Turkey to Announce Record Growth of 7%

Turkey's Economy Minister Nihat Zeybekci makes a speech in Cologne, Germany, March 5, 2017. REUTERS/Wolfgang Rattay
Turkey's Economy Minister Nihat Zeybekci makes a speech in Cologne, Germany, March 5, 2017. REUTERS/Wolfgang Rattay
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Turkey to Announce Record Growth of 7%

Turkey's Economy Minister Nihat Zeybekci makes a speech in Cologne, Germany, March 5, 2017. REUTERS/Wolfgang Rattay
Turkey's Economy Minister Nihat Zeybekci makes a speech in Cologne, Germany, March 5, 2017. REUTERS/Wolfgang Rattay

Turkish Economy Minister Nihat Zeybekci expected that the total economic growth of 2017 would be announced as seven percent and that Turkey would come among the most growing countries globally. Zeybekci, in Sunday’s statements, said that the economic growth would be seven percent, and is forecast to reach record figures in 2018.

Official figures haven’t been announced yet, but the Turkish economy growth during the third quarter raised expectations of growth during the whole year (7.4 percent).

Zeybekci noted that he announced in the beginning of 2017 that the economy will be in the lead of most growing countries, and it did reach 11.1 percent in the third quarter of 2017 despite the global rating agencies forecasts that the rate would not exceed 2 or 2.5 percent, in best-case scenarios 5 percent.

Turkish economy witnessed a shrinkage of 4.7 percent in 2009, then achieved a 6.8 percent growth in the period extending from 2010 to 2016. At that time, Turkish growth surpassed that of the EU and G20 respectively 1.4 percent and 3 percent.

The highest growth rate was in 2011 (11.1 percent) and the lowest was in 2016 (2.3 percent), following the failed coup attempt mid-July.

In the same context, global rating agency Fitch Ratings expected Turkey’s economy to grow by 4.8 percent annually on average in the next five years. In its report titled “Investment and Demographics Key to EM Growth Potential,” Fitch provided a list of the 10 largest emerging markets in the world, in which Turkey ranked third in its forecast economic growth rate (4.8 percent).

India came on top among the 10 emerging markets in the report with a potential growth rate of 6.7 percent in the next five years. China and Indonesia jointly ranked second, both with a projected potential growth rate of 5.5 percent.

On another level, the Turkish Central Bank’s gold reserves have reached a record-high of 564.8 tons. Total reserves including foreign exchange and gold reached $107.7 billion in value at the end of 2017, up $1.6 billion from a year earlier.



Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.