Economic Outlook

ECONOMIC OUTLOOK
March 2019
www.ticaret.gov.tr 1
T.C. TİCARET BAKANLIĞI
A- MACROECONOMIC DEVELOPMENTS…………………………………………… 3
B- MACROECONOMIC OUTLOOK………………………………………………….. 17
C- DEVELOPMENTS IN FOREIGN TRADE …………………………………….. 21
1) MERCHANDISE…………………………………………………………... 22
2) SERVICES…………………………………………………………………….. 35
D- INVESTMENTS and FOREIGN CAPITAL……………………..……………… 41
E- FREE ZONES in TURKEY…………………………………………………………… 46
F- BILATERAL, REGIONAL, PLURILATERAL and MULTILATERAL TRADE 51
A- MACROECONOMIC DEVELOPMENTS
Main Economic Indicators
2000 2010 2015 2016 2017 2018
GDP Growth, 2009 Prices, % 6.6 8.5 6.1 3.2 7.4 2.6
GDP, at current prices, billion TL 171 1,160 2,339 2,609 3,107 3,701
GDP, at current prices, billion $ 272 772 862 863 851 784
Population, thousand people, mid-year 64,269 73,142 78,218 79,278 80,313 81,407
GDP per person, at current prices, $ 4,229 10,560 11,019 10,883 10,602 9,632
Export f.o.b., billion $ 27,775 113,883 143,839 142,530 156,993 167,945
Export/GDP,% 10.2 14.7 16.7 16.5 18.4 21.4
Import c.i.f., billion $ 54,503 185,544 207,234 198,618 233,800 223,046
Import/GDP, % 20.1 24.0 24.0 23.0 27.5 28.4
Export/Import ratio (%) 51.0 61.4 69.4 71.8 67.1 75.3
Labour force participation rate, % 46.5 51.3 52.0 52.8 53.2
Unemployment rate, % 11.1 10.3 10.9 10.9 11.0
Employment rate, % 41.3 46.0 46.3 47.1 47.4
CPI (2003=100), annual average, % 8.6 7.7 7.8 11.1 16.3
Source: TURKSTAT
GDP Per Capita, US Dollars
Source: TURKSTAT
 Since 2002, GDP per capita has nearly tripled from 3,581 USD to 9,632 USD in 2018.
 In PPP terms, GDP per capita exceeded 28,607 USD in 2017.
Top 20 Economies (Current, PPP)
GDP(PPP),Billion $
30000
25000
20000
15000
10000
5000
0
Source: IMF, TURKSTAT Source: IMF
 In 2018, Turkey ranks as the 18th largest economy in the World and 7th in Europe.
GDP Growth Rates (2003-2018)
14,0
11,5
12,0 11,1
2003-2018 ave. GDP
9,6 growth rate is % 5,5
10,0 9,0
8,5 8,5
8,0 7,1 7,2 7,5 7,3 7,2
5,6 5,8 5,4 5,4
6,0 5,0 5,2 5,3
4,8 4,8 4,9
5,5* 4,2
3,6
4,0
2,0
1,6
0,8
0,0
-2,0 -0,8
-4,0 -3,0
-6,0 -4,7
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-2015-2015-2015-2016-2016-2016-2016-2017-2017-2017-2017-2018-2018-2018-2018-
I II III IV I II III IV I II III IV I II III IV
Annual Increases
Source: TURKSTAT
 GDP growth rate for the 4th quarter of 2018 was -3.0%.
 During 2003-2018 period, average annual growth rate in Turkey was 5.5%.
Real GDP Growth of Selected Countries/Country Groups (2018)
Source: TURKSTAT, IMF
 Turkish Economy expanded by 2.6% in 2018.
50,00
55,00
60,00
65,00
70,00
75,00
80,00
85,00
2007-01
2007-04
2007-07
2007-10
Source: CBRT
2008-01
2008-04
2008-07
2008-10
2009-01
2009-04
*Seasonally Adjusted Series

2009-07
2009-10
2010-01
2010-04
2010-07
2010-10
2011-01
2011-04
2011-07
2011-10
2012-01
2012-04
2012-07
2012-10
2013-01
2013-04
2013-07
2013-10
to that of the previous year and realized as 74.7%.

