeople across the country,<br />

Erdoğan stated that bus<strong>in</strong>ess professionals<br />

and <strong>in</strong>vestors must take action now to further<br />

develop the country economically. “We will work<br />

harder. It is time to make <strong>in</strong>vestments. Never<br />

delay do<strong>in</strong>g bus<strong>in</strong>ess. P3<br />

Ties between Russia, <strong>Turkey</strong><br />

‘promis<strong>in</strong>g’, says new envoy<br />

“In the meantime, it requires a serious effort<br />

to br<strong>in</strong>g them [relations] to a higher level,”<br />

Yerkhov told Ankara representatives<br />

of various media groups, <strong>in</strong>clud<strong>in</strong>g Anadolu<br />

Agency Editor-<strong>in</strong>-Chief Met<strong>in</strong> Mutanoglu,<br />

who met the diplomat at the Russian<br />

Embassy <strong>in</strong> the Turkish capital. The newly<br />

appo<strong>in</strong>ted ambassador, previously the head<br />

of the Russian Foreign M<strong>in</strong>istry’s Crisis<br />

Management Center, replaces Andrey Karlov,<br />

who was assass<strong>in</strong>ated at an art exhibition<br />

<strong>in</strong> Ankara on Dec. 19 last year. Karlov<br />

had been deliver<strong>in</strong>g a speech at the open<strong>in</strong>g<br />

of an art gallery when a gunman shot him<br />

several times. Turkish-Russian relations<br />

were tested after Karlov’s assass<strong>in</strong>ation.<br />

However, Russian leader Vladimir Put<strong>in</strong><br />

described the shoot<strong>in</strong>g as a “provocation”<br />

designed to underm<strong>in</strong>e ties with <strong>Turkey</strong>. P7<br />

Current<br />

relations<br />

between Moscow<br />

and Ankara are<br />

“promis<strong>in</strong>g”, Russia’s<br />

new ambassador to<br />

<strong>Turkey</strong>, Alexei Yerkhov,<br />

has told Turkish<br />

media.<br />

Foreign companies<br />

eager to fi nance<br />

<strong>Turkey</strong>’s megaprojects<br />

P7<br />

Alexei Yerkhov<br />

Russia’s new ambassador<br />

As global halal tourism<br />

grows, <strong>Turkey</strong> eyes<br />

bigger share<br />

In a report, “A Strategic Vision for Turkish Tourism:<br />

Halal Tourism,” prepared by the Independent Industrialists’<br />

and Bus<strong>in</strong>essmen’s Association (MÜSİAD) Antalya<br />

Branch, the current situation of Turkish tourism<br />

was assessed, data related to the world halal tourism<br />

market was shared and suggestions to develop halal<br />

tourism were presented. Accord<strong>in</strong>g to the report, the<br />

tourism sector, which started to develop after the 1950s<br />

all over the world, cont<strong>in</strong>ues to grow globally every<br />

year, with the number of <strong>in</strong>ternational travelers ris<strong>in</strong>g<br />

to 1.2 billion people last year from 25 million <strong>in</strong> 1950. P3<br />

<strong>Turkey</strong>’s <strong>in</strong>dustrial<br />

production sees year-onyear<br />

<strong>in</strong>crease <strong>in</strong> June<br />

<strong>Turkey</strong>’s <strong>in</strong>dustrial production advanced 3.4 percent<br />

<strong>in</strong> June 20<strong>17</strong> compared to the same month last year,<br />

the Turkish Statistical Institute (TÜİK) announced.<br />

<strong>Turkey</strong>’s <strong>in</strong>dustrial output is deemed a vital <strong>in</strong>dicator<br />

for the economy as it is seen as a prelim<strong>in</strong>ary gauge<br />

for GDP growth. On an annual basis, the manufactur<strong>in</strong>g<br />

<strong>in</strong>dex saw the biggest rise <strong>in</strong> June, up 3.8 percent,<br />

among all three ma<strong>in</strong> sub-<strong>in</strong>dices, TÜİK said. In the<br />

same period, the electricity, .P4<br />

Go to barter<br />

before bank P4<br />

<strong>Turkey</strong>, Qatar cooperates<br />

for cybersecurity<br />

<strong>Turkey</strong>’s state-run Scientific and Technological<br />

Research Council (TÜBİTAK) and<br />

the Qatar National Research Fund (QNRF)<br />

have signed a deal for scientific and technological<br />

cooperation. The agreement’s first<br />

stage <strong>in</strong>volves cybersecurity as the two allies<br />

face <strong>in</strong>creas<strong>in</strong>g onl<strong>in</strong>e threats. TÜBİTAK’s<br />

chairman, professor Arif Erg<strong>in</strong>, told Anadolu<br />

Agency (AA) that they would support<br />

projects for the protection of energy grids. P3<br />

Turkish w<strong>in</strong>d<br />

power project P5<br />

Antalya eyes over<br />

10 million tourists<br />

<strong>in</strong> 20<strong>17</strong> P8<br />

Turkish bank<strong>in</strong>g sector rema<strong>in</strong>s<br />

structurally stable<br />

Turkish bank<strong>in</strong>g sector is regulated<br />

and monitored more favorable<br />

than emerg<strong>in</strong>g economies,<br />

but it is still reliant on short-term<br />

external debt, accord<strong>in</strong>g to global<br />

rat<strong>in</strong>g agency Standard and Poor’s.<br />

“Our assessment of [bank<strong>in</strong>g]<br />

<strong>in</strong>dustry risk <strong>in</strong> <strong>Turkey</strong>, at [group]<br />

six, largely reflects relatively low<br />

domestic sav<strong>in</strong>gs, which partly expla<strong>in</strong>s<br />

why Turkish banks are more<br />

reliant on short-term external debt<br />

than their peers <strong>in</strong> other countries,”<br />

S&P said. P6<br />

Norwegians<br />

launch<br />

campaign<br />

for Turkish<br />

tourism<br />

Norwegians have reacted to airl<strong>in</strong>e<br />

companies and travel agencies reduc<strong>in</strong>g<br />

flights and tours to <strong>Turkey</strong> and sell<strong>in</strong>g<br />

flight tickets at high prices. Hav<strong>in</strong>g<br />

launched a campaign on social media,<br />

Norwegians wanted tourism companies<br />

to <strong>in</strong>crease capacity, especially <strong>in</strong> 2018.<br />

A campaign <strong>in</strong>itiated on Facebook to<br />

voice annoyance under the hashtag<br />

#JaJegReiser (YesIamgo<strong>in</strong>g) has<br />

reached half a million people so far. P8


EconomicNewspaper<br />

<strong>September</strong><br />

2 Please mention<br />

20<strong>17</strong><br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers Monthly Economic Newspaper ww.img.com.tr<br />

Mehmet Soztutan<br />

Editor-<strong>in</strong>-Chief<br />

Dynamism <strong>in</strong> action<br />

once more<br />

Actually, the Turkish<br />

economy has recorded<br />

remarkable performance<br />

with its steady growth over<br />

the last decade. A sound<br />

macroeconomic strategy <strong>in</strong><br />

comb<strong>in</strong>ation with prudent<br />

fi scal policies and major<br />

structural reforms <strong>in</strong> effect<br />

s<strong>in</strong>ce 2002 has <strong>in</strong>tegrated<br />

the Turkish economy <strong>in</strong>to<br />

the globalized world, while<br />

transform<strong>in</strong>g the country<br />

<strong>in</strong>to one of the major<br />

recipients of Foreign Direct<br />

Investment <strong>in</strong> its region.<br />

The ma<strong>in</strong> objectives<br />

of these efforts were to<br />

<strong>in</strong>crease the role of the<br />

private sector <strong>in</strong> the Turkish<br />

economy, to enhance the effi<br />

ciency and resiliency of the<br />

fi nancial sector on a more<br />

solid foundation. As these<br />

reforms have strengthened<br />

the macroeconomic fundamentals<br />

of the country, the<br />

economy grew with an average<br />

annual real GDP growth<br />

rate of 4.7 percent over the<br />

period of 2002 to 2016.<br />

With ambitious targets<br />

set by the current government,<br />

the <strong>Turkey</strong> of 2023<br />

is expected to be a more<br />

prosperous and added-value<br />

generat<strong>in</strong>g member of the<br />

Letters to the Editor<br />

turkey@ihlas.net.tr<br />

Fed policymakers<br />

Fed policymakers view economic<br />

or policy developments<br />

through the prism of their economic<br />

forecast. Developments<br />

that push the forecasted path<br />

of the economy away from the<br />

Fed’s employment and <strong>in</strong>fl ation<br />

objectives require a compensat<strong>in</strong>g<br />

policy response; other<br />

changes do not. Consequently,<br />

to assess the appropriate monetary<br />

response to a new fi scal<br />

program, Fed policymakers<br />

fi rst have to evaluate the likely<br />

effects of that program on the<br />

economy over the next couple<br />

of years.<br />

M. Brown/Paris<br />

Soros<br />

Soros used Quantum Fund<br />

<strong>in</strong> 1992 to bet successfully<br />

that sterl<strong>in</strong>g was over-valued<br />

aga<strong>in</strong>st the Deutsche Mark,<br />

forc<strong>in</strong>g then-Prime M<strong>in</strong>ister<br />

John Major to pull the pound<br />

out of the European Exchange<br />

Rate Mechanism (ERM).<br />

“The moment of truth is fast<br />

approach<strong>in</strong>g,” Soros said <strong>in</strong> an<br />

article emailed to reporters.<br />

“The fact is that Brexit is a<br />

lose-lose proposition, harmful<br />

both to Brita<strong>in</strong> and the European<br />

Union. It cannot be undone,<br />

but people can change their<br />

m<strong>in</strong>ds.”<br />

“The divorce process would<br />

take at least fi ve years to complete,<br />

and dur<strong>in</strong>g that time new<br />

elections would take place,”<br />

Soros said. “If all went well, the<br />

two parties may want to remarry<br />

even before they have<br />

divorced.”<br />

M. Bailey/ Franfurt<br />

Letter From<br />

The Editor<br />

<strong>in</strong>ternational community<br />

with a vital contribut<strong>in</strong>g role<br />

to global peace and welfare.<br />

Active on a global scale, <strong>Turkey</strong><br />

is also offer<strong>in</strong>g <strong>in</strong>vestors<br />

a platform to benefit from<br />

emerg<strong>in</strong>g opportunities <strong>in</strong><br />

other countries, particularly<br />

<strong>in</strong> the surround<strong>in</strong>g region.<br />

In this respect, the<br />

exports strategy of <strong>Turkey</strong><br />

establishes a production<br />

plan towards export performance.<br />

Basic elements<br />

of this strategy are shift<strong>in</strong>g<br />

production from low technology<br />

sectors to high value<br />

added areas and achiev<strong>in</strong>g<br />

new <strong>in</strong>vestments <strong>in</strong> hightech<br />

sectors.<br />

<strong>Turkey</strong>, with an improved<br />

and <strong>in</strong>vestor-friendly bus<strong>in</strong>ess<br />

environment, achieved<br />

considerable success <strong>in</strong><br />

both domestic and foreign<br />

<strong>in</strong>vestments over the decade,<br />

not only raised the bar<br />

a notch, but is now also on<br />

track to realize its real and<br />

deserved potential; to be<br />

home to <strong>in</strong>vestments that<br />

will contribute to new jobs,<br />

new technologies and new<br />

visions.<br />

So, a bright future lies<br />

ahead for <strong>Turkey</strong>.<br />

Euro versus dollar<br />

The euro began to depreciate<br />

aga<strong>in</strong>st the dollar <strong>in</strong> 2014<br />

when the European Central<br />

Bank (ECB) decided on monetary<br />

expansion. However,<br />

the wan<strong>in</strong>g expectation that<br />

U.S. President Donald Trump<br />

would deliver his pledges for<br />

economic growth, the failure<br />

of European far-right parties <strong>in</strong><br />

elections and the recent statements<br />

of ECB President Mario<br />

Draghi which were construed<br />

as “hawkish” by the markets,<br />

which gave a boost to the euro<br />

and carried it to the highest<br />

po<strong>in</strong>t of the last two-and-a-half<br />

years. Follow<strong>in</strong>g four months of<br />

consecutive soar<strong>in</strong>g, the euro<br />

has been able to spike aga<strong>in</strong>st<br />

the greenback <strong>in</strong> July and provided<br />

an almost 10.5 percent<br />

yield to <strong>in</strong>vestors.<br />

H. Grag/Basel<br />

Dollar overvalued<br />

The International Monetary<br />

Fund said that the U.S. dollar<br />

was overvalued by 10 percent<br />

to 20 percent, based on U.S.<br />

near-term economic fundamentals,<br />

while it viewed valuations<br />

of the euro, Japan’s yen,<br />

and Ch<strong>in</strong>a’s yuan as broadly <strong>in</strong><br />

l<strong>in</strong>e with fundamentals.<br />

The IMF’s External Sector<br />

Report - an annual assessment<br />

of currencies and external<br />

surpluses and deficits of major<br />

economies - showed that<br />

external current account defi -<br />

cits were becom<strong>in</strong>g more concentrated<br />

<strong>in</strong> certa<strong>in</strong> advanced<br />

economies such as the United<br />

States, while surpluses rema<strong>in</strong>ed<br />

persistent <strong>in</strong> Ch<strong>in</strong>a and<br />

Germany.<br />

K.Haw/ Nice<br />

Automotive exports rise<br />

41 pct to $2.4B <strong>in</strong> July<br />

The Turkish automotive <strong>in</strong>dustry, a leader <strong>in</strong> the economy, cont<strong>in</strong>ued to provide<br />

more than one-fifth of overall exports, <strong>in</strong>creas<strong>in</strong>g 41 percent to $2.4 billion <strong>in</strong><br />

