An update onBILATERAL ECONOMIC RELATIONS

Prepared in March 2011by the Consulate General of the Netherlands Commercial Section Mustafa Basaran, Senior Commercial Officer

Population – Turkey

72.5 mio (as of 2010)

82.2 mio (estim. for 2023)

Population (Istanbul)

12.9 mio (as of 2010)

15.2 mio (estim. for 2023)

Rate of Population

Growth - Turkey

1.45 % (2000-2009)

Rate of Population

Growth (Istanbul)

28.91%(2000-2010)

50% (2000-2023)

Rate ofUrbanizationGrowth

2.1% (2000-2008)

Source: World Bank, World Development Indicators on CD-ROM, 2006. Eurostat, http://epp.eurostat.ec.europa.eu/

Adult Literacy Rate 89% (as of 2008)

Fixed telephone line subscription/population

24.1%(as of 2010)

PC’s per 1000 inhabitants72 (as of 2010)

Internet Access – Households41.6% (as of 2010)

Internet Access – Population (Age 16-74)

52.6 % (as of 2010)

SOCIAL INDICATORS: POPULATION & URBANIZATION RATES KEEP GROWING.

Average age is 26.5 years as compared to the EU-15 average of 42.

Global Competitiveness Index- 2010

Country Rank Score

Switzerland 1 5.63

Netherlands 8 5.33

China 27 4.84

Hungary 52 4.33

Turkey 61 4.25

16. Biggest World Economy, 2010

 United States People's Republic of

 Japan India

 Germany Russia Brazil

 United Kingdom France

 Italy Mexico

 South Korea Spain

 Canada Indonesia

 Turkey Australia

 Iran Republic of China (Taiwan)

 Poland Netherlands

 Argentina Saudi Arabia

 Thailand South Africa

 Egypt

Average GDP Growth, % (2003-2009)

1.2%

4.2%

8.3%

3.6%

4.9%

4.4%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

EU 27

World

India

Brazil

Russian Fed

Turkey

TURKEY: A LARGE AND RAPIDLY GROWING ECONOMY

MACROECONOMIC FUNDAMENTALS: The recovery has been quickly over..

2002 2008 2009 2010 Compared to theNetherlands

Total exports USD 36 billion USD 132 billion USD 102 billion USD 113.9 billion USD 309.5 billion (2009)

Total imports USD 51 billion USD 201.9 billion USD 140 billion USD 201.9 billion USD 275.8 billion (2009)

Current Account Deficit USD 1.5 billion USD 49 billion USD 4.1 billion USD 7.5 billion

GDP USD 181 billion USD 729 USD 596 billion USD 742 billion* Est. USD 770 billion (GDP)Est. 1.8% growth in 2010

GDP/Capita (PPP Adjusted) USD 8223 USD 13123 USD 12465 USD 13392 Est. USD 40500 (GDP/capita)

Foreign exchange reserves USD 26 billion USD 63.8 billion USD 70 billion USD 75.4 billion

Inflation 29.7% 10.4% 6.5% 8.57 %

Unemployment 10% 13% 13% 11%

Number of global capital companies in Turkey

5560 21.079 23.565 25.837

Share from global capital inflows to emerging markets

0.5% 4.1%(2007) 2.46% (2008) 1.6% (2009)

Dutch government and private sector organizations classified Turkey as a ‘priority country’ together with Russia and India in 2005...

Source: World Bank, World Development Indicators on CD-ROM, 2006. Eurostat, epp.eurostat.ec.europa.eu/ TUIK, www.tuik.gov.tr

GDP GROWTH (2002-2010*)

7.95.9

9.97.4 6.9

4.6

1.1

-5

7.8

-6

-4

-2

0

2

4

6

8

10

12

2002 2003 2004 2005 2006 2007 2008 2009 2010

ECONOMIC STRUCTURE, 2010

Services; 67%

Industry; 24%

Agriculture; 9%

SERVICES

Transport & Comm.; 29,5%

Finance; 22,6%

Educ.; 5,3%

Construction; 12,0%

Trade; 25,3%

Health; 5,3%

MANUFACTURING

Machinery; 10%

Refinery; 15%

Chemicals; 10%

Base Metals; 10%

Non-Metals; 9%

Automotive; 7%

Other; 4%

Food; 16%

Textile&Cloth.; 19%

Trade Figures: EU continues to be the major trade partner

46 percent of Turkish exports were destined to EU countries in 2010.

