Keeping Abreast Of The Turkey Economy

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Keeping Abreast Of The Turkey EconomyTalking Turkey is becoming a major topic of conversation among investors in emerging markets as the nation aims to become one of the world’s top 10 economies by 2023.

This sounds an ambitious aim for a country that has wandered the financial wilderness for more than the past decade after hitting the financial buffers in 2001.

However, the government has got to grips with tough reforms, recapitalised banks and hauled down inflation.

Now, the economy is back in track, the nation has won investment grade status from the major rating agencies and is even talking about talking about entering the European Union.

Turkey already has strong political ties with the US and Europe through NATO membership and is regarded as a stable political regime in the Middle East, despite sharing southern borders with Iraq and Syria.

Growing economy

Big brands common on US and British main streets are pouring investment money in to Turkey as they are eager to profit from the new found wealth of the nation’s middle classes.

Pepsi, Ford and Tesco are just three of the names looking to Turkey.

With a population of 75 million and rising with a large number of under 25s with money to spend, Turkey is an attractive proposition.

Pepsi reports continuing sales growth in double figures, Ford Turkey makes more profit than all the company’s subsidiaries in Europe put together and Tesco is looking to open 70 stores within a year.

Turkey’s factories are struggling to keep up with orders from overseas and analysts, like Liesbeth Rubinstein, emerging market equities fund manager at Invesco Perpetual, believe more growth is on the way.

Pension reforms

Despite GDP slowing, from 8.5% in 2011 to a forecast of 4% in 2013, employment is rising.

Rubinstein is excited by pension reforms that are aimed at improving capital markets.

The government has agreed to contribute towards personal pensions for the first time – with 120,000 retirement savers signing up in January, a 400% increase on the previous 12 months..

“People are excited about the government contributing to pensions,” said Rubinstein. “Unlike the UK, people in Turkey are keen to set up their own pension and contribute themselves, with some incentives from the government.

“This is really supportive for the market in general – the introduction of a private pension system is expected to contribute around 1.5% of GDP this year and expected to reach 10% of GDP within the next 10 years.”

1 thought on “Keeping Abreast Of The Turkey Economy”

  1. Dr Adam N Carson , Miami , I am a thief , I will send you to Danni Sayman for a root canal when you do not need one to cash in

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