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 Economy

Overview of monthly data

State Revenues are Mostly Obtained From Consumers
The majority of the state revenues are obtained from the consumption expenditures. 60 % of total tax revenues (such as VAT, Special Consumption Tax, Special Transaction Tax) are gained from the purchase of the goods and the services. The amount of Special Consumption Tax collected from the end users and transferred to the Ministry of Finance has reached to 20.9 billion YTL with an increase of 16.4 %, within the first 7 months of this year. The amount of VAT has also reached to 9.6 billion YTL with an increase of 25.4%. Furthermore, a drastic increase has been noticed in the tax figures which collected by the state from the imported goods in parallel with a growth in import figures. Income tax and corporation tax which paid by the companies over their profits are remained as 24.8 billion YTL and therefore formed as 30.9 % of the total tax revenues and 24.9 % of the general budget revenues.

Breakdown of Tax Revenues

Istanbul Attracts Foreign Capital
While the number of foreign investors in Istanbul has decreased by 8 % with comparison to the last six months of 2005, although the value of the foreign capital has increased by 5,37%. Between January & June 2006, companies and institutions from Luxembourg, The Netherlands, Italy, Germany and Azerbaijan brought in 56.99% of the foreign investments to Turkey and ranked as the top 5 countries. The Commercial Registry Records indicate that ‘Istanbul Chamber of Commerce’ has announced its semi-annual foreign investment report which comprising from January to June 2006. According to the report; 1027 foreign investors have made an aggregate investment of 83.1 million YTL in Istanbul within the first 6 months of 2006.

The sectors, attracting foreign investors;

Turkey and China in Globalization
Guillame Daudin, the Economist of French Economic Conjunctures Research Center (OFCE) has stated that Turkey stood up rapidly against the surge of China. He said that Turkey resisted successfully against the Chinese products in particular in the textile sector. Daudin says that “The main reason for such stand out of Turkey in textile sector is the development of vertical integration, particularly in denim clothing. The proximity to the European Markets is a great advantage for Turkey. Speed and flexibility are as important as cheap labor nowadays. As long as the Turkish Government provides a stable macroeconomic and corporate environment, there is no reason for the failure of the Turkish businessmen. The fast provision of quality products by Turkish businessmen and the diversification in the exported products may provide significant advantage within the competitive market.”

Turkish Economy has Grown 8.5 % in The Second Quarter and 7.5 % in The First Half
The growth in the economy has also continued in the term of April-June which witnessed market fluctuations. GNP that calculated according to the production method has grown 8.5 % in the second quarter.

Industry has Grown 9.4 % in the Second Quarter
Industrial production has increased by 9.4% in the same period. Production figures have increased 11.8% in public sector and 8.8% in private sector.

Industrial Production Index

A Capital Inflow of USD 26 billion From Non-Financial Sector
In the first 8 months of the year, resource of more than USD 26 billion entered into the economical figures through company charters and capital increases. An increase of 49 % on YTL basis and 41% on USD basis have been recorded in the amount of total resource inflow with respect to the same period of the previous year.

The input, provided by the companies for Economy