July, while its share <strong>in</strong> total exports rose to 21.2 percent, accord<strong>in</strong>g to Uludag<br />

Automotive Industry Exporters Association (OIB) data.<br />

While passenger car exports, which<br />

<strong>in</strong>creased 74 percent, were the ma<strong>in</strong><br />

determ<strong>in</strong>ant <strong>in</strong> July, double-digit growth<br />

was experienced with all major export<br />

items. When exam<strong>in</strong>ed <strong>in</strong> terms of countries,<br />

exports to Germany - the <strong>in</strong>dustry’s<br />

largest market - <strong>in</strong>creased 30 percent<br />

while exports to the U.K. rose 101 percent.<br />

Among others, exports to the U.S.<br />

surged 125 percent while automotive exports<br />

to Italy, Iran, Morocco and Russia<br />

also <strong>in</strong>creased 43 percent, 72 percent, 70<br />

percent and 113 percent, respectively.<br />

Accord<strong>in</strong>g to OİB data, automotive<br />

exports <strong>in</strong> July surged 41.2 percent to<br />

$2.4 billion when compared to the same<br />

period last year. Also, ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g the<br />

upward trend, the share of the <strong>in</strong>dustry<br />

<strong>in</strong> total exports rose to 21.2 percent <strong>in</strong><br />

July. The sector has been export<strong>in</strong>g over<br />

$2 billion for 10 consecutive months<br />

s<strong>in</strong>ce October 2016, while exports from<br />

January to July of this year <strong>in</strong>creased 25<br />

percent to around $16.79 billion.<br />

While passenger cars exports were<br />

dom<strong>in</strong>ant <strong>in</strong> July, all major export items<br />

such as automotive sub-<strong>in</strong>dustry, motor<br />

vehicles for goods transportation and<br />

bus-m<strong>in</strong>ibus-midibus experienced double-digit<br />

<strong>in</strong>creases as well. When exam<strong>in</strong>ed<br />

on a product class basis, exports of<br />

Debt and tax<br />

restructur<strong>in</strong>g plan<br />

netted <strong>Turkey</strong> $6.5 bln<br />

ANKARA-The<br />

Turkish government has<br />

collected almost 23 billion<br />

Turkish Liras ($6.5<br />

billion) through its latest<br />

debt and tax restructur<strong>in</strong>g<br />

plan, F<strong>in</strong>ance<br />

M<strong>in</strong>ister Naci Ağbal<br />

told Anadolu Agency<br />

Tax debt restructur<strong>in</strong>g<br />

Naci Ağbal<br />

F<strong>in</strong>ance M<strong>in</strong>ister<br />

proceeds <strong>in</strong> May alone totaled 2.57 billion<br />

liras ($726 million), he said. Ağbal said some<br />

12.3 billion liras ($3.48 billion) were collected<br />

<strong>in</strong> 2016 after the government <strong>in</strong>troduced a<br />

comprehensive tax and public receivables<br />

restructur<strong>in</strong>g plan.<br />

A comprehensive tax and public receivable<br />

restructur<strong>in</strong>g plan went onl<strong>in</strong>e <strong>in</strong> August<br />

2016. In the framework of the plan, the<br />

authorities started to receive applications<br />

<strong>in</strong> November 2016 and the last deadl<strong>in</strong>e for<br />

such applications were extended to May<br />

31 from the end of January. Ağbal earlier<br />

noted that a payment postponement system<br />

has been added to the new debt restructur<strong>in</strong>g<br />

plan, which is numbered 7020, add<strong>in</strong>g<br />

that the system would make a further debt<br />

restructur<strong>in</strong>g plan unnecessary.<br />

cars <strong>in</strong>creased 74 percent to $1.56 billion<br />

while automotive sub-<strong>in</strong>dustry exports<br />

<strong>in</strong>creased 26 percent to $751 million.<br />

Among others, exports of motor vehicles<br />

for good transportation saw an <strong>in</strong>crease<br />

of 15 percent to $436 million while<br />

bus-m<strong>in</strong>ibus-midibus exports soared 60<br />

percent to $136 million.<br />

While car exports <strong>in</strong>creased 54 percent<br />

to Italy, which is the biggest market<br />

for passenger cars, exports to the U.K.<br />

surged 477 percent. There was also an<br />

export <strong>in</strong>crease of 47 percent to France,<br />

77 percent to Spa<strong>in</strong>, 22 percent to Germany,<br />

100 percent to the U.S. and 108<br />

percent to Belgium.<br />

Automotive sub-<strong>in</strong>dustry exports to<br />

the top two countries of Germany and Italy<br />

<strong>in</strong>creased 26 percent and 27 percent,<br />

respectively, while there was an <strong>in</strong>crease<br />

of <strong>17</strong> percent to France and Iran. Among<br />

others, the sub-<strong>in</strong>dustry exports to the<br />

U.S. and Russia <strong>in</strong>creased 32 percent<br />

and 74 percent, respectively.<br />

Exports of motor vehicles for goods<br />

transportation to the U.K., the country<br />

with the largest share of the exports, <strong>in</strong>creased<br />

37 percent, while exports to Italy,<br />

Belgium and Spa<strong>in</strong> <strong>in</strong>creased 40 percent,<br />

113 percent and 144 percent, respectively.<br />

There was a decrease <strong>in</strong> exports of<br />

The bus<strong>in</strong>ess volume of<br />

Turkish contractors worldwide<br />

reached approximately<br />

$220 billion dur<strong>in</strong>g the last<br />

10 years, accord<strong>in</strong>g to data<br />

from the Economy M<strong>in</strong>istry.<br />

The contractors ranked<br />

second <strong>in</strong> the world after<br />

Ch<strong>in</strong>a, tak<strong>in</strong>g up 4,152 projects<br />

overseas between 2008<br />

and 20<strong>17</strong>.<br />

The first contracted project<br />

was carried out <strong>in</strong> Libya<br />

<strong>in</strong> 1972; s<strong>in</strong>ce then until the<br />

last July Turkish firms have<br />

carried out 9,018 projects <strong>in</strong><br />

1<strong>17</strong> countries, total<strong>in</strong>g $344.7<br />

billion <strong>in</strong> bus<strong>in</strong>ess volume.<br />

The average project cost<br />

was $37.1 million <strong>in</strong> 2008,<br />

which doubled to $79.3 million<br />

<strong>in</strong> July this year. Russia<br />

ranked first with $67.6 billion<br />

(19.6 percent) among projects<br />

carried out <strong>in</strong> the last<br />

45 years. This was followed<br />

by Turkmenistan with $46.8<br />

motor vehicles for goods transportation<br />

to Slovenia, the Netherlands and the<br />

U.S. by 22 percent, 29 percent and 38<br />

percent, respectively.<br />

In the bus-m<strong>in</strong>ibus-midibus product<br />

group, exports to the top-four countries<br />

of France, Germany, Bulgaria and<br />

Italy saw an <strong>in</strong>crease of 96 percent, 139<br />

percent, 700 percent and 110 percent,<br />

respectively.<br />

Accord<strong>in</strong>g to OİB data, exports to<br />

Germany, which is <strong>Turkey</strong>’s largest export<br />

market on a country basis, amounted<br />

to $353 million <strong>in</strong> July, <strong>in</strong>creas<strong>in</strong>g 30<br />

percent compared to the same period<br />

of the previous year. The U.K. was the<br />

second-largest market with $272 million<br />

while export growth was recorded as<br />

101 percent. Moreover, exports to the<br />

third-biggest market of Italy were $270<br />

million, an <strong>in</strong>crease of 43 percent.<br />

Automotive exports to EU countries,<br />

<strong>Turkey</strong>’s biggest market receiv<strong>in</strong>g 78<br />

percent of exports, <strong>in</strong>creased 41 percent,<br />

amount<strong>in</strong>g to $1.9 billion. In the seventh<br />

month of the year, a 102 percent <strong>in</strong>crease<br />

<strong>in</strong> exports to the U.S drew attention<br />

among alternative markets while exports<br />

Eastern European countries and Oceania<br />

<strong>in</strong>creased 64 percent and 50 percent,<br />

respectively.<br />

Turkish firms bag $220B projects<br />

overseas <strong>in</strong> 10 years<br />

billion (13.6-pct) and Libya<br />

with $28.9 billion (8.4-pct).<br />

Turkish contractors were<br />

mostly <strong>in</strong>volved <strong>in</strong> construction<br />

projects of highways,<br />

tunnels and bridges that<br />

were valued at $44.1 billion.<br />

Hous<strong>in</strong>g projects came <strong>in</strong><br />

second with $43.7 billion,<br />

while commercial center<br />

projects ranked third with<br />

$29.1 billion. In 2008, 23<br />

Turkish firms were <strong>in</strong> the<br />

list of top 250 contractors <strong>in</strong><br />

the world, accord<strong>in</strong>g to the<br />

Eng<strong>in</strong>eer<strong>in</strong>g News Record,<br />

which is a lead<strong>in</strong>g magaz<strong>in</strong>e<br />

specializ<strong>in</strong>g <strong>in</strong> the contract<strong>in</strong>g<br />

sector; the number of<br />

Turkish firms rose to 40 by<br />

2016, seven of which were<br />

among the top 100 while for<br />

the first time two Turkish<br />

firms ranked <strong>in</strong> the top 50<br />

companies with revenues<br />

more than $3 billion.


<strong>September</strong><br />

EconomicNewspaper<br />

20<strong>17</strong> Please mention<br />

ww.img.com.tr<br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />

Monthly Economic Newspaper<br />

3<br />

As global halal<br />

tourism grows,<br />

<strong>Turkey</strong> eyes<br />

bigger share<br />

A total of 121 million Muslims participated <strong>in</strong> the<br />

<strong>in</strong>ternational tourism movement around the world last<br />

year, spend<strong>in</strong>g $156 billion on tourism activities.<br />

<strong>Turkey</strong>, Qatar<br />

cooperates for<br />

cybersecurity<br />

<strong>Turkey</strong>’s state-run Scientific and Technological<br />

Research Council (TÜBİTAK) and<br />

the Qatar National Research Fund (QNRF)<br />

have signed a deal for scientific and technological<br />

cooperation. The agreement’s first<br />

stage <strong>in</strong>volves cybersecurity as the two allies<br />

face <strong>in</strong>creas<strong>in</strong>g onl<strong>in</strong>e threats. TÜBİTAK’s<br />

chairman, professor Arif Erg<strong>in</strong>, told Anadolu<br />

Agency (AA) that they would support<br />

projects for the protection of energy grids,<br />

telecommunications and other <strong>in</strong>frastructure<br />

from cyberattacks and bolster data security<br />

for mobile devices.<br />

Po<strong>in</strong>t<strong>in</strong>g to last May’s cyberattack aga<strong>in</strong>st<br />

a state-run news agency <strong>in</strong> Qatar that paved<br />

the way for the Gulf crisis, Erg<strong>in</strong> said the<br />

countries need higher security for their cyber<br />

<strong>in</strong>frastructures. “We have to take measures to<br />

prevent a repeat of what happened <strong>in</strong> Qatar,”<br />

Erg<strong>in</strong> said, referr<strong>in</strong>g to the hack of Qatar’s<br />

state-run news agency, which resulted <strong>in</strong> the<br />

distribution of statements falsely attributed to<br />

Qatari leaders, culm<strong>in</strong>at<strong>in</strong>g <strong>in</strong> criticism from<br />

Saudi Arabia. “<strong>Turkey</strong> has supported Qatar<br />

economically and <strong>in</strong> terms of defense s<strong>in</strong>ce<br />

the crisis broke out, and this time TÜBİTAK<br />

will comb<strong>in</strong>e its power with Qatar’s power,”<br />

Erg<strong>in</strong> said, add<strong>in</strong>g that about $2 million will<br />

be contributed to jo<strong>in</strong>t projects by private-public<br />

partnerships <strong>in</strong> cybersecurity.<br />

<strong>Turkey</strong> plays critical<br />

role <strong>in</strong> global energy<br />

security<br />

<strong>Turkey</strong> is a regional power with a “critical”<br />

role <strong>in</strong> establish<strong>in</strong>g energy security, Turkish<br />

Economy M<strong>in</strong>ister Nihat Zeybekci said.<br />

“<strong>Turkey</strong> is the center of regional energy<br />

trade,” Zeybekci said at the open<strong>in</strong>g of<br />

EXPO 20<strong>17</strong> Astana’s Turkish National Day<br />

event <strong>in</strong> the Kazakh capital. Comment<strong>in</strong>g<br />

on the EXPO events, Zeybekci said these<br />

expositions could encourage the advancement<br />

of humanity, contribute to the shar<strong>in</strong>g<br />

of knowledge and <strong>in</strong>crease cooperation.<br />

The m<strong>in</strong>ister added that <strong>Turkey</strong> was participat<strong>in</strong>g<br />

