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Emerald Group Publishing Limited
Article Type: Competitive horizons From: Strategic Direction, Volume 31, Issue 4
Growth predictions for Turkish economy in 2015
The International Monetary Fund (IMF) predicts that the economy in Turkey will expand by 3.4 per cent in 2015 and by the same level the year after. In the view of the World Bank, growth in 2015 will be slightly stronger at 2.5 per cent. Slumping oil prices and the subsequent positive impact on inflation are cited as key reasons for the respective forecasts. However, the figures fall below those issued earlier by the country's government, which had expectations of 4.0 per cent economic growth over the current year. Some of the optimism is dampened by fears that interest rate adjustments in the USA might negatively impact on Turkey and other emerging economies. As reported by www.turkishpress.com, both the IMF and World Bank have downwardly revised their global growth forecasts for 2015. It is felt that lower oil prices would not be sufficient to overcome economic slowdown in China and stagnation in the economies of Japan and the Eurozone.
Increase in automated production expected in China
According to the International Federation of Robotics, automated production will be higher in China than in any other nation by 2017. The country has already become the largest market for robots and associated products and services. Based on the number of robots in operation, however, it is considerably behind more industrialized nations which include South Korea, Japan, Germany and the USA. But the current ratio of 30 robots per 10,000 is set to rise substantially, when plans to increase automation levels in the auto and electronics industries come to fruition. The auto industry is the largest user of robots and currently accounts for 40 per cent of overall demand. Heavy investment in China by European carmakers will see usage increase. Similar developments are anticipated among major players in the electronics industry. By 2017, the total number of robots in operation is expected to be more than double to 428,000, www.china.org reports.
Trust in large UK firms at low level
Profits matter more than business ethics to larger companies in the UK, a survey conducted by the Forum of Private Business (FPB) has found. The poll of 2,000 respondents indicated particular unease about poor treatment of suppliers, tax avoidance issues and late payment. A sizeable majority of those surveyed also expressed disapproval of the way small-business owners in the UK are treated by their larger counterparts. In the wake of these results, FPB is urging big companies to show commitment toward a five-point plan to safeguard and better promote the country's small businesses. As reported by www.bbc.co.uk, concerns about the behavior of larger operators in the UK have accelerated sharply in recent years, and survey respondents indicated a belief that government intervention in the shape of penalties should be used for those who continue to act unfairly.
Denmark aiming to increase organic production capabilities
A report published by www.foodnavigator.com, details plans by the government in Denmark to double the amount of organic farmland by 2020 relative to 2007 levels. It is also creating initiatives to drive up demand for organic food and ensuring that more organic ingredients are included in meals served in hospitals and day care centers. This follows in the wake of a previous goal to ensure that organic food accounts for 60 per cent of the food provided by public institutions. Organic food currently accounts for 8 per cent of total grocery spending, making the organic retail sector in Denmark the world's most developed. The report notes that industry body Organic Denmark and leading food manufacturers approve the government's plans which will consider different models of ownership and operation to help achieve the 2020 target.