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Made in Turkey November - December 2018

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Monthly Economic Newspaper<br />

<strong>November</strong> - <strong>December</strong> <strong>2018</strong><br />

ww.img.com.tr<br />

<strong>Turkey</strong> takes major steps toward<br />

becom<strong>in</strong>g energy trad<strong>in</strong>g hub<br />

Aspir<strong>in</strong>g to diversify its energy resources, <strong>Turkey</strong> has accelerated<br />

its efforts to ensure its natural gas supply security through bilateral<br />

agreements and major <strong>in</strong>frastructure projects and achieve the<br />

target of becom<strong>in</strong>g a gas trad<strong>in</strong>g hub. Recently, the country has<br />

engaged <strong>in</strong> two important mult<strong>in</strong>ational natural gas pipel<strong>in</strong>e projects,<br />

namely the Trans-Anatolian Natural Gas Pipel<strong>in</strong>e (TANAP)<br />

and TurkStream. After the launch of TANAP, TurkStream became<br />

another gas pipel<strong>in</strong>e project through which <strong>Turkey</strong> is emphasiz<strong>in</strong>g its<br />

<strong>in</strong>terest <strong>in</strong> energy transfer and trade. P8<br />

Newly launched economıc polıcıes<br />

receıve posıtıve response from fınancıal markets<br />

Geothermal energy can cut<br />

<strong>Turkey</strong>’s gas imports by 20 pct<br />

The M<strong>in</strong>ister recalled<br />

<strong>in</strong>creased speculative<br />

movements aga<strong>in</strong>st<br />

the Turkish economy<br />

stress<strong>in</strong>g that they<br />

do not affect the<br />

macroeconomic<br />

fundamentals of the<br />

country.<br />

In August and September, <strong>in</strong> particular,<br />

a turbulent period dom<strong>in</strong>ated by<br />

runn<strong>in</strong>g <strong>in</strong>flation and depreciat<strong>in</strong>g<br />

currency triggered by developments<br />

<strong>in</strong> local and global markets was the ma<strong>in</strong><br />

topic of talk on the Turkish economy.<br />

However, strong measures implemented<br />

by the economy adm<strong>in</strong>istration have parried<br />

the blow and ensured stabilization<br />

<strong>in</strong> Turkish markets. At a presentation <strong>in</strong><br />

Parliament’s budget commission, Treasury<br />

and F<strong>in</strong>ance M<strong>in</strong>ister Berat Albayrak<br />

stressed that the measures <strong>in</strong>cluded steps<br />

to ward off any speculative movements<br />

<strong>in</strong> foreign currency markets to lower the<br />

Turkish lira as well as massive discount<br />

and sectoral mobilization campaigns to<br />

mitigate <strong>in</strong>flation.<br />

M<strong>in</strong>ister Albayrak noted that the government’s<br />

measures to stabilize the economic<br />

environment also have paid off <strong>in</strong><br />

<strong>in</strong>ternational f<strong>in</strong>ancial markets as <strong>in</strong>vestors<br />

return to rally<strong>in</strong>g Turkish assets. The<br />

M<strong>in</strong>ister recalled the speculative movements<br />

that <strong>in</strong>creased aga<strong>in</strong>st the Turkish<br />

economy that do not affect the macroeconomic<br />

fundamentals of the country.<br />

But the M<strong>in</strong>ister added the government<br />

<strong>in</strong>troduced a number of measures to<br />

stabilize fluctuations, ease liquidity conditions<br />

and support f<strong>in</strong>ancial stability and<br />

the effective operation of the markets.<br />

“These measures have paved the way for<br />

immense positive impacts on f<strong>in</strong>ancial<br />

markets,” the M<strong>in</strong>ister remarked. P3<br />

<strong>Turkey</strong> could cut its gas imports by 20 percent us<strong>in</strong>g geothermal<br />

energy, which could meet 30 percent of <strong>Turkey</strong>’s heat<strong>in</strong>g<br />

needs for district heat<strong>in</strong>g, accord<strong>in</strong>g to Danish Consul General<br />

Anette Snedgaard Galskjot.District energy is an energy<br />

system that can provide economic and susta<strong>in</strong>able energy to an<br />

entire city or whole district us<strong>in</strong>g surplus energy from power<br />

plants or renewable sources. The model used <strong>in</strong> Denmark is an<br />

example to emulate, where sav<strong>in</strong>gs of 40 percent or more have<br />

been made for households, a level considered extremely high,<br />

Galskjot said. P9<br />

BEAUTYISTANBUL 2019 was<br />

promoted <strong>in</strong> 61 countries<br />

throughout <strong>2018</strong>!<br />

We display with pride that throughout the<br />

<strong>2018</strong>, BEAUTYISTANBUL 2019 showed<br />

exceptional performance and was promoted<br />

<strong>in</strong> 61 countries, like no other exhibition <strong>in</strong><br />

the world! Proven by 20 years of experience<br />

Ipekyolu team swiftly cont<strong>in</strong>ues its work all<br />

around the world. P4<br />

Turkish cosmetics <strong>in</strong>dustry targets<br />

to boost its export to Far East<br />

Cosmoprof Asia, the largest cosmetics fair of the Far East,<br />

was held <strong>in</strong> Hong Kong, 14-16 <strong>November</strong> <strong>2018</strong>. Accord<strong>in</strong>g<br />

to the Istanbul Chemicals and Chemical Products Exporters’<br />

Association (IKMIB), a total of 18 Turkish companies jo<strong>in</strong>ed<br />

Cosmoprof Asia fair, held for the 8th time this year <strong>in</strong> the<br />

framework of national participation organization of <strong>Turkey</strong>.<br />

The participat<strong>in</strong>g companies held some 400 bilateral bus<strong>in</strong>ess<br />

meet<strong>in</strong>gs at the fair. P7<br />

Aslandağ Group<br />

leads <strong>in</strong>dustry’s<br />

future with its<br />

experience<br />

Aslandağ Group renders services with its various brands <strong>in</strong> the<br />

furniture and wooden door ındustry s<strong>in</strong>ce 1980. We talked Cemal<br />

Aslandağ, CEO of Aslandağ Group which <strong>in</strong>herited from family<br />

seniors and an accomplished a lead<strong>in</strong>g position <strong>in</strong> the ındustry. P6<br />

Toyota to start mass production<br />

of its new hybrid car <strong>in</strong> <strong>Turkey</strong><br />

Japanese car maker Toyota will start mass production<br />

of its new Corolla hybrid <strong>in</strong> <strong>Turkey</strong> <strong>in</strong> January. “A hybrid<br />

car <strong>in</strong> this segment will be produced <strong>in</strong> <strong>Turkey</strong> for<br />

the first time,” Mustafa Varank, Turkish technology<br />

and <strong>in</strong>dustry m<strong>in</strong>ister, said dur<strong>in</strong>g his visit to Toyota’s<br />

factory <strong>in</strong> the northwestern prov<strong>in</strong>ce of Sakarya. P8<br />

<strong>Turkey</strong>’s consumer confidence<br />

<strong>in</strong>dex rises 4 percent <strong>in</strong> <strong>November</strong><br />

Iraq to <strong>in</strong>crease<br />

Kirkuk oil exports to<br />

<strong>Turkey</strong>’s Ceyhan port<br />

P6<br />

<strong>Turkey</strong>’s consumer confidence<br />

<strong>in</strong>dex went up month-on-month<br />

<strong>in</strong> <strong>November</strong>, accord<strong>in</strong>g to official<br />

data released. The <strong>in</strong>dex rose four<br />

percent to hit 59.6 this month from<br />

57.3 po<strong>in</strong>ts <strong>in</strong> October, a report by<br />

the Turkish Statistical Institute said,<br />

mark<strong>in</strong>g an <strong>in</strong>crease rose for the<br />

first time s<strong>in</strong>ce July. P2<br />

Russian tourists to<br />

<strong>Turkey</strong> hit record<br />

high<br />

P7<br />

Over 70 pct of <strong>Turkey</strong>’s<br />

foreign <strong>in</strong>vestments from<br />

Europe <strong>in</strong> 16 years<br />

The Turkish economy attracted $201.3 billion<br />

<strong>in</strong> foreign direct <strong>in</strong>vestment (FDI) and<br />

$152.1 billion capital <strong>in</strong>flow for the period<br />

from 2002 to August <strong>2018</strong>. When broken<br />

<strong>in</strong>to regions, 73.8 percent of the capital<br />

<strong>in</strong>flow came from European countries,<br />

accord<strong>in</strong>g to Industry and Technology<br />

M<strong>in</strong>istry data. P5<br />

Private sector loans from<br />

abroad down <strong>in</strong> September<br />

Turkish outstand<strong>in</strong>g private sector loans<br />

from abroad fell <strong>in</strong> September compared<br />

to the end of 2017, the Central Bank of the<br />

Republic of <strong>Turkey</strong> (CBRT) announced.<br />

Exclud<strong>in</strong>g trade credits, private sector<br />

short-term loans were $16.5 billion, a $2<br />

billion decl<strong>in</strong>e from the end of last year, as<br />

76.4 percent consists of liabilities of f<strong>in</strong>ancial<br />

<strong>in</strong>stitutions, accord<strong>in</strong>g to the CBRT. P5


EconomicNewspaper<br />

<strong>November</strong><br />

2 Please mention<br />

<strong>December</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 />

<strong>2018</strong><br />

Mehmet Soztutan<br />

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

Commitment to<br />

rebalanc<strong>in</strong>g…<br />

Actually, susta<strong>in</strong><strong>in</strong>g the<br />

stable growth process,<br />

<strong>in</strong>creas<strong>in</strong>g employment,<br />

secur<strong>in</strong>g the fiscal discipl<strong>in</strong>e,<br />

narrow<strong>in</strong>g the current account<br />

deficit and as a result,<br />

strengthen<strong>in</strong>g the economic<br />

stability are the major priorities<br />

of the Turkish Government.<br />

Commitment to sound<br />

economic policies s<strong>in</strong>ce<br />

2003 has placed the Turkish<br />

economy <strong>in</strong> a good position<br />

to embark on a susta<strong>in</strong>ed<br />

path of growth. Progress has<br />

been achieved <strong>in</strong> improv<strong>in</strong>g<br />

public f<strong>in</strong>ances, restructur<strong>in</strong>g<br />

the f<strong>in</strong>ancial sector,<br />

improv<strong>in</strong>g the bus<strong>in</strong>ess<br />

environment and reform<strong>in</strong>g<br />

the public sector. In addition,<br />

the reforms of the last<br />

decade, together with the<br />

strengthen<strong>in</strong>g of the macroeconomic<br />

policy framework<br />

dur<strong>in</strong>g that period, provide<br />

the necessary foundations<br />

for <strong>Turkey</strong> to reach its goal<br />

of becom<strong>in</strong>g a high-<strong>in</strong>come<br />

economy.<br />

Letter From<br />

The Editor<br />

<strong>Turkey</strong> is an attractive<br />

location for foreign <strong>in</strong>vestment<br />

because of its emerg<strong>in</strong>g<br />

role as a spr<strong>in</strong>gboard for<br />

foreign companies coupled<br />

with jo<strong>in</strong>t ventures <strong>in</strong>itiated<br />

by Turkish partners. <strong>Turkey</strong>’s<br />

own emerg<strong>in</strong>g potential<br />

and its market attractiveness<br />

arise ma<strong>in</strong>ly from the<br />

susta<strong>in</strong>able growth and<br />

development path launched<br />

by the Government. For<br />

this reason, <strong>Turkey</strong> closely<br />

monitors developments <strong>in</strong><br />

global economy and implement<br />

policies <strong>in</strong> l<strong>in</strong>e with<br />

its medium-term economic<br />

program.<br />

The Government focuses<br />

on policies to <strong>in</strong>crease<br />

private sector’s <strong>in</strong>vestments,<br />

direct <strong>in</strong>ternational <strong>in</strong>vestments<br />

and exports.<br />

Nevertheless, it is hard to<br />

keep its competitive position<br />

<strong>in</strong> the world market full of<br />

emerg<strong>in</strong>g players. Thus, manufacturers<br />

have shifted their<br />

operations to value-added<br />

products and brand names<br />

more than ever. Currently,<br />

many of Turkish manufacturers<br />

have their own designs<br />

and brands <strong>in</strong> <strong>in</strong>ternational<br />

markets.<br />

As known, <strong>Turkey</strong>, be<strong>in</strong>g<br />

the oldest of our publications,<br />

conveys the messages<br />

of the Turkish exporters for<br />

years by participat<strong>in</strong>g <strong>in</strong> a<br />

series of <strong>in</strong>ternational fairs<br />

and exhibitions.<br />

We wish Turkish bus<strong>in</strong>ess<br />

people and their foreign<br />

counterparts lucrative trade.<br />

Bus<strong>in</strong>ess is bus<strong>in</strong>ess…<br />

<strong>Turkey</strong>’s consumer confidence<br />

<strong>in</strong>dex rises 4 percent <strong>in</strong> <strong>November</strong><br />

