Petroleum prices fell in an unexpected
amounts at the end of 2014. In July, Brent
petrol was priced at 115 USD, falling to 85
USD in October; 60 USD in November and
finally to 45 USD in January in a historical
drop. This may seem to be a net positive
for Turkey which is dependent on foreign
oil. However the international side effects
of it can cause significant issues for Turkey.
Two positive points for Turkey are in
regards to the current deficit and inflation.
Considering that petroleum prices will stay
around the 50 USD mark throughout 2015,
it will be possible to save almost half the
amount in deficit in currency exchange
rates. This is very important for Turkey
at a time when currency fluctuations
have increased. This drop may result
in decreases current deficit, improving
inflation expectations and decrease in
inflation.
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One of the most important sectors
in Turkey, the automotive industry has
been the number one export sector
for the last 7 years while providing
employment to approximately 400,000
people. Turkey’s automobile and light
commercial vehicle market shrunk by
10.04% in 2014 in comparison to the
previous year, amounting to a total
of 767,681 vehicles. The goal is to
move forward to a better state in the
automotive sector in 2015.
Science, Industry and Technology
Minister Fikri Işık stated that Turkey
has risen to 17th place in global
automotive production and spoke in
regards to domestic car production, “We
plan to produce a domestic car before.”
A year full of opportunity ahead
of the automotive sector
The other side
of the drop
in
petroleum
prices
