Turkish Economy 2010July

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1

This indicator set is prepared for users to give up-to-date information aboutdifferent areas of Turkish Economy.

This document is updated at the first day of every week.

Last update: July 12, 2010



July 2010

TURKISH ECONOMY

Undersecretariat of Treasury



3

CONTENTS

Turkish Economy in the World Demographic Profile

Growth Employment Inflation Foreign Trade and Balance of Payments Public Finance Debt Management Financial Sector Market Indicators Investment Environment Relationship with the IMF and EU Social Security Labor Market R&D Energy Sector



4

TURKISH ECONOMY IN THE

WORLD



5

World’s Biggest Economies

(GDP based on Purchasing Power Parity, Trillion Dolar, 2009)

0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0

US

ChinaJapan

India

Germany

UK

Russia

France

Brazil

Italy

Mexico

Korea

Spain

Canada

IndonesiaTurkey

Australia

Iran

Taiwan

Holland

Source: IMF, World Economic Outlook, April 2010



6

0,0 0,5 1,0 1,5 2,0 2,5 3,0

Germany

UK

France

Italy

Spain

Turkey

Poland

Nertherlands

Belgium

GreeceSweden

Austria

Switzerland

Europe’s Biggest Economies

(GDP based on Purchasing Power Parity, Trillion Dolar, 2009)

Source: IMF, World Economic Outlook, April 2010



7

DEMOGRAPHIC PROFILE



8

28%

15%

16%

16%

15%

16%

14%

16%

17%

15%

64%

65%

63%

67%

68%

64%

64%

65%

67%

65%

8%

20%

21%

17%

17%

21%

23%

19%

16%

21%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Turkey

Czech Rep.

Hungary

Poland

Russia

Europe

Bulgaria

Romania

Slovak Rep.

Ukraine

0-14 Age 14-60 Age 60+ Age

Favourable Demographics

Demographic Profile

Source: UN



9

18%

13%

14%

12%

15%

15%

12%

13%

13%

13%

58%

49%

51%

48%

53%

51%

47%

48%

50%

51%

25%

39%

34%

40%

32%

35%

40%

39%

38%

40%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Turkey

Czech Rep.

Hungary

Poland

Russia

Europe

Bulgaria

Romania

Slovak Rep.

Ukraine

0-14 Age 14-60 Age 60+ Age

Favourable Demographics

Source: UN

Demographic Profile (2050 Projections)



10

Turkey: Population Prospects (Million People)

Source: TURKSTAT

71.172.7

76.6

50

60

70

80

90

2008 2010 2015



11

GROWTH



12

GDP Growth Rates (%, YoY)

-16

-12

-8

-4

0

4

8

12

0 1 Q 1

0 1 Q 2

0 1 Q 3

0 1 Q 4

0 2 Q 1

0 2 Q 2

0 2 Q 3

0 2 Q 4

0 3 Q 1

0 3 Q 2

0 3 Q 3

0 3 Q 4

0 4 Q 1

0 4 Q 2

0 4 Q 3

0 4 Q 4

0 5 Q 1

0 5 Q 2

0 5 Q 3

0 5 Q 4

0 6 Q 1

0 6 Q 2

0 6 Q 3

0 6 Q 4

0 7 Q 1

0 7 Q 2

0 7 Q 3

0 7 Q 4

0 8 Q 1

0 8 Q 2

0 8 Q 3

0 8 Q 4

0 9 Q 1

0 9 Q 2

0 9 Q 3

0 9 Ç 4

1 0 Ç 1

Source: TURKSTAT



13

1.5

4.54.44.3

5.3

0

1

2

3

4

5

6

7

1982-1986 1987-1991 1992-1996 1997-2001 2002-2009

Source: TURKSTAT, Treasury

GDP Growth Rate (Annual Average, %)



14

Source: SPO “Medium Term Programme-2010-2012”

5.0

4.0

3.5

0

1

2

3

4

5

6

7

2010 2011 2012

GDP Growth Rate Targets (%)



15

Volatility of Growth

(Coefficient of Variation of the Growth Rates)

1.6

1.31.2

3.4

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

1988-91 1992-96 1997-2001 2002-2009




16

7,0567,643

9,221

10,440

8,590

5,802

4,548

3,529

1,500

2,500

3,500

4,500

5,500

6,500

7,500

8,500

9,500

10,500

2002 2003 2004 2005 2006 2007 2008 2009

Per Capita GDP (USD)

Source: 2010 Annual Programme, TURKSTAT



17

Source: Medium Term Programme-2010-2012

9,732

9,0968,821

1,500

3,000

4,500

6,000

7,500

9,000

10,500

2010 2011 2012

Per Capita GDP Targets (USD)



18

Source: OECD, 2009

Comparison of Europe and Turkey:

Real GDP Growth (2001=100)

90

100

110

120

130

140

150

160

1 Q 2 0 0 0

3 Q 2 0 0 0

1 Q 2 0 0 1

3 Q 2 0 0 1

Q 1 2 0 0 2

Q 3 2 0 0 2

Q 1 2 0 0 3

Q 3 2 0 0 3

Q 1 2 0 0 4

Q 3 2 0 0 4

Q 1 2 0 0 5

Q 3 2 0 0 5

Q 1 2 0 0 6

Q 3 2 0 0 6

Q 1 2 0 0 7

Q 3 2 0 0 7

Q 1 2 0 0 8

Q 3 2 0 0 8

Q 1 2 0 0 9

Q 3 2 0 0 9

Turkey Hungary Poland Spain

Portugal Italy Euro Area



19

Per Capita GDP, 2008

(Purchasing Power Parity, AB-27=100)

Source: Eurostat

Trend line: moving average

0

40

80

120

160

200

240

280

L u x e m b

o u r g

N o

r w a y

U S A

S w

i t z e r

l a n

d

I r e l a n

d *

N e

t h e r

l a n

d

A u

s t r i a *

S w

e d e n

I c e

l a n

d

D e n

m a r

k U K

G e r m a n y

F i n

l a n

d

B e l g

i u m

J

a p a n

F r a n c e

S

p a

i n

I t a l y

G r e e c e

S .

C y

p r u s

S l o v

e n y a

C z e c

h R e p . *

M a

l t a

P o r

t u g a

l

S l o v a

k R e p . *

E s

t o n

i a

H u n

g a r y

L i t h u a n

i a

C r

o a

t i a

P o

l a n

d

L

a t v i a

R o m

a n

i a *

T u

r k e y

*

B u l

g a r

i a

M a c e d

o n

i a *

(*) Forecast



20

The Sources of Real Income Differences, 2008

-72

-100 -50 0 50 100

Turkey

Mexico

Poland

Hungary

Slovak .

Portugal

Czech R.

N. Zealand

Korea

Greece

Italy

Spain

France

Japan

Finland

Germany

Belgium

Denmark

U.Kingdom

Sweden

Iceland

Austria

Australia

Canada

Netherlands

Switzerland

Ireland

USA

Norway

Luxemburg

-15

-50 -10 30

USA per Capita RealIncome Difference Labour Utilisation Effect (1) Labour Productivitiy Effect (2)

(1) Labour utilization is ratio of total hours worked to population(2) Labour productivity is measured as GDP per hours worked

Source: OECD Productivity Database, January 2010

-57

-100 -50 0 50

Turkey

Mexico

Poland

Hungary

Slovak .

Portugal

Czech R.

N. Zealand

Korea

Greece

Italy

Spain

France Japan

Finland

Germany

Belgium

Denmark

U.Kingdom

Sweden

Iceland

Austria

Australia

Canada

Netherlands

Switzerland

Ireland

USA

Norway

Luxemburg



21

Contribution to GDP Growth (%)

-12

-7

-2

3

8

13

18

2002 2003 2004 2005 2006 2007 2008 2009

Private Cons. and Inv. Gov. Cons. and Inv. Net Export Stock Building GDP Growth

Source: TURKSTAT



22

Components of Demand in Europe and Turkey: (2001=100)

90

100110

120

130

140

150

160

170

0 1 Q 1

0 1 Q 3

0 2 Q 1

0 2 Q 3

0 3 Q 1

0 3 Q 3

0 4 Q 1

0 4 Q 3

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Q 3



80

100

120

140

160

180

200

220

0 1 Q 1

0 1 Q 3

0 2 Q 1

0 2 Q 3

0 3 Q 1

0 3 Q 3

0 4 Q 1

0 4 Q 3

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Q 3



70

90

110130

150

170

190

210

230

250

0 1 Q 1

0 1 Q 3

0 2 Q 1

0 2 Q 3

0 3 Q 1

0 3 Q 3

0 4 Q 1

0 4 Q 3

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Q 3



Source: OECD, 2009

Private Consumption Export

İthalat

Gross Fixed Capital Formation Import

80

100

120

140

160

180

200

220

240

260

0 1 Q 1

0 1 Q 3

0 2 Q 1

0 2 Q 3

0 3 Q 1

0 3 Q 3

0 4 Q 1

0 4 Q 3

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Q 3





23

Contribution of Private Sector Fixed Investment to GDP

Growth (%)

1.30.6

3.1

2.5

0

2

4

6

1993-2002 2003-2009

Private Sector Fixed Investment Other

Source: TURKSTAT



24

Productivity Index of Total Industry

80

90

100

110

120

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Q 3

1 0 Q 1

Productivity per hour

Linear (Productivity per hour)