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

confidence <strong>in</strong>dex went<br />

up month-on-month <strong>in</strong><br />

<strong>November</strong>, accord<strong>in</strong>g to<br />

official data released.<br />

The <strong>in</strong>dex rose four percent to hit 59.6<br />

this month from 57.3 po<strong>in</strong>ts <strong>in</strong> October, a<br />

report by the Turkish Statistical Institute<br />

(TurkStat) said, mark<strong>in</strong>g an <strong>in</strong>crease rose<br />

for the first time s<strong>in</strong>ce July.All sub<strong>in</strong>dices<br />

of the ma<strong>in</strong> <strong>in</strong>dex, except the number of<br />

people unemployed expectation <strong>in</strong>dex,<br />

were higher <strong>in</strong> the month.<br />

The general economic situation expectations<br />

<strong>in</strong>dex saw the largest improvement,<br />

up 6.2 percent to reach 77.4 po<strong>in</strong>ts. The<br />

f<strong>in</strong>ancial situation expectations of households<br />

<strong>in</strong>dex was the second-best performer,<br />

ris<strong>in</strong>g by 5.4 percent from last month to<br />

77.5 po<strong>in</strong>ts <strong>in</strong> <strong>November</strong>.The probability<br />

of sav<strong>in</strong>g <strong>in</strong>dex – <strong>in</strong>dicat<strong>in</strong>g people’s expectation<br />

of earn<strong>in</strong>g enough money to save –<br />

rose 4.8 percent to reach 20.1 po<strong>in</strong>ts from<br />

19.2 <strong>in</strong> October.<br />

The number of people unemployed<br />

anticipation <strong>in</strong>dex – a gauge of sentiment<br />

about the health of the labor market –<br />

dropped 0.3 percent compared to last<br />

month, at 63.4 po<strong>in</strong>ts.<br />

The consumer confidence <strong>in</strong>dex is seen<br />

as a vital gauge of the overall health of the<br />

economy, <strong>in</strong>dicat<strong>in</strong>g people’s sentiments<br />

about spend<strong>in</strong>g their money, which <strong>in</strong> turn<br />

gives clues about economic vitality. Enver<br />

Erkan, an economist at GCM Menkul<br />

Kıymetler, said that the improvement <strong>in</strong><br />

the <strong>November</strong> figure stems from positive<br />

political and geopolitical developments.<br />

“Decl<strong>in</strong>e and stabilization <strong>in</strong> exchange<br />

rates led to more confidence from the<br />

consumer side,” Erkan said.<br />

Erkan said that consumers still hesitate<br />

from <strong>in</strong>flation and high-<strong>in</strong>terest rates <strong>in</strong><br />

the country.<strong>Turkey</strong>’s annual <strong>in</strong>flation stood<br />

at 25.24 percent <strong>in</strong> October, accord<strong>in</strong>g to<br />

the latest data from TurkStat. The figure<br />

rose 0.72 percentage po<strong>in</strong>ts last month<br />

from 24.52 percent <strong>in</strong> September. Currently,<br />

the one-week repo rate – also known as<br />

the central bank’s policy rate – stands at 24<br />

percent.Erkan said tax cuts would support<br />

the domestic demand for automobile and<br />

white goods, until the end of the year.“-<br />

This could limit the economic slowdown a<br />

bit which is expected <strong>in</strong> the last quarter,”<br />

he added


<strong>November</strong><br />

<strong>December</strong><br />

<strong>2018</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 />

3<br />

Newly launched economic policies receive<br />

positive response from f<strong>in</strong>ancial markets<br />

As part of the measures, the bank<strong>in</strong>g<br />

watchdog, the Bank<strong>in</strong>g Regulation<br />

and Supervision Agency (BDDK),<br />

decreased the daily limit on foreign currency<br />

swap transactions from 50 percent of banks’<br />

equity capital to 25 percent. Withhold<strong>in</strong>g tax<br />

on deposit accounts has been regulated, and<br />

bus<strong>in</strong>ess contracts <strong>in</strong>ked <strong>in</strong> foreign currencies<br />

have been converted <strong>in</strong>to Turkish lira.<br />

The Treasury and F<strong>in</strong>ance M<strong>in</strong>ister strongly<br />

emphasized that the recent measures have received<br />

a strong response from <strong>in</strong>ternational <strong>in</strong>vestors.<br />

“Thanks to a strategic debt policy, we<br />

have decreased the sensitivity of the debt stock<br />

to <strong>in</strong>terest rates, exchange rates and liquidity<br />

risks,” Albayrak said and added: “The Treasury<br />

received higher than expected demands <strong>in</strong><br />

dollar and euro-denom<strong>in</strong>ated bonds <strong>in</strong> October<br />

and <strong>November</strong>. The success of auctions <strong>in</strong><br />

<strong>in</strong>ternational markets proves that the measures<br />

we have taken have received a strong response<br />

from f<strong>in</strong>ancial <strong>in</strong>vestors.”<br />

International demand for euro bonds due<br />

<strong>in</strong> 2026 more than tripled the bonds’ actual<br />

issue size. The transaction was f<strong>in</strong>alized with a<br />

nom<strong>in</strong>al amount of $1.7 billion. The bond has<br />

a coupon rate of 7.25 percent, and its yield rate<br />

for <strong>in</strong>vestors is 7.50 percent. The largest national<br />

share of the bonds was sold to <strong>in</strong>vestors<br />

from the U.K. with 35 percent. The U.K. was<br />

followed by the U.S. with 20 percent, Germany<br />

and Austria with 14 percent, Nordic countries<br />

with 7 percent, France and Switzerland with<br />

5 percent, Benelux with 5 percent, various<br />

other European countries with 6 percent,<br />

<strong>Turkey</strong> with 6 percent, and other regions with<br />

2 percent.<br />

The euro bond issue brought the amount of<br />

funds raised from <strong>in</strong>ternational capital markets<br />

this year to nearly $7.7 billion. In October,<br />

the Treasury issued dollar bonds worth $2<br />

billion, while the demand totaled $6 billion,<br />

three times the <strong>in</strong>itial target. The bond, which<br />

matures on Dec. 23, 2023, has a coupon rate of<br />

7.25 percent and a yield rate of 7.50 percent for<br />

<strong>in</strong>vestors. Most of the bonds were sold to <strong>in</strong>vestors<br />

from the United States, followed by the<br />

U.K with 23 percent, other European countries<br />

with 11 percent, <strong>Turkey</strong> with 5 percent and<br />

other regions with 1 percent. More strik<strong>in</strong>gly,<br />

follow<strong>in</strong>g the issuance of these bonds denom<strong>in</strong>ated<br />

<strong>in</strong> foreign currency, the Turkish<br />

Treasury cancelled auctions scheduled to<br />

raise resources from domestic markets, and <strong>in</strong><br />

three scheduled auctions the Treasury sharply<br />

cut its domestic bond offers on Nov. 14. The<br />

yields consequently fell markedly below<br />

market rates, hitt<strong>in</strong>g below 20 percent on twoyear<br />

government bonds s<strong>in</strong>ce July.<br />

Prelim<strong>in</strong>ary <strong>in</strong>dicators, Albayrak po<strong>in</strong>ted<br />

out, suggest a slowdown <strong>in</strong> economic activity<br />

and the start of a balanc<strong>in</strong>g period <strong>in</strong> the<br />

Turkish economy. Cit<strong>in</strong>g the New Economic<br />

Program (NEP) announced on Sept. 20,<br />

M<strong>in</strong>ister Albayrak said that the economy is<br />

expected to register a growth rate of 3.8 percent,<br />

2.3 percent, and 3.5 percent, respectively<br />

<strong>in</strong> <strong>2018</strong>, 2019 and 2020. The NEP provides<br />

a vision to battle exist<strong>in</strong>g problems <strong>in</strong> the<br />

Turkish economy, <strong>in</strong>clud<strong>in</strong>g currency volatility,<br />

runn<strong>in</strong>g <strong>in</strong>flation and a double-digit deficit<br />

and set targets that are based on <strong>Turkey</strong>’s<br />

macroeconomic realities, hence reassur<strong>in</strong>g<br />

market confidence <strong>in</strong> the Turkish economy.<br />

Speak<strong>in</strong>g about the current account balance,<br />

the M<strong>in</strong>ister noted that the by September,<br />

<strong>Turkey</strong> has a current account deficit of $46.1<br />

billion. Exclud<strong>in</strong>g energy and gold imports,<br />

the current account has a surplus of $2.6 billion,<br />

he added. The ratio of current account<br />

deficit to the gross domestic product was 5.6<br />

percent last year. However, the figure is expected<br />

to fall to 4.7 percent this year. Show<strong>in</strong>g<br />

a surplus for two consecutive months <strong>in</strong><br />

August and September, <strong>Turkey</strong> is now expected<br />

to see a record current account surplus <strong>in</strong><br />

October, accord<strong>in</strong>g to Albayrak. For the first<br />

time <strong>in</strong> the past three years, <strong>Turkey</strong>’s current<br />

account balance posted a surplus <strong>in</strong> August –<br />

total<strong>in</strong>g $2.59 billion, improv<strong>in</strong>g sharply from<br />

a $923 million deficit <strong>in</strong> the same month last<br />

year.<br />

The improvement ma<strong>in</strong>ta<strong>in</strong>ed its trend<br />

<strong>in</strong> September when the country’s current<br />

account balance showed a surplus for the<br />

second consecutive month this year. <strong>Turkey</strong>’s<br />

current account surplus totaled $1.83 billion,<br />

improv<strong>in</strong>g from last year’s deficit of $4.4<br />

billion. The Treasury and F<strong>in</strong>ance M<strong>in</strong>ister<br />

emphasized that fiscal policy will be conducted<br />

coord<strong>in</strong>ately with monetary policy <strong>in</strong> l<strong>in</strong>e<br />

with the government’s targets, particularly<br />

<strong>in</strong>flation, current account balance and growth.<br />

“Fiscal discipl<strong>in</strong>e will be our ma<strong>in</strong> anchor <strong>in</strong><br />

the upcom<strong>in</strong>g period,” Albayrak said, add<strong>in</strong>g<br />

that qualified <strong>in</strong>vestments, value-added production,<br />

and employment and export-based<br />

growth will cont<strong>in</strong>ue to be supported with<br />

<strong>in</strong>come policies. The Turkish bank<strong>in</strong>g sector<br />

has performed better than <strong>in</strong> many other<br />

countries with its strong capital structure,<br />

high profitability and asset quality, Albayrak<br />

noted, po<strong>in</strong>t<strong>in</strong>g out that the low-<strong>in</strong>terest loan<br />

balance granted by state lender Ziraat Bank<br />

reached TL 45 billion ($8.51 billion) as of<br />

October.<br />

Emphasiz<strong>in</strong>g that oil prices have fallen<br />

from $85 to less than $65 s<strong>in</strong>ce the beg<strong>in</strong>n<strong>in</strong>g<br />

of October, the M<strong>in</strong>ister said that the recent<br />

decl<strong>in</strong>e was “positive for oil-import<strong>in</strong>g economies<br />

like our country.”<br />

Albayrak also suggested that risks related<br />

to the com<strong>in</strong>g period <strong>in</strong> the global economy<br />

are seen as downward <strong>in</strong> the short term,<br />

say<strong>in</strong>g that cont<strong>in</strong>uation of the U.S. Federal<br />

