The tight monetary policies implemented on the nation’s economy have resulted in putting on the heavy brakes when it comes to growth performance. Despite the contribution of rising exports, the contraction in domestic demand due to said measures has left the nation’s growth rate at just 2.2 percent. Even with the low figures for Turkey’s standards, the nation is still the top second country for economic growth in the EU and per capita income saw a rise to 10,504 US dollars.
Turkey’s monetary tightening policies to cool the economy have resulted in putting on the heavy brakes in economic growth figures. The contraction in domestic demand has resulted in a revision of the Mid-Term Program and figures coming in under the 3.2 percent target. Even with the contribution of exports, Turkey’s economic growth remained at 2.2 percent in 2012. Last year, the economy reached 786.3 billion dollars and per capita income is now $10,504.
FASTEST GROWTH IN REAL ESTATE
The fastest growing sector last year in Turkey was the real estate sector at 6.6 percent. Other standout sectors include education which grew by 4.3 percent, health by 5.3, transportation by 3.2 percent, commerce by 0.1 percent, construction by 0.6 percent, the manufacturing industry by 1.9 percent and agriculture, which saw 3.5 percent growth. Economic growth was also dragged down by 0.5 percent in domestic consumption, by one percent from private investments and 1.3 percent due to stock exchanges. Net exports contributed to the nation’s growth by 4.1 percent.
PER CAPITA INCOME REACHES 10,504 DOLLARS
Per capita national income has reached $10,504 (18,927 liras). In 2011, per capita income was at 10,444 dollars. The Gross Domestic Product has risen to 786.2 billion dollars (1.4 trillion liras). The Turkish Statistical Institute has revised 2011 growth figures from 8.5 to 8.8 percent. In the last quarter, Turkey’s economy grew by 1.4 percent, marking the 13th quarter in a row in which the nation’s growth figures have been on the rise.
WE ARE SECOND IN THE EU
With economic growth in the Euro Zone expected to drop by 0.6 percent and in the European Union by 0.3 percent, Turkey’s 2.2 percent economic growth for 2012 has placed them as the top second fastest growing economy. Estonia comes in first in the Euro Zone with 3.2 percent growth. However, Turkey, despite the low performance, follows in second. The Greek economy is expected to have regressed by 6.4 percent, Portugal by 3.2 percent, Italy and Southern Greek Cyprus by 2.4 percent and Spain’s economy is anticipated to have dropped by 1.4 percent.
TURKEY IS SUCCESSFUL DESPITE THE CRISIS
Finance Minister Mehmet Şimşek pointed out both the global crisis and the EU in saying that Turkey’s 2.2 percent growth is a sign of success. Şimşek says that economic growth in 2014 will be balanced, “We will reach four percent,” stated the finance minister.
IF NOT FOR EXPORTS WE WOULD HAVE REGRESSED
Minister of Economy Zafer Çağlayan also commented on Turkey’s growth figures by stating, “We could have easily grown by 4.2, 5.2 or even 6.2 percent. We have that strength. We are an automobile that can go 300 kilometers. We will press on the brakes when we see danger ahead, however we don’t need to use the heavy brakes. This was sort of like pressing on the brakes hard,” said Çağlayan, who also explained, “If exports hadn’t risen, our economy could have regressed.”
IN SAYING ‘STOP’ TO DOMESTIC DEMAND, IT HALTED ENTIRELY
Ankara Chamber of Industry Chairman Nurettin Özdebir says that the price of “killing our domestic demand, by saying ‘stop’ is being paid through the 2.2 percent growth figure. There is no lesson to be learned from this. If we halt domestic demand then just like what happened in 2012, we could also be in for an unpleasant surprise in 2013.”
CONTINUING TO BUILD MORALE
Ankara Chamber of Commerce Chairman Salih Bezci says, “Turkey’s ship has not taken in water in this storm. With this morale, we will continue to grow.”
Middle East Industry and Trade Center (OSTİM) Industrialists and Businessmen Association Chairman Adnan Keskin states, “We believe that Turkey has been made to put on the brakes. Foreign currency is being kept under pressure. This, in turn, benefits imports and foreign currency lobbies.”