Source: TURKSTAT,Undersecretariat of Treasury



2525

Productivity and Real Wages in Total Industrial Sector

(Per Hour Worked)

80

85

90

95

100

105

110

115

120

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Q 3

1 0 Q 1

Productivity Index

Real Wage Index

Real Unit Wage Index

Source: TURKSTAT, Undersecretariat of Treasury



26

EMPLOYMENT



27

Distribution of Employment by Economic Activity (%)

Constructi

on

5.9%

Industry

19.4%

Agriculture

24.7%

Services

50%

Constructi

on

4.5%

Industry

18.5%

Agriculture

34.9%Services

42.1%

2002 2009

Source: TURKSTAT



28

Distribution of Employment by Employment Status (%)

Regular/

Casual

Employee

60.0%Unpaid

FamilyWorker 13.4%

Self

Employed

Worker

26.5%Regular/

Casual

Employee

49.8%Unpaid

Family

Worker

20.9%

Self Employed

Worker

29.4%

2002 2009

Source: TURKSTAT



29

0

5

10

15

20

25

0 1 Q 1

0 1 Q 3

0 2 Q 1

0 2 Q 3

0 3 Q 1

0 3 Q 3

0 4 Q 1

0 4 Q 3

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Ç 3

1 0 Ç 1

Formal Informal

Employment in the Post-2001 Period

(Millions, 4-Quarter Moving Average)

Source: TURKSTAT



30

0

1

2

34

5

6

7

8

9

10

0 1 Q 1

0 1 Q 3

0 2 Q 1

0 2 Q 3

0 3 Q 1

0 3 Q 3

0 4 Q 1

0 4 Q 3

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Q 3

1 0 Ç 1

Formal Informal

Private Sector Wage and Salary Earners in the Post-2001 Period

(Millions, Outside Agriculture, 4-Quarter Moving Average)

Source: TURKSTAT



31

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0 1 Q 1

0 1 Q 3

0 2 Q 1

0 2 Q 3

0 3 Q 1

0 3 Q 3

0 4 Q 1

0 4 Q 3

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Ç 3

1 0 Ç 1

Formal Informal

Entrepreneurs and Self-Employed in the Post-2001 Period

(Millions, Outside Agriculture, 4-Quarter Moving Average)

Source: TURKSTAT



32

0

1

2

3

4

5

6

7

8

9

0 1 Q 1

0 1 Q 3

0 2 Q 1

0 2 Q 3

0 3 Q 1

0 3 Q 3

0 4 Q 1

0 4 Q 3

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Ç 3

1 0 Ç 1

Formal Informal

Workers in Agriculture in the Post-2001 Period *

(Millions, 4-Quarter Moving Average)

Source: TURKSTAT

*For agriculture/non-agricultute distinction, NACE Rev.1 was used for 2000-2008 terms and NACE Rev 2 has started to be used starting from 2009



33

0

20

40

60

80

100

0 1 Q 1

0 1 Q 3

0 2 Q 1

0 2 Q 3

0 3 Q 1

0 3 Q 3

0 4 Q 1

0 4 Q 3

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Ç 3

1 0 Ç 1

High and Vocational School Less than High School

Tertiary Education Illitrate Workers

Employment Rate According to Education Level(Total, % of Working-Age Population, 4-Quarter Moving Average)

Source: TURKSTAT



34

0

20

40

60

80

100

0 1 Q 1

0 1 Q 3

0 2 Q 1

0 2 Q 3

0 3 Q 1

0 3 Q 3

0 4 Q 1

0 4 Q 3

0 5 Q 1

0 5 Q 3

0 6 Q 1

0 6 Q 3

0 7 Q 1

0 7 Q 3

0 8 Q 1

0 8 Q 3

0 9 Q 1

0 9 Ç 3

1 0 Ç 1

High and Vocational School Less than High SchoolTertiary Education Illitrate Workers

Employment Rate According to Education Level(Women, % of Working-Age Population, 4-Quarter Moving Average )

Source: TURKSTAT



35

Unemployment Rate (%)

14.0

15.8

13.7

11

9.99.9

10.310.310.510.3

8

9

10

11

12

13

14

15

16

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 0 9 M

a r c h

2 0 1 0 M

a r c h

Source: TURKSTAT



36

INFLATION



37

Average Inflation in Periods (%)

62.7

71.6

12.58.4

0

10

20

30

40

50

60

70

80

1983-94 1995-2001 2002-2009 2010 June

Source: TURKSTAT, CBRT



38

6.5

5.55.0

0

1

2

34

5

6

7

8

9

10

2010 2011 2012

Year End CPI Target in 2010-2012 (%)

Source: Medium Term Program 2010-12



39

-5

0

5

10

15

20

25

30

35

J a n - 0

4

A p r - 0

4

J u l - 0

4

O c t - 0

4

J a n - 0

5

A p r - 0

5

J u l - 0

5

O c t - 0

5

J a n - 0

6

A p r - 0

6

J u l - 0

6

O c t - 0

6

J a n - 0

7

A p r - 0

7

J u l - 0

7

O c t - 0

7

J a n - 0

8

A p r - 0

8

J u l - 0

8

O c t - 0

8

J a n - 0

9

A p r - 0

9

J u l - 0

9

O c t - 0

9

J a n - 1

0

A p r - 1

0

Food Energy

CPI excluding food and energy CPI excluding unprocessed food and energy

Food, Energy and Core Inflation (January 2004 – June 2010, year-on-year percentage change)

Inflation: Recent Developments in Turkey




40

0

5

10

15

20

25

J a n

- 0 4

A p r

- 0 4

J u l - 0 4

O c t

- 0 4

J a n

- 0 5

A p r

- 0 5

J u l - 0 5

O c t

- 0 5

J a n

- 0 6

A p r

- 0 6

J u l - 0 6

O c t

- 0 6

J a n

- 0 7

A p r

- 0 7

J u l - 0 7

O c t

- 0 7

J a n

- 0 8

A p r

- 0 8

J u l - 0 8

O c t

- 0 8

J a n

- 0 9

A p r

- 0 9

J u l - 0 9

O c t

- 0 9

J a n

- 1 0

A p r

- 1 0

Services Transport Services Rent Restaurants and Hotels

Inflation: Recent Developments in Turkey

Services Inflation and Selected Sub-items (January 2006 – June 2010, year-on-year change, percent)




41

Inflation – Overall Trend

-4

-2

0

2

4

6

8

10

12

14

16

2 0 0 6 - 1 3 5 7 9

1 1

2 0 0 7 - 1 3 5 7 9

1 1

2 0 0 8 - 1 3 5 7 9

1 1

2 0 0 9 - 1 3 5 7 9

1 1

2 0 1 0 - 1 3 5

Inflation Trend* (January 2006 – June 2010, percentage change)

(*) Annualized monthly change of seasonally adjusted SCA-I index (3 month moving average) .




42

Average of 2004 – 2006 June 2010

Inflation – Main Causes

Contribution to CPI Inflation

(Percentage Share)

Source: TURKSTAT, Turkish Treasury

23.9

17

9.7

49.4

0

10

20

30

40

50

60

F o

o d

E n e r g y

T o b a c

c o

O t h e r s

18.8

21.7 22.9

36.6

0

10

20

30

40

50

F o o d

E n e r g y

T o b a c c o

O t h e

r s



43

Inflation and Expectations*: (Annual % Change)

7.26.9

8.4

2

4

6

8

10

12

14

J a n - 0

5

M a y - 0

5

S e p - 0

5

J a n - 0

6

M a y - 0

6

S e p - 0

6

J a n - 0

7

M a y - 0

7

S e p - 0

7

J a n - 0

8

M a y - 0

8

S e p - 0

8

J a n - 0

9

M a y - 0

9

S e p - 0

9

J a n - 1

0

M a y - 1

0

S e p - 1

0

J a n - 1

1

M a y - 1

1

S e p - 1

1

J a n - 1

2

M a y - 1

2

2010 Target: 6.5 %

CPI12 Months

24 months

Source: CBRT, TURKSTAT

(*) CBRT’s Survey of Expectations as of July

2011 Target: 5.5 %

2012 Target: 5.0 %



44

0

4

8

12

16

20

24

28

32

1

03

4 7 10 1

04

4 7 10 1

05

4 7 10 1

06

4 7 10 1

07

4 7 10 1

08

4 7 10 1

09

4 7 10 1

10

6 6

11

6

12

12

months 24months

7.7End year

7.212 months

6.924 months

Inflation Expectations (July 2010)

Annual Inflation and Expectations (%)

Source: CBRT’s Survey of Expectations

Year End Target



I fl ti D l t i th W ld



46

Inflation Developments in the World

-2

0

2

4

6

8

10

12

14

J a n - 0 5

M a r - 0 5

M a y - 0 5

J u l - 0 5

S e p - 0 5

N o v - 0 5

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

0 5 / 0 1 / 2 0 1 0 0

Turkey

World

Developing Countries

Developed Countries

Source: IMF



47

-8 -6 -4 -2 0 2 4 6 8 10 12 14

ICELANDVENEZUELA

PHILIPPINESECUADOR

INDIAINDONESIA

MEXICOPERU

MALAYSIACOLOMBIA

MALTATURKEY

FINLANDBRAZILRUSSIA

S.AFRICABELARUSSLOVAK

ENGLANDAUSTRIANORWAY

URUGUAYKOREAISRAEL

UKRAINELITHUANIAN.ZEALAND

BOLIVIAHOLLANDDENMARK

SINGAPOREROMANIA

JAPANITALY

BELGIUMSWEDENPOLAND

CHILEIRELANDCANADAFRANCEGREECE

HONG KONGSWITZERLAN

PORTUGALGERMANYAUSTRIACZECH R.ESTONIA

THAILANDSPAIN

CROATIALUXEMBOURG

LATVIAHUNGARYSLOVENIA

USABULGARIA

CHINA

Inflation Developments in Turkey and the World(Change in Year-end Inflation Rate between 2007-2008)

Source: Reuters, Eurostat, TURKSTAT

T k ’ R k A di t I fl ti Fi



48

73

713

6 7

16

37

56

35

47

85

61

0

10

20

30

40

50

60

70

80

90

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Turkey’s Rank According to Inflation Figures

The total number of countries is 205. The ranking is in descending order.