38.9 percent of Turkish imports originated from EU countries in 2010. Source: www.tuik.gov.tr

US$ bn 2010 Change (%) 2009 Change (%) 2008 Change (%) 2007 Change (%)

Total Imports 185.4 32.4 140 -30 201.9 24 170 24

Imports from EU ($) 72.2 28.9 56 -25.1 74.8 9.3 68.6 27.5

Imports from EU (%) 38.9   40   37.8   40.3  

Imports from NL ($) 3.1 24.3 2.5 -16.6 3 15.1 2.6 23

Imports from NL (%) 1.6   1.7   1.4   1.5  

                 

Total Exports 113.9 11.6 102 -22.7 132 23 107.2 25.9

Exports to EU ($) 52.6 11.9 47 -25.75 63.3 4.3 60.3 37.3

Exports to EU(%) 46   46   48   56.3  

Exports to NL ($) 2.4 14.2 2.1 -32.2 3.1 4.1 3 19

Exports to NL (%) 2   2   2.3   2.8  

                 

Trade Deficit 71.5 88.1 38 -45.6 69.9 21 62.8 21

Major Import Markets of Turkey: US$, thousand

Source: www.dtm.gov.tr

No. Name 2010 2009 Share in Total Year-to-Year Change, %

1 Russian Fed. 21 596 035 19 450 086 11.64% 11.03%

2 Germany 17 529 862 14 096 963 9.45% 24.35%

3 China 17 179 842 12 676 573 9.26% 35.52%

4 USA 12 318 408 8 575 737 6.64% 43.64%

5 Italy 10 202 601 7 673 374 5.50% 32.96%

6 France 8 176 366 7 091 795 4.41% 15.29%

7 Iran 7 644 782 3 405 986 4.12% 124.45%

8 Spain 4 839 933 3 776 917 2.61% 28.15%

9 S. Korea 4 764 009 3 118 214 2.57% 52.78%

10 UK 4 676 568 3 473 433 2.52% 34.64%

11 Ukraine 3 830 187 3 156 659 2.06% 21.34%

12 Romania 3 448 381 2 257 963 1.86% 52.72%

13 India 3 409 804 1 902 607 1.84% 79.22%

14 Japan 3 297 664 2 781 971 1.78% 18.54%

15 Belgium 3 213 671 2 371 516 1.73% 35.51%

16 THE NETHERLANDS 3 155 961 2 543 073 1.70% 24.10%

17 Switzerland 3 153 595 1 999 386 1.70% 57.73%

18 Poland 2 620 928 1 817 093 1.41% 44.24%

19 Kazakhstan 2 464 273 1 348 903 1.33% 82.69%

20 Saudi Arabia 2 440 360 1 686 743 1.32% 44.68%

Major Export Markets of Turkey: US$, thousand

Source: www.dtm.gov.tr

No. Name 2010 2009 Share in Total Year-to-Year Change, %

1 Germany 11 453 274 9 793 006 10.06% 16.95%

2 UK 7 220 731 5 937 997 6.34% 21.60%

3 Italy 6 505 965 5 888 958 5.71% 10.48%

4 Iraq 6 042 550 5 123 406 5.31% 17.94%

5 France 6 036 964 6 211 415 5.30% -2.81%

6 Russian Federation 4 632 247 3 189 607 4.07% 45.23%

7 USA 3 768 352 3 240 597 3.31% 16.29%

8 Spain 3 563 526 2 818 470 3.13% 26.43%

9 UAE 3 337 656 2 896 572 2.93% 15.23%

10 Iran 3 042 969 2 024 546 2.67% 50.30%

11 Romania 2 598 693 2 201 936 2.28% 18.02%

12 THE NETHERLANDS 2 461 337 2 127 297 2.16% 15.70%

13 Egypt 2 260 711 2 599 030 1.98% -13.02%

14 China 2 259 785 1 600 296 1.98% 41.21%

15 Saudi Arabia 2 219 541 1 768 216 1.95% 25.52%

16 Israel 2 082 974 1 522 436 1.83% 36.82%

17 Switzerland 2 057 177 3 935 122 1.81% -47.72%

18 Belgium 1 960 562 1 795 682 1.72% 9.18%

19 Libya 1 934 158 1 795 117 1.70% 7.75%

20 Syria 1 849 232 1 421 637 1.62% 30.08%

Source: www.tuik.gov.tr, www.cbs.nl

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US$1000, Turkish Exports to The Netherlands

US$1000, Turkish Imports from The Netherlands

Bilateral Trade Between The Netherlands & Turkey

(Million US$) (Million US$)  

2000 1.584 874

2001 1.041 892

2002 1.311 1.056

2003 1.656 1.525

2004 1.908 2.138

2005 2.152 2.469

2006 2.137 2.536

2007 2.655 3.019

2008 3.056 3.143

2009 2.538 2.124

2010 3.156 (24.3%↑) 2.461 (15.8% ↑)

Exports to Turkey Imports from Turkey

FDI to TURKEY

Source: The Undersecretariat of Treasury, the General Directorate of Foreign Investment & own calculations

Majority of the Netherlands origin investments are international companies registered in the Netherlands for tax reasons.