<strong>in</strong> EXPO 20<strong>17</strong> Astana under the<br />

sub-theme of “Global Synergy for Susta<strong>in</strong>able<br />

Energy” and po<strong>in</strong>ted out that ideas such<br />

as shar<strong>in</strong>g, equality and peace underlay this<br />

message of synergy. Zeybekci said <strong>Turkey</strong><br />

had become one of the world’s lead<strong>in</strong>g trade<br />

and <strong>in</strong>vestment bases thanks to the progress<br />

achieved <strong>in</strong> the last 15 years, <strong>in</strong> particular.<br />

“Our country’s decisive role <strong>in</strong> the global<br />

economy will cont<strong>in</strong>ue to <strong>in</strong>crease. You can<br />

be sure of that,” he said.<br />

President Erdoğan urges<br />

Turkish bus<strong>in</strong>ess world to<br />

boost domestic <strong>in</strong>vestments<br />

We will work harder. It is time to make <strong>in</strong>vestments. Never delay do<strong>in</strong>g<br />

bus<strong>in</strong>ess. Do not lose your spirit of entrepreneurship and <strong>in</strong>vestment.”<br />

Do not lose your spirit of<br />

entrepreneurship and<br />

<strong>in</strong>vestment. If you make<br />

use of <strong>in</strong>vestment opportunities<br />

at such a time, the future will<br />

be much more fruitful,” he said.<br />

Erdoğan also emphasized that the<br />

government is provid<strong>in</strong>g major<br />

<strong>in</strong>centives, from loans to employment,<br />

for anyone who wants to make<br />

<strong>in</strong>vestments and grow their bus<strong>in</strong>ess,<br />

add<strong>in</strong>g that they expect bus<strong>in</strong>essmen<br />

to take advantage of this and quickly<br />

take action. “I truly believe <strong>in</strong> MÜ-<br />

SİAD members <strong>in</strong> this regard. We<br />

will build the new <strong>Turkey</strong> together,”<br />

he said. Erdoğan requested that<br />

all M<strong>in</strong>istries prepare a short-term<br />

action plan of 180 days <strong>in</strong> attempts<br />

to resolve the accumulated problems<br />

of the Turkish people, with programs<br />

that will be made public when preparations<br />

are completed.<br />

Accord<strong>in</strong>g to Erdoğan, preparations<br />

for a much more comprehensive<br />

program, <strong>in</strong>clud<strong>in</strong>g the period<br />

lead<strong>in</strong>g up to the 2019 elections, are<br />

already be<strong>in</strong>g carried out and the<br />

2023 vision goals are be<strong>in</strong>g updated<br />

while a new study for these goals has<br />

also been <strong>in</strong>itiated.<br />

Erdoğan further said that the economy<br />

has started to show signs of<br />

be<strong>in</strong>g on a better course, add<strong>in</strong>g that<br />

there is a clear, steady rise <strong>in</strong> exports.<br />

Relay<strong>in</strong>g the signs of an uptrend<br />

accord<strong>in</strong>g to Erdoğan, <strong>Turkey</strong>’s<br />

annual exports, which dropped to<br />

$142.5 billion <strong>in</strong> 2016, reached $147<br />

billion by the end of May. “I believe<br />

we will surpass the 2014 record of<br />

$157.6 billion <strong>in</strong> exports by the end<br />

of the next year, at the latest,” he<br />

said. The president also underl<strong>in</strong>e<br />

In a report, “A Strategic Vision for<br />

Turkish Tourism: Halal Tourism,” prepared<br />

by the Independent Industrialists’<br />

and Bus<strong>in</strong>essmen’s Association (MÜ-<br />

SİAD) Antalya Branch, the current situation<br />

of Turkish tourism was assessed,<br />

data related to the world halal tourism<br />

market was shared and suggestions to<br />

develop halal tourism were presented.<br />

Accord<strong>in</strong>g to the report, the tourism<br />

sector, which started to develop after<br />

the 1950s all over the world, cont<strong>in</strong>ues<br />

to grow globally every year, with the<br />

number of <strong>in</strong>ternational travelers ris<strong>in</strong>g<br />

to 1.2 billion people last year from 25<br />

million <strong>in</strong> 1950.<br />

Emphasiz<strong>in</strong>g that participation <strong>in</strong><br />

tourism activities has turned <strong>in</strong>to a<br />

that the government will work harder<br />

to achieve these goals, not<strong>in</strong>g that<br />

employment mobilization has begun<br />

bear<strong>in</strong>g fruits.<br />

Meanwhile, Erdoğan also expla<strong>in</strong>ed<br />

that they achieved a rise of 1.2 million<br />

<strong>in</strong> employment thanks to contributions<br />

made by the bus<strong>in</strong>ess world,<br />

vow<strong>in</strong>g that they will closely follow<br />

whether the promises <strong>in</strong> this regard<br />

will be fulfilled.<br />

Erdoğan said that those who attacked<br />

democracy, freedom and the<br />

future of the country <strong>in</strong> the July<br />

15 coup attempt also attacked the<br />

economy, underscor<strong>in</strong>g that terrorist<br />

attacks and attacks on the democratic<br />

order of <strong>Turkey</strong> are also attacks<br />

on the Turkish economy.<br />

He said that despite the Gezi Park<br />

protests and the Gülenist Terror<br />

Group’s (FETÖ) attacks on December<br />

<strong>17</strong>, 2013 and December 25, 2013,<br />

the Turkish economy grew by 8.5<br />

percent <strong>in</strong> the same year. Referr<strong>in</strong>g<br />

to local and presidential elections<br />

that were held <strong>in</strong> 2014, Erdoğan<br />

also noted that the economy grew<br />

by 5.2 percent that year. “Despite<br />

two elections <strong>in</strong> 2015 and escalat<strong>in</strong>g<br />

terror <strong>in</strong>cidents, we challenged those<br />

who masterm<strong>in</strong>ded these <strong>in</strong>cidents by<br />

achiev<strong>in</strong>g 6.1-percent growth <strong>in</strong> the<br />

economy. And even though we experienced<br />

a bloody coup attempt on<br />

July 15, the most severe trauma we<br />

faced <strong>in</strong> recent history, we engaged<br />

<strong>in</strong> an <strong>in</strong>tense struggle aga<strong>in</strong>st terror<br />

at home and abroad and achieved<br />

economic growth of 2.9 percent <strong>in</strong><br />

2016,” Erdoğan added.<br />

Touch<strong>in</strong>g on the rise <strong>in</strong> the Borsa Istanbul<br />

Stock Exchange and the fall <strong>in</strong><br />

foreign exchange rates, Erdoğan said<br />

need for people now, the report pre-<br />

dicts that the number of <strong>in</strong>ternational<br />

travelers will reach 1.8 billion by 2030. It<br />

is estimated that the number of people<br />

participat<strong>in</strong>g <strong>in</strong> domestic tourism<br />

activities around the world is around 5-6<br />

billion people.<br />

The report <strong>in</strong>dicates that accord<strong>in</strong>g to<br />

the United Nations World Tourism Organization<br />

(UNWTO), about 7 percent<br />

of overall world exports ($1.5 trillion)<br />

are due to the tourism sector; thus, one<br />

out of every 11 jobs <strong>in</strong> the world are related<br />

to tourism. The report po<strong>in</strong>ts out<br />

that <strong>Turkey</strong> is a top 10 country when it<br />

comes to the greatest number of tourists<br />

attracted s<strong>in</strong>ce 2000, and one of the top<br />

15 countries with the highest tourist<br />

<strong>in</strong>come for the same period. Thus, the<br />

both of these <strong>in</strong>dicate full confidence<br />

<strong>in</strong> the Turkish economy. Moreover,<br />

many <strong>in</strong>dicators such as the surge <strong>in</strong><br />

home appliance sales show that the<br />

wheels of the economy are turn<strong>in</strong>g<br />

<strong>in</strong>creas<strong>in</strong>gly faster.<br />

Accord<strong>in</strong>g to the president, it is necessary<br />

to look at the economy with<br />

a broader perspective to understand<br />

<strong>Turkey</strong>’s economic size. Referr<strong>in</strong>g<br />

to the fact that <strong>Turkey</strong> has attracted<br />

$183 billion <strong>in</strong> <strong>in</strong>ternational <strong>in</strong>vestments<br />

s<strong>in</strong>ce 2002, he said that the<br />

number of jobs has risen to 27 million.<br />

He said that by add<strong>in</strong>g 6 million<br />

new jobs <strong>in</strong> the same 14-year period,<br />

<strong>Turkey</strong> became the only country <strong>in</strong><br />

Europe to achieve such a high <strong>in</strong>crease<br />

<strong>in</strong> employment.<br />

Erdoğan stated that <strong>in</strong>vestments<br />

made by Turkish entrepreneurs<br />

exceeded $37 billion and the value<br />

of projects that Turkish contractors<br />

have undertaken abroad crept up to<br />

nearly $300 billion.<br />

“We are carry<strong>in</strong>g out <strong>in</strong>tensive activities<br />

with our bus<strong>in</strong>essmen, non-governmental<br />

organizations [NGOs]<br />

and educators <strong>in</strong> the regions which<br />

we could not have dared to visit as<br />

tourists <strong>in</strong> the past,” he cont<strong>in</strong>ued.<br />

Erdoğan noted that <strong>Turkey</strong>’s total<br />

humanitarian aid reached $6.5 billion<br />

<strong>in</strong> 2016 alone, emphasiz<strong>in</strong>g that <strong>Turkey</strong><br />

adopts the pr<strong>in</strong>ciple of work<strong>in</strong>g<br />

for the peace and welfare of <strong>Turkey</strong><br />

and all of humanity. To conclude,<br />

Erdoğan touched on the significant<br />

progress made <strong>in</strong> the country’s health<br />

sector. He emphasized that the<br />

Turkish people used to go abroad for<br />

treatment <strong>in</strong> the past but last year, a<br />

total of 360,000 foreigners came to<br />

<strong>Turkey</strong> for treatment.<br />

tourism sector has an important <strong>in</strong>fluence<br />

on the Turkish economy, contribut<strong>in</strong>g<br />

about $88 billion to the country’s gross<br />

domestic product (GDP) last year.<br />

Accord<strong>in</strong>g to the report, the number<br />

of tourists from Organization of Islamic<br />

Cooperation (OIC) member countries<br />

(Malaysia, Indonesia, Uzbekistan, Saudi<br />

Arabia, Iraq, Iran, Azerbaijan, Kazakhstan,<br />

the United Arab Emirates, Kuwait,<br />

Libya, Pakistan, Jordan and Egypt) was<br />

approximately 47.5 million <strong>in</strong> 2014 with<br />

4.9 million of them com<strong>in</strong>g to <strong>Turkey</strong>.<br />

The report po<strong>in</strong>ted out: “A total of 12<br />

of these countries are at most five-hour<br />

flight distance to <strong>Turkey</strong>, and the number<br />

of Muslim tourists they send abroad is<br />

37.1 million people, while the number of<br />

Muslim tourists com<strong>in</strong>g to <strong>Turkey</strong> from<br />

these close-distance countries is 4.8 million.<br />

In other words, <strong>Turkey</strong> has managed<br />

to attract only 13 percent of Muslim<br />

tourists from countries that are located<br />

at a flight distance of a maximum of 5<br />

hours. Even an <strong>in</strong>crease of this rate to 20<br />

percent will boost the number of tourists<br />

com<strong>in</strong>g to <strong>Turkey</strong> by about 3 million<br />

people.”<br />

The report also noted that spend<strong>in</strong>g by<br />

tourists from Saudi Arabia, the United<br />

Arab Emirates, Qatar, Kuwait and Iran<br />

dur<strong>in</strong>g their tourism activities abroad is<br />

about $62.2 billion.<br />

<strong>Turkey</strong> work<strong>in</strong>g<br />

to diversify<br />

tourism market,<br />

m<strong>in</strong>ister says<br />

<strong>Turkey</strong> wants to diversify its tourism<br />

market to reach $50 billion <strong>in</strong> annual<br />

<strong>in</strong>come by 2023, Culture and Tourism<br />

M<strong>in</strong>ister Numan Kurtulmuş said.<br />

Speak<strong>in</strong>g to reporters <strong>in</strong> Istanbul,<br />

Kurtulmuş said that <strong>Turkey</strong> wanted to<br />

expand its tourism offer<strong>in</strong>gs to appeal to<br />

visitors from all over the world, <strong>in</strong>clud<strong>in</strong>g<br />

Ch<strong>in</strong>ese, Indian and Japanese tourists,<br />

and not only focus on certa<strong>in</strong> countries<br />

like Germany and Russia.<br />

<strong>Turkey</strong> is traditionally a popular travel<br />

dest<strong>in</strong>ation for German and Russian<br />

holidaymakers.<br />

Kurtulmuş also said <strong>Turkey</strong> wanted<br />

to expand its range of tourism offers to<br />

<strong>in</strong>clude w<strong>in</strong>ter tourism, as well as more<br />

environmental, ecological experiences.<br />

In his speech, Kurtulmuş also rejected<br />

claims about <strong>Turkey</strong>’s <strong>in</strong>security for<br />

visitors, say<strong>in</strong>g that Turkish cities are as<br />

much secure as Western cities.<br />

“Istanbul is as much secure as Berl<strong>in</strong>.<br />

Izmir and Antalya are as much secure<br />

as Vienna, London or New York,” the<br />

culture and tourism m<strong>in</strong>ister said, add<strong>in</strong>g<br />

that terrorism is a “global problem<br />

threaten<strong>in</strong>g all the cities of the world.”<br />

Accord<strong>in</strong>g to M<strong>in</strong>istry of Culture and<br />

Tourism, the number of tourists visit<strong>in</strong>g<br />

<strong>Turkey</strong> <strong>in</strong>creased by 14.5 percent on<br />

year-on-year basis <strong>in</strong> the first half of<br />

20<strong>17</strong>. More than 12 million people visited<br />

<strong>Turkey</strong> <strong>in</strong> the first six months of the year.<br />

The largest number of foreign visitors<br />

came from Russia <strong>in</strong> the January-June<br />

20<strong>17</strong> period with a total of 1.7 million<br />

Russian tourists spent their holidays <strong>in</strong><br />

<strong>Turkey</strong>. Germany came just below Russia<br />

<strong>in</strong> the list of foreign visitors com<strong>in</strong>g to<br />

<strong>Turkey</strong> with 1.2 million tourists.<br />

Meanwhile, arrivals from Georgia, a<br />

country with a population of nearly 4 million,<br />

accounted for more than 1 million<br />

tourists.