Source: Global Insight, TURKSTAT



50

FOREIGN TRADE and

BALANCE OF PAYMENTS



51

132.0

102.1

108.3

36.1

47.3

63.2

107.3

85.5

73.5

0

25

50

75

100

125

150

2002 2003 2004 2005 2006 2007 2008 2009 2010*

Annual Exports (Billion USD)

(*) Annualized as of May 2010

Source: TURKSTAT

Annual Imports (Billion USD)



52

51.6

69.3

97.5

116.8

139.6

170.1

202.0

140.9159.2

0

25

50

75

100

125

150

175

200

225

2002 2003 2004 2005 2006 2007 2008 2009 2010*

Annual Imports (Billion USD)

Source: TURKSTAT




E t i E d T k (2001 100)



54

708090

100110

120130140150160170180190200210220230

0 0 Q 1

0 0 Q 2

0 0 Q 3

0 0 Q 4

0 1 Q 1

0 1 Q 2

0 1 Q 3

0 1 Q 4

0 2 Q 1

0 2 Q 2

0 2 Q 3

0 2 Q 4

0 3 Q 1

0 3 Q 2

0 3 Q 3

0 3 Q 4

0 4 Q 1

0 4 Q 2

0 4 Q 3

0 4 Q 4

0 5 Q 1

0 5 Q 2

0 5 Q 3

0 5 Q 4

0 6 Q 1

0 6 Q 2

0 6 Q 3

0 6 Q 4

0 7 Q 1

0 7 Q 2

0 7 Q 3

0 7 Q 4

0 8 Q 1

0 8 Q 2

0 8 Q 3

0 8 Q 4

0 9 Q 1

0 9 Q 2

0 9 Q 3

0 9 Q 4



Exports in Europe and Turkey (2001=100)

Source: OECD

Export Performance



55

3.6

2.3

10.0

11.6

2.2

3.8

0

4

8

12

16

World Euro area DevelopingAsia

Middle Eastand North

Africa

WesternHemisphere

Turkey

Export Performance(Average Annual Growth Rate, 2001-2009)

Source: TURKSTAT, IMF World Economic Outlook April 2010

E t T t (FOB Billi USD)



56

107.5

118.0

130.0

0

25

50

75

100

125

150

2010 2011 2012

Exports Targets (FOB, Billion USD)

Source: Medium Term Programme (2010-2012)

Imports (% of GDP)



57

0

5

10

15

20

25

30

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Capital goods Intermediate goods Consumption goods

Imports (% of GDP)

Source: TURKSTAT



Impact of Energy Prices to Imports (Billion USD)



59

Impact of Energy Prices to Imports (Billion USD)

9.1 9.9 10.0 10.7 11.8 12.9 12.7 12.20.0

1.64.4

10.5

17.020.9

35.5

17.7

0

10

20

30

40

50

2002 2003 2004 2005 2006 2007 2008 2009

Reel Energy Imports with 2002 Prices Price Effect Total Enegy Imports


Machinery Imports (Billion USD)



60

Machinery Imports (Billion USD)

29.4

36.435.9

29.9

26.1

21.9

15.7

12.2

32.3

0

5

10

15

20

2530

35

40

1996-

2002

Average

2003 2004 2005 2006 2007 2008 2009 2010*

Source: TURKSTAT


Foreign Trade (% of GDP 2008)



61


-40

-30

-20

-10

0

10

20

N o

r w a y

I r e l a n d

G e r

m a n y

N e t h e r l a n d s

S w

e d e n

S w i t z e

r l a n d

C z e c h R e p

u b l i c

F i n l a n d

D e n

m a r k

B e l g i u m

J

a p a n

H u n g a r y

A

u s t r i a

I t a l y

S l o v a k R e p

u b l i c

F r a n c e

I c e l a n d

S l o

v e n i a

U n i t e d S

t a t e s

U

n i t e d

P o l a n d

S p a i n

T

u r k e y

L u x e m b

o u r g

P o r

t u g a l

G

r e e c e

L i t h u a n i a

E s

t o n i a

R o m

a n i a

L

a t v i a

M a l t a

C r o a t i a

B u l g a r i a

S .

C y p r u s

Foreign Trade (% of GDP, 2008)

Source: WTO, IMF World Economic Outlook April 2009

Current Account Deficit / GDP (%)



62

-5.7

-4.6-3.7

-2.5

-2.3

-0.3

-5.9-6.1

-1.3

-2.9-3.0-2.4-2.5

-1.8

0.5

-8

-6

-4

-2

0

2

2002 2003 2004 2005 2006 2007 2008 2009

CA Deficit/GDP

CA Deficit/GDP (Excluding Energy Price Impact)*

Current Account Deficit / GDP (%)

(*) With 2002 energy prices

Souce: CBRT, Treasury

Current Account Balance (% of GDP 2009)



63

Trend line: moving average-15

-10

-5

0

5

10

15

N o r w a y

L a t v i a

S w i t z e r l a n d

S w e d e n

L u x e m

b o u r g


G

e r m a n y

E s t o n i a

D

e n m a r k

L i t h u a n i a

I c e l a n d

J a p a n

A u s t r i a

F i n l a n d

H

u n g a r y

B

e l g i u m

S

l o v e n i a

C z e c h R e p u b l i c

U n i t e d K i n g d o m

F r a n c e

P o l a n d

T u r k e y

U n i t e d

S t a t e s

I r e l a n d

S l o v a k R e p u b l i c

I t a l y

M a l t a

R

o m a n i a

S p a i n

C r o a t i a

M a c e d o n i a

C y p r u s

B

u l g a r i a

P

o r t u g a l

G r e e c e

Source: IMF World Economic Outlook April 2010

Current Account Balance (% of GDP, 2009)

Financing of Current Account Deficit (Billion USD)



64

a c g o Cu e t ccou t e c t ( o US )

-0.1

4.7

13.6

-12.1

8.0

9.4

-13.9

2009

-6.9

0.7

24.0

-3.0

2.6

23.6

-17.4

2010

Jan-

May.

1.1

5.6

-10.0

27.0

18.3

35.2

-41.9

2008

-8.0

1.6

-6.0

28.7

22.0

44.7

-38.2

2007

-6.1

0.0

0.9

17.1

20.2

38.2

-32.1

2006

-17.8

2.6

14.7

12.5

10.0

37.3

-22.1

2005

-0.8-4.0-6.24. Change in FX

Reserves

1.14.50.83. Errors and Omissions

3.73.14.5 – Other (net)

7.72.31.9 – External Borrowing of Non-Bank PrivateSector (net)

2.81.81.1 – FDI Inflows

14.27.17.52. Total Capital Inflows

-14.4-7.5-0.6

1. Current Account

Balance

200420032002

Source: CBRT

ForeignForeign DirectDirect InvestmentInvestment InflowsInflows ((BillionBillion USD)USD)



65

1.11.8

2.8

10.0

20.2

22.0

18.3

8.0

0

5

10

15

20

25

1993-2002

Average

2003 2004 2005 2006 2007 2008 2009

gg (( ))

Source: CBT 65

Capital Inflows (Billion USD)



66

-20 -10 0 10 20 30 40 50 60

2001

2002

2003

2004

2005

2006

2007

2008

2009

Short-Term Capital

Long-Term Capital

Direct Investments

Portfolio Investments

p ( )

Source: CBT 66

Central Bank’s Gross FX Reserves (Billion USD)



67

Source: CBRT

15

202530

3540

4550556065

707580

J 0 2 M S

J 0 3 M S

J 0 4 M S

J 0 5 M S

J 0 6 M S

J 0 7 M S

J 0 8 M S

J 0 9 M S

J 1 0 M

as of July 2, 2010 - $70.8billion

Current Account Balance Targets (Billion USD)



68

-18.0

-22.0

-28.0-30

-20

-10

0

2010 2011 2012


Current Account Balance Targets (Billion USD)

Current Account Balance Targets (% of GDP)



69

-2.8-3.3

-3.9

-5

-4

-3

-2

-1

0

2010 2011 2012




70

PUBLIC FINANCE

Central Government Budget Balance (% of GDP)



71

-11.9-11.5

-8.8

-5.2

-1.1-0.6

-1.6 -1.8

-5.5

-13

-11

-9

-7

-5

-3

-1

2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Ministry of Finance

24 5

EU Defined General Government Budget Deficit (% of GDP)



72

4.5

9.010.2

24.5

-1.2

1.02.2

0.6

-5

0

5

10

15

20

25

2001 2002 2003 2004 2005 2006 2007 2008

Maastricht Criterion: 3.0 %

Source: TURKSTAT

EU Defined General Government Budget Deficit Targets



73

4.7

3.5

2.7

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2010 2011 2012

Maastricht Criterion: 3.0 %

(% of GDP)

Source: SPO, Medium Term Economic Programme 2010-2012, September 2009

5

General Government Balance (% of GDP, 2009)



74

-15

-10

-5

0

5

I r e l

a n

d

G r e

e c e

U K

S p

a i n

P o r t u

g a

l

L a

t v i a

L i t h u a n

i a

R o m a n

i a

F r a

n c e

P o l

a n

d

S l o v a

k i a

S .

