Turkey has already occupied a strong leading place in the world’s tourism industry with a variety of the natural spaces, affordable prices and decent quality of the services.
Hospitality of the local people is an extra huge plus to the welcoming atmosphere of the country and touristic infrastructure. Even if newcomers come across with any situation which may cause some inconveniences, the hosts are always doing their best to solve the issue and please the guests.
Turkey is a country of a big diversity of the landscapes and weather conditions, and all of them have already found their fans and customers.
Antalya, Izmir, Cappadocia have already gained a world-wide fame for their natural beauty, historic sites, a very well-developed infrastructure of hotels, places to visit and leisure activities.
Though, in this post, we would like to highlight Bursa, which somehow slipped out of the attention of the global touristic community and serious investments.
Let’s say “somehow” because the city and its surrounding area definitely deserve for a closer look and recognition.
We won’t speak here about a rich historic past of the city because it will take lots of pages to cover at least its tiny part.
We won’t even mention its close location to Istanbul, Marmara Sea, Uludag Mountain and its mild climate in comparison to Istanbul, Antalya and Izmir.
All these features are already known but have not received an adequate appreciation in terms of the huge potential they provide for tourism and hotel infrastructure.
In winter with ski resorts and thermal waters, in summer with cool natural forests beauty on the one hand and seasides on the other, Bursa is the place to feed tourism all year round.
So, if to sum up, what are the plusses of Bursa in comparison to other places of Turkey which are already known in touristic circles?
Close location to Istanbul, availability of its own airport;
More affordable prices on property and life;
Developed city infrastructure and a big number of the leading enterprises of the country;
Close distance to the seaside of Marmara on the one hand and being protected by the woods and forests of the Uludag Mountain on the other one;
Mild climate and weather conditions with moderate summers and mild winters;
Rich historic past;
Hospitality of the local people which resembles the one of the Mediterranean area;
A variety of cuisine which combines traditional Turkish food with the tastes of the Aegean region;
Close location to the Aegean side and its attractions;
Possibility for a big variety of the leisure activities depending on the tastes and preferences all year round.
Our team has already done analysis of the main hotels in the city and its surroundings.
We can provide you with deeper insights on plusses and minuses of the current state of the touristic infrastructure in the city and potentials which can be discovered.
Together with that, we can guide you in your investment decisions.
You can consider buying land for new projects, and we will provide you with all the information concerning the potential of the place for tourism purposes.
You can also consider renovating and reconstructing current projects for the purposes of your business and ideas.
We can also offer you options of the hotels and recreational places which can be taken over at once to continue with their current functioning or changing for better business ideas.
Please feel free to contact us and we will be happy to assist you in your projects and ideas
Raise your voice to support Ukraine and express your solidarity with the people. It is already a year since the full-scale war started and all this time Ukrainian people have been fighting heroically to protect their homes and families from Russian invasion.
Share the information about the situation in Ukraine and raise awareness of your local community about real facts on the Russian-Ukrainian war. Help your local communities to know what is happening on the territory of the country which was attacked by its neighbor. The war continues breaking all international conventions and agreements. In the 21st century, the era of the rapidly developing science and technologies, bombs are being thrown on the houses of peaceful people while the country is being made to give up on its hopes and dreams to build a society of the democratic values and freedoms. The most serious violation of the people and country’s rights is trying to block their growth and development by war actions and death threats.
Think about the ways to contribute to the economical situation of the country. Ukrainians do not give up on their homeland, believe in their victory and work to support the economy of Ukraine. Despite all electricity cuts and broken chain supplies, they continue working at their jobs and do their best in fulfilling their duties.
Think what economic value you can add to support Ukrainians and the economy in the country.
How Can You Support The Economy Of Ukraine?
There are still ways to make import-export activities of the goods. The production in some areas is going on, so you can think about purchasing the goods which are in need in your place.
Ukrainians are diligent and responsible employees. Due to the high level of education which complies in its quality with European standards and professional culture, they fulfill their professional duties in a timely and reliable manner. Being creative and knowledgeable, they are open for new projects and ideas, able to support your business plans or make suggestions on its improvement. You can consider employing Ukrainians either on-site or in a remote modeto work in your business.
You can think about ordering production or servicing on behalf of your business to be done by Ukrainians.Being highly educated and responsible, they can develop products and deliver services on behalf of your company while living in Ukraine or in the place of their temporary stay. In this way, your business will have good chances to expand and rich new markets.
Due to the massive destruction in some areas, businesses and productions had to close their factories and facilities and start looking for ways of moving to other areas. You can sponsor business relocation to the area of your country and become a partner in coordinating the business from your side.
