Turkey in the top 50 most competitive economies in the world

Turkey is ranked 44th in the latest 2013-2014 Global Competitiveness Index (GCI), a table produced by the World Economic Forum (WEF) which assesses 148 economies around the world on their level of productivity according to each country’s institutions, policies and condition of their economy.

This represented a fall of one position from last year for Turkey, said Global Competitiveness Index report, due to the country’s macroeconomic environment deteriorating slightly, with the consequences being its rising fiscal deficit and inflation nearing double digits. However, the report added that the situation there remains better than in many other European economies.

Switzerland tops the GCI for the fifth year running, followed by Singapore and Finland respectively. Germany moves up two places (4th) and the United States reverses a four-year downward trend, climbing two places to fifth. Hong Kong SAR (7th) and Japan (9th) also close the gap on the most competitive economies, while Sweden (6th), the Netherlands (8th) and the United Kingdom (10th) fall.

The GCI report highlighted that Turkey’s vibrant business sector derives important efficiency gains from its large domestic market (ranked in the report 16th), which is characterized by intense local competition (15th). Turkey also benefits from its reasonably developed infrastructure (49th), particularly roads and air transport, although ports and the electricity supply require additional upgrading. In order to further enhance its competitiveness, Turkey must focus on building up its human resources base through better primary education and healthcare (59th) and higher education and training (65th), increasing the efficiency of its labour market (130th), and reinforcing the efficiency and transparency of its public institutions (58th).