2014-01
www.ticaret.gov.tr
2014-04
2014-07
2014-10
2015-01
2015-04
2015-07
2015-10
2016-01
2016-04
2016-07
2016-10
2017-01
2017-04
2017-07
2017-10
2018-01
2018-04
2018-07
2018-10
Capacity Utilization Rate in Manufacturing Sector * (%)
2019-01
74,70
9
 Capacity utilization rate in March 2019 decreased by 4.4 percentage points compared
Industrial Production Index (2015=100)
125,0
120,0
115,0
109,4
110,0
105,0
100,0
95,0
90,0
85,0
80,0
75,0
Jul-12
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
Jul-18
May-12
Nov-12
May-13
Nov-13
May-14
Nov-14
May-15
Nov-15
May-16
Nov-16
May-17
Nov-17
May-18
Nov-18
Jan-12
Mar-12
Sep-12
Jan-13
Mar-13
Sep-13
Jan-14
Mar-14
Sep-14
Jan-15
Mar-15
Sep-15
Jan-16
Mar-16
Sep-16
Jan-17
Mar-17
Sep-17
Jan-18
Mar-18
Sep-18
Jan-19
Source: TURKSTAT
 Seasonally and calendar adjusted industrial production index decreased by 7.0%
year-on-year to 109.4 (2015=100) in January 2019.
Purchasing Managers’ Index (PMI)
Source: Markit Economics
 PMI was realized as 47.2 in March 2019.
Inflation (Annual Percentage Change)
50,00
45,00
40,00
35,00
30,00
25,00 %29.6
20,00
15,00 %19.7
10,00
5,00
0,00
CPI PPI
Source: TURKSTAT
 Inflation rates in March 2019 were 19.71% and 29.64% according to CPI and PPI,
respectively.
Developments in Turkish Labor Market
18
34 000
32 000 16
30 000
14
thousand people
28 000
12
26 000
%
24 000 10
22 000
8
20 000
18 000 6
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
July-05
July-06
July-07
July-08
July-09
July-10
July-11
July-12
July-13
July-14
July-15
July-16
July-17
July-18
Labor Force Employment Unemployment Rate (Right Axis)
Source: TURKSTAT
Seasonally Adjusted Series
 In December 2018, unemployment rate and seasonally adjusted unemployment rate were
13.5% and 12.7% respectively.
 In January 2019, seasonally adjusted unemployment rates were 6.5% and 7.8% in EU28 and
Euro Area respectively. In the USA, the rate was 3.8% in February 2019
Central Government Budget Deficit/ GDP (%), 2017
Source: Eurostat, TURKSTAT
 Central government budget deficit/GDP ratio was 1.9% in 2018 and Turkey complied
with the Maastricht criteria of 3%.
 In 2018, central government budget deficit was 72.6 billion TL
 In February 2019, general government budget deficit was 16.8 billion TL.
Government Debt / GDP (%), 2017
Source: Eurostat
 Debt/GDP ratio of Turkey was 30.4% in 2018, indicating a level below the
Maastricht Criterion (60%).
Balance of Payments
February January-February
Change Change
Million Dollar 2018 2019 2018 2019
(%) (%)
I- CURRENT ACCOUNT -4,494 -718 -84.0 -11,491 -1,307 -88.6
A. BALANCE ON GOODS -4,764 -1,074 -77.5 -12,574 -2,637 -79.0
B. BALANCE ON SERVICES 837 894 6.8 1,928 2,382 23.5
C. BALANCE ON PRIMARY INCOME -563 -495 -12.1 -1,049 -1,121 6.9
D. BALANCE ON SECONDARY INCOME -4 -43 975.0 204 69 -66.2
II- CAPITAL ACCOUNT -1 -1 - 32 27 -15.6
III- FINANCIAL ACCOUNT -2,685 679 -125.3 -10,658 -2,039 -80.9
Direct Investment 271 -486 -279.3 -81 -1,261 1,456.8
Net Acquisition of Financial Assets 777 161 -79.3 1,093 323 -70.4
Net Incurrence of Liabilities 506 647 27.9 1,174 1,584 34.9
Equity Capital 178 323 81.5 441 919 108.4
Inflow 277 325 17.3 613 923 50.6
Outflow 99 2 -98.0 172 4 -97.7
Other Capital (Net) 9 -116 -1,388.9 38 -211 -655.3
Real Estate (Net) 319 440 37.9 695 876 26.0
Portfolio Investment 299 -1,786 -697.3 -4,710 -7,896 67.6
Other Investment -3,001 128 -104.3 -9,994 755 -108
Rezerve Assets -254 2,823 -1,211.4 4,127 6,363 54
IV- NET ERRORS AND OMISSIONS 1,810 1,398 -22.8 801 -759 -195
Source:CBRT
B-MACROECONOMIC OUTLOOK
Economic Targets of 2019-2021 New Economic Program (NEP)
2019 2020 2021
GDP (Billion TL, Current Prices) 4,450 5,150 5,742
GDP Per Capita ($) 9,647 10,292 10,973

Real GDP Growth 2,3 3.5 5.0
Unemployment Rate(%) 12.1 11.9 10.8

Tourism Income (Billion $) 34.0 38.0 42.0
Current Account Balance (Billion $) -26.0 -23.5 -24.1

