Turkey Financial News

Posted by meb at June 16th, 2007

The İstanbul Stock Exchange (İMKB) is becoming increasingly attractive for global investors, with their share of total transactions in the exchange expanding from the year-end level of 38.5 percent in 2006 to 44.8 percent as of the first five months of 2007. Analysts are expecting the interest to grow further, notwithstanding possible difficulties that may occur depending on political developments. Foreign investors made $48.9 billion worth of transactions from January to May, resulting in a net $3.6 billion in purchases in the first five months of the year. They bought $26.3 billion worth of stock and sold $22.7 billion in this period. The total trade volume on the stock exchange for the given period was $109.3 billion. (more…)

Posted by meb at June 16th, 2007

Turkey has seen its foreign trade deficit with the EU shrink since joining the European customs union due to its exports to EU countries growing faster than imports, according to a report released on Friday by the Statistical Office of the European Union (Eurostat).In a written statement, it said Turkey’s imports rose only 4 percent from EU-27 members and reached 12.2 billion euros. However, its exports enjoyed a 15 percent upswing, bringing in 11.3 billion euros. Turkey’s foreign trade deficit decreased to 800 million euros in the (more…)

Posted by meb at June 16th, 2007

Turkey’s public and private sector production capacity is improving, but sectors still aren’t producing at full capacity. The capacity utilization rate — weighted by production value — increased from 82.6 percent in May 2006 to 83.4 percent in May 2007, according to provisional results of 4,310 manufacturing industrial establishments. The Turkish Statistics Institute (TurkStat) released a monthly survey yesterday that indicated the capacity utilization rate of the public sector is at 87.9 percent, with the figure 82.6 percent in the private sector. Among the major reasons offered for industry failing to work at full capacity was the lack of demand followed by financial problems, a shortage of raw materials and (more…)

Posted by meb at June 14th, 2007

The International Monetary Fund (IMF) executive board has released its report concluding the Article IV Consultation, which ended on May 18, 2007, and has stated that Turkey has experienced an impressive economic revival in recent years.
According to the report sound economic policies anchored to fund arrangements, as well as political stability and favorable external conditions, have resulted in an average annual growth of 7.5 percent in the country since 2002. Private consumption and investment are the main drivers, fueled by declining real interest rates, surging capital inflows, rapid credit expansion and rising productivity. Meanwhile inflation has dropped dramatically over the (more…)

Posted by meb at June 13th, 2007

Britain’s Cadbury Schweppes Plc said on Thursday it is buying Intergum, a Turkish gum business, for $450 million in cash and debt, which will help it close the gap on industry leader Wm. Wrigley Jr. Co. Cadbury, the world’s largest confectionery company and maker of Dairy Milk chocolate and Trident gum, said the deal will make it number one in the Turkish gum market, which grew 17 percent last year, while it already has the top share in the (more…)

Posted by meb at June 12th, 2007

The Turkish automotive industry has grown beyond all forecasts, usurping the textile sector at the top of Turkey’s exports and increasing 23-fold in the 16 years since the first formal vehicle exports in September 1991. Automotive exports are expected to reach $17 billion at the end of this year. According to data gathered by the Uludağ Exporters’ Union (UİB) and reported by the Anatolia news agency, exports between September and December of 1991 were $163.7 million. Vehicle exports increased every year except for 1993. The trend of increasing exports was not stable prior to the 2001 economic crisis, but growth post-crisis occurred at tremendous rates. Motor vehicle exports in 2001 were $1.2 billion higher than (more…)

Posted by meb at June 12th, 2007

The Investment Advisory Council (IAC) declared it is extremely pleased with Turkey’s continuation of reforms, seen as a consequence of the country’s adherence to the Copenhagen criteria — the conditions with which a candidate country must comply to become a full member of the EU. The IAC, comprised of a few dozen prominent businessmen representing a total wealth of $750 billion, met yesterday in İstanbul for the fourth time to discuss developments in the Turkish investment environment. At the end of the meeting the council issued a statement of outcomes summarizing their opinions of the country, read by Vice (more…)

Posted by meb at June 10th, 2007

Turkey is an EU actor, and this makes the country attractive, said Robert F. Wescott, international economics and finance advisor to former US President Bill Clinton. “This is the key gem of the Turkish economy,” he said.
Yap Kredi Portföy and Pioneer Investments hosted a panel discussion on Thursday evening about developments in the global economy, interaction policies and Turkey’s EU integration process. Speaking at the panel, Wescott claimed the world economy was at its peak. He said the average 3.5 percent annual growth in the world economy during the last 30 years has increased to 5 percent over the last three years. Financial markets have been “brilliant” according to Wescott, and he added that there had been 30 percent annual increases in (more…)