Ukrainian culture is rich in music, literature, modern and folk arts. You can consider translating from Ukrainianto your local languages to enrich literature of your community with new plots and culture or bring your texts, movies, literature to the audience of Ukraine, translating them into Ukrainian.
Uniting our efforts and supporting each other, we can finally reach a goal of establishing a sustainable peaceful future for us, our children and our planet as a whole.
A tragedy in one part of the world definitely affects all other areas and people in terms of peace, economy, sustainability of our life today and in the future.
The primary right of any human being is a right for life in peace.
This must be a driving force of all actions and plans for now and in the future.
We work to establish connections between Ukraine and Ukrainians, business organisations and institutions from different countries who would like to support Ukraine with new business opportunities and employment.
Please feel free to contact us with your suggestions for bringing your plans and ideas in life
Russia-Ukraine War 2022 – 2023 : Statistics & Facts
On February 24, 2022, Russia started a massive invasion of Ukraine attaching most of its main cities, starting from Kyiv, the capital of the country.
Attacks by Russian forces were reported in major cities across all Ukraine, including Berdyansk, Chernihiv, Kharkiv, Kherson, Odesa and Sumy.
According to the Office of the United Nations High Commissioner for Human Rights (OHCHR), over 7.1 thousand deaths of civilians in Ukraine have been verified during the war as of February 2023.
8 Facts To know About Russian Military Aggression Against Ukraine
Fact 1: Russia planned military aggression against Ukraine in advance. The Victory of the Revolution of Dignity in 2014 was only a convenient pretext
Russia launched its well-planned armed aggression against Ukraine on 20 February 2014 with the military operation of its Armed Forces on seizing a part of the Ukrainian territory — Crimean peninsula. The war actions continued on the territory of Donetsk and Luhansk with Russia insisting to seize the Ukrainian lands and keep Ukraine under control. On 24 of February, 2022, a full scale war started with an aim to take all the territory of Ukraine under control and keep it submissive to Russian politics.
Fact 2: Russian Aggression Aimed At Destroying Ukraine As An Independent State
Illegal occupation of the Autonomous Republic of Crimea and the city of Sevastopol was just the first Russian step aimed at undermining independence and sovereignty of Ukraine. The Kremlin has always been firmly convinced that Russia will never become a world leader without control over Ukraine, meanwhile a democratic and prosperous Ukraine is a threat to the current authoritarian rule in Russia.
Fact 3: Military Aggression Is Just One Element Of Russian Hybrid Warfare Against Ukraine
Military aggression is just one element of the Russian hybrid warfare against Ukraine. Other elements encompass:
1) Propaganda based on lies and falsifications; 2) Trade and economic pressure; 3) Energy blockade; 4) Terror and intimidation of Ukrainian citizens; 5) Cyber attacks; 6) A strong denial of the very fact of war against Ukraine despite large scope of irrefutable evidence; 7) Use of pro-Russian forces and satellite states in its own interests; 8) Blaming the other side for its own crimes.
Fact 4: Courage Of Ukrainians And Solidarity Of The International Community Stopped Russian Invasion.
Courageous Ukrainian soldiers, National Guard and other defense and law enforcement servicemen stopped the active phase of the Russian military invasion against Ukraine.
Numerous documents in support of Ukraine’s territorial integrity within its internationally recognized borders were approved by the Committee of Ministers of the Council of Europe, Parliamentary Assembly of the Council of Europe, OSCE Parliamentary Assembly and other international organizations.
Political and economic sanctions are the most effective tool of pressure on the aggressor state. They significantly reduced the possibility of a large-scale invasion and forced Russia to sit at the negotiating table, in particular within the Trilateral Contact Group (Ukraine and Russia are parties to the conflict, the OSCE is a mediator) and Normandy Quartet (Ukraine and Russia are parties to the conflict, France and Germany are mediators). A decision to ease or lift the sanctions will encourage a new wave of Russian military aggression.
Fact 5: Russian Aggression Has Led To Dire Humanitarian Impacts
Russian aggression against Ukraine has left about 9940 people killed and up to 23455 wounded (UN data).
As of today Russia continues to illegally occupy Ukraine’s Autonomous Republic of Crimea (26 081 km²), the city of Sevastopol (864 km²), certain areas of Donetsk and Luhansk regions (16799 km²) — in total 43744 km² or 7,2% of the territory of Ukraine.