Current Account Balance/GDP(%) -3.3 -2.7 -2.6
Source: Ministry of Treasury and Finance, New Economic Plan (NEP)
New Economic Program, which covers 2019-2021 period, aims to increase

growth as well as providing its comprehension via structural reforms, while
continuing to reduce the current account deficit and inflation gradually.
Growth Forecasts of International Organizations
Growth Forecast for Selected Countries/Country Groups(%)
World Euro Area US Brazil Russia India China Japan
2018 3.6 1.8 2.9 1.1 2.3 7.1 6.6 0.8
IMF 2019 3.3 1.3 2.3 2.1 1.6 7.3 6.3 1.0
2020 3.6 1.5 1.9 2.5 1.7 7.5 6.1 0.5
2018 3.6 1.8 2.9 1.1 2.3 7 6.6 0.7
OECD 2019 3.3 1 2.6 1.9 1.4 7.3 6.2 0.8
2020 3.4 1.2 2.2 2.4 1.5 7.2 6.0 0.7
2018 3.0 1.9 2.9 1.2 1.6 7.3 6.5 0.8
World
2019 2.9 1.6 2.5 2.2 1.5 7.5 6.2 0.9
Bank
2020 2.8 1.5 1.7 2.4 1.8 7.5 6.2 0.7
Source: IMF (April 2019), OECD (March 2019), World Bank (January 2019)
 GDP growth rates are expected to decline in 2019 in comparison to 2018.
Forecasts for Merchandise Trade Growth
Forecasts for Merchandise Trade Growth(%)

Exports Imports World Trade
Years Advanced Emerging Advanced Emerging Volume
Economies Economies Economies Economies
2018 3.1 4.3 3.3 5.6 3.8
IMF* 2019 2.7 4.0 3.0 4.6 3.4
2020 3.1 4,8 3.2 5.3 3.9
2018 2.1 3.5 2.5 4.1 3.0
WTO 2019 2.1 3.4 1.9 3.6 2.6
2020 2.5 3.7 1.9 3.9 3.0
Source: IMF (April 2019), WTO (April 2019)
 According to the IMF estimates, world trade volume is expected to increase by

3.4% in 2019 and %3.9 in 2020.
 According to the WTO estimates, world trade volume is expected to increase by
2.6% in 2019 and 3.0% in 2020.
C-DEVELOPMENTS IN FOREIGN TRADE
1)MERCHANDISE
Merchandise Trade Targets (NEP)
2019 2020 2021
Exports (Billion $) 182.0 191.0 204.4
Imports (Billion $) 244.0 252.0 267.0
Balance of trade (Billion $) -62.0 -61.0 -62.6
Volume of trade/GDP(%) 53.6 51.6 50.9
Exports/Imports (%) 74.6 75.8 76.6

Source: Ministry of Treasury and Finance, New Economic Plan (NEP)
Turkey's Share in Global Merchandise Exports (%)
Source: WTO
 Turkey’s share in global merchandise exports was %0.89 in 2017.
Turkey's Share in Global Merchandise Imports (%)
Source: WTO
 Turkey’s share in global merchandise imports was %1.3 in 2017.
Monthly Exports and Imports (Thousands $)
25 000 000
20 000 000
15 000 000
10 000 000
5 000 000
0
1997-01
1997-07
1998-01
1998-07
1999-01
1999-07
2000-01
2000-07
2001-01
2001-07
2002-01
2002-07
2003-01
2003-07
2004-01
2004-07
2005-01
2005-07
2006-01
2006-07
2007-01
2007-07
2008-01
2008-07
2009-01
2009-07
2010-01
2010-07
2011-01
2011-07
2012-01
2012-07
2013-01
2013-07
2014-01
2014-07
2015-01
2015-07
2016-01
2016-07
2017-01
2017-07
2018-01
2018-07
2019-01
Import Export
Source: TURKSTAT
In February 2019, compared to the same month of previous year, exports increased by
3.4% and realized as 13.6 billion dollars, and imports decreased by 16.9% to the level of
15.7 billion dollars.
Foreign Trade Developments
Annual (Billion $)
Change (%)
2017 2018 2018 / (JAN -FEB) 2019 / (JAN -FEB)
2018/2019
Export 156,993 167,945 25,582 26,783 4.7
Energy Export* 4,327 4,412 601 1,067 77.5
Gold Export 6,606 2,587 110 243 120.8
Import 233,800 223,046 40,460 31,398 -22.4
Energy Import* 37,205 43,004 6,985 7,294 4.4
Gold Import 16,577 11,299 3,299 1,233 -62.6
Foreign Trade Volume 390,793 390,992 66,042 58,182 -11.9
Foreign Trade Balance -76,807 -55,101 -14,878 -4,615 -69.0
Balance excl. Energy -43,929 -16,509 -8,494 1,611 -119.0
Export/Import (%) 67.1 75.3 63.2 85.3 34.9
Source: Ministry of Trade