Reserve’s gradual <strong>in</strong>crease of <strong>in</strong>terest rates<br />

and reduction of its balance sheet constitute a<br />

risk for develop<strong>in</strong>g countries.<br />

Letters to the Editor<br />

turkey@ihlas.net.tr<br />

Trumponomics<br />

Is Trumponomics work<strong>in</strong>g?<br />

The answer is no. For one th<strong>in</strong>g,<br />

Trump’s trade policy is turn<strong>in</strong>g<br />

out to be worse than expected.<br />

For another, the growth surge<br />

mostly reflects a temporary<br />

sugar high from last <strong>December</strong>’s<br />

tax cut. Economists are<br />

already pencil<strong>in</strong>g <strong>in</strong> a recession<br />

for 2020. But with a trade war<br />

loom<strong>in</strong>g and economists warn<strong>in</strong>g<br />

that the boom is unsusta<strong>in</strong>able,<br />

some Republicans are distanc<strong>in</strong>g<br />

themselves from Trump.<br />

In regular English, this means:<br />

Trump has unilaterally launched<br />

a series of trade wars that will<br />

damage the global economy<br />

next year. Also, the tax cuts that<br />

were sold as growth-<strong>in</strong>spir<strong>in</strong>g<br />

will so dramatically <strong>in</strong>crease the<br />

U.S. government’s deficit that its<br />

economy will beg<strong>in</strong> to slow.<br />

A.Ferr/ Berl<strong>in</strong><br />

Democratization<br />

For less developed countries,<br />

globalization offers access to foreign<br />

capital, global export markets,<br />

and advanced technology<br />

while break<strong>in</strong>g the monopoly of<br />

<strong>in</strong>efficient and protected domestic<br />

producers. Faster growth, <strong>in</strong><br />

turn, promotes poverty reduction,<br />

democratization, and higher<br />

labor and environmental standards.<br />

While globalization may<br />

confront government officials<br />

with more difficult choices, the<br />

result for their citizens is greater<br />

<strong>in</strong>dividual freedom. In this sense,<br />

globalization acts as a check on<br />

governmental power that makes<br />

it more difficult for governments<br />

to abuse the freedom and property<br />

of their citizens.<br />

M.Murp/ Wash<strong>in</strong>gton D.C<br />

A poor mouse!<br />

Well, there was a k<strong>in</strong>d of dependencia<br />

theory, which was very<br />

much left w<strong>in</strong>g <strong>in</strong> its orig<strong>in</strong>s. There<br />

were some European <strong>in</strong>tellectuals<br />

who fed <strong>in</strong>to it, and the idea was<br />

that these poor, develop<strong>in</strong>g countries<br />

were so dependent on world<br />

marketplace, they were just be<strong>in</strong>g<br />

exploited by the center. [Raul]<br />

Prebisch talked about the center<br />

versus the periphery, which is<br />

another version of dependencia.<br />

But I th<strong>in</strong>k that there may be<br />

some vague notion, an element of<br />

truth beh<strong>in</strong>d this idea <strong>in</strong> the sense<br />

that markets are impersonal. I use<br />

the analogy of an elephant go<strong>in</strong>g<br />

through the jungle, and you’re a<br />

poor mouse. Now the elephant is<br />

not go<strong>in</strong>g to go after you. He is<br />

not aga<strong>in</strong>st you; he couldn’t care<br />

less about you.<br />

G.Kron/ Frankfurt<br />

Anti-Theory<br />

Trumponomics is someth<strong>in</strong>g<br />

else entirely. For Trump, an economy,<br />

apparently, is best run when<br />

some person with power and<br />

good sense cont<strong>in</strong>uously weighs<br />

<strong>in</strong> on key economic questions.<br />

It could be called an anti-theory<br />

theory. For Trump, theoretical<br />

models—no matter how well<br />

grounded <strong>in</strong> data and experience—are<br />

b<strong>in</strong>d<strong>in</strong>g constra<strong>in</strong>ts<br />

that limit the President’s ability<br />

to respond however he th<strong>in</strong>ks<br />

appropriate and, worse, they telegraph<br />

which policies the President<br />

will likely pursue. This is an<br />

essential difference. In many ways,<br />

Trump’s views on economics are<br />

off base. Decades of research<br />

show that economies run best<br />

when there are clear and neutral<br />

rules, fairly applied.<br />

M.Hano/ Cairo


EconomicNewspaper<br />

<strong>November</strong><br />

4 Please mention<br />

<strong>December</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 />

<strong>2018</strong><br />

BEAUTYISTANBUL 2019 was promoted <strong>in</strong> 61<br />

S<strong>in</strong>ce January <strong>2018</strong>, IPEKYOLU<br />

International Exhibitions team,<br />

organizer of BEAUTYISTANBUL<br />

exhibition, has been striv<strong>in</strong>g to<br />

attract buyers and visitors from all around<br />

the world. Start<strong>in</strong>g with a roadshow <strong>in</strong> Qatar<br />

<strong>in</strong> January, the team met and <strong>in</strong>vited many<br />

Qatari bus<strong>in</strong>essmen work<strong>in</strong>g <strong>in</strong> the field<br />

of cosmetics, pharmaceuticals and retail<br />

to BEAUTYISTANBUL at Turkish-Qatar<br />

bus<strong>in</strong>ess forum <strong>in</strong> Doha. Later <strong>in</strong> January,<br />

dur<strong>in</strong>g a healthcare exhibition, thousands of<br />

bus<strong>in</strong>ess people and potential buyers operat<strong>in</strong>g<br />

<strong>in</strong> beauty <strong>in</strong>dustry from the Middle East,<br />

Gulf and Arabic Countries were <strong>in</strong>vited to<br />

BEAUTYISTANBUL.<br />

Panama City was an <strong>in</strong>terest<strong>in</strong>g and important<br />

place where BEAUTYISTANBUL team<br />

met and attracted lots of buyers and visitors<br />

from more than 30 countries from Central<br />

America and Caribbean region. These regions<br />

are among the ma<strong>in</strong> focus areas of BEAUTY-<br />

ISTANBUL <strong>in</strong> terms of visitors as well to host<br />

buyers from Central American-South American<br />

countries and Caribbean.<br />

Days after Panama, BEAUTYISTANBUL<br />

visited capitals of Ecuador and Costa Rica,<br />

Quito and San Jose and met with several associations<br />

along with chambers of commerce<br />

and they have been briefed about BEAUTY-<br />

ISTANBUL. The f<strong>in</strong>al stop of the Central<br />

American tour was Guadalajara City-Mexico.<br />

After meet<strong>in</strong>g with hair and beauty professionals<br />

<strong>in</strong> Duesseldorf-Germany mid-March,<br />

BEAUTYISTANBUL 2019 was <strong>in</strong>troduced to<br />

Jordanian and Yemeni bus<strong>in</strong>ess people dur<strong>in</strong>g<br />

separate bilateral bus<strong>in</strong>ess forums <strong>in</strong> Istanbul.<br />

Bologna-Italy was an important platform<br />

dur<strong>in</strong>g March, where BEAUTYISTANBUL<br />

team met with thousands of potential buyers<br />

from all over the world and they were <strong>in</strong>vited<br />

to our exhibition. Also, BEAUTYISTANBUL<br />

was advertised <strong>in</strong> various outdoor and <strong>in</strong>door<br />

locations <strong>in</strong> Bologna city. Simultaneously <strong>in</strong><br />

Dubai, BEAUTYISTANBUL was promoted<br />

to the professionals from derma cosmetics<br />

sector which is a sector that is recently grow<strong>in</strong>g<br />

at a fast pace <strong>in</strong> <strong>Turkey</strong>.<br />

After meet<strong>in</strong>g with potential buyers from<br />

private label sector and <strong>in</strong>vit<strong>in</strong>g them to<br />

BEAUTYISTANBUL <strong>in</strong> Moscow follow<strong>in</strong>g<br />

the last week of March, promotion activities<br />

cont<strong>in</strong>ued <strong>in</strong> Plovdiv-Bulgaria, Riga-Latvia,<br />

Kuala Lumpur-Malaysia, Shanghai-Ch<strong>in</strong>a,<br />

Kiev-Ukra<strong>in</strong>e and Mumbai-India. Activities<br />

<strong>in</strong> April began with meet<strong>in</strong>g Halal Cosmetics<br />

<strong>in</strong>dustry <strong>in</strong> Kuala Lumpur-Malaysia and cont<strong>in</strong>ued<br />

with perfume <strong>in</strong>dustry professionals <strong>in</strong><br />

Milano-Italy, along with cosmetic and beauty<br />

professionals <strong>in</strong> Almaty-Kazakhstan, Vilnius-Lithuania<br />

and Porto-Portugal dur<strong>in</strong>g the<br />

first week of April.<br />

April was an active period for BEAUTYIS-<br />

TANBUL, meet<strong>in</strong>g with cosmetics <strong>in</strong>gredients<br />

and raw materials professionals <strong>in</strong> Amsterdam<br />

also cosmetics and beauty importers,<br />

distributors <strong>in</strong> Ho Chi M<strong>in</strong>h City-Vietnam<br />

and cont<strong>in</strong>ued with promotion activities <strong>in</strong><br />

Moscow-Russia for beauty professionals along<br />

with distributors and importers <strong>in</strong> Nairobi-Kenya.<br />

Promotions of BEAUTYISTAN-<br />

BUL Exhibition for May and June period<br />

were launched with Dubai <strong>in</strong> a cosmetics and<br />

beauty exhibition where BEAUTYISTAN-<br />

BUL was on display <strong>in</strong> Dubai metro which<br />

drew great <strong>in</strong>terest from all visitors and exhibitors.<br />

Our team contacted buyers and distributors<br />

primarily from Middle East, Gulf, Arabic<br />

countries. In Seoul, South Korea simultaneously<br />

with the Dubai, BEAUTYISTANBUL<br />

team promoted our exhibition to numerous<br />

buyers and distributors from Asian countries.<br />

countries throughout <strong>2018</strong>!<br />

We display with pride that throughout the <strong>2018</strong>,<br />

BEAUTYISTANBUL 2019 showed exceptional<br />

performance and was promoted <strong>in</strong> 61 countries,<br />

like no other exhibition <strong>in</strong> the world! Proven by<br />

20 years of experience Ipekyolu team swiftly<br />

cont<strong>in</strong>ues its work all around the world.<br />

distributors and producers <strong>in</strong> the cosmetics<br />

and beauty <strong>in</strong>dustry. BEAUTYISTANBUL<br />

and Africa seem on the right track! We aga<strong>in</strong><br />

have been present <strong>in</strong> Africa between 28 July<br />

and 2 August, this time <strong>in</strong> Nigeria where we<br />

launched a comprehensive network with all<br />

the participants <strong>in</strong> Turkish-Nigerian Bus<strong>in</strong>ess<br />

Forum <strong>in</strong>clud<strong>in</strong>g professional buyers, producers<br />

and suppliers.<br />

BEAUTYISTANBUL cont<strong>in</strong>ues its promotions<br />

<strong>in</strong> August with various events <strong>in</strong>clud<strong>in</strong>g<br />

Sao Paulo. South America now has a clear<br />

vision of our organization and showed tremendous<br />

<strong>in</strong>terest to our exhibition. KOREA<br />

hosted us <strong>in</strong> the modern city of Seoul, where<br />

cosmetics and beauty are well <strong>in</strong>tegrated <strong>in</strong>to<br />

people’s lives. Promotions of August ended<br />

with pharmaceutical and beauty event.<br />

BEAUTYISTANBUL was present <strong>in</strong> the<br />

largest city of South Africa, <strong>in</strong> Johannesburg<br />

<strong>in</strong> September, dur<strong>in</strong>g a beauty exhibition<br />

that covers an <strong>in</strong>ternational participation of<br />

exhibitors.<br />

In the City of Lights, New York, dur<strong>in</strong>g an<br />

event dedicated to the aerosol, dispens<strong>in</strong>g,<br />

perfume BEAUTYISTANBUL got nicely<br />

smelled by the North American and South<br />

American participants. This time <strong>in</strong> Cambodia<br />

where the beauty market is grow<strong>in</strong>g<br />

significantly BEAUTYISTANBUL 2019 was<br />

<strong>in</strong>troduced to <strong>in</strong>dustry professionals. The<br />

organic and natural market is grow<strong>in</strong>g and<br />

renew<strong>in</strong>g its reference event <strong>in</strong> Italy, our team<br />

was <strong>in</strong> Bologna where European participants<br />

got to know clearly about BEAUTYISTAN-<br />

BUL 2019. New York and BEAUTYISTAN-<br />

BUL are show<strong>in</strong>g mutual <strong>in</strong>terest thanks to<br />

our attendance at the make-up exhibition<br />

dur<strong>in</strong>g September, it was a great pleasure<br />

present<strong>in</strong>g Istanbul and our 2019 event <strong>in</strong> the<br />