C y p

r u s

U S A

B e

l g

i u m

C z e c

h R

e p .

J a

p a n

S l o v e n

i a

N e

t h e r l a

n d s

I t a l y

H u n g

a r y

B u

l g

a r

i a

M

a l t a

A u s

t r i a

G e r m

a n y

D e n m

a r

k

F i n l

a n

d

T u r

k e y

E s t o

n i a

L u x e m

b o

u r g

S w e

d e n


Maastricht criterion: - 3 %

Source: EurostatFor USA, Japan: IMF World Economic Outlook

Public Sector Borrowing Requirement (% of GDP)



75

0.1

1.6

6.4

12.1

10.0

7.3

3.6

-0.3

-2.0

7.0

-4

-2

0

2

4

6

8

10

12

14

1990-

2000Avg.

2001 2002 2003 2004 2005 2006 2007 2008 2009 (*)

Source: SPO

(*) Estimation

Public Sector Primary Surplus (IMF Definition, % of GDP)



76

4.8

5.55.0

4.6

3.1

1.70.3

-1.1

-2

-1

0

1

2

3

4

5

6

1993 -

2002

2003 2004 2005 2006 2007 2008 2009 (*)

2003-2008 Average: 4.1

(*) Estimation

Source: Treasury

Privatization Implementations* (Billion USD)



77

8.0

44.3

0

5

10

15

20

25

30

35

40

45

1985-2002 2003-2009

(*) 1985 – 2002 figures include privatizations done by PA. 2003 – 2009 figures include privatizations done by PA, SDIF andMinistry of Transportation

Source: PA, SDIF

Medium Term Fiscal Framework (% GDP)



78Source: SPO, Medium Term Economic Programme 2010-2012, September 2009

0.4

0.6

21.6

21.4

-0.2

26.7

22.6

-4.0

2011

1.0-0.3-2.1Total Public Sector Primary Balance (IMF

Definition)

0.60.50.1Rest Of Public Primary Balance (IMF

Definition)

21.022.222.3Central Government Primary Expenditures

(IMF Definition)

21.4

-0.8

27.9

23.0

-4.9

2010

21.4

0.4

25.6

22.4

-3.2

2012

28.2Central Government Expeditures

21.5Central Government Revenues

-6.6Central Government Budget Balance

20.1

Central Government Revenues (IMF

Definition)

-2.2Central Government Primary Balance (IMF

Definition)

2009



79

DEBT MANAGEMENT

Public Sector Gross Debt Stock (EU Defined, % of GDP)



80

67.4

59.2

52.3

39.5

45.4

73.7

39.4

46.1

30

40

50

60

70

80

2002 2003 2004 2005 2006 2007 2008 2009

Source: Treasury

Maastricht Criterion: 60 %

General Government Consolidated Gross Debt

(% of GDP, 2009)



81


0

20

40

60

80

100

120

140

160

180

200

J a p a n

I t a l y

G r e e c e

B e

l g i u m

U S A

H u n g a r y

F r a n c e

P o r t u g a

l

G e r m a n y

M a

l t a U K

A v u s

t u r y a

A u s

t r i a

C a n a

d a

N e

t h e r l a n

d s

S o u

t h C y p r u s

S p a

i n

P o

l a n

d

T u r k e y

F i n l a n

d

S w e

d e n

D e n m a r k

L a

t v i a

S l o v a

k i a

C z

e c

h R e p u

b l i c

S l o v e n

i a

L i t h u a n

i a

R o m a n

i a

L u x e m

b o u r g

B u

l g a r i a

E s

t o n

i a

( , )

Maastricht criterion: 60 %

Source: EurostatFor USA, Japan, Canada: IMF World Economic Outlook

EU Defined Debt Stock (% of GDP)20082007 2009200620052004



82Source: Eurostat

39.5

39.7

52.0

58.2

62.6

66.3

67.5

66.0

72.9

89.8

99.2

106.1

61.6

62.3

69.4

2008

66.559.562.263.964.8Austria

53.236.239.643.046.2Spain

39.4

44.7

45.5

63.6

63.8

65.0

65.9

84.2

95.7

103.5

58.8

59.4

66.0

2007

45.4

68.1

60.9

76.8

77.6

73.2

78.3

96.7

115.1

115.8

73.6

74.3

78.7

2009

47.451.852.4Netherlands

64.763.658.3Portugal

63.766.464.9France

67.668.065.7Germany

65.661.859.1Hungary

88.192.194.2Belgium

97.8100.098.6Greece

106.5105.8103.8Italy

46.152.359.2Turkey

43.542.240.6United Kingdom

61.462.762.2EU (27 countries)

61.963.162.5EU (25 countries)

68.370.169.5

Euro Area (16

countries)

200620052004



Public Sector Net Debt Stock (% of GDP)



84

25.329.8

2.9

2.7

26.227.631.329.9

26.131.2

3.2

6.5

10.419.1

35.4 23.9

32.528.2

61.4

55.1

49.0

29.534.0

41.6

0

10

20

30

40

50

60

70

2002 2003 2004 2005 2006 2007 2008 2009

TL FX Denominated/Indexed

Source: Treasury

Public Sector Net Debt Stock



85

309.8

42.1

47.7

66.0

155.8

24.1

441.5

465.6

2009

315.3

43.3

50.7

66.2

160.2

21.5

454.0

475.5

2010

Q1

268.0

38.4

41.5

60.4

140.2

27.9

380.3

408.2

2008

248.4

30.7

34.6

41.8

107.1

22.0

333.5

355.5

2007

258.2270.3274.2250.6215.3III. Public Sector Net Debt Stock

23.718.013.38.95.0•Unemployment Insurance Fund

38.232.217.213.011.2•Public Sector Deposits

45.730.827.924.725.4•Central Bank Net Assets

107.681.058.446.741.6II. Assets and Public Sector Deposits

20.819.816.114.514.2•Rest of the Public Sector

345.0331.5316.5282.8242.7•Central Goverment

365.8351.3332.6297.3256.9I. Public Sector Gross Debt Stock

20062005200420032002(Billion TL)

Source: Treasury

Public Net Debt Stock (Billion TL)



86

315.3

258.2

309.8

268.0

248.4

215.3

250.6

274.2270.3

200

220

240

260

280

300

320

2002 2003 2004 2005 2006 2007 2008 2009 2010Q1

Source: Treasury

Interest Payments / GDP (%)



87

5.65.3

14.8

12.9

10.1

7.06.1 5.8

0

5

10

15

20

2002 2003 2004 2005 2006 2007 2008 2009

Source: Treasury

Interest Payments / Tax Revenues (%)



88Source: Ministry of Finance

33.430.930.1

31.9

85.9

71.0

56.3

38.2

20

30

40

50

60

70

80

90

2002 2003 2004 2005 2006 2007 2008 2009

100

Composition of Central Government Gross Debt (%)



89

58.146.3 41.5 37.6 37.2

31.3 33.8 29.1 28.6

26.4

29.428.5 31.8 30.5

33.6 33.0 38.1 38.8

15.524.3

30.0 30.6 32.3 35.1 33.2 32.8 32.6

0

25

50

75

100

2002 2003 2004 2005 2006 2007 2008 2009 2010

May

Foreign Exch. TL (Floating) TL (Fixed)Source: Treasury

Interest Decomposition of Central Government Gross

Debt (%)



90

45.0 48.8 53.8 50.1 54.0 55.7 56.9 53.4 52.8

55.0 51.2 46.2 49.9 46.0 44.3 43.1 46.6 47.2

0

25

50

75

100

2002 2003 2004 2005 2006 2007 2008 2009 2010May

Fixed Floating

Debt (%)

Source: Treasury

Currency Decomposition of Central Government Gross Debt (%)



91

41.953.7 58.5 62.4 62.8

68.7 66.2 70.9 71.4

58.1

46.3 41.5 37.6 37.231.3 33.8 29.1 28.6

0

25

50

75

100

2002 2003 2004 2005 2006 2007 2008 2009 2010May

TL Foreign Exch.

Source: Treasury

Sensitivity of Gross Public Debt to Shocks



92

+ / - 0.9 Points+ / - 1.5 Points

2 percentage points change in GDP

Growth Rate

+ / - 1.0 Points+ / - 1.0 Points1 percentage point change in PrimarySurplus/GDP ratio

2001 2009

5 percentage points change in realexchange rate + / - 2.2 Points + / - 0.7 Points

5 percentage points change inTL Real Interest Rate + / - 1.6 Points + / - 1.6 Points

Note: The effects of scenarios on “Gross Public Debt Stock/GDP” ratio measured by deviations from baselinescenarios (as defined by ESA standards) based on end-2001 and end-2009 stock realizations.