* Energy corresponds to Chapter 27.
In February 2019, compared to same month of 2018, exports increased by 3.4%
and imports decreased by 16.9%.
General and Special Trade Systems in Foreign Trade
General Trade System (GTS)
March January-March
2018 2019 Change (%) 2018 2019 Change (%)
Export (Million $) 16,252 16,334 0.5 43,129 44,567 3.3

Import (Million $) 22,264 18,299 -17.8 64,322 50,521 -21.5
Foreign Trade Volume (Million $) 38,516 34,633 -10.1 107,45 95,088 -11.5
Foreign Trade Balance (Million $) -6,011 -1,966 -67.3 -21,193 -5,954 -71.9
Export/Import (%) 73.0 89.3 67.1 88.2

Special Trade System(STS)
March January-March
2018 2019 Change (%) 2018 2019 Change (%)
Export (Million $) 15.553 15.488 -0.4 41.136 42.271 2.8
Import (Million $) 21.435 17.629 -17.8 61.895 49.027 -20.8
Foreign Trade Volume (Million $) 36.988 33.116 -10.5 103.031 91.298 -11.4
Foreign Trade Balance (Million $) -5.882 -2.141 -63.6 -20.759 -6.756 -67.5
Export/Import (%) 72.6 87.9 66.5 86.2

General Trade System, includes customs warehouses, all types of free zones, free circulation area and premises for inward processing.
In special trade system; customs warehouses, all types of free zones and premises for inward processing are excluded from the statistical
territory thus only imports and exports of the free circulation area are recorded.
Distribution of Foreign Trade in Broad Economic Categories
EXPORT
Export (Million $) 2018 2019 Change (%) 2018 2019 Change (%)
Investment Goods 1,669 (%12.7) 1,632 (%12) -2.2 2,863 (%11.2) 3,184 (%11,9) 11.2
Intermediate Goods 6,055 (%46.1) 6,419 (%47.2) 6.0 12,048 (%47.1) 12,769 (%47,7) 6.0
Consumption Goods 5,372 (%40.9) 5,487 (%40.4) 2.1 10,587 (%41.4) 10,695 (%40) 1.0
Others 51 (%0.3) 53 (%0.4) 5.6 83 (%0.3) 133 (%0,4) 59.5
TOTAL 13,148 13,593 3.4 25,582 26,783 4.7
Source: TURKSTAT
IMPORT
Import (Million $) 2018 2019 Change (%) 2018 2019 Change (%)
Investment Goods 2,506 (%13.2) 2,392 (%15.2) -4.6 5,207 (%12.9) 4,005 (%12.8) -23.1
Intermediate Goods 14,301 (%75.5) 11,931 (%75.9) -16.6 31,021 (%76.7) 24,590 (%78.3) -20.7
Consumption Goods 2,083 (%11) 1,337 (%8.5) -35.8 4,129 (%10.2) 2,677 (%8.5) -35.2
Others 45 (%0.2) 65 (%0.4) 44.4 101 (%0.2) 123 (%0.4) 22.7
TOTAL 18,937 15,727 -16.9 40,459 31,398 -22.4
Source: TURKSTAT
Main Export Items
EXPORT February January-February
CODE
Million Dollar 2018 2019 % Change 2018 2019 % Change
87 Vehicles other than railway or tramway rolling-stock, parts thereof 2,347 2,123 -9.5 4,173 4,087 -2.1
84 Boilers, machineries and mechanical appliances, parts thereof 1,245 1,317 5.8 2,404 2,536 5.5
72 Iron and steel 845 888 5.0 1,699 1,819 7.0
61 Knitted and crocheted goods and articles thereof 707 712 0.7 1,433 1,430 -0.2
85 Electrical machinery and equipment, parts thereof 684 675 -1.3 1,300 1,288 -0.9
27 Mineral fuels, minerals oils and product of their distillation 238 559 134.7 601 1,067 77.5
62 Non knitted and crocheted goods and articles thereof 516 549 6.4 1,029 1,074 4.4
73 Articles of iron and steel 497 510 2.5 960 989 2.9
71 Precious stones, precious metals, pearls and articles thereof 364 505 38.8 658 1,035 57.3
39 Plastic and articles thereof 477 500 4.9 917 980 6.9
* Sorted by February 2019
Source: TURKSTAT
Main Import Items
IMPORT February January-February
CODE
Million Dollar 2018 2019 % Change 2018 2019 % Change
27 Mineral fuels, minerals oils and product of their distillation 3,352 3,443 2.7 6,985 7,294 4.4
84 Boilers, machineries and mechanical appliances, parts thereof 2,075 1,602 -22.8 4,363 3,211 -26.4
85 Electrical machinery and equipment, parts thereof 1,480 1,110 -25.0 3,231 2,256 -30.2
72 Iron and steel 1,560 941 -39.7 3,098 2,076 -33.0
39 Plastic and articles thereof 1,157 908 -21.5 2,376 1,844 -22.4
71 Precious stones, precious metals, pearls and articles thereof 1,113 844 -24.2 3,486 1,595 -54.2
87 Vehicles other than railway or tramway rolling-stock, parts thereof 1,152 616 -46.5 2,271 1,138 -49.9
89 Ships, boats and floating structures 79 474 503.5 319 494 54.9
29 Organic chemicals 545 463 -15.1 1,101 917 -16.7
88 Aircraft and parts thereof 318 405 27.5 360 508 41.3
*Sorted by February 2019

