Turkish Economy on Growth Trend

The year 2019 was not a bright year for global economy and trade as you all know. It is forecasted that 2020 will not be nothing less than the previous year. International credit rating agencies have revised their forecasts downwards.

The agencies updated their forecasts on Turkey upwards, as the economy is on the growing trend since the last quarter of 2019.

2020 Presidential Annual Program has set the growth target of Turkish economy for 2020 as 5.0 percent. According to the forecasts of International Money Fund (IMF) and World Bank, Turkish economy will grow 3.0 percent in 2020 and 4.0 percent for 2021. It can be said that Turkish economy is on the growth trend once more. Exports will play the leading role in this growth.

Despite the difficulties and negative influences, Turkey's exports increased by 2.04 percent to reach 180.5 billion dollars in 2019. When we consider that the first 50 countries that exports the most have lost 2.7 percent on total exports, the strong performance of Turkish exporters shows that Turkey is such a dynamic country with a high potential.

Turkey is a center of attention for western, notably EU, and developed far east countries.

Over 70 thousand foreign companies have investments in Turkey and the number is rising. Recently otomotive giant Volkswagen has decided to invest in Turkey and have established a company in Manisa. We foresee that these Europe based investments will carry on in 2020 and thereafter. The European Economic Senate (EES) President Ingo Friedrich said that investment climate in Turkey is similar to Europe and added, “European investors can invest in Turkey and be certain just like in any other investments in Europe” assuring investors.

Ruhsar Pekcan, the Minister of Trade, stated that there are some global firms that requested a meeting, which are considering in investing in Turkey at Davos and said, “General Electric, a company that has already invested in Turkey, has requested a meeting. There are also meeting request from P&G and Alibaba.”

Turkey will be the center for investment with its youthful population, geographical position and producing power. There is no one that had trusted Turkey and lose out. There are companies that have invested and will keep investing in Turkey for a century, and there will be other companies to follow.