Source: Treasury

Share of Foreign Residents in Domestic Debt Stock (%)



93

Source: Treasury

4.4

10.610.2

9.1

8.5

9.18.98.5

8.89.7

10.3

13.413.6

10.3

7.1

8.8

8.4

9.09.1 9.2 9.2

8.9 8.6

0

2

4

6

8

10

12

14

16

200320042005200620072008 Jan-

09

Feb-

09

Mar-

09

Apr-

09

May-

09

Jun-

09

Jul-

09

Aug-

09

Sep-

09

Oct-

09

Nov-

09

Dec-

09

Jan-

10

Feb-

10

Mar-

10

Apr-

10

May-

10

Average Maturity of Borrowing

D ti B i ( th ) E b d I ( )



94

Domestic Borrowing (months) Eurobond Issuance (years)

(*) As of July 9

Source: Treasury

912

15

3235

41

34

2828

0

5

10

15

20

25

30

35

40

45

2002 2003 2004 2005 2006 2007 2008 2009 2010*

8.29.5

10.1

12.2

10.1

17.616.5

22.4

14.214.8

9.1

24.0

6.65.0

7.0

8.6

0

5

10

15

20

25

2002 2003 2004 2005 2006 2007 2008 2009 2010*

Euro Dollar

Duration of TL-Denominated Domestic Debt Stock

(Months)



95

8.78.58.4

9.7

9.3

9.0

9.2

7.5

8.2

8.5

7.57.5

8.38.08.18.1

10.2

8.28.0

6.6

9.08.8

6.0

8.0

10.0

12.0

D e c . 0 4

D e c . 0 5

D e c . 0 6

D e c . 0 7

D e c . 0 8

J a n . 0 9

F e b . 0 9

3 / 1

A p r . 0 9

M a y . 0 9

J u n . 0 9

J u l . 0 9

A u g . 0 9

S e p . 0 9

O c t . 0 9

N o v . 0 9

D e c . 0 9

J a n . 1 0

F e b . 1 0

M a r . 1 0

A p r . 1 0

M a y . 1 0

Source: Treasury



Time to Maturity of Cash Domestic Debt Stock (Months)



97

12.8 12.4 11.8

19.6

22.3

25.724.4 25.0

28.2

0

5

10

15

20

25

30

2002 2003 2004 2005 2006 2007 2008 2009 May-10

Source: Treasury

Cost of External Borrowing (%)



98

EURODOLLAR

5.26.0

5.45.3

6.3

9.9 9.9

3

4

5

67

8

9

10

11

12

13

2002 2003 2004 2005 2006 2007 2010*

* As of July 9

Source: Treasury

10.7

7.07.3

6.5

10.1

8.1

6.97.37.3

3

4

5

6

7

8

9

10

11

12

13

2002 2003 2004 2005 2006 2007 2008 2009 2010

TRY Denominated Zero Coupon Borrowing Rates

(Comp. Ann., %)80



99

Source: Treasury

5

10

15

20

25

3035

40

45

50

55

60

65

70

75

J

02

A J O J

03

A J O J

04

A J O J

05

A J O J

06

A J O J

07

A J O J

08

A J O J

09

A J O J

10

A

Monthly Average

Yearly Cumulative

Real Interest Rates (Comp. Ann., %)

50



100

Note: The real interest rates are calculated by using 12 months ahead CPI rates.Calculations are based on zero coupon Treasury auction results and Survey of Expectations of CBRT.Source: CBRT, Treasury

0

5

10

15

20

25

30

35

40

45

2 0 0

2 - 1 5 9

2 0 0

3 - 1 5 9

2 0 0

4 - 1 5 9

2 0 0

5 - 1 5 9

2 0 0

6 - 1 5 9

2 0 0

7 - 1 5 9

2 0 0

8 - 1 5 9

2 0 0

9 - 1 5 9

2 0 1

0 - 1 5

8 010

Net Financing from IMF (Billion SDR)



101

0.4 0.0

-0.6

2.6

8.0

5.0

-2.4

-3.6-3.1 -2.6

1.0

-0.5

-1.4 -1.8 -1.3

-6

-2

2

6

1 9

9 9

2 0

0 0

2 0

0 1

2 0

0 2

2 0

0 3

2 0

0 4

2 0

0 5

2 0

0 6

2 0

0 7

2 0

0 8

2 0

0 9

2 0

1 0

2 0

1 1

2 0

1 2

2 0

1 3

Source: Treasury

Credit Outstanding to IMF (Billion SDR)

20



102

Source: Treasury

16.2

13.8

10.2

7.2

3.6

1.9

0.50.0

5.15.5

11.2

16.2

3.2

0.6

4.5

0

4

8

12

16

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

Treasury Guaranteed Debt Stock (Million USD)

8,000



103

7,468

6,395

4,000

5,000

6,000

7,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Q1

Source: Treasury

Treasury Guaranteed Debt Stock



104

Source: Treasury

6,395GENERAL TOTAL

163COMPANIES

2,863BANKS

3,026PRIVATE12OTHER

1,174SOEs

859PUBLIC BANKS

90FUNDS

1,234LOCAL GOVERNMENTS

3,369PUBLIC

2010 Q1Million USD

The Ratio of Undertaken Treasury Guarantees to Total

Guaranteed Payments (%)



105

52

27

18 1720

25

18

25

10

0

20

40

60

80

100

2002 2003 2004 2005 2006 2007 2008 2009 2010

May

Source: Treasury

The Ratio of Undertaken Treasury Guarantees to Total

Guaranteed Payments by Institutions (%)

100



106

19

65

25

61

42

6

76

36

83

25

74

21

33

50

21

38

10

0

20

40

60

80

100

Total Local

Administrations

Special

Budgeted Inst.

SOEs Funds Banks

1992-2002 2003-2005 2006-2008 2009 2010-May

Source: Treasury

The Stock of Treasury Receivables (Billion TL)

3028 1



107

5.66.8

13.8

19.3

21.2

23.4

20.8

25,6

20.9

25.6

Source: Treasury

1.8 2.4

6.3 5.9

8.8

12.9

7.5 7.1 7.3 8.2 9.07.83.8

4.4

7.5

13.4

12.4

10.5

13.315.3

13.6

17.4

19.1

17.8

0

5

10

15

20

25

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 May-10

Overdue Projected

22.4

28.1

The Stock of Treasury Receivables (May 2010)



108

By SourcesBy Borrowers

Source: Treasury

Local Governments

56%

SOEs25.6%

Others

14.7%

Banks3.7%

Guaranteed30.4%

On - Lent39.2%

Built-Operate-Transfer (BOT) Projects

14.6%

Domestic Debt

15.8%

5,500

Collections (Million USD)



109

1,048.6

254.2

1,143.9 1,218.7

548.2

3,885.1

1,424.91,156.6

996.0

25.6

0.5

1,305.4

2,441.8

1,060.7

2,422.91,504.5

-500

500

1,500

2,500

3,500

4,500

2001 2002 2003 2004 2005 2006 2007 2008 2009 May-10

Non-cash CashSource: Treasury

Gross External Debt Stock (Billion USD)

2010

Q1200920082007200620052004Billion $



110

Source: Treasury

121.1127.3139.3121.582.350.736.8LONG TERM

48.144.245.338.738.333.427.1SHORT TERM

169.2171.5184.7160.2120.684.163.9PRIVATE SECTOR

10.911.512.213.513.112.718.1LONG TERM

1.71.81.92.32.62.83.3SHORT TERM

12.513.314.115.815.715.421.4CBRT

80.279.875.071.469.868.373.8LONG TERM

4.73.63.22.21.82.11.8SHORT TERM

84.983.478.373.571.670.475.7PUBLIC SECTOR

212.1218.6226.6206.4165.2131.6128.8LONG TERM

54.549.650.443.142.638.332.2SHORT TERM

266.6268.2277.0249.6207.8169.9161.0TOTAL

Gross External Debt Stock / GDP

60



111

37.3

43.4

38.539.5

35.3

41.2

47.3

56.2

30

40

50

60

2002 2003 2004 2005 2006 2007 2008 2009

Source: Treasury

50

Turkey’s Net External Debt (% of GDP)



112

23.620.5 20.320.620.6

39.938.4

31.6

26.4

10

20

30

40

2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Treasury

External Debt Ratios (%)



113

Source: Treasury

127.5142.6140.8170.0142.9132.0111.8

CBRT RESERVES (GROSS) /

SHORT TERM EXTERNAL DEBT

26.026.425.629.429.329.722.4

CBRT RESERVES (GROSS) /

GROSS EXTERNAL DEBT

161.0167.9139.9149.4140.9114.4101.2

PRIVATE SECTOR / EXPORT

(FOB)

253.7262.6209.8232.6243.0231.2254.8

GROSS EXTERNAL DEBT /

EXPORT (FOB)

27.824.924.722.917.516.4

PRIVATE SECTOR EXTERNAL

DEBT / GDP %

43.437.338.539.535.341.2

GROSS EXTERNAL DEBT STOCK /

GDP %

2010 Q1200920082007200620052004%



114

FINANCIAL SECTOR

Banking Sector: Capital Adequacy Ratio (%)

30.935



115

Source: BRSA

25.1

28.2

23.7

21.9 18.9 18.020.6 19.5

0

5

10

15

20

25

30

2 0 0

2

2 0 0

3

2 0 0

4

2 0 0

5

2 0 0

6

2 0 0

7

2 0 0

8

2 0 0

9

2 0 1 0 -

5



Banking Sector: Free Capital*/ Equity (%)