Source: TURKSTAT
Main Trade Partners
Leading Export Partners in 2018 (%) Leading Import Partners in 2018 (%)
Leading Export Partners in January-February 2019 (%) Leading Import Partners in January-February 2019 (%)
Source: TURKSTAT
Exports by Regions
FEBRUARY JANUARY-FEBRUARY
Million dolar 2018 2019 % Share % Change 2018 2019 % Share % Change
A- European Union (EU-28) 6,830 6,946 51.1 1.7 13,331 13,717 51.2 2.9
B- Free Zones in Turkey 186 168 1.2 -9.6 363 339 1.3 -6.5
C- Other Countries 6,132 6,478 47.7 5.7 11,888 12,727 47.5 7.1
1- Other European Countries 900 916 6.7 1.8 1,667 1,709 6.4 2.5
2- Africa 1,037 1,212 8.9 16.8 1,979 2,445 9.1 23.5
North African Countries 665 808 5.9 21.4 1,287 1,628 6.1 26.5
Other African Countries 372 404 3.0 8.7 692 817 3.1 18.1
3- America 937 914 6.7 -2.4 1,870 1,875 7.0 0.3
North American Countries 728 685 5.0 -6.0 1,417 1,365 5.1 -3.7
Central America and Caraips 94 113 0.8 20.8 214 241 0.9 12.3
South American Countries 115 116 0.9 1.0 238 270 1.0 13.5
4- Asia 3,180 3,372 24.8 6.0 6,227 6,552 24.5 5.2
Near and Middle Eastern 2,341 2,470 18.2 5.5 4,489 4,770 17.8 6.3
Other Asian Countries 839 902 6.6 7.5 1,738 1,781 6.7 2.5
5-Australia and New Zealand 67.7 54.6 0.4 -19.4 128.5 117.4 0.4 -8.7
6-Other Countries 10.0 10.1 0.1 0.8 17.6 28.5 0.1 62.0
TOTAL 13,148 13,593 100 3.4 25,582 26,783 100 4.7
Source: TURKSTAT
Imports by Regions
FEBRUARY JANUARY-FEBRUARY
Million dolar 2018 2019 % Share % Change 2018 2019 % Share % Change
A- European Union (EU-28) 7,277 5,095 32.4 -30.0 14,205 9,928 31.6 -30.1
B- Free Zones in Turkey 110 126 0.8 14.6 237 221 0.7 -6.8
C- Other Countries 11,550 10,506 66.8 -9.0 26,017 21,249 67.7 -18.3
1- Other European Countries 2,420 2,134 13.6 -11.8 5,492 4,405 14.0 -19.8
2- Africa 491 359 2.3 -26.9 1,400 847 2.7 -39.5
North African Countries 358 251 1.6 -29.9 785 566 1.8 -27.9
Other African Countries 133 108 0.7 -18.8 615 281 0.9 -54.3
3- America 1,681 1,392 8.8 -17.2 3,975 2,689 8.6 -32.4
North American Countries 981 1,016 6.5 3.6 2,667 1,821 5.8 -31.7
Central America and Caraips 72 57 0.4 -20.7 149 105 0.3 -29.2
South American Countries 628 318 2.0 -49.4 1,159 762 2.4 -34.2
4- Asia 6,069 5,160 32.8 -15.0 12,872 10,170 32.4 -21.0
Near and Middle Eastern 1,699 1,453 9.2 -14.5 3,295 2,631 8.4 -20.2
Other Asian Countries 4,369 3,708 23.6 -15.1 9,577 7,539 24.0 -21.3
5-Australia and New Zealand 55 87 0.6 58.3 441 135 0.4 -69.5
6-Other Countries 833 1,374 8.7 65.0 1,837 3,003 9.6 63.5
TOTAL 18,937 15,727 100 -16.9 40,460 31,398 100 -22.4
Source: TURKSTAT
2) SERVICES
Targets in Services
In the scope of 2023 Strategy for Commercial