The occupied areas have become a territory of fear and terror, the occupying authorities act by repressive measures, resorting to systematic and large-scale violations of human rights and fundamental freedoms. Alarming human rights situation in occupied Crimea was condemned by the UN General Assembly Resolution 71/205 «Situation of human rights in the Autonomous Republic of Crimea and the city of Sevastopol (Ukraine)», adopted on 19 December 2016.
Economy of Donbas has been completely destroyed. Equipment of the main industrial facilities of Donbas was dismantled and transported to the territory of Russia. The situation with flooded mines threatens environmental disaster. Russian authorities do not allow access of experts to assess the threats and seek ways to mend the situation.
Fact 6: By Launching Military Aggression Against Ukraine, Russia Violated Fundamental Norms And Principles Of International Law, Bilateral And Multilateral Agreements.
Resorting to the military aggression against Ukraine, Russia violated fundamental norms and principles of international law, enshrined, in particular, in:
UN Charter (1945);
Helsinki Final Act (1975);
Declaration on Principles of International Law concerning Friendly Relations and Co-operation among States in accordance with the UN Charter (1970);
UN GA Resolution 3314 “Definition of Aggression” (1974);
Declaration on the Inadmissibility of Intervention in the Domestic Affairs of States and the Protection of Their Independence and Sovereignty (1965);
Declaration on the Inadmissibility of Intervention and Interference in the Internal Affairs of States (1981);
Declaration on the Enhancement of the Effectiveness of the Principle of Refraining from the Threat or Use of Force in International Relations (1987).
Russia had also violated number of bilateral and multilateral agreements, namely:
Budapest Memorandum on Security Assurances related to the Ukraine’s accession to the Non-Proliferation Treaty (1994);
Agreement on Friendship, Cooperation and Partnership between Ukraine and the Russian Federation (1997);
Agreement between Ukraine and the Russian Federation on the Ukrainian-Russian state border (2003);
Agreement between Ukraine and the Russian Federation on cooperation in use of the Azov Sea and Kerch Strait (2003);
Agreement between Ukraine and the Russian Federation on the status and conditions of the Russian Black Sea Fleet in Ukraine (1999).
Russian occupation and further attempted annexation of Crimea and Sevastopol, as well as Russian illegal actions in Donbas, fall under the definition of aggression according to the points а), b), c), d), e) і g) Art.3 of the Annex to UN General Assembly Resolution “Definition of Aggression” (3314(XXIX)). The following actions are a serious crime against international peace, which entails international responsibility of the Russian Federation at the state level and international criminal responsibility of its leadership.
Fact 7: Military Aggression And Hybrid Warfare Is Russia’s Standard Practice
Russia’s aggressive policy targets not only Ukraine. Russia violated territorial integrity of Moldova and Georgia, announced its territorial claims and the willingness to “protect” the Russian-speaking population in the Baltic States. Russia supports Eurosceptic and radical movements in Europe. It was registered that Russian special services interfered in the electoral campaign during the US presidential election in 2016, carried out cyber attacks against OSCE, Germany and France.
Russia’s brutal military campaign in Syria has resulted in an increased wave of refugees to Europe. There is much evidence of close relations between Russian special services and terrorist organizations like ISIS and al-Qaeda.
Fact 8: Russian Aggression Can Be Stopped Only By Stepping Up Pressure On Kremlin
Political and economic sanctions were imposed on Russia in response to its aggression against Ukraine, therefore, stopping Russian military aggression against Ukraine and the reinstatement of Ukrainian sovereignty and territorial integrity may be the only reason for their cancellation. In other circumstances, Russia will continue its aggression, extending it to other states in the region.
What Are The Impacts On The World Today?
The continued conflict in Ukraine is causing extreme civilian harm and leaving millions without access to food, water and other essential supplies. Innocent civilians have been cruelly caught up in the conflict, with almost 19,000 casualties since February 24th 2022. More than 7,200 people have been killed, with the actual number likely much higher. Over 5.4 million have been internally displaced.
Starting in October 2022, waves of airstrikes left even more people across the country to face the cold without access to gas, electricity or centralized heating systems. In just one day in mid-November, over 7 million people were left without electricity due to the fighting.
In 2021, Ukrainian grain fed 400 million people around the world. For the first 5 months of the war, Ukraine was unable to export its grain through its primary shipping routes through the Black Sea.
Blockades of Ukrainian grain exports have worsened hunger in some of the world’s most vulnerable regions.
In East Africa, for instance, a perfect storm of continued drought, the blockade, and the economic fallout from the war is causing mass starvation.
As of November 2022, there are over 8 million refugees from Ukraine recorded across Europe.
