Dear Valued Friends& Partners,
Our imports are up, until July 2014 by 2.6%, and reaching 13.403 billion dollars compared to last year’ssame term figures. Our exports - have decreased to 19.863 billion dollars by13.5%. Exports were a ratio of 67.48% of our import business. Though there was a decrease in our exportdivision to Iraq, where Rotas took thesecond place in the Turkish import league, according to the Southeast ExportersAssosiation’s information, signs ofsmall increases have started to appear. Our decreased export ratio with Russiais also estimated to improve by September 2014. Exports to the EU and the USA began to increase as well. While ready-made wear claimed the first spot inexports, the decrease, albeit slow, in the current deficit draws attention In economic growth Turkey again wasstrong . While the Turkish economy grew by2.75%, German and Italian economies fell2.0 %. China with a normal growth ratioof 10.0% also fell under 7.0% growth.
Authorized Car Services in Decline
Passenger and light commercialvehicle sales compared to the previous year showed a rapid decline. Nevertheless,the table shows that Fiat Doblo sold 1.873 pieces of light commercial cars in July, and was first place in the table; sellingfrom the beggining of the year, 8.747 pieces of light commercial cars. Followedby Fiorino in second by selling 8.405 pieces light commercial cars. There arelarge discounts at all car manufucturer brands with long term maturity.Authorised car services are not pleased with the situation. Some have hadto shut down and some are triying to circuit.In our market Hyundai and Toyota sales have increased over competiors.Passenger car sales increased by 22%, light commercials have decreased by 30%, compared to last years first seven months.When it comes to pickup sales in the first sixth month Mitsubishi L200 sold 1,537 pieces, Isuzu D-Max sold 1,403pieces, VW 1.094, and Toyota Hilux 952pickups have been sold. Bank credit hasbeen used by the local artisans reaching over 11.600 billion TL. Upper limits of credit given by Credit and GuaranteeCooperatives reached over 15,000 TL. Artisans used credit by an increase of five times, according to the last12 years.
Difficult Times for the Global Car Parts Marketplace
One of the biggest car part dealers in the UKwent bankrupt last month. Another wellknown company in Germany ishaving huge financial problems. Bouncedcheques in the first 7 months reached to 7.9 billion TL., 1.8 billion of this amount was eventuallypaid. Compared to unpaid accounts year’spast – 2010 was 3.5 billion TL, 2011 -4.2 billion TL, 2012 - 9.5 billion TL. The reason of the decrease this year wasbacause of the responcibility of the banks which took on each cheque, guarenteeing 1.120 TL. On the other hand, the international ratingagencies made an adjustment to our credit rating and drew back. Moody’s (BaaDuragan), Fitch (BBB-Duragan), Standart and Poor’s (BB Negatif)… as seen assesment has been carried seperatly by allinstutitions!
Unemployment in EuropeRemains High
Unemploymentin Turkey has fallen to 8.8%, however, figures are as high as 25% in Spain andGreece. Europes strongest economy, Germany has 5.5%, but they expect it to increase.
Retailers Took the Lead
On the world’s richest list most areretailers - with $4 billion, Murat Ulker owner of Ulker company (Ulker’s sixmonth turnover is $1.5 billion in Europe) - with $62 billion the owner of Zara,Amancio Ortega - followed by H&M from Sweeden with $32 billion.
In Turkey Istanbul leads while Izmir follows with 40% less (1.498.340), Ankara at 10%short. At the bottom of thelist there is Bayburt (6,730), Tunceli with 10% more and Hakkari with 50% more.This year compared toprevious years more was spent on clothing and less on food. Retail clothingfigures are estimated to increase by 37% until 2020. Compared to previous years,grocery shopping decreased by 20%and fell to 48%, while expenditures on clothing became 28% with a 22% increase.
Foreign Investment in Growth Trends
Turkish citizens overseas investmentwas $31.6 billion. This figure was $19.9 billion in 2009. The number ofcountries investments each year have increased. Today Panama and South Africaare investing countries. The servicesector has the most invested by %73.9.In manufacturing the food industry is the most invested by $1.068 billion.Compared to other countries in foreign investments the Netherland is first inthe ranking with 37.4%. On the other hand we have the concept of Halal tourism,together with the concept of halal hotels, halal food, which also brought cleaningmaterials along. Though the prices are higher compared to same standard ofhotels in Turkey, there is an increasinginterest on Halal
Hotels. The halal food industry alsoincreased in parallel. This September 4 -7th in the CNR Expo Centerin Istanbul a fair will be held concerning Halal products and services. Over 100companies and 200 brands are expected to attend.
Rising Real Estate in Gaziantep
On the property sector side, salesfell in Turkey due to high interest rates which resulted in accumulated largestocks. Despite this, construction companies made price increases at the level of 4%.When looking at the criterias, which reflects the importance when buyingproperties - with the ratio of 38.7 % transportationis the most important, the social environment 22,8%, earthquake resistance ofproperty 8.1%. Presently Gaziantep is most profitable in Real Estate increases.
For Better Health More Olive Oil
Our olive trees increased by 68 million during thelast 12 years. Our olive trees, 99 million at the beginning of the 21stcentury, increased to 167 million in 2014. Premiums are distributed to oliveoil manufacturers per kg since 1998 and this premium is stated as 70 krs in2014. Very cheap credits and certified plants are also given for investments tobe made with the dripping system. In addition, oil manufacturers are supportedwith diesel fuel, fertilizer and soil analysis.
It is now certain that current year crops, thereforeolive oil, will decrease in Spain. Short-sold olive in the market constitutes80% of the general sales. Away from every check, these olives, which we maycall as "under the counter", contain chemical which are hazardous forhealth. Olive oil is has been proven to be good for your health.Studies show it can help decrease heart disease. Today the citizens living in theAgean region eat and use olive oil in their daily lives as a part of healthyliving.
I would like to end the newsletter by saying...
At Rotas we believe, - rather thanlosing a customer by winning an arguement, it is better to gain a customer bylosing the arguement.