Services;
 To increase the share from the World’s commercial trade
 To reach 150 billion USD of services exports
Turkey's Share in Global Services Exports (%)
1,10
1,00 1,00
1,00 0,97
0,95
0,93
0,91 0,90 0,90
0,90
0,82
0,80
0,76
0,70
0,60
0,50
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: WTO
 Turkey’s share in global exports of services was 0.82 % in 2017.
Turkey's Share in Global Services Imports (%)
0,52
0,50 0,50
0,50
0,48
0,48
0,47
0,46
0,46 0,46
0,46
0,45
0,44
0,44 0,44
0,42
0,40
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: WTO,CBRT
 Turkey’s share in global imports of services was 0.45% in 2017.
Balance of Payments- Services Items
CREDIT February January-February
Million Dolar 2018 2019 Change(%) 2017 2018 Change(%)
Services 2,608 2,828 8.4 5,559 6,056 8.9
Transport 1,056 1,236 17.0 2,234 2,616 17.1
Travel 1,077 1,129 4.8 2,325 2,481 6.7
Construction 51 55 7.8 75 87 16.0
Insurance and pensıon services 96 110 14.6 223 221 -0.9
Financial Services 88 44 -50.0 133 93 -30.1
Other business services 55 85 54.5 167 222 32.9
Government goods and services n.i.e 33 31 -6.1 69 66 -4.3
Other services 125 111 -11.2 284 221 -22.2
DEBIT February January-February
Million Dolar 2018 2019 Change(%) 2017 2018 Change(%)
Services 1,771 1,934 9.2 3,631 3,674 1.2
Transport 700 696 -0.6 1,505 1,402 -6.8
Travel 321 314 -2.2 662 632 -4.5
Construction 1 1 0.0 1 1 0.0
Insurance and pensıon services 177 146 -17.5 390 256 -34.4
Financial Services 91 222 144.0 160 350 118.8
Other business services 165 231 40.0 346 453 30.9
Government goods and services n.i.e 99 111 12.1 183 205 12.0
Other services 154 127 -17.5 267 226 -15.4
Source: CBRT
Contracting Services Abroad
Avr. Project
Project Volume Cum. Project Volume
Years Projects Countries Volume
(Million $) (Million $)
(Million $)
1971-2002 2,427 48 50 50 0 Contributions to the overall
2003 339 35 6,398 56,157 19 economic performance: Creating
2004 477 36 8,620 64,777 18
2005 453 33 12,931 77,708 29 foreign exchange inflow,
2006 576 35 22,336 100,044 39
2007 617 45 25,864 125,908 42
exports, employment,
2008 664 39 24,363 150,271 37 technology transfer; adding to
2009 512 45 20,392 170,663 40
2010 631 50 23,502 194,165 37 the machinery stock, facilitating
2011
2012
564
546
51
49
24,589
30,383
218,754
249,137
44
56
internationalization.
2013 430 50 30,333 279,471 71
2014 345 54 27,337 306,808 79
2015 270 57 23,367 330,175 87
2016 196 56 13,933 344,108 71
2017 295 52 15,583 359,690 53 Distribution of Contracting Services By Country
2018 287 53 20,035 379,725 70 Groups(%) (March 2019)
2019 40 12 1,287 381,013 32
*March 2019
D- INVESTMENTS
Foreign Direct Investment (Billion USD)
25.000
20.000
15.000
13
10.000
5.000
0
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Source: CBRT
 FDI stock reached 209 billion USD in the 2003-2018 period. It was 14.6 billion USD in
over 1984-2002 period.
 In February 2019, foreign direct investment increased by 27.9% compared to the same
period of the previous year, and realized as 647 million dollars.
Foreign Direct Investment Abroad (Billion USD)
8.000
7.000
6.000
5.000
4.000 3.6
3.000
2.000
1.000
0
1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
-1.000
Source: CBRT
 Direct investments from Turkey to abroad reached 42.7 billion USD from 2003 to
2018 on a cumulative basis.
 In February 2019, foreign direct investment decreased by 79.3% compared to the
same month of the previous year, and realized as 161 million dollars.
The Sectoral Breakdown of Foreign Investments
Annual January-February
(Million $) 2017 2018 2018 2019
AGRICULTURE 29 44 4 2
INDUSTRIAL SECTORS 2,022 2,757 229 221
Mining and Quarrying 448 73 23 4
Manifacturing 1,202 2,000 178 215
Electricity, Gas, Steam
and Air-conditioning 371 680 28 2
Supply
Water Supply; Sewerage,
Waste Management and 1 4 0 0
Remediation
SERVICES SECTOR 5,350 3,733 380 700
TOTAL 7,401 6,534 613 923
Source: CBRT
Breakdown of Investment in Manufacturing Industry (%)
Breakdown of Foreign Investments by Country
2019 January-
2018 January-February
2018 FDI 2019 FDI February February
Rank* Countries FDI
(Million Dolar) (Million Dolar) FDI
(Million Dollar)
(Million Dollar)
1 Netherlands 446 92 64 119
2 Azerbaijan 516 51 76 101
3 Italy 349 40 24 178
4 Austria 409 29 4 216
5 Britain 169 17 62 23
6 USA 833 12 147 37
7 Germany 233 12 45 45
8 Luxembourg 147 11 29 13
9 France 80 10 19 18
10 South Korea 509 9 12 23
11 Denmark 167 9 0 10
12 Spain 155 7 13 13
13 Hong Kong 465 4 62 4
14 Qatar 0 3 0 3
15 Kuwait 38 3 6 6
16 Norway 103 3 6 6
17 Belgium 293 2 12 4
18 Thailand 329 2 14 4
19 Switzerland 1 2 0 3
20 Japan 23 2 2 3
LIST TOTAL 5,265 320 597 829
TOTAL 6,534 325 613 923
Source: CBRT
*Sorted by FDI in 2019
E - FREE ZONES IN TURKEY
The Advantages of Free Zones for Users
 Tax advantages for manufacturers
 Medium-and long-term investment view
 Availability to transfer profits
 Commercial facilities
 Exemption from customs duties
 Acquisition of the documents relating to the free movement of goods under the scope of Customs Union with the EU
 Principle of equality
 No time restrictions
 Flexibility to adjust to the market needs and conditions
 Reliable inflation accounting
 Market access to domestic and foreign markets
 Reduced bureaucratic procedures and dynamic business management
 Strategic advantages
 Affordable and compatible infrastructure
 Supply chain opportunities
Free Zones in Turkey
 Employment in the 18 Free Zones of Turkey is 67,823 in February