EconomicNewspaper<br />

4 Please mention<br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />

Monthly Economic Newspaper<br />

ww.img.com.tr<br />

<strong>September</strong><br />

20<strong>17</strong><br />

Go to<br />

barter<br />

before<br />

bank<br />

Turk Barter, which<br />

activates the economy<br />

of companies through<br />

facilitat<strong>in</strong>g product and<br />

service exchanges, is a<br />

strong alternative to the<br />

bank<strong>in</strong>g sector.<br />

Turk Barter was founded a quarter<br />

century ago dur<strong>in</strong>g the 1994<br />

economic crisis. The company<br />

offered an alternative system<br />

for payment and trade that revived the<br />

country’s economy and later it was then<br />

entitled Turk Barter with the permission<br />

of the Council of M<strong>in</strong>isters. We<br />

visited the Turkish Barter International<br />

A.Ş. and talked with Chairman M. Sırrı<br />

Simsek, about the details of the operations.<br />

Expla<strong>in</strong><strong>in</strong>g that they have developed<br />

the barter <strong>in</strong>dustry with options<br />

such as leas<strong>in</strong>g, factor<strong>in</strong>g, receivables,<br />

debt restructur<strong>in</strong>g, stock assessment<br />

and idle capacity <strong>in</strong>crease, Simsek said<br />

they aimed to correct the problematic<br />

po<strong>in</strong>ts <strong>in</strong> the economy.<br />

You told us about the establishment<br />

of the Turkish Barter? It was born out<br />

of a need for cash flow <strong>in</strong> the sectors,<br />

but how was this broad <strong>in</strong>formation<br />

network operated?<br />

The world needs a new trad<strong>in</strong>g and<br />

f<strong>in</strong>anc<strong>in</strong>g system. The bank<strong>in</strong>g sector<br />

has been try<strong>in</strong>g to meet this need for<br />

a long time. The bank<strong>in</strong>g system that<br />

is compatible with Islam, which we<br />

call <strong>in</strong>terest-free f<strong>in</strong>ance <strong>in</strong> the recent<br />

period, also added value to the solution<br />

of these problems. When we look at alternative<br />

systems, we see that some are<br />

not used well <strong>in</strong> some situations. When<br />

we look at factor<strong>in</strong>g <strong>in</strong> our own country,<br />

we see that it is used very badly and<br />

cont<strong>in</strong>ues to do so.<br />

Leas<strong>in</strong>g was an <strong>in</strong>termediate mode,<br />

but then it started to be less attractive<br />

to taxpayers. When we look at<br />

this sense, the market needs different<br />

systems. Turkish Barter has celebrated<br />

its 25th anniversary this year. But the<br />

system is still new to the world. The<br />

bank<strong>in</strong>g sector is go<strong>in</strong>g to ru<strong>in</strong>s and<br />

cont<strong>in</strong>ues its classical structure.<br />

Look<strong>in</strong>g at the market, the economy<br />

is runn<strong>in</strong>g around the bank<strong>in</strong>g system,<br />

the foreign exchange system and the<br />

stock market volatility. This can also<br />

be seen <strong>in</strong> the economic crush of the<br />

whole world due to an <strong>in</strong>correct mortgage<br />

application.<br />

The barter system we offer is a product<br />

and service based system. If we look<br />

at the exchange of barter system or the<br />

purchase of companies,<br />

we<br />

cannot get enough<br />

efficiency, so we<br />

do<br />

not def<strong>in</strong>e it as a clear<strong>in</strong>g system. There<br />

is a multi-station product and service<br />

organization here. President of <strong>Turkey</strong><br />

have made a statement <strong>in</strong> Trabzon<br />

and said that <strong>Turkey</strong> grew by 2% while<br />

bank<strong>in</strong>g sector grew by 40%. While<br />

the bank<strong>in</strong>g sector is grow<strong>in</strong>g by 40%,<br />

some are los<strong>in</strong>g money. The bank earns<br />

this profit from the money the citizen<br />

deposits. Where banks earn money<br />

companies go to bankruptcy. Interest<br />

rates are not so high anywhere <strong>in</strong> the<br />

world. You will do a job <strong>in</strong> some fields,<br />

you will use <strong>in</strong>terest-bear<strong>in</strong>g loans and<br />

you will earn and pay your debts and<br />

you will grow up. This is possible only<br />

when sales are made at very exorbitant<br />

prices as is the construction sector.<br />

In this sense, the citizens <strong>in</strong>vest the<br />

money <strong>in</strong> the bank and other citizen is<br />

us<strong>in</strong>g this money from the bank pay<strong>in</strong>g<br />

higher <strong>in</strong>terests. Those who use the<br />

money and deposit money have no<br />

way of know<strong>in</strong>g each other. In a barter<br />

system, a product / service <strong>in</strong>vestor has<br />

a chance to get to know each other<br />

because we br<strong>in</strong>g them together. The<br />

citizen goes to the bank, deposits the<br />

money at low <strong>in</strong>terest, the bank uses it<br />

at a high <strong>in</strong>terest to another person. If<br />

he knows the person, he will earn more<br />

profit if he gives his money <strong>in</strong> a safe<br />

way. We do this by br<strong>in</strong>g<strong>in</strong>g companies<br />

together through products and services.<br />

It is the company that negotiates<br />

and buys <strong>in</strong> the market. In the same<br />

way, the buyer company ga<strong>in</strong>s and does<br />

not pay <strong>in</strong>terest. When we look like<br />

this, barter sector is an alternative to<br />

bank<strong>in</strong>g <strong>in</strong> every sense. We have added<br />

options such as leas<strong>in</strong>g, factor<strong>in</strong>g, debt<br />

collection, debt restructur<strong>in</strong>g, stock<br />

assessment and idle capacity to our<br />

service portfolio. Actually, the barter<br />

<strong>in</strong> the world is not applied <strong>in</strong> this way<br />

either. We designed this as an alternative<br />

system for the future. For this, we<br />

have told this to the universities, trade<br />

and <strong>in</strong>dustry chambers. We made a<br />

presentation about the law proposal to<br />

the Undersecretariat of Treasury and<br />

to BDDK, about a barter law. If the<br />

barter sector obta<strong>in</strong>s the desired legal<br />

base, it will become a very different<br />

system.<br />

You are represent<strong>in</strong>g World Barter<br />

<strong>in</strong> <strong>Turkey</strong>. You have taken the name<br />

of ‘Turk Barter’ by the decision of the<br />

‘Council of M<strong>in</strong>isters’. Can we listen<br />

about this process?<br />

In fact, we experienced the severe<br />

1994 crisis when we started. When we<br />

looked the outlook, there were stocks,<br />

debts and receivables of companies.<br />

They could not pay their debts, could<br />

not get their receivable and they could<br />

not sell their wares and <strong>in</strong>ventories. We<br />

used the barter system very well at that<br />

time, and we prepared special projects<br />

for the use of the barter system <strong>in</strong> the<br />

domestic economy, both <strong>in</strong> the payment<br />

of domestic debts and <strong>in</strong> foreign<br />

debts, even <strong>in</strong> government tenders,<br />

pay<strong>in</strong>g the debts of the <strong>in</strong>stitutions to<br />

each other, and offered it to the governments<br />

of that period.<br />

We even offered Tansu Ciller, the<br />

then prime m<strong>in</strong>ister of <strong>Turkey</strong>, the first<br />

law proposal that we prepared for added<br />

value of this system to the country’s<br />

economy. We added the name ‘Turk’ by<br />

the decision of the Council of M<strong>in</strong>isters<br />

on the grounds that <strong>Turkey</strong> should be<br />

represented abroad, transferred to such<br />

a system, made economical and adapted<br />

to the conditions of the country.<br />

Turk Barter will be the sh<strong>in</strong><strong>in</strong>g star<br />

of the future because everyone<br />

needs a new plane now.<br />

Turk Barter checks are more<br />

robust than bank checks. For<br />

example, you receive a bank<br />

check of TL 20,000, the company<br />

is pay<strong>in</strong>g you TL 1,500 when you<br />

do not pay this money. Because the<br />

guaranteed amount of withdrawal<br />

for each check leaf is limited by TL<br />

1,500.<br />

There is a<br />

different system<br />

<strong>in</strong> Turk Barter<br />

checks; you have<br />

to get approval<br />

at the beg<strong>in</strong>n<strong>in</strong>g.<br />

You ask first, by<br />

say<strong>in</strong>g that I’m<br />

go<strong>in</strong>g to shop<br />

but the company<br />

wants<br />

to give me a<br />

barter check,<br />

can I get<br />

this check?<br />

The barter<br />

center checks<br />

if you can get<br />

it, you can get<br />

it, if you have<br />

the guarantees and<br />

barter gives the code of authority. We<br />

actually aim to correct many problematic<br />

po<strong>in</strong>ts with the barter system.<br />

How many member companies do you<br />

have?<br />

We have signed agreements with<br />

more than 10,000 companies. We told<br />

these members about the barter system<br />

and they were conv<strong>in</strong>ced. You open an<br />

account at Barter, use it when you have<br />

money, and you will be deal<strong>in</strong>g with<br />

your needs. We recommend anyone <strong>in</strong><br />

the economy us<strong>in</strong>g barter before apply<strong>in</strong>g<br />

for credit to the banks.<br />

Is there any risk that member firms<br />

cannot get the service they need when<br />

they need it?<br />

We do not make any commitments;<br />

a company that manufactures footwear<br />

can sell shoes <strong>in</strong> its stocks. If you are<br />

demand<strong>in</strong>g raw materials, you have to<br />

wait. We work on the basis of supply<br />

and demand pr<strong>in</strong>ciples.<br />

If the request is to be<br />

processed when the<br />

request is received,<br />

it may wait and<br />

may sell the shoe<br />

after tak<strong>in</strong>g the<br />

raw material.<br />

Therefore, we do<br />

not give a guarantee<br />

of buy<strong>in</strong>g and<br />

sell<strong>in</strong>g.<br />

M. Sırrı Simsek<br />

Chairman<br />

Tourist arrivals <strong>in</strong> <strong>Turkey</strong> jump<br />

43.1 percent <strong>in</strong> June<br />

The number of tourists<br />

visit<strong>in</strong>g <strong>Turkey</strong> <strong>in</strong>creased<br />