City of Lights.<br />

BEAUTYISTANBUL 2019. Approach<strong>in</strong>g to<br />

the end of October, BEAUTYISTANBUL<br />

team, participated <strong>in</strong> the event which was<br />

organized by the PLAT Association<br />

<strong>in</strong> Istanbul, our team<br />

was silver sponsor of that event.<br />

The Ipekyolu team work<strong>in</strong>g<br />

simultaneously all over the world<br />

cont<strong>in</strong>ued their work at a comprehensive<br />

event <strong>in</strong> Santiago, the<br />

beautiful city of Chile.<br />

Ipekyolu team, which has<br />

established strong relations with<br />

Lat<strong>in</strong> America, participated <strong>in</strong> an<br />

event <strong>in</strong> Cuba. The experienced<br />

and dynamic team of BEAUTY-<br />

ISTANBUL started its <strong>in</strong>ternational<br />

promotion activities of<br />

<strong>November</strong> <strong>in</strong> Dubai. Buyers and<br />

exhibitors from Gulf countries<br />

<strong>in</strong>troduced to BEAUTIYSTAN-<br />

BUL. Once aga<strong>in</strong>, BEAUTYIS-<br />

TANBUL were present <strong>in</strong> the<br />

trade center of Germany, Dusseldorf<br />

<strong>in</strong> a medical trade show<br />

where the team met professionals<br />

<strong>in</strong> the medical sector. The<br />

bus<strong>in</strong>ess center of Asia, Hong<br />

Kong hosted one of the biggest<br />

cosmetics exhibitions <strong>in</strong> the world<br />

where the BEAUTYISTANBUL<br />

2019 was promoted with a large<br />

team. Professional visitors and<br />

manufacturers from the Asian<br />

cont<strong>in</strong>ent felt the presence of<br />

BEAUTYISTANBUL and were<br />

briefed about the potential<br />

bus<strong>in</strong>ess opportunities. Nigeria<br />

is West Africa`s gates, open<strong>in</strong>g<br />

the way to meet professionals<br />

from that part of the cont<strong>in</strong>ent.<br />

BEAUTYISTANBUL team was<br />

welcomed with warm and highly<br />

positive feedback. Our work was<br />

appreciated by visitors and exhibitors<br />

dur<strong>in</strong>g a cosmetics event <strong>in</strong><br />

Lagos.<br />

BEAUTYISTANBUL team<br />

contacted European raw materials<br />

buyers and manufacturers<br />

<strong>in</strong> Milano, Italy and received<br />

significant attention, resum<strong>in</strong>g<br />

the worldwide presence and promotions.<br />

BEAUTYISTANBUL<br />

2019, the <strong>in</strong>ternational exhibition<br />

for cosmetics, beauty, hair, private<br />

label, packag<strong>in</strong>g and <strong>in</strong>gredients<br />

will welcome its professional<br />

guests on 2-3-4 October 2019, <strong>in</strong><br />

Istanbul, <strong>Turkey</strong>. The show will<br />

br<strong>in</strong>g together 400 exhibitors<br />

from 40 countries along with<br />

over 8.000 professional buyers<br />

and distributors from more than<br />

120 countries. Hope to see you<br />

at BEAUTYISTANBUL on October<br />

2 – 3 – 4 2019 <strong>in</strong> Istanbul,<br />

one of the world’s most attractive<br />

cities! www.beauty-istanbul.com<br />

– T. +90-212.222.90.60<br />

At the same time, our team was present<br />

<strong>in</strong> Sao Paulo-Brazil BEAUTYISTANBUL<br />

was promoted to beauty professionals from<br />

all over South America. Through the end<br />

of May, BEAUTYISTANBUL team was <strong>in</strong><br />

Amsterdam-Netherlands for the private label<br />

exhibition..<br />

BEAUTYISTANBUL carried out promotions<br />

<strong>in</strong> various exhibitions all over the<br />

world with no exception <strong>in</strong> June, start<strong>in</strong>g with<br />

Mexico. Our team was present <strong>in</strong> Delhi-India<br />

beauty exhibition which occurred concurrently<br />

with Mexico. Saloon and spa professionals<br />

were <strong>in</strong>formed about BEAUTYISTANBUL<br />

2019 and showed great <strong>in</strong>terest to our exhibition.<br />

Latest visits of the month <strong>in</strong>cluded<br />

Johannesburg-South Africa general trade<br />

show which <strong>in</strong>cludes cosmetics and beauty<br />

as well. As we express, the African market is<br />

vital for BEAUTYISTANBUL. After, BEAU-<br />

TYISTANBUL was <strong>in</strong> West Africa to attend a<br />

cosmetics exhibition organized <strong>in</strong> Porto Novo.<br />

Ben<strong>in</strong> was a bridge to enlarge our network <strong>in</strong><br />

the African market which is known with its<br />

natural beauty products. July ended with an<br />

event <strong>in</strong> Las Vegas where the team marked<br />

its presence and promoted BEAUTYIS-<br />

TANBUL 2019 to a wide variety of retailers,<br />

The lead<strong>in</strong>g event <strong>in</strong> Lat<strong>in</strong> America for<br />

personal care and <strong>in</strong>gredients took place<br />

<strong>in</strong> Brazil dur<strong>in</strong>g September. BEAUTYIS-<br />

TANBUL was one of the first comers to<br />

Lat<strong>in</strong> America as we always do. BEAUTY-<br />

ISTANBUL has made its mark <strong>in</strong> Bolivia at<br />

an exhibition through the end of September<br />

<strong>2018</strong>, target<strong>in</strong>g buyers and companies from<br />

the region our team <strong>in</strong>vited a lof of bus<strong>in</strong>ess<br />

people to Istanbul.<br />

Our team was <strong>in</strong> Warsaw aga<strong>in</strong> on 26th and<br />

27th September <strong>2018</strong>. The exhibitors praised<br />

the visitors’ excellent professional quality<br />

and BEAUTYISTANBUL demonstrated its<br />

<strong>in</strong>ternational appeal. Beg<strong>in</strong><strong>in</strong>g of the October<br />

our team spent <strong>in</strong> Monaco, the impressive<br />

city of France. We presented our project –<br />

BEUATYISTANBUL 2019 to important<br />

producers and visitors that were attend<strong>in</strong>g<br />

packag<strong>in</strong>g exhibition.<br />

Follow<strong>in</strong>g the event <strong>in</strong> France, BEAU-<br />

TYISTANBUL team visited exhibition <strong>in</strong><br />

Moscow, the largest perfumery and cosmetic<br />

event <strong>in</strong> Central and Eastern Europe. Moscow<br />

is be<strong>in</strong>g the one of the most important<br />

doors to CIS countries. Ipekyolu team met<br />

with leaders of <strong>in</strong>dustry and <strong>in</strong>vited them to


<strong>November</strong><br />

<strong>December</strong><br />

<strong>2018</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 />

Over 70 pct of <strong>Turkey</strong>’s foreign <strong>in</strong>vestments<br />

from Europe <strong>in</strong> 16 years<br />

The Turkish economy attracted<br />

$201.3 billion <strong>in</strong> foreign direct<br />

<strong>in</strong>vestment (FDI) and $152.1 billion<br />

capital <strong>in</strong>flow for the period from<br />

2002 to August <strong>2018</strong>. When broken<br />

<strong>in</strong>to regions, 73.8 percent of the<br />

capital <strong>in</strong>flow came from European<br />

countries, accord<strong>in</strong>g to Industry and<br />

Technology M<strong>in</strong>istry data.<br />

PayU chooses <strong>Turkey</strong><br />

as regional center<br />

Global brands are closely watch<strong>in</strong>g <strong>Turkey</strong> where many new<br />

global and local technologies are be<strong>in</strong>g used <strong>in</strong> the bank<strong>in</strong>g and<br />

f<strong>in</strong>ancial technology sectors. There are global companies such as<br />

PayU that choose <strong>Turkey</strong> as their regional center as opposed to<br />

companies that withdraw from <strong>Turkey</strong> upon sudden decisions.<br />

PayU, which provides more than 250 local payment methods to<br />

more than 100,000 bus<strong>in</strong>esses, is celebrat<strong>in</strong>g its seventh year <strong>in</strong><br />

the Turkish market. Stat<strong>in</strong>g that PayU will <strong>in</strong>crease its <strong>in</strong>vestments<br />

<strong>in</strong> <strong>Turkey</strong>, CEO of PayU EMEA Mario Shiliashki said,<br />

“We’re not like those who are scared and[therefore] will cont<strong>in</strong>ue<br />

to <strong>in</strong>vest <strong>in</strong> <strong>Turkey</strong>. There are important opportunities <strong>in</strong><br />

<strong>Turkey</strong>. Our annual growth has consistently been surpris<strong>in</strong>gly<br />

good. <strong>Turkey</strong> is one of our primary markets. Moreover we can<br />

see that the startup ecosystem is matur<strong>in</strong>g and will cont<strong>in</strong>ue our<br />

<strong>in</strong>vestments <strong>in</strong> <strong>Turkey</strong>.”<br />

The Turkish economy received $112.3<br />

billion from European countries <strong>in</strong><br />

that period followed by Asian counties<br />

that accounted for 17 percent of total<br />

capital <strong>in</strong>flow, while the U.S. accounted for<br />

8.4 percent of accumulated foreign capital<br />

enter<strong>in</strong>g <strong>Turkey</strong>.<br />

Among European countries, the Netherlands<br />

was the top <strong>in</strong>vestor with $24.2 billion,<br />

or 15.9 percent of foreign direct capital<br />

<strong>in</strong>flow to <strong>Turkey</strong> over the last 16 years.<br />

Capital from the U.S. totaled to $11.5 billion,<br />

followed by Austria <strong>in</strong> third with $10.5<br />

billion capital <strong>in</strong>vestment <strong>in</strong> the Turkish<br />

economy.<br />

In terms of sectoral distribution, the<br />

tertiary sector accounted for 61.9 percent<br />

of total foreign <strong>in</strong>vestments from 2002<br />

through August <strong>2018</strong>.The manufactur<strong>in</strong>g<br />

sector and energy <strong>in</strong>dustry attracted 23.7<br />

percent and 11.8 percent of total foreign<br />

direct <strong>in</strong>vestments, respectively. F<strong>in</strong>ance<br />

and <strong>in</strong>surance topped the list of service<br />

sector <strong>in</strong>vestments, receiv<strong>in</strong>g 34.2 percent<br />

of all foreign <strong>in</strong>vestments <strong>in</strong> <strong>Turkey</strong>. The<br />

telecommunications sector came second<br />

with 8.3 percent, while the wholesale-retail<br />

and transportation-storage sectors, claimed<br />

6.1 percent and 4.5 percent, respectively,<br />

of foreign direct <strong>in</strong>vestments. International<br />

Investors Association (YASED) Chairman<br />

Ahmet Erdem said <strong>Turkey</strong> offers great<br />

potential and attractive opportunities for all<br />

<strong>in</strong>ternational direct <strong>in</strong>vestors, particularly<br />

Europeans.<br />

By the end of September, <strong>Turkey</strong> had<br />

received $8 billion <strong>in</strong> foreign direct <strong>in</strong>vestments.<br />

European countries claimed the<br />

lion’s share: nearly 70 percent of the total<br />

FDI <strong>in</strong> the first n<strong>in</strong>e months of the year,<br />

Erdem noted. YASED Chairman Erdem<br />

stressed that the Turkish economy’s ability<br />

to <strong>in</strong>crease FDI from global markets<br />

will depend on concrete steps to improve<br />

the <strong>in</strong>vestment climate, do<strong>in</strong>g<br />

bus<strong>in</strong>ess and progress <strong>in</strong> structural<br />

reforms. “The energy, manufactur<strong>in</strong>g,<br />

e-commerce, health and f<strong>in</strong>ancial<br />

sectors receive the highest amount<br />

of foreign <strong>in</strong>vestment. But the development<br />

of venture capital funds and<br />

angel <strong>in</strong>vestors have also accelerated<br />

<strong>in</strong>vestments <strong>in</strong> technology, mobile<br />

services and the <strong>in</strong>ternet. In addition<br />

to traditional sectors like manufactur<strong>in</strong>g<br />

and <strong>in</strong>frastructure, the technology<br />

and energy sectors are also attractive<br />

candidates to receive foreign direct<br />

<strong>in</strong>vestment next year,” Erdem concluded.<br />

Ankara, Sofia<br />

sign cooperation<br />

<strong>in</strong>vestment pact<br />

The Turkish and Bulgarian<br />

<strong>in</strong>vestment offices signed a cooperation<br />

agreement. The pact was<br />

signed by Trade M<strong>in</strong>ister Ruhsar<br />

Pekcan and Bulgaria’s Economy<br />

M<strong>in</strong>ister Emil Karanikolov <strong>in</strong> the<br />

capital Sofia.<br />

Say<strong>in</strong>g the two countries have<br />

balanced bilateral trade, Pekcan<br />

added that last year <strong>Turkey</strong>’s exports<br />

to Bulgaria were $2.8 billion,<br />

while imports from the country<br />

also totaled $2.8 billion.<br />

“But this figures do not reflect<br />

the neighbor<strong>in</strong>g countries’ potential,”<br />

she said. Pekcan said Turkish<br />

bus<strong>in</strong>esspeople have $2 billion <strong>in</strong><br />

<strong>in</strong>vestments <strong>in</strong> Bulgaria.<br />

“We <strong>in</strong>vite Bulgarian <strong>in</strong>vestors<br />

to <strong>Turkey</strong>, and we will be pleased<br />

to see more Turkish bus<strong>in</strong>esspeople<br />

<strong>in</strong> Bulgaria,” she underl<strong>in</strong>ed. The<br />

two countries will hold jo<strong>in</strong>t economic<br />

cooperation meet<strong>in</strong>gs, she<br />

stated. Dur<strong>in</strong>g her visit to Sofia,<br />

Pekcan also met with Bulgarian<br />

Prime M<strong>in</strong>ister Boyko Borisov<br />

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

Goranov. She also attended the<br />

<strong>Turkey</strong>-Bulgaria Bus<strong>in</strong>ess Forum,<br />

with the participation of over 500<br />

Turkish and Bulgarian bus<strong>in</strong>esspeople,<br />

organized by the Turkish<br />

Foreign Economic Relations Board<br />

(DEİK).<br />

Private sector<br />

loans from abroad<br />

down <strong>in</strong> September<br />

Turkish outstand<strong>in</strong>g private sector loans<br />

from abroad fell <strong>in</strong> September compared to<br />

the end of 2017, the Central Bank of the Republic<br />

of <strong>Turkey</strong> (CBRT) announced.<br />

Exclud<strong>in</strong>g trade credits, private sector<br />

short-term loans were $16.5 billion, a $2<br />

billion decl<strong>in</strong>e from the end of last year, as<br />

76.4 percent consists of liabilities of f<strong>in</strong>ancial<br />

<strong>in</strong>stitutions, accord<strong>in</strong>g to the CBRT.<br />

As of September, long-term loans amounted<br />

to $216.6 billion, down $5.3 billion for the<br />

same period, while non-f<strong>in</strong>ancial <strong>in</strong>stitutions’<br />

share was 51.4 percent.<br />

“Regard<strong>in</strong>g the currency composition of<br />

total long-term loans of $216.6 billion, 60.3<br />

percent consists of U.S. dollars, 34.7 percent<br />

consists of euros, 3.4 percent consists of<br />

Turkish liras and 1.6 percent consists of other<br />

currencies,” the bank said.<br />

“And of the total short-term loans <strong>in</strong> the<br />

amount of $16.5 billion, 46.5 percent consists<br />

of U.S. dollars, 34.1 percent consists of euros,<br />

19.3 percent consists of Turkish liras and 0.1<br />

percent consists of other currencies,” it added.<br />

The bank also said that pr<strong>in</strong>cipal repayments<br />

of the private sector’s total outstand<strong>in</strong>g<br />

loans received from abroad amount to $66.3<br />

billion for the next 12 months.<br />

October 2 - 3 - 4, 2019<br />

Tel: +90 212 2229060 Fax: +90 212 6033134 - <strong>in</strong>fo@beauty-istanbul.com<br />

