Posted on 01 July 2011
The Turkish economy continued its incredible growth with a record of 11% year on year GDP growth in the first quarter. This made Turkey the fastest growing economy in the world by an incredible margin; Argentina was closes with 9.9% followed by China with 9.7%.
At the start of 2010 when Turkish GDP grew 11.7% year on year, analysts said that it was such an exceptional figure, because of the abysmal performance of Q1 2009, when Turkey was entering recession. The same was said for the 10.3% growth in Q2 2010. But even with those two incredible figures, and year on year growth of 8.9% for 2010, Turkey wasn’t the fastest growing economy in the world as it is now.
Particularly significant is the fact that the manufacturing sector lead the growth, with a 21.4% year on year expansion. This is significant because Turkey’s biggest, and one of its few economic problems is the current account and trade deficit fuelled by imports being much higher than exports. If manufacturing is growing strongly, we see more money in manufacturing companies to increase their international efforts and increase exports.
The EU, OECD and other international bodies are currently predicting growth of around 6% in Turkish GDP for 2011, but analysts (who it has to be said predicted only 9.6% growth for Q1) are now predicting that this will possibly be raised.