Viewpoint wrote:Kikapu wrote:Viewpoint wrote:Thursday, July 28, 2011
Sarah Kendell
The Middle Eastern nation's latest GDP growth figures saw it surpass both Argentina and China to become the fastest growing economy in the world, according to the national statistics authority, Turkstat.
Turkey's Q1 GDP growth was recorded at a staggering 11%, the only country in the world to have achieved double digit growth, and higher than that of Argentina at 9.9% and China at 9.4%. At a diplomatic conference in Istanbul, US Secretary of State Hillary Clinton praised the results as indicative of the nation's status as an economic leader in both Europe and the Middle East.
"The 11 percent growth rate is phenomenal", said Clinton. "What I hope is that Turkey will become an engine for economic growth in the region."
The news has stoked international property buyers' interest in the country, which is already strong due to the country's location straddling Europe and the Middle East, and its scenic beaches and low cost of living. A recent survey by UK-based property investment firm World Property Group saw Turkey named the second most popular country in the world for international property investor interest. The capital of Istanbul is also currently the fastest growing tourist city in the world, with foreign visitor levels having increased 30% so far in 2011.
You put too much importance on GDP growth alone. First of all, that 11% is before inflation, which with inflation added to the mix, it knocks off 50% of the 11% growth before anything else. Secondly, that 11% is based on the performance of just 1st 1/4. You still have 3/4's to go to reach that 11%, minus the inflation rate, so don't count your chickens before they hatch. It's not how much a country produces so much, but how much they get to make a profit to enrich the country. So far, they are running a huge trade deficit and current account, which means they owe more than they make. That would be like you earning $100 dollars but end up spending $150 dollars, despite your earnings rose by $20, from $80 to $100 from a year ago. You are in a deficit current account, because you are spending more than you are making, despite your 20% increase in earnings from a year ago. Bare that in mind before you go on about Turkey's GDP growth rate. Have you noticed Turkey's GDP rate was much higher in 2008 and 2009 than it was in 2010. If not, look above at one of the charts I posted and also see what her trade balance looks like and her currant account as well as her Import/Export figures. The trend does not look too good for Turkey at all, no matter what her GDP growth is saying. If those charts weren't bad enough, now the Turkish Lira is also on decline, which will make things worse for her, despite she might get a little rise with her Exports, but her Imports will kill her, hence a larger trade balance deficits in the future.
Sounds like you are having problems swallowing......doom and gloom merchant.......and to think people on this forum claimed Greece had a better economy than Turkey little did they know what would happen to Greece and few other countries in the ho so shitty EU.
No, it sounds like you don't understand basic economics, or else you wouldn't go on about Turkey's 1st 1/4 GDP growth rate to mean anything before the next 3/4 results are yet to come in for 2011. Just like Erdogan, you are celebrating way too soon with just the GDP growth rate and ignoring the rest of her economic situation which is on the ropes to say the least.
You should stop worrying about Greece and start worrying about Turkey. What happened in Greece has nothing to the fact that she is in the EU. Perhaps the fault of being in the Euro and Greece's her own economic policies did not mix too well together, but not the fault of the EU. If it was, Turkey would not be begging at the EU door to be let in. Greece has the EU to help out, her own EU members. Turkey will only have the IMF and their tight rules as before.
‘Central Bank should collect bottles before everyone gets drunk’
Friday, July 29, 2011
ISTANBUL - Daily News with wires
Faik Öztrak, deputy president of Turkey’s leading opposition party, says recent optimistic reports and statements
by the Central Bank on the overall economy are groundless. The goal of the bank is to collect bottles at a party when everyone is drunk, says the Republican People’s Party official, not to make everyone drunk
Turkey’s main opposition party, along with several economists, have disagreed with the Central Bank’s recent inflation, currency and growth predictions that forecast no serious problem in the depreciation of the Turkish Lira or high consumer spending.
“[Central Bank Gov. Erdem Başçı] said everything is very sweet in the economy and told us to continue eating and drinking,” said Republican People’s Party, or CHP, Deputy President Faik Öztrak. “[But] It is the responsibility of central banks to collect the bottles from the table before everybody gets drunk at a party,” Öztrak said.
“Independent institutions should not act as extravagant spoiled children and should live up to the reputation and trust that have been bestowed upon them,” he said in a recent statement regarding new data on Turkey’s economic forecast.
Foreign trade data from June also demonstrated the situation from the entire first half of the year, Öztrak said, adding that the foreign trade deficit indicated the continuation of the economy’s overheating and loss of competitive power.
Despite a recent depreciation of the Turkish Lira, the Central Bank kept its year-end inflation expectation unchanged to remain somewhere between 5.9 and 7.9 percent. Although Başçı admits that a possible devaluation of the Turkish Lira would have negative effects on inflation, he does not believe the lira will suffer much devaluation, if any.
Haluk Bürümcekçi from EFG Istanbul Securities said the bank’s forecast on current deficit and gross domestic product, or GDP, of a one-digit figure could be exceeded, Hürriyet Daily News reported. The slowing down of the economy and in exchange rates that started in the first quarter may also continue in the second half and contribute to the decrease of imports, thus decreasing the foreign trade deficit, he said.
http://www.hurriyetdailynews.com/n.php? ... 2011-07-29
What if not even that special relation would be possible? 
