Retail Sector Update - Industry Trends

Macroeconomic Performance

Even in a turbulent year due to increased socio political tension and the FED's revised monetary policy, the Turkish economy retained its momentum and achieved 4% growth. GDP reached US$820 billion in 2013 albeit the Turkish Lira devalued 20% against the US Dollar year-on-year to December 2013.

Turkey's growth and its continuing long term potential have led to sustained interest from investors, also in 2014, as evidenced by the BIST 100 index remaining above 75.000 points as of May 2014. Similarly, growth remained relatively robust in the first quarter of 2014 at 4.3% while a decrease of 30% was achieved in the current account deficit.

Turkey maintained its investment grade rating from leading credit rating agencies Moody's and Fitch Ratings.