by 14.5 percent on year-onyear<br />

basis <strong>in</strong> the first half of<br />

20<strong>17</strong>, M<strong>in</strong>istry of Culture<br />

and Tourism said . Accord<strong>in</strong>g<br />

to the m<strong>in</strong>istry, 12.3 million<br />

people visited <strong>Turkey</strong> <strong>in</strong> the<br />

first six months of the year.<br />

Nearly 3.5 million tourists<br />

arrived <strong>in</strong> June alone, a<br />

record 43.1 percent <strong>in</strong>crease<br />

<strong>in</strong> comparison to the same<br />

month last year, the m<strong>in</strong>istry<br />

said. The largest number<br />

of foreign visitors came<br />

from Russia <strong>in</strong><br />

the January-June<br />

20<strong>17</strong> period<br />

with a total<br />

of 1.7 million<br />

Russian tourists spent their<br />

holidays <strong>in</strong> <strong>Turkey</strong>. Germany<br />

came just below Russia <strong>in</strong> the<br />

list of foreign visitors com<strong>in</strong>g<br />

to <strong>Turkey</strong> with 1.2 million<br />

tourists. Meanwhile, arrivals<br />

from Georgia, a country<br />

with a population of nearly 4<br />

million, accounted for more<br />

than 1 million tourists. In<br />

June, the number of Russian<br />

Numan Kurtulmuş<br />

M<strong>in</strong>istry of Culture and Tourism<br />

tourists rose by 21.9 percent<br />

reach<strong>in</strong>g 763,727 people. The<br />

three most preferred dest<strong>in</strong>ations<br />

for foreign visitors <strong>in</strong><br />

the first half of the year were<br />

Istanbul, <strong>Turkey</strong>’s tourism<br />

capital Antalya, and western<br />

Edirne. Istanbul hosted 4.39<br />

million tourists <strong>in</strong> the first six<br />

months of 20<strong>17</strong>, while 3.27<br />

million visited Antalya.<br />

<strong>Turkey</strong>’s <strong>in</strong>dustrial<br />

production sees year-onyear<br />

<strong>in</strong>crease <strong>in</strong> June<br />

<strong>Turkey</strong>’s <strong>in</strong>dustrial<br />

production advanced 3.4<br />

percent <strong>in</strong> June 20<strong>17</strong> compared<br />

to the same month<br />

last year, the Turkish Statistical<br />

Institute (TÜİK)<br />

announced.<br />

<strong>Turkey</strong>’s <strong>in</strong>dustrial output<br />

is deemed a vital <strong>in</strong>dicator<br />

for the economy as<br />

it is seen as a prelim<strong>in</strong>ary<br />

gauge for GDP growth.<br />

On an annual basis, the<br />

manufactur<strong>in</strong>g <strong>in</strong>dex saw<br />

the biggest rise <strong>in</strong> June,<br />

up 3.8 percent, among all<br />

three ma<strong>in</strong> sub-<strong>in</strong>dices,<br />

TÜİK said. In the same<br />

period, the electricity,<br />

gas, steam, and air-condition<strong>in</strong>g<br />

supply <strong>in</strong>dex also<br />

<strong>in</strong>creased by 2.5 percent<br />

while the m<strong>in</strong><strong>in</strong>g and<br />

quarry<strong>in</strong>g <strong>in</strong>dex decreased<br />

by 0.5 percent.<br />

Meanwhile, the country’s<br />

<strong>in</strong>dustrial production<br />

decl<strong>in</strong>ed by 0.4 percent <strong>in</strong><br />

June on a monthly basis,<br />

TÜİK noted.In June, the<br />

m<strong>in</strong><strong>in</strong>g and quarry<strong>in</strong>g<br />

<strong>in</strong>dex rose by 1.2 percent<br />

while the electricity, gas,<br />

steam, air-condition<strong>in</strong>g<br />

supply, and manufactur<strong>in</strong>g<br />

<strong>in</strong>dices fell by 0.6 percent<br />

and 0.5 percent, respectively.<br />

<strong>Turkey</strong> earns over<br />

$2B from plastics<br />

exports<br />

<strong>Turkey</strong> exported $2.08 billion<br />

worth of plastic products <strong>in</strong><br />

the first six months of the year,<br />

mark<strong>in</strong>g a 1.8 percent <strong>in</strong>crease<br />

compared to the same period last<br />

year, accord<strong>in</strong>g to the Turkish<br />

Plastics Industry Foundation<br />

(PAGEV).Dur<strong>in</strong>g the first half<br />

of 20<strong>17</strong>, the country exported<br />

798,000 tons of plastic products<br />

to around 150 countries, a press<br />

release said. Total production<br />

was 4.7 million tons and worth<br />

$<strong>17</strong>.7 billion. Plastic household<br />

and kitchen goods exports rose<br />

30 percent to $197 million <strong>in</strong> the<br />

same period, while the country’s<br />

foreign trade surplus <strong>in</strong> plastics<br />

production reached $612 million.<br />

<strong>Turkey</strong>, which is the second<br />

largest plastics producer <strong>in</strong><br />

Europe, and sixth <strong>in</strong> the world,<br />

has some 6,500 companies and<br />

employs around 250,000 people,<br />

accord<strong>in</strong>g to the PAGEV. If<br />

the same trend cont<strong>in</strong>ues <strong>in</strong> the<br />

country, the production is expected<br />

to <strong>in</strong>crease by 9.4 million tons<br />

and reach $35.5 billion at the end<br />

of 20<strong>17</strong>, PAGEV said.


<strong>September</strong><br />

20<strong>17</strong><br />

Monthly Economic Newspaper<br />

ww.img.com.tr<br />

EconomicNewspaper<br />

Please mention<br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />

5<br />

İbrahim Küpeli<br />

ibnahim.kupeli@img.com.tr<br />

Turkish<br />

economy on<br />

the right course<br />

<strong>Turkey</strong> to expand capacity to meet<br />

energy needs with 3<br />

nuclear power plants<br />

“Before the end of this year, we will lay the ground for the<br />

construction of the Akkuyu Nuclear Power Plant. The efficiency<br />

of nuclear energy exceeds 90 percent,” Albayrak said<br />

Energy and Natural Resources<br />

M<strong>in</strong>ister Berat Albayrak<br />

delivered an extensive elaboration<br />

of <strong>Turkey</strong>’s national<br />

energy strategy, featur<strong>in</strong>g the plan<br />

for the nuclear power plants set to be<br />

launched, drill<strong>in</strong>g operations <strong>in</strong> the<br />

Mediterranean, solar and w<strong>in</strong>d power<br />

plants, and the utilization of coal with<br />

clean technologies <strong>in</strong> a live broadcast<br />

on the Turkish TV channel Bloomberg<br />

HT. Emphasiz<strong>in</strong>g the importance of<br />

nuclear power for the national energy<br />

supply, M<strong>in</strong>ister Albayrak recalled his<br />

meet<strong>in</strong>g with university professors on<br />

nuclear power plants. Stat<strong>in</strong>g that the<br />

operational nuclear power plants will<br />

be greatly beneficial for the energy<br />

needs of the <strong>in</strong>dustry, the m<strong>in</strong>ister said<br />

that <strong>Turkey</strong> will be more active <strong>in</strong> the<br />

realization of nuclear projects.<br />

“Before the end of this year, we will<br />

lay the ground for the construction of<br />

the Akkuyu Nuclear Power Plant. The<br />

efficiency of nuclear energy exceeds 90<br />

percent,” Albayrak said and cited the<br />

partnership with Japanese firms on the<br />

construction of the second nuclear power<br />

plant <strong>in</strong> the Black Sea city of S<strong>in</strong>op.<br />

He also announced that between 2023<br />

and 2030, <strong>Turkey</strong> will put three nuclear<br />

power plants – the Akkuyu, S<strong>in</strong>op and<br />

one other whose location has not been<br />

officially announced yet – <strong>in</strong>to operation.<br />

These nuclear power plants, once<br />

operational, are planned to meet 10<br />

percent of the country-wide electricity<br />

consumption, the m<strong>in</strong>ister said.<br />

Regard<strong>in</strong>g the allegations that<br />

nuclear power is detrimental to human<br />

health, the m<strong>in</strong>ister elaborated on the<br />

unsubstantiated claims by a comparison<br />

whereby he expla<strong>in</strong>ed that the<br />

amount of radiation one can absorb<br />

from an x-ray mach<strong>in</strong>e exceeds by far<br />

the amount of radiation that one will<br />

receive by liv<strong>in</strong>g nearby a plant for one<br />

year.<br />

Currently there are plans for three<br />

nuclear power plants on <strong>Turkey</strong>’s<br />

agenda. In May 2010, <strong>Turkey</strong> and<br />

Russia struck a deal for the $20-billion<br />

Akkuyu Nuclear Power Plant project<br />

<strong>in</strong> the Mediterranean city of Mers<strong>in</strong>.<br />

Dependent on imports for almost all of<br />

its energy, <strong>Turkey</strong> has embarked on an<br />

ambitious nuclear program, commission<strong>in</strong>g<br />

Rosatom <strong>in</strong> 2013 to build four<br />

1,200-megawatt (MW) reactors.<br />

In June, Russia’s state nuclear<br />

energy corporation Rosatom and the<br />

Turkish consortium Cengiz-Kol<strong>in</strong>-Kalyon<br />

(CKK) signed a deal for the transfer<br />

of shares. At the ceremony organized<br />

with<strong>in</strong> the scope of the “IX International<br />

Nuclear Energy Forum ATOM-<br />

EXPO,” it stipulated that the latter<br />

will acquire a 49-percent stake <strong>in</strong> the<br />

Akkuyu Nuclear Power Plant.<br />

The plant, where the first reactor<br />

will start work<strong>in</strong>g <strong>in</strong> 2023 as announced<br />

before by M<strong>in</strong>ister Albayrak, will<br />

produce approximately 35 billion kilowatt-hours<br />

(kWh) of electricity every<br />

year, once completed. The power plant<br />

will have a service life of 60 years. The<br />

project has repeatedly run <strong>in</strong>to delays,<br />

<strong>in</strong>clud<strong>in</strong>g be<strong>in</strong>g briefly halted after<br />

<strong>Turkey</strong> downed a Russian jet near the<br />

Syrian border <strong>in</strong> November 2015. Ties<br />

between the two countries have s<strong>in</strong>ce<br />

normalized and work on the plant has<br />

resumed. The Turkish Energy Market<br />

Regulatory Authority (EMRA) announced<br />

<strong>in</strong> June that it granted a power<br />

generation license to Rosatom’s Akkuyu<br />

Nuclear Company for a 49-year<br />

period for its Akkuyu NGS project <strong>in</strong><br />

the southern city of Mers<strong>in</strong>. On May 3,<br />

2013, an <strong>in</strong>tergovernmental agreement<br />

on nuclear power plant construction<br />

and cooperation for the S<strong>in</strong>op Nuclear<br />

Power Plant, which is the second<br />

nuclear power plant project <strong>in</strong> <strong>Turkey</strong>,<br />

was signed with Japan. As stipulated by<br />

the agreement, the <strong>Turkey</strong> Electricity<br />

Generation Company (EÜAŞ) will<br />

hold a 49 percent stake <strong>in</strong> the plant<br />

while a Japanese and French company<br />

will have 30 and 21 percent stakes,<br />

respectively. The project is estimated to<br />

cost more than $16 billion accord<strong>in</strong>g to<br />

Japanese sources.<br />

The S<strong>in</strong>op nuclear power plant will<br />

have a total 4,480 megawatt capacity of<br />

electricity generation with four reactors<br />

each hav<strong>in</strong>g a 1,120 megawatt capacity.<br />

Moreover, despite yet no official announcement<br />

by the government, some<br />

sources have claimed that the third<br />

plant will be constructed <strong>in</strong> the İğneada<br />

district <strong>in</strong> the northwestern prov<strong>in</strong>ce of<br />

Kırklareli and the preparatory works<br />

on a third nuclear power have been<br />

<strong>in</strong>itiated <strong>in</strong> accordance with previous<br />

announcements from President Recep<br />

Germany’s Siemens w<strong>in</strong>s<br />

tender for Turkish w<strong>in</strong>d<br />

power project<br />

<strong>Turkey</strong> picked Germany’s Siemens as the w<strong>in</strong>n<strong>in</strong>g bidder for<br />

a $1 billion w<strong>in</strong>d power project recently, a sign Ankara wants<br />

to keep bus<strong>in</strong>ess separate from the ongo<strong>in</strong>g diplomatic row<br />

between the NATO allies.<br />

Ankara has reassured German<br />

<strong>in</strong>vestors, say<strong>in</strong>g their<br />

bus<strong>in</strong>ess <strong>in</strong> <strong>Turkey</strong> is not at<br />

risk. Germany was <strong>Turkey</strong>’s<br />

top export dest<strong>in</strong>ation,<br />

buy<strong>in</strong>g $14 billion worth<br />

of Turkish goods <strong>in</strong> 2016,<br />

accord<strong>in</strong>g to IMF data.<br />

A consortium led by<br />

Siemens was awarded<br />

the tender for the project<br />

- which <strong>in</strong>cludes the<br />

construction of a 1,000<br />

MW power plant and w<strong>in</strong>d<br />

turb<strong>in</strong>es - after beat<strong>in</strong>g out<br />

eight other bidders, Energy<br />

M<strong>in</strong>ister Berat Albayrak<br />

said. The award will mark<br />

an “important contribution”<br />

to bilateral relations,<br />

he said.<br />

The Siemens consortium,<br />

which <strong>in</strong>cludes <strong>Turkey</strong>’s<br />

Kalyon and Turkerler, submitted<br />

a bid of $3.48 cents<br />

per kilowatt-hour, beat<strong>in</strong>g<br />

Striv<strong>in</strong>g to<br />

diversify energy supply<br />

channels as much as possible,<br />

<strong>Turkey</strong> plans to build three<br />

nuclear power plants<br />

between 2023 and 2030,<br />

which are expected to provide<br />

10 percent of domestic<br />

electricity consumption,<br />

Energy M<strong>in</strong>ister<br />

Albayrak<br />

said.<br />

Ch<strong>in</strong>ese firm M<strong>in</strong>g Yang,<br />

Germany’s Enercon and<br />

Denmark’s Vestas. The<br />

turb<strong>in</strong>es were due to come<br />

onl<strong>in</strong>e by 2019, Albayrak<br />

said, add<strong>in</strong>g the project<br />

would <strong>in</strong>crease <strong>Turkey</strong>’s<br />

w<strong>in</strong>d energy production<br />

by <strong>17</strong> percent. Turkerler<br />

Chairman Kazim Turker<br />

said that 35 percent of the<br />

project would be f<strong>in</strong>anced<br />

through <strong>in</strong>ternational<br />

sources.<br />

Tayyip Erdoğan. Dur<strong>in</strong>g his visit to<br />

Ch<strong>in</strong>a <strong>in</strong> mid-May to attend the Belt<br />

and Road Summit <strong>in</strong> Beij<strong>in</strong>g, President<br />

Erdoğan is reported to have discussed<br />

the third nuclear power plant with his<br />

Ch<strong>in</strong>ese counterpart President Xi J<strong>in</strong>p<strong>in</strong>g.<br />

