REGISTERING A GROWTH
MORE THAN 10 YEARS,
TURKEY’S ECONOMY IS
BELIEVED TO POSSESS THE
POTENTIAL TO ATTAIN A
OF APPROXIMATELY 4-5%
OVER THE NEXT DECADE.
This rigid stance of the banking sector is a
clear outcome of the deleveraging policies
enforced to improve capital adequacy ratios
and to bring the balance sheets under
In certain emerging countries, it can be
seen that the banking sector, particularly
in Eastern European countries, is highly
vulnerable due to Euro Zone-originated
risks; the banking industries in emerging
Asian and Latin American countries enjoy a
relatively better position.
But, now in the fifth year of the crisis,
the global economy has begun to be
restructured, with the current global outlook
that differentiated from the pre-crisis period
in great part by the increased share and
greater influence of emerging countries in
the global economy.
The effect of the issues in the Euro Zone
combined with the weak growth in the U.S.
economy have been causing a shift in the
dynamics of economic growth from the
developed Western countries to emerging
countries. According to IMF forecasts, the
share of total worldwide GSUH by emerging
economies will start to exceed that of
developed economies in terms of purchasing
power parity in 2013. It is estimated that
this difference will expand in favor of
emerging economies in the future. It is also
believed that Brazil, Russia, India and China
(the “BRICs”), will maintain their ascent in
the coming period, despite slower growth
pace compared to the previous decade.
Many of the Far Eastern countries along
China’s development axis are also expected
to demonstrate a strong performance.
Without a doubt, Turkey’s economy will also
sustain its upward trend within its region.
The rise and decoupling of certain emerging
economies apart from the BRICs have
been a topic of intense debate in the world
economy in recent years.
Registering a growth performance for
more than 10 years, Turkey’s economy is
believed to possess the potential to attain a
sustainable growth of approximately 4-5%
over the next decade.
THE TURKISH ECONOMY HAS A
LONG-TERM DECOUPLING POTENTIAL.
Measures adopted to drive the growth of
the Turkish economy toward sustainable
levels started to have an impact in the
second half of 2011, and the economy went
through a soft landing process during 2012.
Slowed-down domestic demand, as a result
of policies intending to establish financial
and price stability, has been influential on
the decelerated economy.
In 2012, the composition of growth was
altered significantly. Private consumption
expenditures, which were the largest
contributor to real growth in the past period,
remained flat in 2012 and net export was
responsible for the largest contribution to
growth, a result of the measures introduced
to balance domestic and foreign demand.
In the last quarter of 2012, Turkey’s credit
rating was upgraded to the long-deserved
investment grade by a rating agency due
to reduced macroeconomic risks, alleviated
debt burden, remarkable growth potential,
and a sound banking sector.
Forecasts indicate that the contribution
of net exports along with consumption
and investment expenditures will gain a
more balanced position within the growth
structure in parallel with anticipated
increased domestic demand in 2013. It
is believed that the projected relative
stimulation in domestic demand will support
FINANCIAL INFORMATION AND RISK MANAGEMENT
ANNUAL REPORT 2012