Despite an improved performance so far in 2013, Turkey’s automotive sector is expected to continue to face hurdles over the coming years. The economies in some of its main export markets are underperforming and new challenges are arising from other producers looking to launch a drive into Europe, potentially raising the level of competition at home and abroad.Last year, Turkey’s automotive sector…
Government officials are becoming increasingly concerned that Turkish exporters could face stiffer competition in their biggest markets due to a looming free trade agreement (FTA) between the EU and the US, a deal that could undermine Ankara’s Customs Union with Europe. The EU and US are hoping to conclude their FTA next year, potentially bringing more than €200bn in benefits to the two sides.…
Turkey is planning to polish its credentials as an international transportation hub by building one of the world’s largest airports in Istanbul, a facility that is intended to serve the growing travel market and also cater to transit traffic, though it will face stiff competition from established airports in the Middle East and Europe. On May 20 a ceremony was held in Ankara to mark the signing…
Turkey's deputy prime minister Ali Babacan recently spoke with OBG on the country's economic performance and 2023 development objectives.Turkey’s transformation over the past decade has been considered as an economic and democratic success story. What is also remarkable is that this transformation has continued despite the global financial crisis.When we entered the 2008-09 crisis Turkey already…
With the launch of a new stock exchange, Borsa Istanbul, Turkey has taken one more step towards achieving its goal of becoming a regional financial centre. The market will eventually combine three former exchanges: the Istanbul Stock Exchange, the Istanbul Gold Exchange and the Derivatives Exchange of Turkey, known internationally as TurkDex. The merger with TurkDex is not yet complete but according…
The Turkish government is hoping talks aimed at ending the long-running conflict with Kurdish separatists will bring not only peace to the east and south-east of the country but also a wave of investments, with the industrial sector tipped to be one of the main beneficiaries. However, it will take many years to redress decades of underdevelopment, and close cooperation will be required if the region…
Despite slowing growth and expectations of a widening current account deficit this year, investors do not appear to be shying away from the Turkish economy, particularly as the easing of political tensions is likely to yield an upgrade in the country’s investment ratings.Economic growth slowed to 2.2% in 2012, a sharp decrease from the 8.5% and 9% recorded in 2011 and 2010, respectively. According…
Plans to consolidate Turkey’s position as an energy transit bridge appear to have suffered a setback, with a major project to connect the Black Sea and the Eastern Mediterranean put on hold by both the Turkish government and one of the scheme’s key investors, though for different reasons.There is already an extensive network of pipelines carrying both oil and gas running across Turkey, with connections…
A new deal between local telecommunications firms and the Turkish government is expected to see the introduction of a new 4G network in Turkey by 2016. This move has been hotly anticipated by telecoms operators, as they will be able to expand their services and offer new products that take advantage of the improved network speeds.Aselsan Elektronik Sanayi & Ticaret, an Ankara-based firm that produces…
Sentiment in the Turkish construction sector is rising, with contractors seeming confident that some of the momentum lost over the past 12 months will be regained as the government moves to open up several large-scale developments for tender.According to data issued by the Turkish Statistical Institute (TurkStat) at the end of February, the confidence index for the construction sector climbed to 85.5…