Accord<strong>in</strong>g to presidential sources,<br />

President Erdoğan and his counterpart<br />

Xi J<strong>in</strong>gp<strong>in</strong>g agreed on the acceleration<br />

of the construction of the third nuclear<br />

power plant <strong>in</strong> <strong>Turkey</strong>.<br />

“Nuclear energy is s<strong>in</strong>e qua non,<br />

essential for <strong>Turkey</strong>’s energy supply<br />

basket. It bears significance for the<br />

energy supply, security and geopolitical<br />

strength of <strong>Turkey</strong>,” International Energy<br />

Agency Chief Executive Dr. Fatih<br />

Birol told Daily Sabah <strong>in</strong> a previous<br />

<strong>in</strong>terview when expla<strong>in</strong><strong>in</strong>g the last ma<strong>in</strong><br />

energy area <strong>Turkey</strong> must keep focus<strong>in</strong>g<br />

on. Yet, he warned that the most vital<br />

issue <strong>in</strong> appropriate energy actions<br />

must be taken to establish nuclear<br />

power plants and deploy the correct<br />

technologies <strong>in</strong> association with project<br />

partners. “<strong>Turkey</strong> is mov<strong>in</strong>g <strong>in</strong> the right<br />

direction with regards to the use of energy,”<br />

he said and cited the energy diplomacy<br />

traffic <strong>Turkey</strong> has been caught<br />

up <strong>in</strong> to be a home to energy projects<br />

that will ensure the supply security of<br />

Europe.<br />

Accord<strong>in</strong>g to the economic growth<br />

<strong>in</strong>dicators such as national <strong>in</strong>come,<br />

per capita <strong>in</strong>come and per capita<br />

consumption, the Turkish economy<br />

advances on the way to grow more <strong>in</strong><br />

the upcom<strong>in</strong>g period...<br />

Despite unstable conditions <strong>in</strong> its<br />

geographic region, the country economy<br />

susta<strong>in</strong>s its growth more than lots<br />

of countries <strong>in</strong> the world.<br />

The country economy cannot operate<br />

its potential completely regard<strong>in</strong>g<br />

current situation <strong>in</strong> the region. When<br />

we have a look at the situation <strong>in</strong> the<br />

region, the neighbor<strong>in</strong>g and surround<strong>in</strong>g<br />

countries of <strong>Turkey</strong>, such as Syria,<br />

Iraq, Iran, Egypt, Libya, Yemen do not<br />

have a suitable condition to operate<br />

its economic activities efficiently. Egypt<br />

does not have exact democracy with<br />

its all <strong>in</strong>stitutions to be able to run <strong>in</strong><br />

its course. Syria, Iraq, Libya and Yemen<br />

suffer the most from terrorism and<br />

strife s<strong>in</strong>ce 2011 onwards.<br />

Whenever these events, <strong>in</strong>surgences<br />

end up, these countries’ <strong>in</strong>vestment<br />

and development potential will<br />

disclose and this might br<strong>in</strong>g huge<br />

bus<strong>in</strong>ess opportunities not only for<br />

the Turkish bus<strong>in</strong>ess, but also for the<br />

entire world.<br />

Another advantage <strong>in</strong> this issue, the<br />

location of <strong>Turkey</strong> has a crucial importance<br />

<strong>in</strong> terms of do<strong>in</strong>g bus<strong>in</strong>ess and<br />

economic activities, because of <strong>in</strong>tersect<strong>in</strong>g<br />

between the Europe and Asia<br />

cont<strong>in</strong>ents.<br />

In this respect, one of the foremost<br />

huge <strong>in</strong>vestments that would play a<br />

trigger<strong>in</strong>g role <strong>in</strong> the economic development<br />

and new <strong>in</strong>vestments is the<br />

third airport project of <strong>Turkey</strong>.<br />

Nearly one year later <strong>in</strong> 2018 the<br />

world’s number one airport’s first<br />

phase will be <strong>in</strong>augurated for service<br />

<strong>in</strong> Istanbul. Play<strong>in</strong>g also an outstand<strong>in</strong>g<br />

role <strong>in</strong> the aspect of <strong>in</strong>ternational air<br />

transport, the third airport of Istanbul<br />

will not only contribute to the Turkish<br />

economy and employment as well as<br />

for the <strong>in</strong>ternational aviation sector<br />

regard<strong>in</strong>g the global bus<strong>in</strong>esses shift<strong>in</strong>g<br />

from the west to eastern countries…<br />

Turkish economy has grown three<br />

fold <strong>in</strong> the last 15 years. Dur<strong>in</strong>g this<br />

period, growth percentage <strong>in</strong> the Turkish<br />

economy averagely became 5-6<br />

percent per annum. There is yearly 6-7<br />

percent growth potential on average<br />

<strong>in</strong> the Turkish economy. This means<br />

that the country has a capacity for the<br />

new bus<strong>in</strong>ess and <strong>in</strong>vestment as well<br />

as generat<strong>in</strong>g job.<br />

Surpass<strong>in</strong>g the expectations the<br />

fi rst quarter growth rate which was<br />

5 percent urged to revise the growth<br />

rate for the year 20<strong>17</strong> that predicted<br />

to be between 5 and 7 percent.<br />

Grow<strong>in</strong>g 5 percent <strong>in</strong> the first quarter<br />

is <strong>in</strong>terpreted that the economy<br />

is recover<strong>in</strong>g swiftly beyond expectations.<br />

With the first quarter growth rate<br />

Turkish economy achieved a growth<br />

rate more than 23 EU countries’ rate.<br />

The stock market has also showed<br />

a good performance and reached an<br />

all-time high <strong>in</strong> August this year.<br />

Featur<strong>in</strong>g as a driv<strong>in</strong>g force <strong>in</strong> the<br />

economy, the export enters upward<br />

trend compared to last year’s figure.<br />

All of these <strong>in</strong>dicators show that<br />

Turkish economy is on the right<br />

course.


EconomicNewspaper<br />

6 Please mention<br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />

Monthly Economic Newspaper<br />

ww.img.com.tr<br />

<strong>September</strong><br />

20<strong>17</strong><br />

<strong>Turkey</strong>’s İhlas signs strategic<br />

partnership with Ch<strong>in</strong>ese company<br />

as part of project to revive Silk Road<br />

İhlas has become a partner of Ch<strong>in</strong>a’s<br />

groundbreak<strong>in</strong>g “One Belt One<br />

Road” <strong>in</strong>itiative to revive the ancient<br />

Silk Road. The company, which signed<br />

a strategic partnership with one of lead<strong>in</strong>g<br />

Ch<strong>in</strong>ese firms, the Ch<strong>in</strong>a Silk Road<br />

Group, will establish an jo<strong>in</strong>t company and<br />

will take an active role <strong>in</strong> the coord<strong>in</strong>ation<br />

of future projects.<br />

Hav<strong>in</strong>g signed a remarkable agreement,<br />

İhlas Real Estate Development will aim to<br />

br<strong>in</strong>g together Turkish companies seek<strong>in</strong>g<br />

to fund projects with Ch<strong>in</strong>ese companies,<br />

which will then pave the way for partnerships<br />

with Ch<strong>in</strong>ese companies <strong>in</strong> terms of<br />

<strong>in</strong>vestments and fund<strong>in</strong>g for major projects<br />

<strong>in</strong> <strong>Turkey</strong>.<br />

Ch<strong>in</strong>a has reportedly allocated $900<br />

billion <strong>in</strong> total for planned <strong>in</strong>vestments <strong>in</strong><br />

68 countries as part of the “One Belt One<br />

Road” <strong>in</strong>itiative, which was announced at<br />

a summit <strong>in</strong> May with the participation of<br />

state officials, <strong>in</strong>clud<strong>in</strong>g President Recep<br />

Tayyip Erdoğan.<br />

As part of the agreement, Ch<strong>in</strong>a Silk<br />

Road aims to boost cooperation by submitt<strong>in</strong>g<br />

bids and proposals to various tenders,<br />

<strong>in</strong>clud<strong>in</strong>g those by the Petroleum Pipel<strong>in</strong>e<br />

Corporation (BOTAŞ) and <strong>in</strong>frastructure<br />

projects and to provide consultancy services<br />

<strong>in</strong> partnership with Petro Ch<strong>in</strong>a. İhlas<br />

is expected to participate <strong>in</strong> BOTAŞ gas<br />

storage tenders. Speak<strong>in</strong>g at the sign<strong>in</strong>g<br />

ceremony held <strong>in</strong> Istanbul, Chairman and<br />

CEO of İhlas Hold<strong>in</strong>g Ahmet Mücahid<br />

Ören said that the agreement will take the<br />

company to a next level, move it beyond<br />

the borders of <strong>Turkey</strong>.<br />

He noted that the summit attended by<br />

President Erdoğan has proved to be a success:<br />

“The company we jo<strong>in</strong>tly formed with<br />

our Ch<strong>in</strong>ese partner is one that is assigned<br />

by the Ch<strong>in</strong>ese government to boost the<br />

Silk Road <strong>in</strong>itiative” Ören said, not<strong>in</strong>g that<br />

the company had experienced obstacles<br />

along the way and needed the help of companies<br />

like İhlas to overcome such difficulties.<br />

In this regard, Ören noted that İhlas<br />

will be the start<strong>in</strong>g po<strong>in</strong>t for the Ch<strong>in</strong>ese<br />

company’s relations <strong>in</strong> <strong>Turkey</strong> and will<br />

enhance bilateral cooperation. “One Belt<br />

One Road” Forum held <strong>in</strong> Ch<strong>in</strong>a on May<br />

14-15 focused on <strong>in</strong>frastructure, transportation,<br />

economic collaboration, trade,<br />

<strong>in</strong>dustrial <strong>in</strong>vestments, energy resources,<br />

f<strong>in</strong>ancial <strong>in</strong>centives, environmental protection<br />

and naval cooperation.<br />

The forum hosted the U.N. Secretary-General,<br />

the Chairpersons of the<br />

World Bank and the International Monetary<br />

Fund (IMF) as well as the presidents<br />

and prime m<strong>in</strong>isters of 28 countries and<br />

more than 250 m<strong>in</strong>isters, with the aim to<br />

revive the ancient Silk Road.<br />

Ties between Russia, <strong>Turkey</strong><br />

‘promis<strong>in</strong>g’, says new envoy<br />

Turkish bank<strong>in</strong>g sector<br />

rema<strong>in</strong>s structurally<br />

stable<br />

Turkish bank<strong>in</strong>g sector is<br />

regulated and monitored more<br />

favorable than emerg<strong>in</strong>g economies,<br />

but it is still reliant on<br />

short-term external debt, accord<strong>in</strong>g<br />

to global rat<strong>in</strong>g agency<br />

Standard and Poor’s.<br />

“Our assessment of [bank<strong>in</strong>g]<br />

<strong>in</strong>dustry risk <strong>in</strong> <strong>Turkey</strong>,<br />

at [group] six, largely reflects<br />

relatively low domestic sav<strong>in</strong>gs,<br />

which partly expla<strong>in</strong>s why<br />

Turkish banks are more reliant<br />

on short-term external debt<br />

than their peers <strong>in</strong> other countries,”<br />

S&P said.<br />

Accord<strong>in</strong>g to the rat<strong>in</strong>g<br />

agency’s report, <strong>Turkey</strong>’s bank<strong>in</strong>g<br />

sector has been classified<br />

<strong>in</strong> group six with Brazil, Italy,<br />

Thailand, Slovenia, Brunei,<br />

Colombia, Guatemala, Tr<strong>in</strong>idad<br />

and Tobago, and Uruguay.<br />

S&P highlighted moderate<br />

household and corporate<br />

<strong>in</strong>debtedness <strong>in</strong> <strong>Turkey</strong> along<br />

with bank regulation, supervision<br />

and governance, compar<strong>in</strong>g<br />

it favorably with that<br />

of many emerg<strong>in</strong>g economies.<br />

“Positively, the [bank<strong>in</strong>g] system<br />

rema<strong>in</strong>s structurally stable<br />

and cont<strong>in</strong>ues to adequately<br />

price risks, as demonstrated by<br />

healthy profitability metrics,”<br />

the agency said.<br />

Not<strong>in</strong>g the factor of weaknesses,<br />

the S &P underl<strong>in</strong>ed<br />

moderate per capita <strong>in</strong>come<br />

and high <strong>in</strong>flation <strong>in</strong> <strong>Turkey</strong>.<br />

“Although banks have<br />

granular and well-diversified<br />

loan books, their credit risk<br />

is accentuated by rapid credit<br />

growth <strong>in</strong> years of fast economic<br />

growth and high share<br />

of lend<strong>in</strong>g <strong>in</strong> foreign currency,”<br />

the agency added.<br />

S&P holds <strong>Turkey</strong>’s foreign<br />

currency credit rat<strong>in</strong>g<br />

at BB and its local currency<br />

credit rat<strong>in</strong>g at BB+ <strong>in</strong> the<br />

long term. The rat<strong>in</strong>g agency<br />

released latest update for the<br />

country <strong>in</strong> January by lower<strong>in</strong>g<br />

Turkish economy’s outlook to<br />

“negative” from “stable.”<br />

Current relations between Moscow and Ankara are “promis<strong>in</strong>g”, Russia’s new<br />

ambassador to <strong>Turkey</strong>, Alexei Yerkhov, has told Turkish media.<br />

In the meantime, it requires a serious<br />

effort to br<strong>in</strong>g them [relations] to a higher<br />

level,” Yerkhov told Ankara representatives<br />

of various media groups,<br />

<strong>in</strong>clud<strong>in</strong>g Anadolu Agency Editor-<strong>in</strong>-Chief<br />

