Turkey has emerged as a strong regional player with global ambitions to become one of the top 10 economies of the world. Today, it is ranked the 13th largest economy in the world, up from 18th in 2003, having grown robustly thanks to an impressive annual growth rate of nearly 6 percent over the past 14 years.
The remarkable growth has continued into 2017, with 5.1 percent in the first half of the year, and Turkey is expected to maintain this growth momentum into the future. Turkey’s new medium-term program for 2018-2020 envisages growth rates of 5.5 percent through 2020.
This economic activity has been driven mainly by a vibrant domestic market, lucrative export opportunities, diversified sectors with a promising growth and the entrepreneurial spirit of a private sector that has substantially invested in the Turkish economy. Turkey’s economic growth in the last decade has paved the way for the emergence of a sizeable middle class with increasing purchasing power.
Emerging urban centers across the country further support the domestic market. Turkey’s favorable demographics have also been a key driver of economic growth. With half of its population under the age of 30, Turkey stands out as a country with the largest youth population in Europe. This translates into the availability of a skilled labor force with an industrious working culture and cost-competitive edge, which is yet another reason to invest in Turkey.
Exports have been one of the main drivers of Turkey’s economic growth together with numerous opportunities. Turkey is a prime location to host headquarters for many multinational companies thanks to its excellent connectivity, unique setting, and strong bonds with its neighbors. Companies such as Siemens, Nestle, and Deutsche Bank have been operating in Turkey for more than 100 years. An increasing number of companies from across the world, looking for expansion into new markets, are finding a second home in Turkey to manufacture, as well as design and engineer, for a combined market of 1.6 billion people within a four-hour flight radius.
Author : Ghazanfar Ali Khan
