The Turkish economy is one of the most promising economies among developing countries, as it is considered “.

Important information about the Turkish ...

Date:

Wednesday, September 22, 2021

The Turkish economy is one of the most promising economies among developing countries, as it is considered “.

Important information about the Turkish economy

The Turkish economy is one of the most promising economies among developing countries, as it is a founding member of the Organization for Economic Cooperation and Development (OECD) and one of the major economies of the Group of Twenty, which makes it one of the most important and largest economies in the world.

It is reported that Turkey has the nineteenth rank of nominal GDP in the world, and thirteenth in GDP by purchasing power parity.

The GDP growth in Turkey is significant

Turkey's GDP recorded a significant growth of 21.7% on an annual basis during the second quarter of this year 2021.

This rise would be a positive indicator of the recovery of Turkey's economy, one of the G-20 economies, from the negative consequences of the Corona pandemic.

The Turkish economy is very dependent on exports, especially with regard to increased economic growth, or high employment rates, and the Turkish economy is qualified to be an export economy.

But what does the Turkish economy depend on?

The Turkish economy depends for its growth on the gross domestic product, the internal purchasing power, the large number of labor force and the large group of young people who are able to work.

As well as on a combination of interest rate cuts, fiscal spending and credit led by the Turkish government, the Turkish Statistical Office said in a statement on Wednesday August 31, 2021: "The growth in the second quarter was stronger than the first quarter, with a growth of 7.2 percent year-on-year." . This percentage is the highest among the recorded and announced figures since 1999, according to official data.

According to the statement, Turkey's domestic product jumped by 45.8 percent in the service sector, and 40.5 percent in the industrial sector, amid an improvement in domestic and global demand for consumption.

Also, Turkey's GDP increased on an annual basis in professional, administrative and support services activities by 32.4 percent, 25.3 percent in information and communications, and 8.5 percent in public administration, education, and health.

Elements of the Turkish economy

First: Foreign Trade in Turkey

The Turkish Statistical Office announced that Turkey's GDP grew by 21.7 percent year on year, during the second quarter of this year. He stated that the contributions of exports of goods and services to the growth amounted to 10.8 points. "This value is the largest contribution recorded since 1998," he added.

Second: Foreign Investments in Turkey

Turkey has adopted a foreign direct investment strategy that is in line with its objectives for the year 2023, raising qualified labor capabilities and the amount of value-added products that make significant contributions to the local economy.

According to the report issued by the Presidency of the Republic of Turkey entitled "Turkey's International Direct Investment Strategy 2021-2023" and published by "Anadolu Agency", the investment strategy presents a road map for the country in the field of international investments.

During his launch of the strategy, Turkish President Recep Tayyip Erdogan said that his country has attracted international direct investments worth $225 billion since 2003.

Turkey is located in a region where, via a 4-hour flight, countries with a population of 1.3 billion people can be reached, and the total value of their markets is $26 trillion, which increases the country's attractiveness, according to the president.

The strategy aims to increase the performance of Turkey's foreign direct investment in terms of quantity (share of the global foreign direct investment market), and quality (value added for investment), during the period between 2021 and 2023.

Third: Privatization in Turkey

The main goal behind the privatization processes is to limit the role of the state to the health sector, basic education, social protection, national defense and extensive infrastructure investments. These goals are consistent with Turkey's goal of establishing a free market economy that depends primarily on the private sector.

Turkey is among the occupying countries for the first ranks among the countries of the Organization for European Economic Cooperation in the field of completing the privatization policy and obtaining high revenues from it.

Fourth: The contracting sector in Turkey

After China and the United States of America, construction companies in Turkey were able to enter the list of major international contractors strongly, and managed to achieve third place at the global level. According to the Turkish Contractors Association, Turkey's share of the global market for construction companies amounted to 4.4 percent, at $18.3 billion, placing it eighth in the ranking of countries in the world.

Fifthly: the tourism sector in Turkey

Turkey, with its historical and geographical richness, is not only a center for coastal tourism, but it is also one of the important centers for health, cultural, religious, sports and conference tourism.

Sixth: Fiscal and Monetary Policy in Turkey

According to Anatolia, the Turkish Central Bank announced that the country was among the economies that made progress in supportive fiscal and monetary policies and immunization programs, and achieved successes in containing the Corona pandemic, which reflected positively on production, investment and employment.

This came in a speech delivered by Central Bank Governor Shihab Kavuoglu, during a meeting organized by the German-Turkish Chamber of Commerce and Industry under the title "Monetary Policy, Inflation and Investment".

Cavusoglu said that the developments showed an increase in the revenues of Turkey's trading partners, which revealed an improvement in the outlook for external demand, adding: "The economic recovery of our trading partners is a positive development that contributes to increasing our exports."

The Central Bank Governor expressed his belief that there is room for improvement in the Turkish economy in terms of inflation, reserves and risk premiums.

He stressed that the temporary factors affecting inflation expectations will lose their effect in the short term, and inflation will enter a downward trend during the last quarter t of this year.

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