Met<strong>in</strong> Mutanoglu, who met the diplomat<br />

at the Russian Embassy <strong>in</strong> the Turkish<br />

capital. The newly appo<strong>in</strong>ted ambassador,<br />

previously the head of the Russian Foreign<br />

M<strong>in</strong>istry’s Crisis Management Center, replaces<br />

Andrey Karlov, who was assass<strong>in</strong>ated at<br />

an art exhibition <strong>in</strong> Ankara on Dec. 19 last<br />

year.<br />

Karlov had been deliver<strong>in</strong>g a speech at the<br />

open<strong>in</strong>g of an art gallery when a gunman<br />

shot him several times. Turkish-Russian relations<br />

were tested after Karlov’s assass<strong>in</strong>ation.<br />

However, Russian leader Vladimir Put<strong>in</strong><br />

described the shoot<strong>in</strong>g as a “provocation”<br />

designed to underm<strong>in</strong>e ties with <strong>Turkey</strong>.<br />

Yerkhov <strong>in</strong>sisted political dialogue between<br />

Russia and <strong>Turkey</strong> was grow<strong>in</strong>g. “I am<br />

talk<strong>in</strong>g about the communication between<br />

our senior management. Phone discussions<br />

between Russia’s president [Vladimir Put<strong>in</strong>]<br />

and <strong>Turkey</strong>’s president [Recep Tayyip Erdogan]<br />

have ga<strong>in</strong>ed significant momentum<br />

recently,” he added. Yerkhov said Karlov’s<br />

kill<strong>in</strong>g had left both the Russian Foreign<br />

M<strong>in</strong>istry and the public <strong>in</strong> deep sorrow. “We<br />

know that the <strong>in</strong>vestigation carried out by<br />

<strong>Turkey</strong> cont<strong>in</strong>ues. We know that the <strong>in</strong>stitutions<br />

conduct<strong>in</strong>g the <strong>in</strong>vestigation <strong>in</strong> Russia<br />

are <strong>in</strong> <strong>in</strong>tensive contact with their Turkish<br />

counterparts.<br />

“We are sure that after complet<strong>in</strong>g the<br />

<strong>in</strong>vestigation, the results will be shared<br />

with the public and the Turkish people,”<br />

Yerkhov said. He also said Moscow appreciated<br />

<strong>Turkey</strong>’s steps to immortalize Karlov’s<br />

memory. Ankara renamed Karyagdi Street<br />

<strong>in</strong> Cankaya district, where the Russian embassy<br />

is located, after Karlov.<br />

Yerkhov also served as Russia’s consul<br />

general <strong>in</strong> Istanbul between 2009 and 2015.<br />

“Dur<strong>in</strong>g my six years of service, of course, I<br />

had difficult and beautiful times, but these<br />

six years were the happiest years of my life,”<br />

he said. Yerkhov said there was “very tight”<br />

coord<strong>in</strong>ation between Moscow and Ankara<br />

on Syria, based on “the context of the<br />

Astana process”. The ambassador said the<br />

fundamental aim of the Astana talks process<br />

Alexei Yerkhov<br />

Russia’s new ambassador<br />

was to produce a non-conflict atmosphere<br />

<strong>in</strong> some regions of Syria. “We know that<br />

the situation <strong>in</strong> northern Syria is now very<br />

sensitive and it has become sensitive <strong>in</strong> the<br />

light of recent developments. The sensitivity<br />

of this situation <strong>in</strong>dicates that we should<br />

have close the cooperation between the two<br />

countries,” Yerkhov said. About the Syrian<br />

peace talks <strong>in</strong> the Kazakh capital Astana,<br />

Yerkhov said humanitarian aid could be<br />

delivered to regions where clashes had been<br />

stopped. Yerkhov said the Astana process<br />

did not collide with Geneva-based talks,<br />

add<strong>in</strong>g: “For this reason, <strong>in</strong>stitutions and<br />

organizations that can contribute positively<br />

to both processes should def<strong>in</strong>itely take part<br />

<strong>in</strong> it.”<br />

Recep Tayip Erdoğan<br />

<strong>Turkey</strong> president<br />

Yerkhov said the trade volume between<br />

Moscow and Ankara had decreased, but<br />

economic relationships overall had developed.<br />

“We th<strong>in</strong>k there is still substantial<br />

potential <strong>in</strong> trade between the two countries<br />

which has not been discovered,” he added.<br />

Erdogan frequently reiterates that <strong>Turkey</strong>’s<br />

desire is to <strong>in</strong>crease mutual trade volume<br />

with Russia up to $100 billion. After <strong>Turkey</strong><br />

shot down a Russian military jet over an<br />

airspace violation <strong>in</strong> November 2015, Moscow<br />

took several measures aga<strong>in</strong>st Ankara,<br />

<strong>in</strong>clud<strong>in</strong>g bann<strong>in</strong>g imports of Turkish agricultural<br />

products and end<strong>in</strong>g visa-free travel<br />

for Turks. In June, Moscow lifted the ban on<br />

some agricultural produce and Turkish companies<br />

<strong>in</strong>volved <strong>in</strong> construction, eng<strong>in</strong>eer<strong>in</strong>g,<br />

and tourism. Yerkhov did not comment on<br />

the delivery of a Russian air missile system<br />

to <strong>Turkey</strong>, say<strong>in</strong>g: “This is a question that I<br />

do not want to answer.”<br />

“Due to its sensitivity, it is be<strong>in</strong>g discussed <strong>in</strong><br />

detail by both Turkish and Russian media.<br />

There is a huge humm<strong>in</strong>g noise both <strong>in</strong><br />

Wash<strong>in</strong>gton and Brussels on this issue. If<br />

you look at the Russian websites, you will<br />

f<strong>in</strong>d many different <strong>in</strong>terpretations,” he said.<br />

Yerkhov said his every word on this issue<br />

could be perceived as true or different, or it<br />

can be abused. “My offer is to talk this issue<br />

after a while,” he added. Erdogan previously<br />

said negotiations on the missile system had<br />

been “largely” completed and he said the<br />

purchase of S-400 system is not “worry<strong>in</strong>g”.<br />

Russian presidential aide Vladimir Kozh<strong>in</strong><br />

said <strong>in</strong> late June that Moscow and Ankara<br />

had agreed on the delivery of S-400 mobile<br />

systems but that the Kreml<strong>in</strong> had not approved<br />

a loan for the deal.<br />

The S-400 system was <strong>in</strong>troduced <strong>in</strong> 2007<br />

and can carry three types of missiles capable<br />

of destroy<strong>in</strong>g ground and air targets, <strong>in</strong>clud<strong>in</strong>g<br />

ballistic and cruise missiles. It can track<br />

and engage up to 300 targets simultaneously<br />

and has an altitude ceil<strong>in</strong>g of 27 kilometers<br />

(<strong>17</strong> miles).<br />

<strong>Turkey</strong>’s<br />

mach<strong>in</strong>ery<br />

exports hit<br />

$8 billion<br />

<strong>in</strong> seven<br />

months<br />

<strong>Turkey</strong>’s mach<strong>in</strong>ery<br />

exports rose by 5.2<br />

percent to $8 billion<br />

<strong>in</strong> the first seven<br />

months of this year<br />

compared with the<br />

same period of last<br />

year. Accord<strong>in</strong>g to<br />

data from the Mach<strong>in</strong>ery<br />

and Accessories<br />

Exporters Union<br />

(MAIB), one of the<br />

sectors that provided<br />

the biggest <strong>in</strong>crease<br />

<strong>in</strong> exports was mach<strong>in</strong>ery.<br />

Between January and<br />

July, Germany was<br />

the top dest<strong>in</strong>ation<br />

for <strong>Turkey</strong>’s mach<strong>in</strong>ery<br />

exports, while<br />

there were also significant<br />

<strong>in</strong>roads <strong>in</strong>to<br />

the Russian market.<br />

Exports to Russia<br />

rose by 62 percent to<br />

$161 million dur<strong>in</strong>g<br />

the same period.<br />

“Consider<strong>in</strong>g the<br />

potential for new <strong>in</strong>vestment<br />

<strong>in</strong> Russia, it<br />

seems appropriate to<br />

raise mach<strong>in</strong>e exports<br />

to higher levels,” said<br />

the MAIB’s Executive<br />

Board Chairman,<br />

Adnan Dalgakıran.<br />

“We believe that the<br />

<strong>in</strong>crease <strong>in</strong> exports<br />

will cont<strong>in</strong>ue <strong>in</strong> the<br />

second half of the<br />

year,” Dalgakıran<br />

added.<br />

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<strong>September</strong><br />

20<strong>17</strong><br />

Monthly Economic Newspaper<br />

ww.img.com.tr<br />

EconomicNewspaper<br />

Please mention<br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />

7<br />

Foreign companies eager to<br />

f<strong>in</strong>ance <strong>Turkey</strong>’s megaprojects<br />

Foreign banks, which saw<br />

that political stability <strong>in</strong> <strong>Turkey</strong><br />

ga<strong>in</strong>ed cont<strong>in</strong>uity follow<strong>in</strong>g<br />

the referendum, have put<br />

major projects <strong>in</strong> the country<br />

under their radar. Lead<strong>in</strong>g<br />

banks <strong>in</strong> Germany have l<strong>in</strong>ed<br />

up to f<strong>in</strong>ance the third airport<br />

project. Accord<strong>in</strong>gly, Germany’s<br />

largest bank, Deutsche Bank,<br />

has launched negotiations to<br />

ref<strong>in</strong>ance the third airport.<br />

A 4.5 billion-euro f<strong>in</strong>anc<strong>in</strong>g<br />

agreement was signed with six<br />

banks for the first round of the<br />

150 million passenger-capacity<br />

project. Previously, Deutsche<br />

Bank offered to ref<strong>in</strong>ance the<br />

first phase f<strong>in</strong>anc<strong>in</strong>g package for<br />

the İzmir-Istanbul highway project.<br />

The bank held talks with<br />

eight Turkish banks aga<strong>in</strong>, and<br />

the loan was renewed at a lower<br />

rate. Moreover, Export-Import<br />

Bank of Korea (KEXIM)<br />

<strong>Turkey</strong> Chief Representative<br />

Ahn Sang-Seon po<strong>in</strong>ted out that<br />

the Çanakkale 1915 Bridge is an<br />

important project not only for<br />

the development of the region<br />

but also for Turkish history,<br />

stress<strong>in</strong>g that this project will<br />

be realized where the Turkish<br />

military achieved an important<br />

victory and will be <strong>in</strong>augurated<br />

<strong>in</strong> 2023 when the 100th anniversary<br />

of the Republic of <strong>Turkey</strong> is<br />

celebrated. “Dur<strong>in</strong>g the bidd<strong>in</strong>g<br />

process, we sent our letter of<br />

<strong>in</strong>tent about the f<strong>in</strong>anc<strong>in</strong>g of the<br />

project to the consortium. We<br />

currently cont<strong>in</strong>ue our support<br />

for the f<strong>in</strong>anc<strong>in</strong>g of the project,”<br />

Sang-Seon added.<br />

The consortium that won<br />

the bid for the Çanakkale<br />

1915 Bridge has two Korean<br />

contractors and <strong>Turkey</strong>’s<br />

lead<strong>in</strong>g groups, Limak and<br />

Yapı Merkezi. Daelim and SK<br />

fulfill an important criterion of<br />

hav<strong>in</strong>g a Korean <strong>in</strong>vestor group<br />

among Kexim’s f<strong>in</strong>anc<strong>in</strong>g terms.<br />

Sang-Seon, who met a group of<br />

journalist, provided <strong>in</strong>formation<br />

about the bank. Sang-Seon<br />

said that Kexim, founded <strong>in</strong><br />

1976, has 28 agencies around<br />

the world and that they opened<br />

their agencies <strong>in</strong> <strong>Turkey</strong> three<br />

years ago. Suggest<strong>in</strong>g that <strong>Turkey</strong><br />

is a market that offers very<br />

attractive opportunities for <strong>in</strong>vestors<br />

<strong>in</strong> develop<strong>in</strong>g countries,<br />

Sang-Seon said the country’s<br />

economy entered the stabilization<br />

process very quickly <strong>in</strong><br />

20<strong>17</strong>, <strong>in</strong>dicat<strong>in</strong>g that dollar-TL<br />

parity has currently stabilized<br />

around 3.50 while occasionally<br />

ris<strong>in</strong>g to TL 4. “Exports grew by<br />

8 percent <strong>in</strong> the first quarter last<br />

year. <strong>Turkey</strong> is a country with<br />

strong potential. Investments by<br />

Korean companies <strong>in</strong> <strong>Turkey</strong> are<br />

<strong>in</strong>creas<strong>in</strong>g and their targets are<br />

grow<strong>in</strong>g. We are here to support<br />

these <strong>in</strong>vestments,” he said.<br />

Sang-Seon said that Korean<br />

<strong>in</strong>vestors recently undertook<br />

some important purchases <strong>in</strong><br />

<strong>Turkey</strong>, not<strong>in</strong>g that CJ CGV<br />

purchased Mars C<strong>in</strong>ema for<br />

$800 million and that they<br />

f<strong>in</strong>anced $180 million of this<br />

purchase. “Apart from this<br />

project, we made a loan of $1.5<br />

billion available <strong>in</strong> <strong>Turkey</strong> <strong>in</strong><br />

