Turkey Financial News

Posted by meb at July 17th, 2008

Turkey’s year-on-year exports surpassed $125 billion and have reached the target for this year, a state minister announced yesterday.

Exports rose 35 percent between Jan. 1 and July 15, State Minister Kürşad Tüzmen told the Anatolia news agency. Industrial products exports reached $64 billion in the first half of the year, Tüzmen said, adding that the iron and steel sector reported the greatest rise, with an increase of 69 percent. (more…)

Posted by meb at July 14th, 2008

Turkey’s state minister, Mehmet Simsek forecast on Monday around 12-14 billion dollars of foreign capital flow in Turkey in 2008.

Turkey’s economy forecasts $12-14 bln in FDI inflows in 2008.

“Turkey forecasts a net foreign capital inflow of $12-14 billion this year,” Simsek told an Anatolian Agency correspondent.

Turkey was planning to draw gross $18 billion of direct foreign capital in 2008. (more…)

Posted by meb at July 11th, 2008

The central government achieved a budget surplus of YTL 1.9 billion in the first half of 2008, the Ministry of Finance announced yesterday in a written statement.

In the first half of the year, the government spent YTL 100.6 billion, whereas it took in YTL 102.5 billion in revenue. In comparison, the first half of 2007 saw the government budget in the red, with a deficit of YTL 5.89 billion. Thus this year’s figure represents a radical improvement in just one year. The main reason for the poor budget performance last year was the government’s increase in public spending on the eve of the July 22 general elections. (more…)

Posted by meb at July 9th, 2008

The monthly Industrial Production Index increased by 2.4 percent in May of 2008 compared to the same month of 2007, according to figures released by the Turkish Statistical Institute (TURKSTAT) on Tuesday.

The 2.4 percent of year-on-year growth revealed a sharp decrease compared to the 6.3 percent growth recorded in April.

Analysts expect the slower growth trend to continue for the remainder of the year amid a general economic slowdown, but do not expect the data to change expectations of imminent interest rate hikes.

A Reuters poll of 14 economists had given a median forecast of 2.55 percent for industrial output growth, with forecasts ranging from 0.3 percent to 5 percent growth.

“More than half of this growth was thanks to the 20.7 percent year-on-year increase in automotive output which followed strong export performance in the sector,” Reuters quoted JP Morgan economist Yarkin Cebeci.

“The slowdown in growth is in line with our view that following the strong performance in the first quarter economic activity should lose speed in the remainder of the year,” he said.

I expect full-year gross domestic product growth of 3.8 percent and the central bank will raise interest rates by 50 basis points at its monthly meeting next week, Cebeci also said.

In the sub sectors level of industry, the mining sector index increased by 2.6 percent, the manufacturing industry sector index increased 1.9 percent, and the electricity, gas and water index rose 6.6 percent in May, 2008 compared with same month of the previous year.

The five-month average for 2008 saw the total industry sector index rise by 5.8 percent, the mining sector by 6.4 percent, the manufacturing industry sector increase by 5.4 percent, while the electricity, gas and water sector increased by 8.6 percent compared to the previous year.

The highest rates of change in the Manufacture Industry Production Index for May 2008 compared to May 2007 were realized in the manufacture of motor vehicles, trailers and semi-trailers with 20.7 percent, and the manufacture of electrical machinery at by 12.4 percent, and the manufacture of paper and paper products at 11.9 percent.

Economists had expected May industrial output data to show a sharp slowdown in growth due to global credit problems and domestic political uncertainty. Interest rate increases have also put the brakes on economic growth.
source: Hurriyet Daily

Posted by meb at July 5th, 2008

New data have revealed that the number of companies which closed down in the first half of the year was significantly higher compared to the same period last year, while fewer companies were opened so far this year compared to last.
The Trade Registry figures released yesterday by the Turkish Union of Chambers and Commodity Exchanges (TOBB) showed that the number of liquidated companies climbed by 19.24 percent in the first half over the same period last year. (more…)

Posted by meb at July 4th, 2008

Turkish consumer prices hit 10.61 percent on a 12-month basis, the Turkish Statistics Institute said Tuesday.

The fall in agricultural inflation by 2.73 percent and the 3.4 percent decline in food prices have been the main factor in the declining consumer price index.

According to the figures, consumer prices were up 6 percent and producer prices were up 13.76 percent in the first half of 2008. (more…)

Posted by meb at July 1st, 2008

With a revival in the agriculture sector, Turkey has achieved a spectacular growth rate of 6.6 percent in the first quarter, far greater than estimated; however, economy experts believe this figure will not suffice to become more optimistic for the remaining quarters of the year.
Economists stress that the impact of political instability and uncertainty, a US-oriented sub-prime mortgage crisis that has lasted longer than anticipated and the central bank’s increased interest rates will become more visible through the end of the year, further noting that it is too early to revise year-end expectations. (more…)

Posted by meb at June 30th, 2008

Turkey’s gross domestic product (GDP) grew 6.6 percent year-on-year in the first quarter, the Turkish Statistics Institute said on Monday. It exceeded expectations, which were around 5 percent.

The main driver of strong growth in the first quarter is the support of net exports, whose contribution returned to positive territory after two quarters.

The strongest growth came out in manufacturing with 7 percent, with 9.9 percent in trade and 7.7 percent in transport, despite a slowdown in construction with 2.8 percent. (more…)