65 7

72.6 75.3 77.0 79.680.7

80



118

(*) Free Capital = Total Equity – (Fixed Assets + Affiliates, Subsidiaries and Joint Ventures)

Source: BRSA

36.3

51.056.0

65.7

0

10

20

30

40

50

60

70

2002 2003 2004 2005 2006 2007 2008 2009 2010-5

Banking Sector: Return on Equity (%)

35



119

Source: BRSA

11.3

18.215.8

12.1

21.0

24.8

18.622.8

10.5 9.4

0

5

10

15

20

25

30

2002 2003 2004 2005 2006 2007 2008 2009 2009-5 2010-5

Banking Sector: Loans to Assets (%)

50 050 255



120

Source: BRSA

50.0

47.1

50.249.1

43.8

37.8

32.4

26.5

23.0

15

25

35

45

2002 2003 2004 2005 2006 2007 2008 2009 2010-5

Banking Sector: FX Position (Million USD)

1000



121

(*) As of June 25Source: BRSA

-549

187

-71 -63

141

-217

16

408

672

-800

-600

-400

-200

0

200

400

600

800

2002 2003 2004 2005 2006 2007 2008 2009 2010

June*

Banking Sector: Asset Quality (NPL Ratio, %)

21.2

20

24



122

Source: BRSA

11.5

6.04.7

3.7 3.5 3.75.3 4.9

0.80.9

7.6

1.50.8 0.80.50.40.6

0

4

8

12

16

20

2002 2003 2004 2005 2006 2007 2008 2009 2010-5

Gross Net

Firms Total Debt / Shareholder’s Equity and Interest

Coverage

(Operating Profit / Interest Payment) Ratios (%)



123

Sorce: CBRT Company Accounts(*) Provisional Statistics

0

50

100150

200

250

300

350

400

450

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Total Debt / Shareholder's Equity Interest Coverage Ratio

Household Liabilities (% of GDP)

59 60 6164

60

70



124

1012 14 15

0

10

20

30

40

50

2006 2007 2008 2009Turkey Euro Area

Source: CBRT, ECB

Total Housing Loans (% of GDP)

85 0

100



125

Source: FED, ECB, IMF, CBRT

85.0

74.7

47.0

3.60.2

60.3

52.1

32.5

0

20

40

60

80

UK US EU-25 Turkey

2001 2007



126

MARKET INDICATORS

Foreign Exchange Rates (TL/USD)

1,70

1,80



127Source: CBRT

1,00

1,10

1,20

1,30

1,40

1,50

1,60

J a n - 0 3

A p r - 0 3

J u l - 0 3

O c t - 0 3

J a n - 0 4

A p r - 0 4

J u l - 0 4

O c t - 0 4

J a n - 0 5

A p r - 0 5

J u l - 0 5

O c t - 0 5

J a n - 0 6

A p r - 0 6

J u l - 0 6

O c t - 0 6

J a n - 0 7

A p r - 0 7

J u l - 0 7

O c t - 0 7

J a n - 0 8

A p r - 0 8

J u l - 0 8

O c t - 0 8

J a n - 0 9

A p r - 0 9

J u l - 0 9

O c t - 0 9

J a n - 1 0

A p r - 1 0

J u l - 1 0



ISE 100 Index

55.000

60.000



129

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

50.000

J a n - 0 3

A p r - 0 3

J u

l - 0 3

O c

t - 0 3

J a n - 0 4

A p r - 0 4

J u

l - 0 4

O c

t - 0 4

J a n - 0 5

A p r - 0 5

J u

l - 0 5

O c

t - 0 5

J a n - 0 6

A p r - 0 6

J u

l - 0 6

O c

t - 0 6

J a n - 0 7

A p r - 0 7

J u

l - 0 7

O c

t - 0 7

J a n - 0 8

A p r - 0 8

J u

l - 0 8

O c

t - 0 8

J a n - 0 9

A p r - 0 9

J u

l - 0 9

O c

t - 0 9

J a n - 1 0

A p r - 1 0

J u

l - 1 0

Source: ISE

Spreads on Turkey’s External Debt (bp)

1,000

1,200

(EMBI+ Turkey) - (EMBI+)



130Source: JP Morgan

-400

-200

0

200

400

600

800

D - 0 0

M - 0 1

J - 0 1

S - 0 1

D - 0 1

M - 0 2

J - 0 2

S - 0 2

D - 0 2

M - 0 3

J - 0 3

S - 0 3

D - 0 3

F - 0 4

M - 0 4

A - 0 4

N - 0 4

F - 0 5

M - 0 5

A - 0 5

N - 0 5

F - 0 6

M - 0 6

A - 0 6

N - 0 6

F - 0 7

M - 0 7

J - 0 7

O - 0 7

J - 0 8

A - 0 8

J - 0 8

O - 0 8

J - 0 9

A - 0 9

J - 0 9

O - 0 9

J - 1 0

A - 1 0

J - 1 0

(EMBI+ Turkey) - (EMBI+)

EMBI+ Turkey

EMBI+

Secondary Market and CBRT Overnight Interest Rates

22

24

e ( % )



131Source: CBRT, Treasury

6

8

10

12

14

16

18

20

J a n - 0

5

M a r - 0

5

M a y - 0

5

J u

l - 0 5

S e p - 0

5

N o v - 0

5

J a n - 0

6

M a r - 0

6

M a y - 0

6

J u

l - 0 6

S e p - 0

6

N o v - 0

6

J a n - 0

7

M a r - 0

7

M a y - 0

7

J u

l - 0 7

S e p - 0

7

N o v - 0

7

J a n - 0

8

M a r - 0

8

M a y - 0

8

J u

l - 0 8

S e p - 0

8

N o v - 0

8

J a n - 0

9

M a r - 0

9

M a y - 0

9

J u

l - 0 9

S e p - 0

9

N o v - 0

9

J a n - 1

0

M a r - 1

0

M a y - 1

0

J u

l - 1 0

C o m p o u n

d e

d I n t e r e

s t R a

t e

Secondary Market Rate CBRT Overnight Rates

Credit Rating

Standard & Poor’s Credit Rating

S

P

BB



132Source: Bloomberg

J a n - 0

3

M a y - 0

3

O c

t - 0 3

F e

b - 0

4

J u

l - 0 4

N o v - 0

4

A p r - 0

5

A u g - 0

5

J a n - 0

6

M a y - 0

6

O c

t - 0 6

F e

b - 0

7

J u

l - 0 7

N o v - 0

7

A p r - 0

8

A u g - 0

8

J a n - 0

9

M a y - 0

9

O c

t - 0 9

F e

b - 1

0

J u

l - 1 0

N

SP

BB-

N

S

P

B+

N

S

P

B

NS

P

B-

N

Turkey’s Sovereign Credit Rating (July 9, 2010)

A2 Bahrain, Poland A Bahrain, Czech Rep., Estonia A Bahrain, Chile, Israel

Israel, Malta, S. Korea

A3 Malaysia, S. Africa A- Malaysia, Poland A- Malaysia, Poland

Portugal

Baa1 Mexico, Montenegro, Lithuania BBB+ S. Africa BBB+ Estonia, S. Africa

Russia, Thailand, Hungary Thailand

Moody's Standard & Poor's Fitch



133

Baa2 Azerbaijan, Kazakhstan BBB Bulgaria, Croatia, Mexico BBB Hungary, Lithuania, Mexico

Tunisia Russia, Tunisia, Lithuania Russia, Tunisia, Thailand

Baa3 Armenia, Bulgaria, Croatia, India, Iceland BBB- Brazil, Colombia, Iceland, India, Kazakhstan BBB- Azerbaijan, Brazil, Bulgaria, Croatia, Greece,

Latvia, Romania, Brazil, Panama, Peru Morocco, Panama, Peru, Hungary India, Morocco, Panama, Peru, Kazakhstan

Ba1 Albania, Colombia, Costa Rica BB+ Azerbaijan, Egypt BB+ Turkey (stable), Colombia

Egypt, El Salvador, Greece Greece, Romania Egypt, Guatemala, Latvia, Macedonia

Guatemala, Morocco Romania, Iceland, Indonesia

Ba2 Turkey (stable), Belarus BB Turkey (positive), Cook Islands, Costa Rica BB Costa Rica,

Jordan, Indonesia, Papua New Guinea Indonesia, Guatemala, Jordan, Vietnam Philippines,

Suriname El Salvador, Uruguay, Latvia, Macedonia El Salvador

Ba3 Philippines, Uruguay BB- Gabon, Mongolia, BB- Gabon, Lesotho, Nigeria,

Vietnam Philippines, Serbia, Venezuela Serbia, Vietnam, Uruguay, Armenia,

B1 Fiji, Lebanon B+ Bosnia & H., Georgia, Ghana, B+ Georgia, Iran, Sri Lanka

Mongolia Mozambique, Nigeria, Suriname Venezuela, Ghana

B2 Bosnia & H., Bolivia B Belize, Bolivia, Kenya, B Bolivia, Lebanon, Mongolia

Venezuela, Turkmenistan, Ukraine Paraguay, Sri Lanka, Lebanon, Ukraine Mozambique, Suriname, Ukraina

B3 Argentina, Belize, Nicaragua B- Argentina, Fiji, Jamaica B- Argentina,

Jamaica, Pakistan, Paraguay Madagascar, Pakistan Ecuador, Jamaica

Caa1 Cuba, CCC+ Ecuador CCC+

Caa2 CCC CCCCaa3 Ecuador CCC- CCC-

Ca DDD

SD D

Source: Bloomberg

EMBI+ Index: Comparison with Other Countries

Change (bp) (02.01.2008 – 09.07.2010)

11

10

Turkey

Brazil




372

282

105

75

26

23

21

12

675

-20 30 80 130 180 230 280 330 380 430 480 530 580 630 680 730 780

Venezuela

Argentina

Ukraine

Russia

EMBI+

Phillipines

S. Africa

Mexico

Colombia

Equity Markets (Emerging and Mature Markets)% Change (02.01.2008-02.07.2010)

-37 4

-40.6

-53.1

Japan

Russia

China




4.5

1.1

-6.9

-7.0

-7.8

-12.7

-12.9

-21.8

-27.2

-36.5

-37.4

11.5

-60 -55 -50 -45 -40 -35 -30 -25 -20 -15 -10 -5 0 5 10 15

Mexico

Turkey

Brazil

S. Africa

S. Korea

Malaysia

Hungary

India

USA (DJI)

Poland

Chech Rep.

