Turkish economy's performance in 2010 amid global crisis

Current account deficit continues to be a problem for Turkish economy.

 Turkish economy's performance in 2010 amid global crisis

Turkish economy recovered from the effects of the global economic crisis and achieved a growth figure higher than numerous countries in 2010.

Turkish economy, which grew 11.8 percent and 10.2 percent in the first two quarters of 2010 respectively, has recorded a growth of 5.5 percent in the third quarter.

During the first 9 months of the year, the growth rate amounted to 8.9 percent.

According to Turkey's statistics authority, TurkStat, gross domestic product (GDP) at current prices reached 298.08 billion Turkish liras (TL) in the third quarter and equalled to 808.19 billion TL during the first 9 months.

Although Turkey, which has achieved a significant momentum in growth, could not show the exact same performance in unemployment, unemployment rate dropped by 2.1 points to 11.3 percent in September 2010 compared to the same term of last year.

As of September 2010, the total number of employed people equalled to 22.97 million, while number of the unemployed reached 2.93 million.

Throughout the year, basic inflation indicators preserved their tendency to decline.

As of November 2010, annual inflation was recorded as 7.29 percent based on consumer prices index (TUFE) and 8.17 percent based on producer prices index (UFE).

Turkey's export figures, which had dropped due to the shrinking in foreign markets after the global crisis, recovered this year as well. During the first 11 months of 2010, 2009's total export figures have been achieved.

Exports reached 92.7 billion USD in January-October period of 2010, while imports amounted to 147.82 billion USD and foreign trade deficit equalled to 55.11 billion USD in the same term.

Turkey's budget deficit decreased by 49.3 percent to 23.48 billion TL in January-November term of 2010 in comparison with last year's figures.

Moreover, current account deficit continues to be a problem for Turkish economy. The deficit reached 36 billion USD in the first 10 months of 2010.

Industrial production increased by 9.8 percent in October this year. Such increase was 6.2 percent same month last year.

Furthermore, capacity utilization rate in manufacturing industry rose up to 75.9 percent in November 2010 when compared to November 2009. This has been the highest rate recorded since September 2008.

Total reserves of the Turkish Central Bank, which were around 74.81 billion USD as of the end of 2009, increased to 84.62 billion USD as of December 2010, while Turkey's foreign debt repayment since the beginning of 2010 totalled 12.64 billion USD.

The shortest maturity date for the Treasury's domestic borrowing instruments ranged between 6 to 10 months, with the combined interest rate for domestic government bonds which floated around 8-9% at the beginning of the year dropping to 7.77% at the latest bond auction on December 7 for the Government Bonds with seven years of maturity.

The annual savings deposit interest rates of Banks range between 4 to 9%.

The Central Bank which kept the overnight interest rates at 6.50% in borrowing and 9% at lending since November 2009, lowered the borrowing rate to 6.25% and the lending rate to 8.75%.

The Monetary Policy board lowered the interest rate from 7% down to 6.5%, lowered the overnight borrowing rate from 1.75% to 1.50 and , increased the lending rate to 9%.

Central Bank's figures dated December 3 showed the total deposits which stood at 455.031 billion TL as of the end of 2009 rose to 509.885 billion TL in 11 months marking a 12% rise.

The credit volume of the Banking sector expanded by 38% in eleven months and reached 423.932 billion TL.

The Volume of Money in circulation which stood at 38.340 billion TL as of the end of 2009 rose to 48.538 billion TL as of December 20 marking a 26.6% rise.


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Last Mod: 22 Aralık 2010, 14:26
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