<strong>Turkey</strong> to host almost<br />

50 mln tourists <strong>in</strong> 2019<br />

<strong>Turkey</strong> will host around 50 million<br />

tourists <strong>in</strong> 2019, Culture and Tourism<br />

M<strong>in</strong>ister Mehmet Nuri Ersoy said. Speak<strong>in</strong>g<br />

at the open<strong>in</strong>g of the Turkish pavilion<br />

at the World Tourism Market <strong>2018</strong> <strong>in</strong><br />

London, Ersoy said the m<strong>in</strong>istry projected<br />

a 30 or 35 percent <strong>in</strong>crease <strong>in</strong> the<br />

number of British tourists visit<strong>in</strong>g <strong>Turkey</strong><br />

<strong>in</strong> <strong>2018</strong>.<br />

This target will be reached if book<strong>in</strong>gs<br />

cont<strong>in</strong>ue with the same pace, the m<strong>in</strong>ister<br />

added. Ersoy also said the number<br />

of foreign tourists visit<strong>in</strong>g <strong>Turkey</strong> would<br />

pass the 40 million mark <strong>in</strong> <strong>2018</strong>. “I am<br />

expect<strong>in</strong>g a 23 percent <strong>in</strong>crease next<br />

year. I hope we will reach the target of 48<br />

million [tourists],” he added. Speak<strong>in</strong>g to<br />

the representatives of tourism sector, Ersoy<br />

said they will <strong>in</strong>crease the m<strong>in</strong>istry’s<br />

budget to promote Turkish tourism and<br />

“the United K<strong>in</strong>gdom and Germany will<br />

be the ma<strong>in</strong> promotion po<strong>in</strong>ts.” He said<br />

Russian speak<strong>in</strong>g countries and Arabic<br />

countries will be the next targets for promot<strong>in</strong>g<br />

<strong>Turkey</strong> as a tourism dest<strong>in</strong>ation.<br />

Ersoy said <strong>Turkey</strong> has provided city<br />

breaks, cultural and health tourism<br />

besides mass tourism, and it has caught<br />

a ris<strong>in</strong>g tide <strong>in</strong> the tourism sector. Later,<br />

Ersoy later met his Bulgarian counterpart<br />

Nikol<strong>in</strong>a Angelkova and representatives<br />

of the Turkish tourism sector before leav<strong>in</strong>g<br />

the U.K. The World Travel Market is<br />

an annual event, which hosts thousands<br />

of people and br<strong>in</strong>gs tourism professionals<br />

from across the globe together.


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>November</strong><br />

<strong>December</strong><br />

<strong>2018</strong><br />

Aslandağ Group leads <strong>in</strong>dustry’s<br />

future with its experience<br />

Aslandağ Group renders services with its<br />

various brands <strong>in</strong> the furniture and wooden<br />

door ındustry s<strong>in</strong>ce 1980. We talked Cemal<br />

Aslandağ, CEO of Aslandağ Group which<br />

<strong>in</strong>herited from family seniors and an accomplished<br />

a lead<strong>in</strong>g position <strong>in</strong> the ındustry.<br />

Let’s start to know more about Aslandağ<br />

Group. How did Aslandağ Group enter <strong>in</strong><br />

the <strong>in</strong>dustry?<br />

As a family bus<strong>in</strong>ess the foundations of<br />

Aslandağ Group were laid by the carpentry<br />

bus<strong>in</strong>ess that is profession of our father Saadett<strong>in</strong><br />

Aslandağ <strong>in</strong> Kastamonu. The carpentry<br />

workshop <strong>in</strong>herited by 4 sons has taken part<br />

among the most lead<strong>in</strong>g companies of <strong>Turkey</strong><br />

<strong>in</strong> the course of time. We have currently been<br />

cont<strong>in</strong>u<strong>in</strong>g our production <strong>in</strong> our factory of<br />

30,000sqm, which we would have been do<strong>in</strong>g<br />

<strong>in</strong> a small workshop of 70smq <strong>in</strong> Istanbul <strong>in</strong><br />

early 80’s.<br />

Did you want to cont<strong>in</strong>ue with carpentry<br />

bus<strong>in</strong>ess when you came to İstanbul?<br />

We have been mak<strong>in</strong>g design workshop<br />

bus<strong>in</strong>ess s<strong>in</strong>ce we first got to İstanbul. In 2005<br />

we built up our own brand and we took place<br />

<strong>in</strong> the <strong>in</strong>dustry as Artella Kapı. We put our<br />

first factory <strong>in</strong>to operation <strong>in</strong> 2005, too. When<br />

it comes to Tresette, it’s another brand put<br />

<strong>in</strong>to operation <strong>in</strong> 2016.<br />

When furniture is mentioned sitt<strong>in</strong>g<br />

groups come to m<strong>in</strong>d first. Generally<br />

kitchen and doors are thought out of<br />

furniture. Can you expla<strong>in</strong> your furniture<br />

def<strong>in</strong>ition and the place of Artella Wooden<br />

Door Systems <strong>in</strong> the <strong>in</strong>dustry?<br />

Furniture takes up enormous place <strong>in</strong> all<br />

areas of human life. The most important<br />

group for us, is fixed furniture such as door<br />

and kitchen. Besides we built a 4A Collection<br />

which is new concept of merchandiz<strong>in</strong>g. We<br />

are realiz<strong>in</strong>g sales by assum<strong>in</strong>g the distributorship<br />

of 4A Collection’s.<br />

“4A Collection, which is a part of merchandis<strong>in</strong>g<br />

system, is our brand founded for<br />

gett<strong>in</strong>g pace with time. 4A Collection has<br />

been render<strong>in</strong>g service at our stores <strong>in</strong> Caddebostan<br />

and Etiler.”<br />

How are your export operations?<br />

We have been export<strong>in</strong>g to 16 countries<br />

and we are at a good position. Our target is to<br />

grow the markets we are active. Our furniture<br />

generally welcomes good demand. Competition<br />

dom<strong>in</strong>ates <strong>in</strong> the furniture <strong>in</strong>dustry as <strong>in</strong><br />

all <strong>in</strong>dustries.<br />

Raw materials are very important <strong>in</strong><br />

this <strong>in</strong>dustry. How do you provide raw<br />

materials?<br />

Upon America’s impos<strong>in</strong>g quotas on alum<strong>in</strong>um<br />

and steel <strong>Turkey</strong> has also made a similar<br />

application. We import wood raw material<br />

from America. The price of raw material<br />

<strong>in</strong> <strong>Turkey</strong> was also raised because of 22 %<br />

quota. We are depended on foreign countries<br />

at raw materials because we can’t use our<br />

forests good enough. We hope this situation,<br />

which affects product prices, gets better.<br />

If we want you to detail this issue more<br />

how can we make use of our forests<br />

better?<br />

It is impossible for our forest not to develop<br />

if they are managed properly. Our country<br />

has the potential of produc<strong>in</strong>g substructure.<br />

We should better benefit from technology to<br />

evaluate this potential.<br />

We know the importance <strong>in</strong> every stage of<br />

production. Do you have any difficulty to<br />

hire quality personnel?<br />

F<strong>in</strong>d<strong>in</strong>g qualified staff is the biggest<br />

Cemal Aslandağ, CEO of Aslandağ Group<br />

problem <strong>in</strong> every <strong>in</strong>dustry. Actually, if we can<br />

adapt the vocational high schools to the departments<br />

<strong>in</strong> the university we can overcome<br />

this situation. I can say that the youth should<br />

be down on the ground for know<strong>in</strong>g more of<br />

real life. My advice to the youth is that, they<br />

have to learn facts about their profession.<br />

Turkish people are familiar with wood and<br />

the statue.<br />

We had learnt that you also have some<br />

projects <strong>in</strong> the field of education. Would<br />

you tell us about your studies <strong>in</strong> this field?<br />

As Aslandag Group we have had built<br />

a classroom <strong>in</strong> Yakacik Vocational School.<br />

Students from this school come to our firm<br />

at certa<strong>in</strong> days of the week and f<strong>in</strong>d opportunities<br />

to watch the works runn<strong>in</strong>g <strong>in</strong> the field<br />

as part of the agreement we signed with the<br />

m<strong>in</strong>istry of education. Unfortunately, older<br />

mach<strong>in</strong>es are used <strong>in</strong> these vocational schools<br />

for the practice of the students. It is hard to<br />

buy latest technology mach<strong>in</strong>ery for public<br />

schools. In our premises, students both meet<br />

with latest technologies and ga<strong>in</strong> experiences<br />

before their professional lives.<br />

Would you mention about the accolade for<br />

students that focus on door and kitchen<br />

design?<br />

Door and kitchen cannot be separated.<br />

These two products are first designed at the<br />

Saadett<strong>in</strong> Aslandağ<br />

beg<strong>in</strong>n<strong>in</strong>g of the project, though that can be<br />

modified later on <strong>in</strong> the production process.<br />

In retail sales, kitchens are designed specific<br />

to the <strong>in</strong>dividual. In mass orders, they<br />

are grouped as 2+1 or 3+1 then orders are<br />

mass-produced <strong>in</strong> the factory.<br />

Which is more <strong>in</strong> your customer profiles,<br />

the <strong>in</strong>dividual designs or designs for mass<br />

production?<br />

Mass projects are more at present. As an<br />

example I can say that 70% of build<strong>in</strong>gs on<br />

Bagdat Avenue use our products. As branded<br />

projects, our products are preferred by<br />

Emaar Square and Skyland. Now we now<br />

produce for Piyalepasa Istanbul project. Yedi<br />

Mavi and Buyuk Yali are other projects that<br />

we signed contracts for.<br />

Will you tell about your company’s growth<br />

policy?<br />

We prefer to grow on our own resources.<br />

We have a land of 40,000 sqm <strong>in</strong> Kaynarca<br />

Organized Industrial Zone for furniture. We<br />

plan to build a factory by the year 2023. It is<br />

hard to grow under the current circumstances<br />

<strong>in</strong> <strong>Turkey</strong>. We are stepp<strong>in</strong>g securely to our<br />

targets.<br />

What are your plans for the future?<br />

Share of exports is about 20 percent. We<br />

aim to raise it to 50% and to sell <strong>in</strong> world<br />

markets. We aim to be a global brand to<br />

improve our brand awareness <strong>in</strong> abroad and<br />

<strong>in</strong>crease our capital share even more.<br />

Does foreign companies’ com<strong>in</strong>g to<br />

domestic market mean a threat for your<br />

bus<strong>in</strong>ess?<br />

S<strong>in</strong>ce <strong>Turkey</strong> has become a hub for<br />

production, currency fluctuations mean a<br />

disadvantage for foreign companies. There<br />

are segments that prefer markets abroad,<br />

there will be <strong>in</strong> the future as well. But, those<br />

who prefer foreign markets are dim<strong>in</strong>ish<strong>in</strong>g.<br />

For example, there were about 10 importer<br />

companies <strong>in</strong> door bus<strong>in</strong>ess when we began to<br />

produce branded doors <strong>in</strong> 2005. Today, none<br />

of those companies exists. We made a good<br />

progress <strong>in</strong> the door <strong>in</strong>dustry.<br />

What are your expectations from the<br />

State?<br />

First of all, we wait for stability <strong>in</strong> economy.<br />

Stability and trust are important for us.<br />

Besides, VAT is still a burden on our shoulders.<br />

It causes a gap between costs and prices.<br />

Rates for VAT should be reduced to a reasonable<br />

level. (Editor’s note: Recently.it was cut<br />

down to 8% for furniture sales.)<br />

Lastly, what do you want to add more?<br />

You know that the construction <strong>in</strong>dustry<br />

had some problems recently. We mostly serve<br />

to this <strong>in</strong>dustry. Cash needs are still press<strong>in</strong>g.<br />

