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Turkish Economy Shows Biggest Growth in the G20

Posted on 17 December 2017

The latest figures released by Turk Stat, the Turkish Statistical Institute revealed that Turkey is the fastest growing G20 economy after it clocked up record figures for the third quarter of 2017.

Beating China and India, from July to September, growth came in at 11.1%, the highest double-digit figure recorded since 2011.

In an interview with Bloomberg, Hatice Karahan, the chief economic advisor to Recep Tayyip Erdogan, the country’s president, said this showed Turkey is resilient and has also outgrown the stimulus program introduced after the 2016 coup pushed the economy into contraction.

Noting that crucial areas contributing towards the growth were domestic products and exports, Hatice Karahan also said they were aware of high unemployment rates and inflation and were prepared to tackle it.

While most projections estimate the Turkish economy will show 6.5% growth for the whole of 2017, Recep Tayyip Erdogan has said figures could hit 7% after the automobile export industry showed high demand from Europe. He also praised investors, saying anyone who believes in the Turkish economy will not be let down.

Turkey has embarked on massive programs with several countries to attract investors, even unveiling their turquoise card system for anyone creating employment, buying sustainable amounts of real estate, or bringing quality to the country though skills and educations.

The deputy prime minister Mehmet Simsek, also acknowledged the CGF, that is the Credit Guarantee Fund to which over 200,000 enterprises were given access to. Saying that the GDP is now only one-third of countries in Europe, this is expected to rise as well.

2018 and the Turkish Economy

Many industry experts, as well as Turkish politicians, are confident that the stats set Turkey up for an impressive performance in 2018. Many international financial institutions have revised their predictions for the 2017-year-end as well as 2018.

Moody’s Investor Service, acknowledging that growth will be slower in 2018, because current stats are not sustainable, said they are expecting the aviation, hospitality and tourism industries to rebound following increased security presence and safety.

The last two years for all these sectors have seen a downturn following a series of terrorist attacks, but police operations in 2017 have been successful in preventing attacks, the likes of which dominated events in 2016.

Turkey’s tourism industry also took a massive nosedive after relations with Russia soured, leading the Russian government to ban all charter flights and holidays to Turkey.

Along with increased security presence, a new airport due to open in Istanbul and a massive surge by UK holiday companies in promoting the country, many industry insiders are hoping for a prosperous 2018 in these industries.

Moody’s also acknowledge that export will continue its growth as European demand increases on the back of a weak Turkish lira.

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