As of January 2011, 1,866 Dutch origin companies are operating in Turkey. Some of these enterprises are old timers such as Philips, Unilever, Shell and DSM with decades long presence in this country.

FDI Flows per country of origin Levels, US$ million Number of FDI Firms Established (1954-2010)

Source: Undersecretariat of Treasury, www.treasury.gov.tr

COUNTRY OF ORIGIN 2005-2008 2009 2010

GERMANY 2913 497 498

THE NETHERLANDS 12237 718 501

UK 2833 350 233

FRANCE 3592 617 589

OTHER EU COUNTRIES 20128 2431 2887

USA 6011 260 318

TOTAL 60044 6250 6260

NL SHARE IN TOTAL, % 20,38% 13,04% 10,7%

COUNTRY OF ORIGIN 2006 2007 2008 2009 2010TOTAL

(1954-2010)

GERMANY 540 557

584 492 460 4315

THE NETHERLANDS 257 249 277 147 162 1866

UK 453 436 251 202 161 2237

OTHER EU COUNTRIES 676 785 658 469 432 4307

TOTAL 3075 3530 3337 2936 3233 25837

NL SHARE IN TOTAL, %

8,36%

7,05%

8,30%

5,01% 501% 7,22%

Sectoral Breakdown of Dutch Origin Companies in Turkey, 2009

Source: The Undersecretariat of Treasury, the General Directorate of Foreign Investment & own calculations based on figures from March 2008.

30; 2%

134; 8%

117; 7%

20; 1%

74; 4%

16; 1%

81; 5% 75; 4% 35; 2% 96; 5%111; 6%91; 5%60; 3%

79; 5%

394; 23%

100; 6%

30; 2%

43; 2%

116; 7%

25; 1%23; 1%

AGRICULTURE & HORTICULTURECHEMICALS / PLASTICS / PHARMACEUTICALSCONSTRUCTION MATERIALSELECTRONICS / HOUSEHOLD APPLIANCES / COMMUNICATION/SECURITY EQUIPFINANCIAL SERVICES & CONSULTANCYFURNITURE / DECORATION / INTERRIORS / ACCESSORIESHEALTH RELATED SERVICESHORECA & TOURISMICT / MEDIA / PUBLISHING / ADVERTISEMENTMACHINERY, PARTS, METAL WORKING & AUTOMOTIVEMEDICAL EQUIPMENTMINING, MINERALS & NATURAL STONESOTHER SERVICES & GOODSPACKAGING AND PAPER PROCESSED FOOD / BEVERAGE / INGREDIENTSREAL ESTATE / CONSTRUCTION / INFRASTRUCTURE & ENGINEERINGSHIP & YACHT BUILDINGTEXTILES & CLOTHINGTRANSPORT / LOGISTICSUTILITIES / ENERGY / OIL / GAS & ENVIRONMENTWHOLESALE & RETAIL TRADE

Wholesale & Retail Trade

Machinery/Parts/Metal Working & Automative.

ICT/Media/Publish/Advertisem.

Horeca & Tourism

Real Estate/Construction/Infra & Engineering

Textiles & clothing

Regional Breakdown of Dutch Origin Companies in Turkey, 2009

Source: The Undersecretariat of Treasury, the General Directorate of Foreign Investment & own calculations based on figures from March 2008.

ISTANBUL54%

KOCAELI2%

AYDIN3%

ANTALYA16%

IZMIR7%

MUGLA6%

ANKARA4%

BURSA1%

MERSIN1%

MANISA1%

OTHERS5%

Some Dutch Entrants 2007-2009

STARSALE

Sqills

ROLE OF THE EMBASSY in ANKARA & THE CONSULATE GENERAL in ISTANBUL

(ank-ea@minbuza.nl - ist-ha@minbuza.nl)

• Trade & Investment Inquiries (both from Dutch and Turkish companies)• Market Scans • Trade Missions (matchmaking services for official ones)• Networking / bridging with players in Turkey• Market insight, market intelligence for policy makers in the Netherlands • Business Cocktail every last Thursday of each month at Palais de Hollande• Providing Legal Info (FDI, Imports, Taxes)• Tenders / Projects / Privatization• Conflict Mediation / Lobbying / Support• Sectoral Reports (i.e. Energy, Transport, Chemicals)• Special Reports (i.e. Macro-Economy, Banking)• Special Events / PPP