Poland has granted protection to over 1.5 million Ukrainian refugees while other nearby countries Hungary, Romania, Slovakia and Moldova have each given safety to tens of thousands of Ukrainian refugees. Czechia is currently the country hosting the most refugees per capita in Europe, having granted protection to almost half a million people.
Real Ways to Help Ukraine
Raise your voice to support Ukraine and express your solidarity with the people. It is already a year since the full-scale war started and all this time Ukrainian people have been fighting heroically to protect their homes and families from Russian invasion.
Share the information about the situation in Ukraine and raise awareness of your local community about real facts on the Russian-Ukrainian war. Help your local communities to know what is happening on the territory of the country which was attacked by its neighbor. The war continues breaking all international conventions and agreements. In the 21st century, the era of the rapidly developing science and technologies, bombs are being thrown on the houses of peaceful people while the country is being made to give up on its hopes and dreams to build a society of the democratic values and freedoms. The most serious violation of the people and country’s rights is trying to block their growth and development by war actions and death threats.
Think about the ways to contribute to the economical situation of the country. Ukrainians do not give up on their homeland, believe in their victory and work to support the economy of Ukraine. Despite all electricity cuts and broken chain supplies, they continue working at their jobs and do their best in fulfilling their duties.
Think what economic value you can add to support Ukrainians and the economy in the country.
How Can You Support The Economy Of Ukraine?
There are still ways to make import-export activities of the goods. The production in some areas is going on, so you can think about purchasing the goods which are in need in your place.
Ukrainians are diligent and responsible employees. Due to the high level of education which complies in its quality with European standards and professional culture, they fulfill their professional duties in a timely and reliable manner. Being creative and knowledgeable, they are open for new projects and ideas, able to support your business plans or make suggestions on its improvement. You can consider employing Ukrainians either on-site or in a remote modeto work in your business.
You can think about ordering production or servicing on behalf of your business to be done by Ukrainians.Being highly educated and responsible, they can develop products and deliver services on behalf of your company while living in Ukraine or in the place of their temporary stay. In this way, your business will have good chances to expand and rich new markets.
Due to the massive destruction in some areas, businesses and productions had to close their factories and facilities and start looking for ways of moving to other areas. You can sponsor business relocation to the area of your country and become a partner in coordinating the business from your side.
Ukrainian culture is rich in music, literature, modern and folk arts. You can consider translating from Ukrainianto your local languages to enrich literature of your community with new plots and culture or bring your texts, movies, literature to the audience of Ukraine, translating them into Ukrainian.
Uniting our efforts and supporting each other, we can finally reach a goal of establishing a sustainable peaceful future for us, our children and our planet as a whole.
A tragedy in one part of the world definitely affects all other areas and people in terms of peace, economy, sustainability of our life today and in the future.
The primary right of any human being is a right for life in peace.
This must be a driving force of all actions and plans for now and in the future.
Bursa, one of the few cities in the world that has succeeded in combining natural beauty with industry and technology.
Being the centre of industry and culture, Bursa has turned into a driving force of the Turkish economy, especially taking into account the increasing inflation and economical crisis of nowadays.
With its factories and production areas, Bursa makes a significant contribution to the country’s economy by intensive import and export activities.
The city has a well-developed infrastructure and technological background to continue its rise in production and international trade.
Located in a close distance from the sea routes of the Marmara Sea, Istanbul, and the Aegean Sea, being surrounded by other industrially powerful areas of Turkey, Bursa has gained a reputation of the city which is rapidly developing and quickly reacting to the demands of the international production and trade.
Thanks to its favourable climate, affordable routes of transportation, closeness to the vein of the Turkish economy and production, Bursa has opened its doors to the partners from Eastern and Western Europe, Middle and Far East, countries of the North and South America.
In Bursa, such sectors such as textile, automotive, machine-metal manufacturing, agriculture-based industry, food, furniture are leading the market and producing value at the national and international levels.
32 of the 500 largest Turkish companies are located in Bursa.
According to the records of the Provincial Directorate of Science, Industry and Technology, the total number of factory parcels in the region is 2,142, and the number of active facilities is 1,652.
What Industries are Especially Developed in Bursa?
Automobile Industry
Among the 250 companies in Bursa, the automotive industry produce the highest added value with a share of 44 percent. Automotive is followed by the food, agriculture and livestock industry with 16 percent, and the textile and apparel industry with 15 percent.
Two car factories of Turkey are located in Bursa. They are Renault and Tofaş (Fiat). The number of factories related to automotive industry working in Bursa are quite high. 16 types of machines are manufactured in Bursa including different types of equipment and tools. 32 varieties of auto accessories are assembled at the factories of Bursa and its branches in other cities and countries.
