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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 />
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“<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.