Japan

Currency Markets (Against USD)% Change (02.01.2008 – 09.07.2010)

3.4

7.1

19.2

Malaysia

China

Japan




-31.2

-30.9

-28.3

-27.6

-25.9

-18.3

-17.4

-17.0

-11.7-11.3

0.9

-32.9

-40 -35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25

Turkey

Poland

UK

Hungary

S. Korea

Russia

India

Euro

Mexico

Chech Rep.S. Africa

Brazil



137

INVESTMENT ENVIRONMENT

Starting a Business (Number of Procedures)

6

6

44

S th Af i

OECD

Hungary

Bulgaria



138

18

14

13

10

9

8

8

8

8

6

6

0 4 8 12 16 20

Brazil

China

India

Poland

Mexico

Croatia

Thailand

Czech Rep.

East. Eur.& Cent. Asia

Turkey

South Africa

Source: World Bank Doing Business Report, 2009

Starting a Business (Duration. Days)

15

13

65

Czech Rep.

OECD

TurkeyHungary



139

49

40

40

33

31

30

29

28

23

22

15

0 10 20 30 40 50

Bulgaria

Croatia

China

Thailand

Poland

India

Russia

Mexico


South Africa

Czech Rep.


Starting a Business (Cost, % of GDP Per Capita)

12

13

1519

Croatia

Mexico

TurkeyPoland



140

2

3

5

5

6

8

8

8

9

10

12

0 5 10 15 20

Bulgaria

Russia

Thailand

OECD

South Africa

Brazil

Hungary

China


Czech Rep.

Croatia


Taxes on Income and Profit (% of GDP, 2007)

30.0

35.0



141

Source: OECD Factbook 2009*2006 data.

5.6

12.8

0.0

5.0

10.0

15.0

20.0

25.0

T u r k e y

M e x i c o

S l

o v a k R e p .

P o l a n d *

G r e e c e *

C z e c h R e p .

K o r e a

P o r t u g a l

H u n g a r y

F r a n c e

J a p a n

N e

t h e r l a n d s

G e r m a n y

I r e l a n d

A u s t r i a

S p a i n

L u x e m b o u r g

O

E C D A v . *


U S A U K

I t a l y

B e l g i u m

C a n a d a

F i n l a n d

A u s t r a l i a

S w e d e n

I c e l a n d

N o r w a y

N . Z e a l a n d

D e n m a r k

Tax Revenue Comparisons (% of GDP, 2007)

30

35

40



142

Includes Mexico, Korea, Czech Rep., Greece, Hungary, Ireland, Poland, Portugal, Slovak Rep. and Spain.

Source: OECD, Factbook 2009

0

5

10

15

2025

30

Total Tax Revenue Income Taxes Taxes on Goods and

Services

Turkey OECD Comparative Group*



143

RELATIONS with the IMF and EU

Relations with the IMF

Projected

Payments

(Million

Repurchases

(Million SDR)

Amount

Drawn

(Million

Amount

Approved

(Million



144

4,61825,69730,31534,522TOTAL

4,6182,0446,6626,662(05.2005 - 05.2008)19th Stand-by

Arrangement

011,91411,91412,821(02.2002 - 02.2005)18th Stand-by

Arrangement

011,73911,73915,038(12.1999 - 02.2002)17th Stand-ByArrangement

SDR)SDR)SDR)DurationArrangements

Source: Treasury

For 1 Chapter 1- Science and Research

For 7 Chapters

EU Accession Process

Negotiations were opened andprovisionally closed

Negotiations were openedprovisionally but closingbenchmarks

1- Enterprise and Industrial Policy, 2- Statistics, 3- Financial



145

For 2 Chapters1- Education and Culture,2- Economic andMonetary Policy

For 13 Chapters

Remaining chapters

benchmarks

Submission of our Position Papers

Opening benchmarks

Awaiting for the screening reports

Control, 4- Consumer and Health Protection, 5- Trans-EuropeanNetworks, 6- Company Law (fulfillment of opening benchmarks),7-Intellectual Property Law (fulfillment of opening benchmarks)

Programme For the Alignment with the EU Acquis (2007 – 2013):

Programme’s Aim: To complete alignment with the EU acquis

Structural Reforms



146

SOCIAL SECURITY

Social Security Reform

Uniform norm and standarts for workers. civil cervants and the self employed

Main Features



147

employed

Gradual increase in retirement age to 65

Decrease in accrual rate to 2 %.

The valorization of past earnings by CPI+30 % of GDP real growth

Indexation of pensions to CPI Universal health insurance

A new health scheme for the poor as of 2011

Introduction of copayments for health care Global budget in some health expenditures



Decrease in Pension System Deficits

(2007-2075,% of GDP)



149

Source: World Bank

Before the Reform

After the Reform

Retirement Age for Men

60

65

70



150

48

40

45

50

55

60

T u r k e y

F r a n c e

S l

o v a

k R e p .

H u n g a r y

C

z e c

h R e p .

K o r e a ,

R e p .

A u s

t r i a

B e

l g i u m

D e n m a r k

N e

t h e r l a n

d s

U . K .

S p a

i n

S w e

d e n

S w

i t z e r l a n

d

I t a l y

J a p a n

C a n a

d a

L u x

e m

b o u r g

M e x

i c o

P o

l a n

d

P o r t u g a

l

N

. Z e a

l a n

d

G r e e c e

F i n l a n

d

I r e l a n

d

G e r m a n y

A u s

t r a l i a

U S A

I c e

l a n

d

N o r w a y

Source: OECD, Pensions at a Glance, 2009

(*) While for Turkey retirement age is indicating current lowest retirement age, for other countries indicating legal retirement age.

Net Replacement Rates

Switzerland

Ireland

Slovak. Rep.

UK

Germany

USA

Mexico

Japan

Low Earner

OE C DAv g. Australia

Korea

USA

N.Zealand

UK

Ireland

Japan

Mexico

Mean Earner

OE C DAv g

Switzerland

USA

Canada

Japan

Korea

Ireland

UK

N.Zealand

High Earner

OE C DAv



151Source: OECD, Pensions at a Glance, 2009

121

10 35 60 85 110 135

Denmark

Turkey

Greece

Iceland

Luxembourg

Netherlands

Czech Rep.

Hungary

Austria

Canada

SpainAustralia

N.Zealand

Sw eden

Belgium

Norw ay

France

Italy

Poland

PortugalFinland

Korea

. 8

2 .4 %

125

10 35 60 85 110 135

Turkey

Greece

Macaristan

Netherlands

Luxembourg

Iceland

Denmark

Austria

Spain

Poland

Italy

Slovak. Rep.

Portugal

Norw ay

France

Sw itzerland

Czech Rep.

Sweden

Belgium

FinlandGermany

Canada

.7 0 . 3 %

130

10 35 60 85 110 135

Turkey

Greece

Macaristan

Netherlands

Luxembourg

Iceland

Sweden

Spain

Italy

Denmark

PolandSlovak. Rep.

Portugal

Austria

Finland

France

Norway

Germany

Belgium

Czech Rep.

Mexico

Australia

v g. 6 0 . 8 %



152

LABOR MARKET



Tax Wedge After Reform(Workers Earn 67% of Average Income, Married with 2 Children)

3436

3840

50



154

0

10

20

30

B e l g i u m

G e r m a n y

H u n g a r y

F r a n c e

A u s t r i a

I t a l y

N e

t h e r l a n d s

C z e c h R e p .

D e n m a r k

P o l a n d

E U - 1 9

F i n l a n d

T u r k e y

G r e e c e

S l o v a k R e p .

T U R - 0 9

N o r w e y

S p a i n

O

E C D - a v g .

P o r t u g a l

U K

L u x e m b o u r

U S A

J a p a n

S w

i t z e r l a n d

C a n a d a

S w e d e n

I c e l a n d

A u s t r a l i a

N . Z e a l a n d

K o r e a

ı

r e l a n d

M e x i c o

Source: OECD Taxing Wedges, 2009

Not: TUR-09 involves the 5 point reduction in employer’s social security contribution and minimum living allowance.

Income Tax Plus Employee’s and Employer’s Social

Security Contributions* (% of labor costs, 2008)

Czech RepFinland

Sw edenNetherland

ItalyAustriaFrance

Germany

HungaryBelgium



155

0 10 20 30 40 50 60

MexicoKorea

N.ZealandIreland

UKAustralia

IcelandSw itzerlan

JapanUSA

CanadaLuxembour

OECDPortugalNorw ey

SpainTurkeyPoland

Denmark

GreeceCzech Rep.

