Texas State Senator Rodney Ellis was in Turkey last August where he also visited TUSKON which partner organization of TTACC. TUSKON Vice President Ismail H. Kisacik and Omer Faruk Eksi, head of Construction Committee of MARIFED, a TUSKON member federation, met with the Senator at TUSKON headquarters in Istanbul and discussed the business opportunities between the State of Texas and Turkey.
Turkey's gross domestic product (GDP) clinched 11 percent growth, amounting to TL 25.90 billion, in the January-March period of this year over the same months of a year ago, making the country the world's fastest growing country during this period.
Turkey seems not to have retreated from the noteworthy growth of 8.9 percent witnessed in 2010. The better-than-expected growth figures were immediately put under the spotlight by the government. “As the global financial crisis has shaken many developed countries, Turkey managed to clinch a record-high growth figure. We have become the world's fastest growing economy,” Prime Minister Recep Tayyip Erdoğan said during a parliamentary group meeting. Foreign Trade Minister Zafer Çağlayan told the CNBC-e station when the figures were revealed that he expects the year-end growth figure will be around 7 percent. The Turkish Statistics Institute (TurkStat) released its quarterly growth rates on Thursday, indicating that the economy had continued to grow for the sixth straight quarter. The growth rate was in double digits, even surpassing market expectations, which were around 10 percent.
Accordingly, Turkey’s GDP amounted to TL 25.90 billion at constant prices in the first three months of the year, 11 percent higher than a year earlier, when the economy grew by 11.7 percent.
Private consumption topped the components contributing to the GDP in the first quarter, with around 75 percent. The total amount of money Turkish households spent in Turkey and abroad was TL 211.6 billion and TL 1.9 billion, respectively, while foreigners visiting Turkey spent TL 6.6 billion in the mentioned period. On the other hand, the private consumption, or in another words investments, were TL 1 billion more -- TL 8.44 billion -- in the given period over the same period a year ago. TurkStat showed that TL 8 billion of these investments were made in the construction sector while 437 million was spent on machinery and other equipment.
“Bunker busting numbers, these,” Timothy Ash, an economist at RBS, said in a written statement to the press. “Turkey’s economy is growing really fast. It has transformed into an ‘Asian Tiger.’ I think the year-end growth figures could be revised upwards to 7 percent with this development,” he added. Analyst Abdulkadir Çakır also shared similar views. “These numbers are really sensational,” he told Today’s Zaman. “The significant recovery in the Turkish economy is still going on, supported by foreign capital inflows from developed countries and a strong political and financial stability.” But, Çakır underlined that this speedy growth also has side effects, stating that it was mainly driven by continuing domestic demand widening the current account deficit (CAD) by over $60 billion in 2011 -- a sign of an overheating economy -- an issue that should be given priority as soon as possible.
Central Bank Governor Erdem Başçı has been trying to slow growth toward the government target of 4.5 percent this year by restricting consumer credit. The central bank has raised reserve requirements four times since December 2010 in order to reduce the money available to lend while cutting the interest rate. Another analyst talking to the daily, Gökhan Delioğlu from Bizim Securities, also underlined that domestic demand, despite the central bank measures, is still growing. “We forecast 10 percent growth in the first quarter, but this number was not something we were expecting. The rise in domestic demand is the main reason behind this figure,” he noted. An analyst at French Societe Generale, Gaelle Blanchard, also said the unexpectedly high growth figure and foreign trade deficit, which was $43.8 billion in the first five months of this year, just confirms the Turkish economy has overheated. “This situation will pressure the central bank for a possible rate hike; however, if the central bank remains silent to a rate increase, the lira could depreciate more,” Blanchard said.
Texas Turkish American Chamber of Commerce’s Board members attendedthe 7th World Chambers Congress that
Turkey came into prominence recently. Fast recovery after the recent crises with an 8.9% growth rate, which was the second highest after China in 2010,
was an important success.
Dr. Necip Sayiner was the guest speaker in “TTACC Business Talks” series on June2nd and shared his thoughts, analyses and experiences with the audience.
The topic “Don’t Just Survive: Thriving through an Economic Downturn” enlightens the recent success story of Silicon Laboratories. Although most of the other high tech companies in Austin experienced a downturn during recent global crises, Silicon Laboratories has been an exemption. The secret of the success was mostly in the diversification strategy they pursued.
The highlights from his speech are as follows. Technology companies in general have been able to weather the economic storm better than most other industries. A number of key trends are keeping this fast paced industry immune from many of the weak economic indicators, including the pace of change, the ubiquity and reliance on technology, the advent of green technology and an exponential increase in bandwidth requirements
Former President of Mexico Honorable Vicente Fox spoke at the San Antonio chapter of the TTACC on Monday, May 2nd, 2011 in San
Antonio, Texas. Mr. Fox, who served as 55th president of Mexico from 2000 to 2006, emphasized the significance of collaboration in a competitive economic environment, while addressing “Leadership and International Trade in the Contemporary World” at the dinner gathering hosted by the San Antonio branch of TTACC.
Former President Fox stated that he has seen the commonalities between Mexican and Turkish people at his visit to Istanbul and that both countries have a dynamic and rapidly growing economy that can further succeed in the near future.
Mr Quanrul Mina was the guest of the “TTACC Business Talks” series on April 21, 2011, and shared his entrepreneurial experiences with the audience. Quamrul Mina is CEO and co-founder of two Austin companies – Pragma Systems and BDeshTV. He founded Pragma systems in 1990 with David Kulwin; and in a short period of time, companies like IBM, Tandem, and Tivoli became their customers. Now Pragma's software is deployed in the majority of Fortune 500 companies in the USA and over 2,100 companies in over 62 countries worldwide. Quamrul’s newest venture is BDeshTV, an online/on-demand TV & video platform company which he co-founded in Austin in July, 2010. Mr Mina is an accomplished software architect and developer, and has wide experience in the industry in networking and security software.
The latest figures send a strong signal about the country's resilience against external shocks amid uncertainties that still linger in global markets. However, observers caution that fast growth in the Turkish economy "must be manageable" in the face of a growing CAD. In this respect, the Central Bank of Turkey is being called upon to maintain its strategy of using a policy mix that comprises low policy rates and high reserve requirements to balance domestic and foreign demands and financial stability. Experts have warned that the management of the economy should not overlook the fact that such high growth traditionally brings about a huge CAD in Turkey. Turkey's current account deficit in 2010 increased by 247.1 percent, approaching $48.6 billion, $9.5 billion above government estimates.
The Turkish Statistics Institute (TurkStat) announced on Thursday that Turkey's gross domestic product (GDP) managed to grow by 8.9 percent last year over 2009. The GDP grew to TL 1.1 trillion (or $735.8 billion) in current prices. Earlier, market expectations for the year-end growth rate stood between 7 and 8 percent. The economy is expected to register a growth rate of around 4.5 percent in the coming year.
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- Chairman of Limak Holding Ozdemir"Turkey has become a stronger and more trustworthy country"
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- Lt Governor Dewhurst"Lone Star's Economy is Shining'
- Turkish-American Economic and Trade Relations