Textile Industry
In Bursa, there are 18 organized industrial zones and approximately 4100 textile and ready-made clothing companies operating in 1 free zone.
The textile factories manufacture goods using nylon, polyester, wool, etc to produce a big variety of textile for homes, cloths, cars, and so on.
2020 Data
Bursa´s companies have developed a big number of local products which have been exported all over the world for the last 10 years, thank to the series of business projects developed together with the city municipality.
Bursa has also become famous for such products as first metro-bus produced in Turkey, first domestic tram, first national 3D printer, laser chip, etc.
250 big companies in Bursa reached 189 billion TL in their net sales, 30.6 billion TL in their added value, and 49.9 billion TL in their equities in 2020.
The assets of these companies were recorded as 145.7 billion TL, their sales from production as 139.4 billion TL and their profit for the period is 12.6 billion TL.
The exports of 250 large companies in 2020 amounted to 9.8 billion dollars.
The total employment of the first 250 companies in 2020 was 149 thousand people.
In Bursa, the locomotive city of the Turkish economy, the first 6 companies ranked according to their net sales in 2019 maintained their positions in 2020 as well.
Renault took the first place with 31.2 billion TL, the same as in 2019. Tofaş ranks second with TL 24.7 billion, while Bosch ranks third with TL 8.4 billion. Borcelik, Limak, Sütaş, Pro Yem, Yazaki Systems, Beyçelik Gestamp and Asil Çelik followed the 3 companies mentioned above. Out of the companies in the ranking list, 68 are automotive sub-industry, 43 are textiles, 30 are food, agriculture and livestock, 22 are retail trade, 17 are machinery and equipment, 13 are metal, 7 are ready-to-wear, 7 wood forest products and furniture, 6 plastics, 5 cement, soil products and mining, 5 energy, 5 environment and recycling, 4 construction, 4 automotive main industry, 3 economic relations and finance, 3 services, training and consultancy, 3 chemistry, 3 logistics, 1 electrical-electronics, and 1 health.
To find out more about the city, its industries and producers, set up connections for import-export activities, please feel free to contact us start.inforum@gmail.com
At the online meeting, hosted by Memiş Kütükcü, Head of the Konya Chamber of Industry, Prof. Dr. Şahap Kavcıoğlu, President of the Central Bank of the Republic of Turkey (CBRT), stated that Turkish economy model is focused on investment, production and exports.
During the meeting, Prof. Dr. Şahap Kavcıoğlu mentioned the efforts of the Central Bank to fight inflation in the country.
Kavcıoğlu stated that they are making efforts to cope with the inflation in the country, though it is important that all industrial sectors support the Central Bank’s struggle to eliminate the volatility in exchange rates and reduce inflation.
Stating that the Turkish economy model is focused on investment, production and exports, and in this respect the Central Bank has been developing important financial instruments to strengthen this model, Kavcıoğlu said, “Sustainable price stability can be achieved with the current account balance. As the Central Bank, we do our best to support investment, production and exports, to increase capacity utilization rates, and ensure that imported products are produced in Turkey for making it easier for the business world to access finance.”
Kütükcü, Head of the Konya Chamber of Industry, who conveyed the demands of the industrialists from Konya to Kavcıoğlu, stressed that high inflation and the meltdown in the working capital are the two most important problems at the moment, “We are under serious inflation pressure due to the price increase in almost every field, especially in commodities and energy. This pressure of inflation is literally melting the capital of our businesses. For a sustainable investment and production environment, our business world needs new financial mechanisms that will strengthen their working capital.”
As it is already known, the March inflation in Turkey increased by 5.46 percent compared to February.
While annual inflation was 61.14 percent according to TUIK data, the 12-month average rate of increase is 29.88 percent.
In March 2022, in terms of the main expenditure groups, clothing and footwear showed the least increase, that was 1.78 percent, housing – 1.84 percent, while entertainment and culture got the price increase in 2.78 percent. On the other hand, the main groups with the highest increase in March 2022 were transportation with 13.29 percent, education with 6.55 percent, restaurants and hotels with 6.04 percent, respectively.
In March, Turkish inflation reached a new two-decade high, making the lira increasingly vulnerable.
According to Bloomberg’s estimations, consumer prices rose an annual 61.1% last month.
Source: Turkey Inflation February 2022- https://www.focus-economics.com/countries/turkey/news/inflation/inflation-reaches-near-20-year-high-in-february
The central bank’s pause for three months caused Turkey’s interest rates to become the lowest in the world.
With Turkey’s real rates at minus 47%, the lira has already come under pressure, staging the second worst performance after Russian ruble in emerging markets against the dollar in March.