Income Tax Employee's SSC Employer's SSC

(*) Single without children at the income level of average worker

Source: OECD Taxing Wages 2009

Number of Insured (Million Persons)

3 4

3.4 3.4 3.3 3.2 3.32.2

2.4 2.4 2.42.4

2.4 2.5 2.5 2.2 2.2

10

12

14

16



156Source: Social Security Instutions

6.1 6.6 6.8 7.0 7.79.0 9.2 9.5 9.6 9.9

3.3 3.3 3.4 3.4

3.4

0

2

4

6

8

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

April

SSK Bağ-Kur Emekli Sandığı

Social Security Coverage (Million Persons)

(Employees and Dependents)

16.4 15.0 14 6 14.7 14.98.69.0

9.39.4

9.5

9.5 9.3 9.5 9.0 9.0

40

50

60



157Source: Social Security Instutions

22.6 24.0 25.3 26.9 29.433.5 33.8 33.1 34.6 35.2

15.315.6 15.9 16.2 16

15.0 14.6

0

10

20

30

40

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

April

SSK Bağ-Kur Emekli Sandığı

Informal Employment Ratio by Provinces



158

Source: Ministry of Labour and Social Security

Informal Employment Ratio (<35%)

Informal Employment Ratio (35-45%)



Informal Employment Ratio (>70%)

Distribution of Employment by Economic Activity (%)

ServicesIndustryAgriculture

49.526.823.7Turkey

67.728.04.4Spain

2.4 76.121.5Canada



159

54.430.714.7Poland

56.040.73.3Czech Rep.

77.221.31.5UK

67.325.57.2Horea

59.927.113.0Mexico

4.5

3.7

4.2

63.1

66.2

68.4

32.4

30.0

27.4

ıtaly

Hungary

Japan

Source: OECD, 2008

Restrictiveness of Protection Legislation on Temporary

Employment (Index Scale of 0-6 from Least to Most Restrictive)

4.88

4

5

6



160

0

1

2

3

4

C a n a d a

U S A U K

S l o v a k R e p .

I r e l a n d

A u s t r a l i a


C z e c h R e p .

H u n g a r y


J a p a n

N .

Z e l a n d

D e n m a r k

A u s t r i a

S w e d e n

K o r e a

G e r m a n y

S p a i n

P o l a n d

E U - 1 9

F i n l a n d

I t a l y

B e l g i u m

P o r t u g a l

N o r v e y

G r e e c e

F r a n c e

M e x i c o

L u x e m b o u r g

T u r k e y

1998 2008

OECD Avg. 1.77

Source: OECD Labour Force Database, 2009

Part-time Employment (%, 2008)

59.760

70

80

90

100



161

8.4

0

10

20

30

4050

K o r e a

T u r k e y

D e n m

a r k

F i n l a n d

H u n g a r y

P o r t u g a l

P o l a n d

S l o v a k R e p .

C a n a d a

G r e e c e

U S A

J a p a n

N o r w e y

A u s t r a l i a

C z e c h

R e p .

N . Z e a l a n d

O E C D T

o t a l


I t a l y

O E C D E

u r o p e

U K

E U 1

9

E U 1 5

I r e l a n d

F r a n c e

G e r m

a n y

A u s t r i a

S p a i n


B e l g i u m

L u x e m

b o u r g

Part-time Employment as a Proportion of Total Employment Women's Share in Part-time Employment

Source: OECD, Labor Force Statistics Database, 2009



163

R&D

Turkey: R&D Expenditures (Current PPP, USD)



164

In 2002, 3 billion dollars. In 2008, 6.8 billion dollars.

R&D expenditures increased by 120 % between 2002

and 2008

Source: OECD, TURKSTAT, TÜBİTAK

6091

6893

6000

7000

8000

R&D Expenditure (Million TL)



165

3835

2197

1292

798

1843

4400

2898

0

1000

2000

3000

4000

5000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: TURKSTAT

R&D Expenditure per Capita (PPP, USD)

9897

77

100

120



166

67

53

4346464439

32

0

20

40

60

80

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: TUBITAK

In 2002, 28,964 people.

Turkey: Number of FTE* R&D Personnel



167

In 2008, 67,244 people.

Number of R&D personnel increased by 132 %between 2002-2008

(*)Full Time EquivalentSource: OECD, TURKSTAT, TUBİTAK

Turkey: Number of FTE R&D Personnel

63377

67244

5444460000

70000

80000



168Source: TURKSTAT

49252

27003

27698

28964 38308

39960

0

10000

20000

30000

40000

50000

2000 2001 2002 2003 2004 2005 2006 2007 2008

In 2002, 23,995 people.

Turkey: Number of FTE Researchers



169

In 2007, 49,667 people. Number of researchers increased by 86 % between

2002-2007

Source: OECD, TURKSTAT, TUBİTAK

R&D Human Resources (Number of People*1000)

6367

5053

3840

4954

45

55

65

75



170

Human resource is still the most important bottleneck for research.There is especially lack of scientists, project managers, technicians and supporting staff.

Source: TUBİTAK

14 15 16 16 17 18

22 23 23 2427 28 29

4339

3433

2423232019191816

14141311 125

15

25

35

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Full-time R&D Personnel Full-time Researcher

In 2002, 10,314 publications.

In 2008, 22,738 publications.

Turkey: Number of Scientific Publications



171

Number of scientific publications increased by 120 %between 2002 and 2008

Source: ISI, TUBİTAK

Turkey: Number of Scientific Publication

22738

21943

18917

19000

21000

23000

25000



172

18917

16713

12432

15429

10309

5000

7000

9000

11000

13000

15000

17000

2002 2003 2004 2005 2006 2007 2008

Source: TUBİTAK

Number of Scientific Publications per Million People

318311

272

243250

300

350



173Source: TUBITAK

243228

186

156

100

150

200

250

2002 2003 2004 2005 2006 2007 2008

In 2002, 85 international patent applications.

I 2008 361 i t ti l t t li ti

Turkey: Number of International Patent Applications



174

In 2008, 361 international patent applications. Number of international patent applications increased by

325 % between 2002-2008

Source: WIPO, TUBİTAK



Patent Applications and Registries

1090

1838

2268

1500

2000

2500

ro

f p a t e n t )



176

Patent applications increased by 23.4 % between 2007-2008

Source: TPI, TUBİTAK

73 93 68 95 122

318 338414

490

685

935

1090

0

500

1000

2002 2003 2004 2005 2006 2007 2008

( N u m b e r o

Domestic Patent Registries Domestic Patent Appliciations



ENERGY SECTOR



178

ENERGY SECTOR

Electricity Demand and Supply in Turkey (Billion kWh)

150

200



179

Source: TEİAŞ

0

50

100

2001 2002 2003 2004 2005 2006 2007 2008 2009

Supply Demand



Household Natural Gas PricesEuro / GigaJoule, For consumers with 20 GJ – 200GJ annual consumption, 2009 1st Half)

15

20

25

30



181

Kaynak: Eurostat

0

5

10

D e n m a r k

S w e d e n


I t a l y

E u r o A r e a

S l o v e n i a

A u s t r i a

G e r m a n y

I r e l a n d

S p a i n

B e l g i u m

P o r t u g a l

E U 2 7

F r a n c e

L a t v i a

C z e c h R e p u b l i c

H u n g a r y

B u l g a r i a

S l o v a k i a

E n g l a n d

L i t h u a n i a

E s t o n i a

T u r k e y

P o l a n d

C r o a t i a

R o m a n i a

Without Taxes Other Taxes VAT

15

20

25

Industrial Electricity Prices(Eurocent / kWh, For consumers with 2.000MWh – 20.000Mwh annual consumption,

2009 1st Half)



182

0

5

10

D e n m a r k

S l o v a

k i a

I t a l y

G e r m a n y

H u n g a r y

M a

l t a

S o u

t h C y p r u s

N e

t h e r l a n

d s

I r e l a n

d

E n g

l a n

d

E u r o

A r e a

E U 2 7

C z

e c

h R e p u

b l i c

S p a

i n

S l o v e n

i a

L a

t v i a

L u x e m

b o u r g

P o

l a n

d

L i t h u a n

i a

G r e e c e

C r o a

t i a

P o r t u g a

l

R o m a n

i a

N o r w a y

T u r k e y

F i n l a n

d

F r a n c e

S w e

d e n

B u

l g a r i a

E s

t o n

i a


Kaynak: Eurostat

15

20

25

30

Household Electricity Prices(Eurocent/kWh, For consumers with 2.500 kWh- 5.000kWh annual consumption, 2009 1st Half)



183

0

5

10

D e n m a r k

G e r m a n y

I t a l y

I r e l a n d

B e l g i u m

A u s t r i a


L u x e m b o u r g

E u r o A r e a

M a l t a

E U 2 7

S w e d e n

S p a i n

N o r w a y

S

o u t h C y p r u s

S l o v a k i a

P o r t u g a l

H u n g a r y

E n g l a n d

S l o v e n i a

C z e

c h R e p u b l i c

F i n l a n d

F r a n c e

G r e e c e

C r o a t i a

T u r k e y

P o l a n d

L a t v i a

R o m a n i a

L i t h u a n i a

E s t o n i a

B u l g a r i a


Kaynak: Eurostat

Turkish Economy 2010July

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Transcript of Turkish Economy 2010July