Turkey Financial News

Posted by meb at November 10th, 2008

Production in the industry sector fell 5.5 percent in September in Turkey, posting the worst performance since Dec. 2001, the Turkish Statistical Institute (TUIK) said Monday on its official website.

Production in the industry sector fell 5.5 percent in September in Turkey compared with the same month of the previous year, TUIK said. Production in the manufacturing industry declined 6.4 percent, while the fall in the mining is 4.3 percent, it said. The production in electric, gas and water sector rose 1.6 percent, TUIK added.

Economists expected industrial production to fall in September due to weaker domestic demand, adding that industrial production would pull down economic growth data in the third quarter. (more…)

Posted by meb at September 8th, 2008

Despite the high growth rates in its economy over the past five years, Turkey’s gross domestic product (GDP) per capita has made little progress toward EU averages in the given period.

According to a recent report by the General Directorate of EU Affairs, a subdivision of the State Planning Organization (DPT), the average GDP per capita of the entire EU, based on the purchasing power parity (PPP), was 2.7 times more than Turkey’s GDP per capita five years ago. The report claimed that if the current projections prove valid, this difference will be 2.4 times by year’s end. In 2009, a citizen of the EU will be 2.3 times richer on average than a Turk.

The report, titled “Economic Developments in the EU Member and Candidate Countries,” said the average GDP per capita in the EU was 21,600 euros in 2004, whereas it is estimated to climb to 25,900 euros by the end of 2008. This figure is expected to grow to 26,800 euros in 2009. In Turkey on the other hand, the GDP per capita was 8,100 euros five years ago and it will have reached 10,900 euros by the end of 2008. Next year it is expected to rise to 11,500 euros. (more…)

Posted by meb at September 5th, 2008

Turkey’s economy minister expects the country’s trade volume to reach $350 billion in 2008 as the country receives a higher share from global commerce by integrating global markets and economies.

“Turkey’s trade volume in 2002 was $87 billion. Seemingly, the trade volume of Turkey would reach to $300 or $350 billion in 2008. Turkey is rapidly receiving a higher share from global commerce,” Mehmet Simsek said on Thursday, at the Global Economic Symposium at the Plon Castle in Germany.

Simsek also said that Turkey was integrated into global financial markets and economies to a large extent.

However Simsek said that this integration had also negative side effects. “There are consequences of being integrated with the world. As you may understand, a problem in real estate in the United States causes global problems. Increasing energy prices in the world affects all nations,” he added. (more…)

Posted by meb at August 13th, 2008

Gold bars and bank deposits have become the most lucrative financial instruments in July, the latest figures released by the Turkish Statistics Institute (TurkStat) have shown.

TurkStat announced the real rate of return for a number of investment instruments for the month of July. The figures show that gold bars were the most lucrative instrument, at 4.50 percent. Investors in the stock exchange made a profit of 4.20 percent, the US dollar rose in value by 1.70 percent and the euro depreciated by 0.30 percent. (more…)

Posted by meb at August 1st, 2008

Standard & Poor’s on Thursday revised its outlook on Turkey to stable from negative on the diminished near-term political uncertainty after the country’s top court’s decision not to ban the ruling Justice and Development Party (AKP). S&P affirmed the country’s credit rating at “BB-”.

“The stable outlook on Turkey balances the improvement in the republic’s external financing prospects and underlying fundamentals against its vulnerability to financing shocks,” S&P said in a statement. (more…)

Posted by meb at July 24th, 2008

The Turkish Petroleum Refineries Company, or Tüpraş, topped the list of Turkey’s top 500 industrial companies once again in 2007, an Istanbul business organization revealed yesterday.

Just like the year before, Tüpraş, ranked first on the Istanbul Chamber of Industry, or ISO, 500 with YTL 18.45 billion net sales, while Ford Otomotiv ranked second with YTL 6.2 billion net sales, followed by Electricity Generation Co., or EÜAŞ, with YTL 4.6 billion net sales. The electricity firm was the highest-ranking public enterprise. These three industries lead the ISO 500 not only in net sales but also in exports. (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