The highest annual price increase last month was seen in transportation with 99.12%, followed by food and nonalcoholic beverages at 70.33% and furnishing and household equipment at 69.26%.
The lowest annual increases were posted by communication with 15.08%, education with 26.73%, and clothing and footwear with 26.95%.
Onur Ilgen, Head of the treasury at MUFG Bank Turkey in Istanbul, said, “Given the dramatic change in the macro outlook and financial conditions, we think the long-term sustainability of this policy framework will be less likely with inflation running above 60% and likely to remain high above 50% at least until last quarter”.
According to London-based Capital Economics, inflation will stay close to these high levels until the very final months of this year, “but the central bank and, crucially, President Erdogan seem to have no appetite for interest rate hikes”.
As President Recep Tayyip Erdogan’s goal is to use a cheaper lira to turn Turkey into a manufacturing power, the rate hikes aren’t on the agenda.
Declines in the currency, which has lost over 9% this year, are making imports more expensive.
The currency’s turbulence has hit Turks hard, as the value of their salaries dropped and living costs dramatically increased. Steep hikes in electricity and natural gas tariffs have compounded the pain for consumers and businesses.
After the data release on Monday, Nureddin Nebati, Treasury & Finance Minister, predicted that inflation would fall to “a reasonable level” by the end of the year, though he did not provide any specific details.
Ziad Daoud, Chief Economist on Emerging Markets, mentioned, that the inflation data highlights an alarming situation for Turkish Lira and Turkish economy. Simultaneously, an escalation of the war in Ukraine will hit the currency through rising import costs. On the other hand, the end of the war conflict is expected to bring pressure from higher global interest rates. The inability of the central bank to raise interest rates magnifies the risks for the national currency.
Stating that the world economy, which has been facing an extraordinary period due to the pandemic over the last two years, has been shaken once again by the Russia-Ukraine war, the finance minister of Turkey noted that the economic effects of the war, as well as its tragic individual and social effects, have affected the whole world.
The supply problems, especially in agricultural and energy products, increase the inflationary pressure on all the countries, including Turkey.
Sahap Kavcioglu, Governor of the Central Bank of Turkey, says that support for the local currency will be a key objective this year, though little sign has been shown that it will involve a tighter monetary policy stance.
The lira has fallen down 9.5% this year so far.
The central bank hopes to curb price growth by taking measures to encourage de-dollarization.
The highlights of the March inflation report published by Turkstat on Monday are below:
Producer prices rose 9.2% in the month, bringing annual inflation to 115%.
Elevated levels of factory-gate inflation are continuing to put upward pressure on consumer prices.
Energy inflation climbed to 102.9% from 83% in February, driven by a surge in the cost of refined products and natural gas, despite tax cuts.
Food prices, which make up roughly a quarter of the consumer basket, rose an annual 70.3%, up from 64.5%
With the central bank on the sidelines, Erdogan’s government is trying to contain prices by means of a new round of value-added tax cuts on some staple products, which will go into effect by April.
Though, according to Fatih Akcelik, Deutsche Bank AG economist, the inflationary pressures should be addressed via a monetary policy rather than minor fiscal adjustments.
43% of the surveyed companies in Ukraine assess their own financial stability as durable for several months, 28% have a stock for six months, 17% trust their financial stability to last for a year or longer.
This is evidenced by the results of a survey conducted by the European Business Association among its member companies.
However, 6% report that the company’s financial resources have been exhausted.
“Among almost half of the surveyed company executives, 46%, plan to use the state-sponsored methods of business support, 29% do not have a decision yet, and 23% do not plan to receive assistance from the state,” the EBA said.
Among the announced ways of support, the majority of the company executives, 65%, will offer employees UAH 6,500 in e-Support assistance.
Half of the companies plan to take advantage of the deferred tax payments and the opportunity not to pay the SSCs for the employees involved in the defence of the country in the Armed Forces or the territorial defence units.
The survey did not take into account the new steps to support business proposed by the draft law №7137-d, recently adopted by the Verkhovna Rada.
What kind of additional steps can be taken by the government to support business?
EBA: “We see an urgent need to revive the business. Among the proposals is the abolition of the list of critical imports as a barrier to set business ties between suppliers and buyers, promoting the revival of imports and exports, logistics support and simplification of customs procedures. It is extremely important for the export companies to restore the VAT refund on exports. The companies need to resume their settlements with foreign counter-parties to replenish their working capital and provide raw materials for production.”
The companies were asked if they plan to use the company’s evacuation program from the war zone. Out of the 120 companies surveyed, only 13 plan to evacuate, four of whom have already accomplished evacuation.