June, <strong>in</strong>clud<strong>in</strong>g f<strong>in</strong>anc<strong>in</strong>g for<br />

the Eurasia Tunnel, the Third<br />

Bridge, the Kırıkkale Natural<br />

Gas Power Plant and the Gaziantep<br />

City Hospital project,”<br />

he said, add<strong>in</strong>g that the Çanakkale<br />

1915 Bridge and Highway<br />

project is next. Underl<strong>in</strong><strong>in</strong>g<br />

that the project will contribute<br />

to development <strong>in</strong> the region<br />

<strong>in</strong> many ways, Sang-Seon said<br />

that they are also aware of its<br />

importance <strong>in</strong> terms of the history<br />

of the Republic of <strong>Turkey</strong>,<br />

stress<strong>in</strong>g that this project will<br />

be realized <strong>in</strong> the region where<br />

the Turkish army achieved an<br />

important victory and will be<br />

<strong>in</strong>augurated <strong>in</strong> 2023 when the<br />

100th anniversary of the Republic<br />

of <strong>Turkey</strong> is celebrated.<br />

Po<strong>in</strong>t<strong>in</strong>g out that the bridge will<br />

be the longest suspension bridge<br />

<strong>in</strong> the world, with a central span<br />

of 2,023 meters, Sang-Seon said:<br />

“Dur<strong>in</strong>g the bidd<strong>in</strong>g process, we<br />

sent our letter of <strong>in</strong>tent about<br />

the f<strong>in</strong>anc<strong>in</strong>g of the project to<br />

the consortium. We currently<br />

cont<strong>in</strong>ue our support for the<br />

f<strong>in</strong>anc<strong>in</strong>g of the project,” The<br />

consortium of banks to f<strong>in</strong>ance<br />

the project is expected to be<br />

formed <strong>in</strong> August or <strong>September</strong><br />

and f<strong>in</strong>anc<strong>in</strong>g will be provided<br />

as soon as possible, while the<br />

clos<strong>in</strong>g is expected to be completed<br />

by March 2018. Detailed<br />

eng<strong>in</strong>eer<strong>in</strong>g and design studies<br />

for the bridge cont<strong>in</strong>ue.<br />

Humor<br />

“Quality is<br />

remembered long after<br />

the price is forgotten.”<br />

PARADOX<br />

The paradox of our time <strong>in</strong><br />

history is that we have taller<br />

build<strong>in</strong>gs, but shorter tempers;<br />

wider freeways, but narrower<br />

viewpo<strong>in</strong>ts; we spend more,<br />

but have less; we buy more,<br />

but enjoy it less.<br />

We have bigger houses and<br />

smaller families; more conveniences,<br />

but less time; we have<br />

more degrees, but less sense;<br />

more knowledge, but less<br />

judgment; more experts, but<br />

fewer solutions; more medic<strong>in</strong>e,<br />

but less wellness.<br />

We have multiplied our<br />

possessions, but reduced our<br />

values.<br />

We talk too much, love too<br />

seldom, and hate too often.<br />

We’ve learned how to make<br />

a liv<strong>in</strong>g, but not a life; we’ve<br />

added years to life, not life to<br />

years.<br />

We’ve been all the way to<br />

the moon and back, but have<br />

trouble cross<strong>in</strong>g the street to<br />

THOUGHT OF THE<br />

MONTH<br />

meet the new neighbor. We’ve<br />

conquered outer space, but<br />

not <strong>in</strong>ner space; we’ve cleaned<br />

up the air, but polluted the<br />

soul; we’ve split the atom, but<br />

not our prejudice.<br />

We have higher <strong>in</strong>comes, but<br />

lower morals; we’ve become<br />

long on quantity, but short on<br />

quality.<br />

These are the times of tall<br />

men, and short character;<br />

steep profits, and shallow<br />

relationships.<br />

These are the times of world<br />

peace, but domestic warfare;<br />

more leisure, but less fun;<br />

more k<strong>in</strong>ds of food, but less<br />

nutrition.<br />

These are days of two <strong>in</strong>comes,<br />

but more divorce; of<br />

fancier houses, but broken<br />

homes.<br />

It is a time when there is<br />

much <strong>in</strong> the show w<strong>in</strong>dow and<br />

noth<strong>in</strong>g <strong>in</strong> the stockroom.<br />

THE ECONOMIST<br />

What is a problem?<br />

Well!!!<br />

If the only tool you have<br />

is a hammer , you tend<br />

to see every problem<br />

as a nail.


EconomicNewspaper<br />

<strong>September</strong><br />

8 Please mention<br />

20<strong>17</strong><br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers Monthly Economic Newspaper ww.img.com.tr<br />

Norwegians launch campaign for Turkish tourism<br />

A campaign that was launched on<br />

Facebook to voice annoyance us<strong>in</strong>g the<br />

hashtag #JaJegReiser (YesIamgo<strong>in</strong>g) has<br />

gone viral which has reached half a million<br />

people so far<br />

Norwegians have reacted to airl<strong>in</strong>e companies<br />

and travel agencies reduc<strong>in</strong>g flights and tours<br />

to <strong>Turkey</strong> and sell<strong>in</strong>g flight tickets at high<br />

prices. Hav<strong>in</strong>g launched a campaign on social<br />

media, Norwegians wanted tourism companies<br />

to <strong>in</strong>crease capacity, especially <strong>in</strong> 2018.<br />

A campaign <strong>in</strong>itiated on Facebook to voice<br />

annoyance under the hashtag #JaJegReiser<br />

(YesIamgo<strong>in</strong>g) has reached half a million<br />

people so far.<br />

Number of Iranian<br />

tourists may exceed<br />

German visitors to<br />

Istanbul<br />

Those who supported the campaign, <strong>in</strong>itiated<br />

by Ste<strong>in</strong>ar Johansen, 67, and a student of<br />

communication named Çınar Şimşek, have<br />

compla<strong>in</strong>ed of the low number of flights and<br />

high ticket prices.<br />

A user on a Facebook page called Alanya Scand<strong>in</strong>avian<br />

Community (Alanya Skand<strong>in</strong>aviske i<br />

Samfunn Alanya), which has more than 10,000<br />

followers, wrote: “What can I do if airl<strong>in</strong>es and<br />

charter companies cut off all the roads?” and<br />

another suggested a direct compla<strong>in</strong> should be<br />

conveyed to travel companies.<br />

Other followers of the page wrote: “It is time<br />

for people to understand that there is not a war<br />

<strong>in</strong> <strong>Turkey</strong> and it is safe to visit the country,”<br />

“Here <strong>in</strong> Norway w<strong>in</strong>ter is cold, I recommend<br />

warm coast <strong>in</strong> the far south” and “I returned<br />

from Alanya two weeks ago and I am look<strong>in</strong>g<br />

forward to go<strong>in</strong>g aga<strong>in</strong>.”<br />

Iranians ranked second after Germans <strong>in</strong> the distribution of tourists<br />

visit<strong>in</strong>g Istanbul by country, which is lead<strong>in</strong>g to expectations<br />

that Iranian tourists, who account for 7.5 percent of all tourists<br />

com<strong>in</strong>g to Istanbul, will soon replace Germans, who make up for<br />

9.4 percent of the tourists visit<strong>in</strong>g the city.The number of Iranian<br />

tourists <strong>in</strong> Istanbul, which is visited by about 10 million tourists<br />

every year, has followed an upward trend <strong>in</strong> recent years. The effects<br />

of the economic revival experienced after the removal of the<br />

embargo on Iran have been also reflected <strong>in</strong> Istanbul’s tourism.<br />

Antalya<br />

eyes over<br />

10 million<br />

tourists <strong>in</strong><br />

20<strong>17</strong><br />

Health tourists<br />

spend 10 times<br />

more <strong>in</strong> <strong>Turkey</strong><br />

than vacationers<br />

“We will likely attract nearly 10.5 million tourists this year<br />

if no negative <strong>in</strong>cident occurs,” he added. Antalya Governor<br />

Münir Karaloğlu said the number of arrivals to the<br />

resort rose by 65 percent by mid-August compared to the<br />

same period of 2016. The resort has thus hosted nearly<br />

6.5 million tourists over the course of this year. “The<br />

extension of the public holiday for the Eid al-Adha to 10<br />

days is of great importance for reviv<strong>in</strong>g <strong>Turkey</strong>’s local<br />

tourism. We have needed to fill our gap <strong>in</strong> foreign tourists<br />

with local tourists,” he said, add<strong>in</strong>g that hotel occupancy<br />

rates dur<strong>in</strong>g the 10-day holiday would hit 100 percent.<br />

As <strong>Turkey</strong> becomes a grow<strong>in</strong>g dest<strong>in</strong>ation <strong>in</strong> the health sector,<br />

offer<strong>in</strong>g high-quality services and attract<strong>in</strong>g patients<br />

from around the world, it was reported that per capita<br />

expenditure of foreign tourists who come to <strong>Turkey</strong> for<br />

treatment is 10 times higher than of those who come on<br />

vacation. Foreign visitors com<strong>in</strong>g to <strong>Turkey</strong> for healthcare<br />

tourism are reported to spend almost 10 times more than<br />

those who come for vacation, accord<strong>in</strong>g to the Association<br />

of Health Strategies and Social Policies (SASOMER).<br />

Number of<br />

properties sold<br />

to foreigners<br />

soars by 65.3<br />

percent,<br />

TurkStat<br />

reveals<br />

The number of residential properties<br />

sold <strong>in</strong> <strong>Turkey</strong> advanced by<br />

42.3 percent year-on-year <strong>in</strong> July,<br />

accord<strong>in</strong>g to Turkish Statistical<br />

Institute (TurkStat) data revealed..<br />

The data showed that a total of<br />

115,869 houses changed hands <strong>in</strong><br />

the month, up by 19 percent compared<br />

with a month earlier.<br />

Comment<strong>in</strong>g on the July<br />

figures, Melih Tavukcuoglu, head<br />

of the Istanbul Anatolian-side<br />

Contractors’ Association, said that<br />

the rise <strong>in</strong> hous<strong>in</strong>g sales reflected<br />

the trust <strong>in</strong> the sector as well as the<br />

positive effects of real estate campaigns.<br />

“House sales to foreigners<br />

became 1,726, <strong>in</strong>creas<strong>in</strong>g 65.3 percent<br />

compared to the same month<br />

of the previous year,” TurkStat<br />

said. Nearly 31 percent (or 528<br />

units) of the total sales to foreigners<br />

were <strong>in</strong> Istanbul, the country’s<br />

largest city by population.<br />

Follow<strong>in</strong>g Istanbul, the Mediterranean<br />

holiday resort city of<br />

Antalya came second with 386<br />

properties, while the Black Sea<br />

prov<strong>in</strong>ce of Trabzon came third<br />

with 121 units.<br />

The TurkStat figures showed<br />

that Iraqis topped the list of buyers<br />

with 293 properties, followed by<br />

Saudis with 248 units, Kuwaitis<br />

142, Russians 118 and Britons 76.<br />

FDI <strong>in</strong>flow from EU countries<br />

to <strong>Turkey</strong> up by 61 pct<br />

Foreign direct <strong>in</strong>vestment (FDI)<br />

by European Union countries <strong>in</strong>to<br />

<strong>Turkey</strong> <strong>in</strong>creased by 61 percent<br />

<strong>in</strong> the January-June period when<br />

compared to the same period<br />

last year. Data provided by the<br />

M<strong>in</strong>istry of Economy <strong>in</strong>dicates that<br />

government measures to strengthen<br />

the economy and <strong>in</strong>centives<br />

for foreign <strong>in</strong>vestors <strong>in</strong>creased the<br />

<strong>in</strong>vestment <strong>in</strong>flow to <strong>Turkey</strong> from<br />

many countries, especially the EU.<br />

Foreign direct <strong>in</strong>vestment <strong>in</strong>flow to<br />

<strong>Turkey</strong> from EU countries reached<br />

$2.7 billion <strong>in</strong> the first half of this<br />

year, an <strong>in</strong>crease of 61 percent<br />

compared to the same period last<br />

year when FDI from the region<br />

amounted to $1.7 billion.<br />

This accounted for 66 percent<br />

of the total <strong>in</strong>vestment of $4.1<br />

billion that came to <strong>Turkey</strong> <strong>in</strong> the<br />

same period.<br />

While <strong>in</strong>vestment <strong>in</strong>flow from<br />

the Netherlands <strong>in</strong>creased 104<br />

percent from $403 million to $821<br />

million dur<strong>in</strong>g this period, <strong>in</strong>vestment<br />

from Germany decreased<br />

by 6 percent from $181 million to<br />

$<strong>17</strong>0 million.<br />

In the first half of this year, <strong>in</strong>vestment<br />

<strong>in</strong>flow from Asian countries<br />

also <strong>in</strong>creased significantly. In<br />

the January-June period, <strong>in</strong>vestment<br />

<strong>in</strong>flow from Asian countries<br />

rose by 138 percent to $1.1 billion<br />

from $481 million <strong>in</strong> the same<br />

period last year. Investment <strong>in</strong>flow<br />

from Gulf countries, on the other<br />

hand, amounted to $561 million,<br />

an <strong>in</strong>crease of 322 percent <strong>in</strong> the<br />

same period.

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