We th<strong>in</strong>k that when the construction and real<br />

estate sectors become active aga<strong>in</strong>, we will<br />

also feel more comfortable.<br />

Turkish government<br />

extends free of charge<br />

space allocations at<br />

<strong>in</strong>dustrial zones<br />

The scope of free of charge<br />

spaces <strong>in</strong> <strong>Turkey</strong>’s organized<br />

<strong>in</strong>dustrial zones has been<br />

extended, a decision by the<br />

Industry and Technology M<strong>in</strong>istry<br />

has shown.<br />

Accord<strong>in</strong>g to the decision,<br />

which was released on the<br />

Official Gazette on Nov. 2, the<br />

spaces<br />

<strong>in</strong>-<br />

at the organized<br />

dustrial<br />

zones <strong>in</strong><br />

fourthranked<br />

districts<br />

will<br />

be<br />

allocated<br />

without<br />

any fees.<br />

This move was one of<br />

the measures <strong>in</strong> a package<br />

announced by Industry and<br />

Technology M<strong>in</strong>ister Mustafa<br />

Varank who previously vowed<br />

to fight “the attacks aga<strong>in</strong>st<br />

the Turkish economy.”<br />

Accord<strong>in</strong>g to the decision,<br />

the exist<strong>in</strong>g “free of charge”<br />

space allocation will cont<strong>in</strong>ue<br />

to be applied to the<br />

fifth-ranked and sixth-ranked<br />

districts. Rent discounts <strong>in</strong><br />

the organized <strong>in</strong>dustrial zones<br />

which are located <strong>in</strong> the<br />

second-ranked and thirdranked<br />

districts have also been<br />

extended to 60 percent and<br />

80 percent, respectively, from<br />

a previous 40 percent and 60<br />

percent.<br />

The decision aims to<br />

further raise production<br />

and employment by fuel<strong>in</strong>g<br />

<strong>in</strong>vestments <strong>in</strong> the organized<br />

<strong>in</strong>dustrial zones.<br />

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

development ga<strong>in</strong>s<br />

momentum<br />

<strong>Turkey</strong>’s pace of development<br />

has ga<strong>in</strong>ed momentum<br />

with the adoption of the presidential<br />

system, the country’s<br />

Vice President said .<br />

Speak<strong>in</strong>g at the 32nd<br />

Asia-Pacific Chambers of<br />

Commerce and Industry<br />

(CACCI) conference, Fuat<br />

Oktay said <strong>Turkey</strong> “demonstrates<br />

a firm stance to ensure<br />

the confidence of global<br />

economic actors” with its new<br />

economic program.<br />

“<strong>Turkey</strong> is a country open to<br />

competition and <strong>in</strong>ternational<br />

<strong>in</strong>vestors,” he added.<br />

“In our country, a historic<br />

success has been demonstrated<br />

<strong>in</strong> the field of economy <strong>in</strong><br />

the last 16 years. Employment<br />

has reached 28.8 million from<br />

19.6 million, which means 9.2<br />

million new jobs were produced<br />

<strong>in</strong> 16 years,” he added.<br />

The vice president said that<br />

<strong>Turkey</strong> is not just a transportation<br />

and energy corridor<br />

between Asia and Europe but<br />

also a strong economic partner<br />

that constantly develops while<br />

encounter<strong>in</strong>g difficulties.<br />

“Our country is <strong>in</strong> a position<br />

to be a base of production<br />

and trade to cover a wide<br />

geography,” he said.<br />

Oktay said that <strong>Turkey</strong>, with<br />

its young and qualified labor<br />

resources, domestic market<br />

capacity, steadily develop<strong>in</strong>g<br />

<strong>in</strong>frastructure <strong>in</strong> the region,<br />

discipl<strong>in</strong>ed f<strong>in</strong>ancial sector<br />

and competitive private sector<br />

has become an important<br />

economic actor <strong>in</strong> the world.<br />

“The confidence of <strong>in</strong>ternational<br />

<strong>in</strong>vestors <strong>in</strong> our country<br />

cont<strong>in</strong>ues to grow stronger,”<br />

he added.<br />

<strong>Turkey</strong>’s net <strong>in</strong>vestment<br />

position improves<br />

<strong>Turkey</strong>’s net <strong>in</strong>ternational<br />

<strong>in</strong>vestment position (NIIP)<br />

improved <strong>in</strong> September as compared<br />

to the figures at the end<br />

of 2017, the country’s central<br />

bank said. The gap between<br />

<strong>Turkey</strong>’s assets abroad and<br />

liabilities – the NIIP – narrowed<br />

27 percent <strong>in</strong> September from<br />

the end of 2017, accord<strong>in</strong>g to<br />

the Central Bank of the Republic<br />

of <strong>Turkey</strong> (CBRT). The NIIP<br />

was m<strong>in</strong>us $338.9 billion <strong>in</strong> the<br />

month while it was m<strong>in</strong>us $461.8<br />

billion at the end of last year.<br />

“External assets recorded $226.3<br />

billion <strong>in</strong>dicat<strong>in</strong>g a decrease of<br />

2.8 percent compared to the end<br />

of 2017 and liabilities aga<strong>in</strong>st<br />

non-residents recorded $565.2<br />

billion <strong>in</strong>dicat<strong>in</strong>g a decrease of<br />

18.6 percent,” the bank said <strong>in</strong> a<br />

statement. Show<strong>in</strong>g a snapshot<br />

<strong>in</strong> time, the NIIP – which can<br />

be either positive or negative –<br />

is the value of overseas assets<br />

owned by a nation, m<strong>in</strong>us the<br />

value of domestic assets owned<br />

by foreigners, <strong>in</strong>clud<strong>in</strong>g overseas<br />

assets and liabilities held by a<br />

nation’s government, the private<br />

sector and its citizens. <strong>Turkey</strong>’s<br />

reserve assets slipped 21.4<br />

percent to reach $84.7 billion,<br />

while other <strong>in</strong>vestment rose 18.1<br />

percent to $90.3 billion dur<strong>in</strong>g<br />

the same period. “Currency and<br />

deposits of banks, one of the<br />

sub-items of other <strong>in</strong>vestment,<br />

recorded $47.9 billion <strong>in</strong>dicat<strong>in</strong>g<br />

an <strong>in</strong>crease of 37.2 percent<br />

compared to the end of 2017,”<br />

the bank said. On the liabilities<br />

side, direct <strong>in</strong>vestment – equity<br />

capital plus other capital – as of<br />

the end of September amounted<br />

to $112.3 billion, down 42.7 percent<br />

from the end of 2017 “with<br />

the contribution of the changes<br />

<strong>in</strong> the market value and foreign<br />

exchange rates,” it added.<br />

Total foreign loan stock of the<br />

banks reached to $85.8 billion,<br />

down 9.5 percent compared<br />

to the end of 2017 while total<br />

external loan stock of the other<br />

sectors was $110.1 billion, ris<strong>in</strong>g<br />

1.7 percent.


<strong>November</strong><br />

<strong>December</strong><br />

<strong>2018</strong><br />

Monthly Economic Newspaper 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 />

Turkish cosmetics <strong>in</strong>dustry targets<br />

to boost its export to Far East<br />

Cosmoprof Asia, the largest cosmetics fair of<br />

the Far East, was held <strong>in</strong> Hong Kong, 14-16<br />

<strong>November</strong> <strong>2018</strong>. Accord<strong>in</strong>g to the Istanbul<br />

Chemicals and Chemical Products Exporters’<br />

Association (IKMIB), a total of 18 Turkish<br />

companies jo<strong>in</strong>ed Cosmoprof Asia fair, held<br />

for the 8 th time this year <strong>in</strong> the framework of<br />

national participation organization of <strong>Turkey</strong>.<br />

The participat<strong>in</strong>g companies held some 400<br />

bilateral bus<strong>in</strong>ess meet<strong>in</strong>gs at the fair.<br />

The 23rd edition of Cosmoprof Asia, held<br />

<strong>in</strong> Hong Kong, 14-16 <strong>November</strong> <strong>2018</strong>, thirteen<br />

members of İKMİB’s National Participation<br />

Organization jo<strong>in</strong>ed the event while<br />

five others participated <strong>in</strong>dividually. <strong>Turkey</strong>’s<br />

Consul General <strong>in</strong> Hong Kong Korhan<br />

Kemik, <strong>Turkey</strong>-Hong Kong Trade Attaché<br />

Merve Yılmazcan, İKMİB Vice Chairman<br />

M. İmer Özer and İKMİB Board Member<br />

Uğur Adıyaman visited the booths of the<br />

participat<strong>in</strong>g Turkish companies.<br />

“Participation <strong>in</strong> exhibitions is an<br />

opportunity”<br />

İKMİB Vice Chairman M. İmer Özer said<br />

that participat<strong>in</strong>g <strong>in</strong> <strong>in</strong>ternational fairs is of<br />

great importance to be more active <strong>in</strong> the far<br />

eastern market. “Through the Hong Kong<br />

fair, our cosmetic exporters can evaluate<br />

the Ch<strong>in</strong>ese market. Fairs are great opportunities<br />

to enter new markets and conduct<br />

promotional activities,” he said.<br />

Cosmetic products promoted<br />

The participat<strong>in</strong>g companies held some<br />

400 bilateral bus<strong>in</strong>ess meet<strong>in</strong>gs at the fair<br />

where the cosmetic products, perfumery,<br />

sk<strong>in</strong> care and personal hygiene products, spa<br />

products, packages, beauty shop products<br />

were promoted. As a result of the meet<strong>in</strong>gs,<br />

it is expected that <strong>Turkey</strong>’s export related<br />

to cosmetics <strong>in</strong>dustry will <strong>in</strong>crease to Hong<br />

Kong and Ch<strong>in</strong>a, one of the world’s largest<br />

importers <strong>in</strong> the cosmetics <strong>in</strong>dustry.<br />

Over 80,000 visitors<br />

There were about 3 thousand participants<br />

from 22 countries and over 80 thousand visitors<br />

were welcomed <strong>in</strong> the Cosmoprof Asia<br />

fair, an <strong>in</strong>ternational event <strong>in</strong> the professional<br />

beauty, personal care and cosmetics<br />

<strong>in</strong>dustry.<br />

18 companies participated from <strong>Turkey</strong><br />

Thirteen members of İKMİB’s National<br />

Participation Organization jo<strong>in</strong>ed the event<br />

such as Akten Cosmetics, Altona Cosmetics,<br />

Derma-Cos Pharmaceuticals Medical and<br />

Cosmetics, Dogus Cosmetics, Erte Cosmetics,<br />

Giz Cosmetics, Hunca Cosmetics,<br />

Kurtsan İlaçları, Lider Cosmetics, Olivos,<br />

P<strong>in</strong>kar Kimya, P<strong>in</strong>kim Cosmetics and Talya<br />

Natural Products; while five others participated<br />

<strong>in</strong>dividually such as Foneks, Eyüp<br />

Sabri Tuncer, Flormar, BFF and Kozmotek.<br />

Russian tourists to<br />

<strong>Turkey</strong> hit record high<br />

The number of Russian<br />

tourists visit<strong>in</strong>g <strong>Turkey</strong> has hit<br />

a record high, the Russian envoy<br />

said. Aleksey Yerhov said:<br />

“Some 4.7 million Russian<br />

tourists visited <strong>Turkey</strong> last year<br />

and we expect the figure to<br />

reach 5.5 million this year.”<br />

He was speak<strong>in</strong>g at a forum<br />

on <strong>Turkey</strong>-Russia relations was<br />

held at the Yildirim Beyazit<br />

University <strong>in</strong> the Turkish capital<br />

Ankara. Yerhov said <strong>Turkey</strong>’s<br />

President Recep Tayyip<br />

Erdogan and his Russian counterpart<br />

Vladimir Put<strong>in</strong> had met<br />

six times this year, <strong>in</strong> a sign of<br />

deepen<strong>in</strong>g of ties between the<br />

countries. Also bilateral trade<br />

had <strong>in</strong>creased, he said.<br />

Not<strong>in</strong>g the strategic importance<br />

of TurkStream, a gas<br />

pipel<strong>in</strong>e from Russia to <strong>Turkey</strong>,<br />

and Akkuyu nuclear power<br />

plant projects, built by Russia<br />

<strong>in</strong> <strong>Turkey</strong>, he said the two<br />

countries will also ga<strong>in</strong> from<br />

talks on Syria. Presidential<br />

spokesman Ibrahim Kal<strong>in</strong> and<br />

several Russian and Turkish<br />

bureaucrats and academics<br />

attended the event.<br />

Turkish-Russian trade <strong>in</strong> local<br />

currencies ‘necessary’<br />

The use of local currencies<br />

<strong>in</strong> trade between <strong>Turkey</strong> and<br />

Russia is “necessary”, Russian<br />

deputy m<strong>in</strong>ister of <strong>in</strong>dustry<br />

and trade said. “By us<strong>in</strong>g our<br />

national currencies, we can<br />

protect our organizations and<br />

become <strong>in</strong>dependent of the<br />

decisions of other countries,”<br />

Alexey Gruzdev said.<br />

Gruzdev underl<strong>in</strong>ed that<br />

Russian and Turkish organizations<br />

<strong>in</strong>tensified their efforts to<br />

<strong>in</strong>crease trade by us<strong>in</strong>g national<br />

currencies. “We should establish<br />

a mechanism to make<br />

the use of ruble and lira more<br />

popular <strong>in</strong> our trade,” Gruzdev<br />

said. He also noted if countries<br />

<strong>in</strong>crease the bilateral exchange<br />

of national currencies between<br />

the banks, the companies will<br />

also realize the advantage of<br />

this method and raise its usage<br />

<strong>in</strong> trade.<br />

Not<strong>in</strong>g that Turkish companies<br />

are successfully represented<br />

<strong>in</strong> Russia, especially <strong>in</strong> the<br />

food, textile and construction<br />

sectors, Gruzdev said Russia<br />

agreed with Turkish counterparts<br />

on the “Foreign Trade<br />

Action Plan.” Gruzdev also<br />

emphasized on the need to<br />

<strong>in</strong>crease cooperation <strong>in</strong> the<br />

civil shipbuild<strong>in</strong>g <strong>in</strong>dustry.<br />

“Shipbuild<strong>in</strong>g <strong>in</strong>dustry is <strong>in</strong> very<br />

strong position both <strong>in</strong> <strong>Turkey</strong><br />

and Russia, and we see significant<br />

potential <strong>in</strong> this area,” he<br />

added.