50% of the respondents said that their businesses could not be transported, other 11% had already evacuated businesses on their own. 21% of the respondents do not have enterprises in the combat zone.
67% of the surveyed companies provide humanitarian aid to the civilians.
The full amount of taxes is paid without any interruption by 66% of the association’s member companies, 14% pay taxes in advance.
120 CEOs and representatives of EBA member companies took part in the survey. The poll was conducted from March 11 to 17, 2022.
President Zelensky Commanded to Speed up the Delivery of Goods From Abroad – The Government of Ukraine is Ready to Eliminate Taxes and Excises
President of Ukraine Volodymyr Zelensky instructed the government, the National Security and Defense Council and the Verkhovna Rada to speed up the supply of all necessary goods from abroad. It especially concerns food, fuel and other goods that meet the basic needs of the country.
Zelensky expressed readiness to remove taxes and excises during the martial law. The state is also ready to eliminate customs officers who do not understand the challenges of the wartime.
“Our borders must be open to everything that Ukrainians need. I am waiting for the appropriate decisions by the end of the day. Everyone now has to work only for Ukrainians, for our country and our defence. There is no place for personal ambitions, fears, bureaucracy. Everything is for the protection of Ukraine! ”, the President emphasized.
Human lives are the biggest loss and the biggest problem of the war in Ukraine, World Bank President David Melpass said.
But there are also huge economic problems that will be felt far beyond Ukraine.
“The war in Ukraine is happening at a bad time, because the world inflation is already at a very high level,” he said.
The Consequences will be Enormous
“The losses of the Ukrainian economy due to the war will amount акщь one third to one half of GDP. According to another estimate, it is about $ 500 billion”, stated by Finance Minister Serhiy Marchenko in an interview with Forbes.
“The negative consequences of the war will be enormous. The 10 areas where hostilities are taking place account for half of GDP. The most important areas are Kharkiv, Kyiv and Mariupol, which have made a very significant contribution to GDP. Many logistics chains have been completely destroyed, many enterprises have been ruined, some business cannot work in wartime, and many employees have left. The Ministry of Economy estimated that the losses would amount to one-third or to one-half of GDP. According to another estimate, it is about $ 500 billion. It will be possible to calculate precisely after the war,” Marchenko said.
According to the IMF Staff Statement on the Economic Impact of War in Ukraine, in addition to the human toll, the economic damage is already substantial.
Sea ports and airports are closed and have been damaged, and many roads and bridges have been damaged or destroyed. While it is very difficult to assess financing needs precisely at this stage, it is already clear that Ukraine will face significant recovery and reconstruction costs.
Ukraine has already requested emergency financing of $1.4 billion under the IMF’s Rapid Financing Instrument. Staff anticipates bringing this request to the Executive Board for consideration as early as next week.
Cereal Production and Energy
In the first place, and especially for the poorest, the war will hit further the growth in the prices for energy, says the Chairman of the World Bank.
The second big problem will be the further rise in food prices, which were already at record highs.
David Melpass reminded that both Ukraine and Russia are large producers of grain. According to JP Morgan, almost 30% of world wheat production is in Ukraine and Russia.
In addition, Ukraine is the world’s largest exporter of sunflower oil (Russia is in the second place). Together, they produce up to 60% of the world’s sunflower oil.
According to the Chicago Board of Trade, wheat prices have now reached a 14-year high.
“It is simply impossible to settle the issue with the loss of these supplies quickly, it will put additional pressure on prices,” said David Melpass.
The same is true of Russia’s energy supplies to Europe, where governments have “ignored alternatives that would have enough electricity.”
Countries that have very close economic links with Ukraine and Russia are at particular risk of scarcity and supply disruptions and are most affected by the increasing inflows of refugees. Moldova has already requested an augmentation and rephasing of its existing IMF-supported program to help meet the costs of the current crisis.
“Those whose business or production has been tied to Ukraine for the most part, now believe that even if the war ends soon, Ukraine will be pushed far back in economic terms, and much will need to be rebuilt.” – says a businessman from Kyiv, whose business before the war was focused on customers in Ukraine and abroad.
“My friends or former competitors gave all stocks of goods to the defense. They also try to move their production closer to the West of Ukraine, but it is also shelled now,” he said.
The shattered infrastructure and major problems with delivery will affect business negatively.
Those who are planning to reconstruct their businesses are in a minority.
Another business category is a sector of creative professions, IT, social network specialists who had worked in foreign markets before the war. They are likely to continue their work either from the territory of Ukraine or being replaced after fleeing the country.