2019.
Trade Flows of Free Zones (Million USD)
Million Dollar 2012 2013 2014 2015 2016 2017 2018
From Domestic
2,971 2,887 2,732 2,205 2,125 2,376 2,563
Market To Free Zones
From Free Zones To

7,071 7,701 7,958 7,494 7,041 7,525 8,147
Abroad
From Abroad To Free
7,257 7,490 7,059 6,550 5,868 6,404 6,453
Zones
From Free Zones To
5,754 5,162 4,683 4,012 3,999 4,073 3,766
Domestic Market
TOTAL TRADE
23,053 23,240 22,432 20,261 19,033 20,378 20,929
VOLUME
Source: General Directorate of Free Zones, Foreign Investments and Services
 In January-February 2019, total trade volume of the Free Zones was 3 billion
US dollars.
Concentration in Free Zones by Industries
Istanbul Ataturk Airport FZ Services and Software
Antalya FZ Yacht-building, Medical Equipment
Kocaeli FZ Ship-building
Avrupa FZ Ready-Wear
Mersin FZ Ready-Wear
Bursa FZ Automotive sub-industries
Izmir FZ Leather
TUBITAK-MAM FZ R&D Activities
Adana-Yumurtalik FZ Ship Repair and Maintenance
Source: General Directorate of Free Zones, Foreign Investments and Services
F - BILATERAL, REGIONAL, PLURILATERAL
and MULTILATERAL TRADE
Trade Relations of Turkey with Others
 Bilateral Trade Relations of Turkey
Europe, Asia-Pacific, Eurasia, Middle East and North
Africa, Sub-Saharan Africa, Americas
 Regional Trade Relations of Turkey

EU, ECO, D8, BSEC, OIC, COMCEC
 Multilateral Trade Relations of Turkey

WTO, G20
FTA Countries
1. EFTA (Norway, Switzerland, 11. Georgia 21. Faroe Islands
Iceland, Liechtenstein)
12. Montenegro 22. Singapore
2. Israel
13. Serbia 23. Sudan**
3. Macedonia
14. Chile 24.Venezuella**
4. Bosnia and Herzegovina
15. South Korea 25.Qatar**
5. Palestine
16. Mauritius
6. Tunisia
17. Lebanon**
7. Morocco
18. Kosovo**
8. Syria (*)
19. Malaysia
9. Egypt (*) Pending
20. Moldova
(**) Agreements that are in the approval process
10. Albania
FTA Countries (On-going Negotiations)
1. Ukraine 11. Democratic Republic of the Congo
2. Indonesia 12. Cameroon
3. Peru 13. Chad
4. Colombia 14. Seychelles
5. Ecuador 15. Gulf Cooperation Council
6. Pakistan 16. Libya
7. Mexico 17. MERCOSUR
8. Japan
9. Thailand
10. Djibouti
Multilateral Trade Relations
Trade in Services Agreement (TISA)
 Due to the stumble of Doha Development Round and ambitious targets of top services exporters,
TISA negotiations which continue between countries, who makes up 70% of total world services,
in order to increase liberalisation in services trade while Turkey is included in the negotiations.
Environmental Goods Agreement (EGA)