EconomicNewspaper<br />

8 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>November</strong><br />

<strong>December</strong><br />

<strong>2018</strong><br />

<strong>Turkey</strong> takes major steps toward<br />

becom<strong>in</strong>g energy trad<strong>in</strong>g hub<br />

Aspir<strong>in</strong>g to diversify its<br />

energy resources, <strong>Turkey</strong><br />

has accelerated its efforts<br />

to ensure its natural gas supply<br />

security through bilateral agreements<br />

and major <strong>in</strong>frastructure<br />

projects and achieve the target<br />

of becom<strong>in</strong>g a gas trad<strong>in</strong>g hub.<br />

Recently, the country has engaged<br />

<strong>in</strong> two important mult<strong>in</strong>ational<br />

natural gas pipel<strong>in</strong>e projects,<br />

namely the Trans-Anatolian Natural<br />

Gas Pipel<strong>in</strong>e (TANAP) and<br />

TurkStream. After the launch of<br />

TANAP, TurkStream became another<br />

gas pipel<strong>in</strong>e project through<br />

which <strong>Turkey</strong> is emphasiz<strong>in</strong>g its<br />

<strong>in</strong>terest <strong>in</strong> energy transfer and<br />

trade. As much as <strong>Turkey</strong> is also<br />

an energy transit country because<br />

of its location between the<br />

producers and buyers, the country<br />

is fast mov<strong>in</strong>g toward creat<strong>in</strong>g a<br />

meet<strong>in</strong>g hub where consumers<br />

and suppliers can trade at prices<br />

set by free market dynamics. The<br />

first giant step <strong>in</strong> energy was taken<br />

<strong>in</strong> mid-June this year with the<br />

launch of TANAP, a mult<strong>in</strong>ational<br />

energy project, with partners like<br />

BP, <strong>Turkey</strong>’s Petroleum Pipel<strong>in</strong>e<br />

Corporation (BOTAŞ) and the<br />

State Oil Company of the Azerbaijan<br />

Republic (SOCAR).<br />

TANAP is the largest section<br />

of the Southern Gas Corridor<br />

(SGC) project. The 1,850-kilometer<br />

TANAP and the 878-kilometer<br />

Trans Adriatic Pipel<strong>in</strong>e project<br />

(TAP) were <strong>in</strong>terl<strong>in</strong>ked at Maritsa<br />

River located on the <strong>Turkey</strong>-Greece<br />

border. The pipel<strong>in</strong>e<br />

is seen as a move that is expected<br />

to earn Tukey political and<br />

economic prestige as it br<strong>in</strong>gs gas<br />

from the Shah Deniz-2 gas field<br />

to the Turkish border through<br />

Georgia via the South Caucasus<br />

Pipel<strong>in</strong>e. It then connects to the<br />

TAP on <strong>Turkey</strong>’s İpsala border,<br />

go<strong>in</strong>g on to deliver Azeri gas to<br />

European markets through pipes<br />

<strong>in</strong> Greece, Albania and the Adriatic<br />

Sea before com<strong>in</strong>g ashore <strong>in</strong><br />

Italy’s south. TAP is expected to<br />

start deliver<strong>in</strong>g gas to European<br />

markets <strong>in</strong> the first quarter of<br />

2020.<br />

The second major energy<br />

move of the year came with the<br />

TurkStream natural gas pipel<strong>in</strong>e<br />

project, a landmark for Turkish-Russian<br />

energy cooperation,<br />

as a ceremony for the completion<br />

of the sea part of the project was<br />

held <strong>in</strong> Istanbul with the participation<br />

of President Recep Tayyip<br />

Erdoğan and Russian President<br />

Vladimir Put<strong>in</strong>. TurkStream is<br />

one of the vital energy projects<br />

for <strong>Turkey</strong> to become an energy<br />

trad<strong>in</strong>g hub and it consists of two<br />

pipel<strong>in</strong>es, every 930 kilometers<br />

<strong>in</strong> length. The project was first<br />

announced by Put<strong>in</strong> <strong>in</strong> 2014 when<br />

he shared the plans for an alternative<br />

country for the South Stream<br />

project that is not a European<br />

Union member. At a <strong>Turkey</strong>-Russia<br />

high-level cooperation council<br />

meet<strong>in</strong>g on Dec. 1, 2014, Put<strong>in</strong><br />

announced that Russia had canceled<br />

the South Stream project.<br />

Russian energy giant Gazprom<br />

CEO Alexey Miller announced a<br />

new gas pipel<strong>in</strong>e project.<br />

The TurkStream project has<br />

an annual gas delivery capacity of<br />

31.5 billion cubic meters (bcm),<br />

each with a capacity of 15.75 bcm.<br />

While the first l<strong>in</strong>e will provide<br />

natural gas for the Turkish market,<br />

the second l<strong>in</strong>e will deliver<br />

the commodity to European<br />

countries via a route through Balkan<br />

nations. Energy and Natural<br />

Resources M<strong>in</strong>ister Fatih Dönmez,<br />

speak<strong>in</strong>g at the ceremony,<br />

hailed TurkStream as the open<strong>in</strong>g<br />

of a new page for <strong>Turkey</strong>’s energy<br />

market.<br />

Dönmez said <strong>Turkey</strong>’s aim to<br />

become an energy hub is supported<br />

through strong political<br />

will and stability <strong>in</strong> the country.<br />

“<strong>Turkey</strong> aims to become an energy<br />

center, where buyers and sellers<br />

meet and where prices are determ<strong>in</strong>ed,”<br />

he said, add<strong>in</strong>g that the<br />

country is tak<strong>in</strong>g important steps<br />

for this goal via the TurkStream<br />

project, which he said would be a<br />

unit<strong>in</strong>g factor <strong>in</strong> countries where<br />

the gas is transferred.<br />

Toyota to start mass production<br />

of its new hybrid car <strong>in</strong> <strong>Turkey</strong><br />

Japanese car maker Toyota<br />

will start mass production<br />

of its new Corolla hybrid <strong>in</strong><br />

<strong>Turkey</strong> <strong>in</strong> January. “A hybrid<br />

car <strong>in</strong> this segment will be<br />

produced <strong>in</strong> <strong>Turkey</strong> for the<br />

first time,” Mustafa Varank,<br />

Turkish technology and <strong>in</strong>dustry<br />

m<strong>in</strong>ister, said dur<strong>in</strong>g<br />

his visit to Toyota’s factory <strong>in</strong><br />

the northwestern prov<strong>in</strong>ce of<br />

Sakarya.<br />

The country’s foreign<br />

trade gap will be reduced as<br />

hybrid and electric vehicles<br />

become widespread <strong>in</strong> the<br />

country, Varank said. “The<br />

new model which has 50<br />

percent less fuel consumption<br />

per vehicle would be exported<br />

to 100 countries from<br />

<strong>Turkey</strong>,” Varank said. The<br />

new Corolla -- a trademark<br />

car of the brand -- will be put<br />

up for sale <strong>in</strong> the first quarter<br />

of 2019 <strong>in</strong> <strong>Turkey</strong>, accord<strong>in</strong>g<br />

to a statement from Toyota<br />

<strong>Turkey</strong>. “The new local made<br />

Corolla will be our brand’s<br />

pioneer <strong>in</strong> the automotive<br />

market with cut-throat competition,”<br />

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

CEO Ali Haydar Bozkurt<br />

said. The 2019 Corolla Saloon<br />

Hybrid will be this model’s<br />

12th generation which<br />

made its debut <strong>in</strong> 1966. The<br />

company said that Toyota<br />

Corolla is still the best sell<strong>in</strong>g<br />

car worldwide with 46<br />

million units sold s<strong>in</strong>ce its<br />

debut. Corolla will be available<br />

with two types of eng<strong>in</strong>es,<br />

1.8 liter self-charg<strong>in</strong>g hybrid<br />

and 1.6 liter petrol. Toyota<br />

<strong>Turkey</strong> launched its first hybrid<br />

vehicle, C-HR -- a sport<br />

utility vehicle (SUV)<strong>in</strong> October<br />

2016 <strong>in</strong> <strong>Turkey</strong>.


<strong>November</strong><br />

<strong>December</strong><br />

<strong>2018</strong><br />

Monthly Economic Newspaper 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 />

9<br />

Geothermal energy can cut<br />

<strong>Turkey</strong>’s gas imports by 20 pct<br />

<strong>Turkey</strong> could cut its gas imports<br />

by 20 percent us<strong>in</strong>g geothermal<br />

energy, which could meet 30 percent<br />

of <strong>Turkey</strong>’s heat<strong>in</strong>g needs for<br />

district heat<strong>in</strong>g, accord<strong>in</strong>g to Danish<br />

Consul General Anette Snedgaard<br />

Galskjot.District energy is an energy<br />

system that can provide economic<br />

and susta<strong>in</strong>able energy to an entire<br />

city or whole district us<strong>in</strong>g surplus<br />

energy from power plants or renewable<br />

sources. The model used <strong>in</strong><br />

Denmark is an example to emulate,<br />

where sav<strong>in</strong>gs of 40 percent or more<br />

have been made for households,<br />

a level considered extremely high,<br />

Galskjot said.<br />

In Denmark, 69 percent of the<br />

total population uses district heat<strong>in</strong>g<br />

while this percentage is close<br />

to 100 percent <strong>in</strong> Copenhagen, she<br />

said.Denmark wants to make more<br />

advances <strong>in</strong> district heat<strong>in</strong>g, and<br />

<strong>Turkey</strong> is also <strong>in</strong>terested <strong>in</strong> develop<strong>in</strong>g<br />

this system more, she expla<strong>in</strong>ed.<br />

<strong>Turkey</strong> has already made <strong>in</strong>roads<br />

with geothermal energy <strong>in</strong> Izmir and<br />

<strong>in</strong> neighbor<strong>in</strong>g towns as well as <strong>in</strong><br />

Kırşehir and Afyon <strong>in</strong> the central<br />

Anatolian region.<br />

She drew attention to the example<br />

of a successful district system at work<br />

<strong>in</strong> Soma <strong>in</strong> Manisa prov<strong>in</strong>ce, an area<br />

that was traditionally heated through<br />

the local lignite-fired thermal power<br />

Iraq to<br />

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

Kirkuk oil<br />

exports to<br />

<strong>Turkey</strong>’s<br />

Ceyhan port<br />

or natural gas. However, through the<br />

district heat<strong>in</strong>g technology added<br />

<strong>in</strong> this plant, 8,000 households are<br />

currently be<strong>in</strong>g heated.<br />

These household users are pay<strong>in</strong>g<br />

50 percent less than the previous<br />

heat<strong>in</strong>g systems <strong>in</strong> their houses.<br />

Galskjot said that <strong>in</strong>tergovernmental<br />

relations between Denmark and<br />

<strong>Turkey</strong> and relations with Turkish<br />

local authorities are very good.The<br />

Danish Energy Agency and <strong>Turkey</strong>’s<br />

Energy and Natural Resources<br />

M<strong>in</strong>istry signed a strategic energy<br />

cooperation agreement <strong>in</strong> 2017.<br />

“We are very enthusiastic about<br />

the Turkish government’s <strong>in</strong>terest<br />

<strong>in</strong> renewable energy and especially<br />

<strong>in</strong> district heat<strong>in</strong>g,” she said, add<strong>in</strong>g<br />

that a number of Danish companies<br />

are <strong>in</strong>terested <strong>in</strong> do<strong>in</strong>g bus<strong>in</strong>ess<br />