On March 15, the Rada passed a law providing “additional tax incentives to support businesses during the war.”
In total, there are about 40 changes on tax and other procedures. Among the main ones are “abolition of fuel taxation and introduction of preferential treatment for entrepreneurs (2% of turnover)”.
Other changes for business during the wartime include:
Big businesses will be able to take advantage of the simplified taxation system and pay a single tax, as small businesses do today. To do this, the annual turnover limit of an enterprise or company should not exceed UAH 10 billion, and the limit on the number of employees has been lifted.
Individual entrepreneurs of groups I and II can pay a single tax voluntarily. If they do not receive income during the war, they may also not pay the single social contributions;
Individual entrepreneurs of II-III groups are allowed not to pay the single social contributions for the mobilized employees. Such amounts will be paid from the state budget;
From February 24, 2022 to the end of 2022, the owners are exempt from paying tax on land located in areas where fighting is taking place.
In big business, almost a third of companies that have suspended their operations are planning to resume the work. Only 1% of large businesses in Ukraine plan to close.
It’s getting harder with small businesses.
Almost a quarter of small and medium-sized enterprises already report a “complete lack of reserve funds.” At the same time, about a third say their “strength reserve” is a few months.
22% have the opportunity to “go through” a month before they are forced to stop working. Only 9% of respondents from the association of small and medium-sized businesses can last six months or more.
According to the IMF, due to the war, the Ukrainian economy may shrink by 10% this year. And this is in case the war does not drag on.
With opening borders and making tourism more and more available in terms of travel regulations, finance, a variety of the traveling means and affordable destinations, medical tourism has gained a special place and becomes more and more popular among customers of all social groups and levels.
Being not satisfied with the local health services, their costs or due to the absence of some services, patients start looking for the medical opportunities in other countries.
When we think about health services, moreover in a different country, there are several things which are usually taken into consideration according to the recent research data:
quality of clinicians;
quality of facilities;
reputation of the clinicians / hospitals;
information available and its accessibility;
price for services;
accessibility of the destination or easiness to travel
The distribution of the tourists flow is quite different and it tends to change depending on the political and economic situations, powers of influence, reputation and costs, easiness to travel and attractiveness of the services themselves.
Among a variety of places and destinations for medical services and health tourism, Turkey has occupied a firm position with its attractive costs, quality of the hospitals, beautiful locations, speed of diagnostics and treatment provision.
Thanks to its geographical location Turkey has become Choice Number One for patience coming from Middle East and Europe, including neighbouring countries and those which are quite far (e.g. Indonesia, Sri Lanka, etc.).
So, What Makes Turkey So Attractive in Terms of the Medical Services?
Together with a favourable geographical location and climate peculiarities, the country has gained a positive image worldwide due to a big variety of medical infrastructure and facilities.
The medical centres are equipped with modern diagnostic machines, tools and all necessary chemicals to make diagnostics quick and to provide necessary treatment prescriptions in a fast way for the patients to keep up with their travel plans.
Together with that, available language services make communication easy and understandable for all patients. Whether they are coming from Eastern Europe, West or from the Arab countries, they can find appropriate interpretation services, services for translation of their medical papers and prescriptions, to make the process really fast and comprehensible.
Dynamics in the popularity of Turkey as a Medical Destination can be checked on the picture below, starting from 2013 and coming up to 2020, when some fall can be observed due to the travel restrictions, caused by the global lockdown.
Stabilising the global situation in terms of traveling is going to renew the flows of tourists coming to Turkey with a purpose to find better medical solutions and services for their health.
Meanwhile this time can be used to rethink and to revaluate potential of the country in the global market of the medical services and to consider its weaknesses contrasting with the achievements of the main competitors.
Among the weaknesses to be considered is the absence of standards on the medical services, discrepancy of provision available in private and public hospitals, necessity to enhance the medical staff’s competences on the patients’ rights, international regulations, and so on.
Together with that the hospitals and doctors working in Turkey still need international branding for their services to be known and accepted at the international level.
With the enthusiasm of the local medical business, high standards for the medical education in the country, encouraging the most talented students to choose medicine as a profession and pursue medical career with the support of the government, it is certain that the medical sector of Turkey will continue developing and gaining more popularity worldwide.
Despite national enthusiasm there are still things to consider on the way to improvements and development and namely some threats which cannot be ignored.
Among them is political instability, strong international competitions and some other factors which can be checked on the picture below.
More information on the medical tourism in Turkey, suggestions, recommendations together with consultancy and translation for individuals and groups who would like to visit Turkey for the health purposes can be received by contacting us at start.inforum@gmail.com.