 Environmental Goods Agreement (EGA) is a plurilateral agreement currently being negotiated by
17 members of the World Trade Organization (WTO), including the EU as a single member. EGA
aims to set bound tariffs of an agreed list of environmental goods at zero. At present, there is a
liberalization list which contains 261 products.
G-20 Presidency
 G20 which is composed of United States, Germany, Argentina, European Union, Australia, Brazil,
China, Indonesia, France, South Africa, South Korea, India, United Kingdom, Italy, Japan, Canada,
Mexico, Russia, Saudi Arabia and Turkey accounts for 80 % of the world economy, 75 % of global
trade and is home to almost two thirds of the world’s population. G20 Term Presidency is carried
out by a member country every year. In 2018, G20 Term Presidency has been assumed by
Argentina.
Regional Breakdown of Exports
2018 2018 January-February 2019 January-February

Country Groups % Change
(Million Dolar) (Million Dollar) (Million Dollar)
EU(28) 83,987 13,331 13,717 2.9
CIS 9,716 1,429 1,530 7.1
EFTA 2,276 270 257 -4.9
Economic Cooperation
7,145 1,212 1,088 -10.2
Organization
Organization of Islamic
41,181 6,054 6,779 12.0
Cooperation
Black Sea Economic Cooperation 17,834 2,678 2,855 6.6
OECD Countries 93,787 14,708 14,825 0.8
FTA Countries 18,860 3 3 5.1
Turkish Republics 3,966 572 590 3.1
Source: TURKSTAT
Trade Representatives Abroad
Representatives from The Ministry are serving

in 110 countries, 157 locations and 3
Permanent Representation abroad.
Locations of Trade Representatives

Economic Outlook - March

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 In PPP terms, GDP per capita exceeded 28,607 USD in 2017.

Source: IMF, TURKSTAT Source: IMF

Source: TURKSTAT, IMF

 Turkish Economy expanded by 2.6% in 2018.

*Seasonally Adjusted Series

to that of the previous year and realized as 74.7%.

Source: Markit Economics

 PMI was realized as 47.2 in March 2019.

Source: Eurostat, TURKSTAT

2019 2020 2021

GDP (Billion TL, Current Prices) 4,450 5,150 5,742

GDP Per Capita ($) 9,647 10,292 10,973

Unemployment Rate(%) 12.1 11.9 10.8

Current Account Balance (Billion $) -26.0 -23.5 -24.1

New Economic Program, which covers 2019-2021 period, aims to increase

 GDP growth rates are expected to decline in 2019 in comparison to 2018.

Forecasts for Merchandise Trade Growth(%)

 According to the IMF estimates, world trade volume is expected to increase by

2019 2020 2021

Exports (Billion $) 182.0 191.0 204.4

Imports (Billion $) 244.0 252.0 267.0

Balance of trade (Billion $) -62.0 -61.0 -62.6

Volume of trade/GDP(%) 53.6 51.6 50.9

Exports/Imports (%) 74.6 75.8 76.6

 Turkey’s share in global merchandise exports was %0.89 in 2017.

 Turkey’s share in global merchandise imports was %1.3 in 2017.

Source: Ministry of Trade

Export (Million $) 16,252 16,334 0.5 43,129 44,567 3.3

Source: Ministry of Trade

Source: Ministry of Trade

* Sorted by February 2019

*Sorted by February 2019

In the scope of 2023 Strategy for Commercial

 To increase the share from the World’s commercial trade

 To reach 150 billion USD of services exports

 Turkey’s share in global exports of services was 0.82 % in 2017.

 Turkey’s share in global imports of services was 0.45% in 2017.

Source: Ministry of Trade

 Employment in the 18 Free Zones of Turkey is 67,823 in February

Million Dollar 2012 2013 2014 2015 2016 2017 2018

From Free Zones To

 Regional Trade Relations of Turkey

 Multilateral Trade Relations of Turkey

Environmental Goods Agreement (EGA)

2018 2018 January-February 2019 January-February

Representatives from The Ministry are serving

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