1. June 2014 Turkish Embassy 1 RECENT DEVELOPMENTS IN TURKISH ECONOMY AND BILATERAL ECONOMIC AND COMMERCIAL RELATIONS BETWEEN TURKEY AND CZECH REPUBLIC. Necmi U ğ urlu Chief Commercial Counsellor of Turkish Embassy

2. Growth Forecasts for Selected Countries/Country Groups  In 2013, Turkish economy grew by 4%.  According to figures for the first quarter of 2014 Turkish Economy growth rate is 4.2 % which is the highest in Europe 3 in the world. Source: IMF, OECD, WB June 2014 Turkish Embassy 2

3. Economic Targets of 2014-2016 Medium Term Program *Actual (Medium Term Program, Ministry of Development – October 8, 2013)  Medium Term Program which covers 2014-2016 period aims to reduce the current account deficit gradually and increase the growth rate by minimizing the effects of global uncertainty. June 2014 Turkish Embassy 3

4. Real GDP Growth of Selected Countries/Country Groups (2013)  Turkish Economy expanded by 4.2 % in the first quarter of 2014. Source: TURKSTAT, IMF June 2014 Turkish Embassy Euro Area 4

5. GDP Per Capita Source: Dollar value is from TURKSTAT, PPP GNI value from World Bank,  Since 2002 GDP per capita has tripled from 3,492 USD to 10,782 USD in 2013. According to Purchasing Power Parity (PPP) GNI per capita surpassed 18 thousand USD in 2012. June 2014 Turkish Embassy 5

6. Central Government Budget Deficit/ GDP (%)  Central government budget deficit/GDP ratio was 1.2% in Turkey in 2013 and Turkey satisfied the Maastricht criteria of 3%. Turkey also outperformed 21 EU Countries.  As for the Czech Republic is one of the best in EU countries with deficit/GDP ratio is 2.1 % June 2014 Turkish Embassy 6 Source: Eurostat,TUİK

7. Government Debt / GDP (%) Debt/GDP ratio of Turkey was 36.2% in 2012, which was below the level in 25 EU Countries and the Mastricht Criteria (60%). Debt/GDP ratio of Czech Rep. was 46.0 % in 2012 second after Turkey June 2014 Turkish Embassy 7 Source: Eurostat

8. Potential of Population (2012) Source: World Bank and TURKSTAT (Turkey’s data are for 2013)  Turkey has a population of 76.7 million in which half of the population is under the age of 30.4.  Growth rate of population is 1.4% in Turkey, 0.2% in EU Countries and 0.1% in Germany and – 0.13 % in Czech Rep.. 8 June 2014 Turkish Embassy

9. B- FOREIGN TRADE OUTLOOK June 2014 Turkish Economy 9

10. Targets in Merchandise Trade * Actual (Source: TURKSTAT) **Forecast: Medium Term Programme, Ministry of Development, 2014-2016) June 2014 Turkish Embassy 10

11. TOTAL EXPORT AND IMPORT OF TURKEY ($) Turkish foreign trade on the rise... Exports, which were USD 47 billion in 2003, rose to USD 152 billion by at the end of 2013. June 2014Turkish Embassy 11

12. Distribution of Foreign Trade in Broad Economic Categories EXPORT 12 IMPORT June 2014 Turkish Embassy

13. Main Export Items (Annual) Source: TURKSTAT 13 June 2014 Turkish Embassy

14. Main Import Items (Annual) 14 June 2014 Turkish Embassy Source: TURKSTAT

15. Exports by Regions

16. Imports by Regions

17. Main Export Partners (Share,%) Main Trade Partners (Jan-Mar 2014) Main Import Partners (Share,%) Source: TURKSTAT June 2014 Turkish Embassy 16

18. 2) SERVICES June 2014 Turkish Embassy 20

19. Tourism Statistics (Billion $) 2011 2012 2013 ----------- ----------- ---------- Tourism income 28.2 29.4 32.3 Tourism Expenditure 5.5 4.7 5.3 Turkey ranks 6 th place in the world and the 4 th in Europe among the most favoured destinations in 2013

20. Contracting Services Abroad 20  38 out of the world’s top 250 contracting companies are Turkish.  Turkey ranks as the 2nd country (following China) in terms of the number of top contracting companies. Contributions to the overall economic performance: Creating foreign exchange inflow, exports, employment, technology transfer; adding to the machinery stock, facilitating internationalization June 2014 Turkish Embassy Regional Breakdown of Projects(%)

21. C- INVESTMENTS, FOREIGN CAPITAL and INCENTIVES 21 June 2014 Turkish Embassy

22. Investment Climate in Turkey 22 June 2014 Turkish Embassy

23. Time Required to Start a Business  The required time to start a business is 6 days in Turkey. Source: Invest In Turkey 23 June 2014 Turkish Embassy

24. Skilled Labour Availability  Scoring is between 0 and 10. Source: Invest In Turkey 24 June 2014 Turkish Embassy

25. Breakdown of Foreign Investments by Country Source: CBRT 28 * January-March June 2014 Turkish Embassy

26. Investment Incentive System The current investment incentive system of Turkey is structured in four sub systems:  General Investment Incentive System  Regional Investment Incentive System  Investment Incentive System for Big Scale Projects  Encouraging the Strategic Investments 29 June 2014 Turkish Embassy

27. BİLATERAL ECONOMIC AND TRADE RELATIONS WITH CZECH REPUBULICBİLATERAL ECONOMIC AND TRADE RELATIONS WITH CZECH REPUBULIC

28. BILATERAL TRADE BETWEEN TURKEY AND CZECH REPUBLIC (1.000 US $ ) 201120122013 Export1.300.4721.103.9071.138.568 Import1.356.7561.703.9532.209.955 Volume2.657.2282.807.8603.348.526 Balance - 56.284- 600.146- 1.071.387 *The share of Turkey in Czech Rep. total imports is % 0.07 The share of Czech Rep. İn Turkey’s total import is % 0.08 June 2014 Turkish Embassy

31. The Prominent Czech Companies which are doing business and cooperation with Turkish Companies in Turkey CEZ Pro Energy CKD Vitkovice Zentiva

32. Turkish Czech Companies Cooperation in Third Countries Ronesans and PSG Cooperation won a tender in North of Iraq constructing power station for 1000 MGW. The total value of the project is 1 Billion US Dollar Secon project of the coopreation is building a business center in Petersburg (Russia) The total value of the project is 100 Million US Dollar.

33. THANK YOU VERY MUCH FOR YOUR ATTENTION