<strong>in</strong> <strong>Turkey</strong>. To promote this system<br />

further <strong>in</strong> <strong>Turkey</strong>, she said that a<br />

District Heat<strong>in</strong>g System conference<br />

would be held on Nov. 27 <strong>in</strong> İzmir<br />

where representatives of both countries<br />

will discuss current developments,<br />

<strong>in</strong>clud<strong>in</strong>g the ability to utilize<br />

renewable energy for district heat<strong>in</strong>g<br />

<strong>in</strong> some regions. There is a very big<br />

potential <strong>in</strong> <strong>Turkey</strong> to use renewables,<br />

which offer huge sav<strong>in</strong>gs,<br />

security of supply and less dependence<br />

on natural gas imports, which<br />

she said was part of <strong>Turkey</strong>’s energy<br />

localization policy.<br />

Abdul-Mahdi told reporters that<br />

plans were underway to <strong>in</strong>crease the<br />

export of the current 60,000 barrels<br />

daily to 100,000. He added that<br />

relations were amiable between his<br />

adm<strong>in</strong>istration and the Kurdistan<br />

Regional Government (KRG), from<br />

where the oil would be transported<br />

to <strong>Turkey</strong>’s Ceyhan seaport on the<br />

Mediterranean coast. Relations<br />

between the Iraqi government and<br />

the KRG had been stra<strong>in</strong>ed s<strong>in</strong>ce<br />

September 2017, when the latter<br />

held an unconstitutional referendum<br />

on Kurdish regional <strong>in</strong>dependence.<br />

Baghdad responded to the illegitimate<br />

poll by impos<strong>in</strong>g a broad<br />

range of sanctions on the Irbil-based<br />

KRG. In the wake of last year’s referendum,<br />

federal forces also seized<br />

control of all parts of Iraq “disputed”<br />

between Baghdad and Irbil, <strong>in</strong>clud<strong>in</strong>g<br />

the oil-rich Kirkuk prov<strong>in</strong>ce.<br />

Oil extraction and pump<strong>in</strong>g from<br />

Iraq’s northern Kirkuk prov<strong>in</strong>ce was<br />

suspended <strong>in</strong> October 2017 until<br />

Nov. 16, <strong>2018</strong>, when Iraq’s federal<br />

government and the KRG reached<br />

a tentative agreement to resume oil<br />

exports from Kirkuk to Ceyhan.<br />

Flows resumed at a modest level<br />

of around 50,000-60,000 barrels per<br />

day (bpd) compared with a peak of<br />

300,000 bpd seen last year. Kirkuk<br />

oil is an alternative to replace the<br />

shortage from Iran’s exports that<br />

were hit with the second phase of<br />

U.S. sanctions on Nov. 5. Iran’s oil<br />

exports are projected to fall by 1<br />

million barrels. Iraq is the OPEC<br />

second-largest oil producer after<br />

Saudi Arabia, produc<strong>in</strong>g roughly 4.5<br />

million barrels per day.<br />

Humor<br />

There is no better way to exercise the imag<strong>in</strong>ation<br />

than the study of the law. No artist ever <strong>in</strong>terpreted<br />

nature as freely as a lawyer <strong>in</strong>terprets the truth.<br />

A Soviet journalist walks <strong>in</strong>to<br />

the hospital and tells the desk<br />

nurse, “I want to see the eyeear<br />

doctor.”<br />

“There is no such doctor” she<br />

tells him. “Perhaps you would<br />

like to see someone else?”<br />

“No, I need to see an eye-ear<br />

doctor,” he says.<br />

“But there is no such doctor,”<br />

she replies. “We have doctors<br />

for the eyes and doctors for<br />

the ear, nose and throat, but no<br />

eye-ear doctor.”<br />

No help. He repeats, “I want to<br />

see the eye-ear doctor.”<br />

They go around like this for<br />

a few m<strong>in</strong>utes and then the<br />

nurse says: “Comrade, there is<br />

no eye-ear doctor, but if there<br />

were one, why would you want<br />

to see him?”<br />

“Because,” he replies, “I keep<br />

hear<strong>in</strong>g one th<strong>in</strong>g and see<strong>in</strong>g<br />

another.”<br />

Welcome to the Psychiatric<br />

Hotl<strong>in</strong>e.<br />

If you are obsessive-compulsive,<br />

please press 1 repeatedly.<br />

If you are co-dependent, please<br />

ask someone to press 2.<br />

THE ECONOMIST<br />

What is a consultant?<br />

If you have multiple personalities,<br />

please press 3, 4, 5, and 6.<br />

If you are paranoid-delusional,<br />

we know who you are and<br />

what you want. Just stay on the<br />

l<strong>in</strong>e so we can trace the call.<br />

If you are schizophrenic, listen<br />

carefully and a little voice will<br />

tell you which number to press.<br />

If you are depressed, it doesn’t<br />

matter which number you<br />

press. No one will answer.<br />

If you are delusional and<br />

occasionally halluc<strong>in</strong>ate, please<br />

be aware that the th<strong>in</strong>g you<br />

are hold<strong>in</strong>g on the side of your<br />

head is alive and about to bite<br />

off your ear.<br />

Doctor, doctor, I keep th<strong>in</strong>k<strong>in</strong>g<br />

I am a set of curta<strong>in</strong>s!<br />

Pull yourself together, man!<br />

Doctor, doctor, I keep th<strong>in</strong>k<strong>in</strong>g<br />

I’m a bell.<br />

Well, just go home and if the<br />

feel<strong>in</strong>g persists, give me a r<strong>in</strong>g.<br />

Doctor, doctor, people tell me<br />

I’m a wheelbarrow.<br />

Don’t let people push you<br />

around.<br />

Doctor, doctor, I keep th<strong>in</strong>k<strong>in</strong>g<br />

Well!!!<br />

THOUGHT OF THE<br />

MONTH<br />

I’m <strong>in</strong>visible.<br />

Who said that?!<br />

Doctor, doctor, nobody understands<br />

me.<br />

What do you mean by that?<br />

Doctor, doctor, People keep<br />

ignor<strong>in</strong>g me!<br />

Next!<br />

Doctor, doctor, No one believes<br />

a word I say.<br />

Tell me the truth now, what’s<br />

your REAL problem?<br />

Doctor, doctor, I feel like a pack<br />

of cards.<br />

I’ll deal with you later.<br />

Doctor, doctor, people keep<br />

tell<strong>in</strong>g me I’m ugly!<br />

Lay on the couch, face down.<br />

Doctor, Doctor, I can’t stop<br />

steal<strong>in</strong>g th<strong>in</strong>gs.<br />

Take these pills for a week; if<br />

that doesn’t work I’ll have a<br />

computer.<br />

Doctor, doctor, I keep th<strong>in</strong>k<strong>in</strong>g<br />

I’m a spoon.<br />

Sit there and don’t stir.<br />

A consultant is someone who<br />

takes the watch off your wrist<br />

and tells you the time.


EconomicNewspaper<br />

<strong>November</strong><br />

10 Please mention<br />

<strong>December</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 />

<strong>2018</strong><br />

Elruha Karagül<br />

gorgeous,<br />

romantic and<br />

mystique<br />

fragrance ever<br />

There are thousands of fragrances that<br />

have come and gone, but only a handful have<br />

earned the title of be<strong>in</strong>g called the most romantic<br />

of all time. They have become staples<br />

<strong>in</strong> the perfume arsenals of many and have<br />

captured the hearts of women across several<br />

generations. If you’re <strong>in</strong> the market to <strong>in</strong>vest<br />

<strong>in</strong> a charm<strong>in</strong>g potion, look no further.<br />

Elruha Kozmetik, which achieved a big<br />

difference through hundreds of fragrance<br />

varieties, Elruha Kozmetik has also been<br />

produc<strong>in</strong>g cologne, perfume, auto fragrances,<br />

soap, bamboo (stick room odor) and cream of<br />

this legendary flower.<br />

With<br />

its<br />

unparalleled quality, aesthetic appearance<br />

and unmatched fragrance Karagül, which<br />

resembles a state-of-art item, is grown only<br />

<strong>in</strong> Halfeti town of Şanlıurfa. It is known<br />

that Karagül is a very special and dist<strong>in</strong>ctive<br />

flower with a feature that it leaves its color on<br />

the soil when it is picked up and blossoms red<br />

when taken away.<br />

Subjected to many books, poems and<br />

serials, Karagül atta<strong>in</strong>ed this unmatched fragrance<br />

thanks to two and a half years of pa<strong>in</strong>stak<strong>in</strong>g<br />

efforts of Elruha Kozmetik <strong>in</strong> spr<strong>in</strong>g<br />

months when it blossoms darkest black picked<br />

up from roses and processed with a special<br />

formula developed by Elruha Kozmetik. Contrary<br />

to classic perfumes and colognes which<br />

are los<strong>in</strong>g their fragrances <strong>in</strong> time, the permanent<br />

fragrances of Elruha Karagül stays for<br />

many days and make all others<br />

neglected to users.<br />

New port expected to<br />

boost <strong>Turkey</strong>’s cruise<br />

tourism<br />

With the cruise port<br />

planned to be built <strong>in</strong> Istanbul’s<br />

coastal neighborhood<br />

Yenikapı, <strong>Turkey</strong> expects to<br />

<strong>in</strong>crease its share of global<br />

cruise tourism, which has<br />

an annual turnover of $35<br />

billion, to approximately<br />

$1.5 billion. So, Istanbul will<br />

be one of the major cruise<br />

centers <strong>in</strong> the Mediterranean<br />

region.<br />

Accord<strong>in</strong>g to the <strong>in</strong>formation<br />

compiled from the Turkish<br />

Transport and Infrastructure<br />

M<strong>in</strong>istry’s Directorate<br />

General of Merchant Mar<strong>in</strong>e<br />

and the Cruise L<strong>in</strong>es International<br />

Association (CLIA),<br />

the number of <strong>in</strong>dividuals<br />

who preferred cruise tourism<br />

across the world was 25.8 million<br />

<strong>in</strong> 2017, and this figure<br />

is expected to rise to 27.2<br />

million by the end of <strong>2018</strong>.<br />

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

uses the<br />

cheapest<br />

electricity<br />

<strong>in</strong> Europe<br />

The consumer price<br />

<strong>in</strong>dex <strong>in</strong> <strong>Turkey</strong> is<br />

expected to meet<br />

year-end targets, the<br />

Central Bank of the<br />

Republic of <strong>Turkey</strong><br />

(CBRT) Governor<br />

Murat Çet<strong>in</strong>kaya<br />

said. “With the contribution<br />

of coord<strong>in</strong>ated<br />

measures, it<br />

is expected that the<br />

<strong>in</strong>flation [rate] will<br />

gradually converge<br />

with our targets,”<br />

Çet<strong>in</strong>kaya said <strong>in</strong> dur<strong>in</strong>g<br />

his presentation<br />

titled “Macroeconomic<br />

Outlook and<br />

Monetary Policy” at<br />

the JP Morgan Investor<br />

Conference <strong>in</strong> Istanbul.<br />

Accord<strong>in</strong>g to<br />

Çet<strong>in</strong>kaya, the CBRT<br />

implemented a strong<br />

monetary tighten<strong>in</strong>g<br />

policy to limit the deterioration<br />

<strong>in</strong> pric<strong>in</strong>g<br />

behavior.<br />

Comment<strong>in</strong>g on <strong>Turkey</strong>’s<br />

macroeconomic<br />

outlook, Çet<strong>in</strong>kaya<br />

said “The stabilization<br />

tendency <strong>in</strong> the<br />

economy has become<br />

evident. Economic<br />

activity has slowed<br />

down due to the<br />

tighten<strong>in</strong>g of f<strong>in</strong>ancial<br />

conditions and weak<br />

domestic demand.”<br />

Credit growth<br />

cont<strong>in</strong>ues to slow<br />

down as the recent<br />

credit growth trend<br />

currently falls below<br />

historical averages,<br />

he added.<br />

Monthly Economic Newspaper<br />

Last year, a total of 35.4<br />

percent of tourists who traveled<br />

with “float<strong>in</strong>g five-star<br />

hotels” preferred the Caribbean<br />

region, 15.8 percent<br />

the Mediterranean, <strong>in</strong>clud<strong>in</strong>g<br />

<strong>Turkey</strong>, and 11.3 percent<br />

European countries without<br />

shores on the Mediterranean.<br />

The number of cruise ships<br />

berthed at Turkish ports fell<br />

to 311 last year from 1,542<br />

<strong>in</strong> 2013, as a result of cruise<br />

ships remov<strong>in</strong>g the Eastern<br />

Mediterranean from the<br />

route. In the same period,<br />

the number of cruise tourists<br />

<strong>Turkey</strong> hosted plummeted<br />

to 307,000 from 2.2 million.<br />

With cruise companies<br />

re-<strong>in</strong>clud<strong>in</strong>g <strong>Turkey</strong> <strong>in</strong> their<br />

route, the sector has ga<strong>in</strong>ed<br />

momentum <strong>in</strong> <strong>2018</strong> and is<br />

expected to return to the<br />

previous figures soon.<br />

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<strong>November</strong><br />

<strong>December</strong><br />

<strong>2018</strong><br />

Monthly Economic Newspaper<br />

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EconomicNewspaper<br />

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11

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