Reasons for the growth of the Turkish economy
Turkey has experienced remarkable economic growth, capturing the attention of economists and investors alike. There are many reasons for the growth of the Turkish economy as we will see in this article from Ebla Real Estate.
Reasons for the growth of the Turkish economy:
The Turkish economy is distinguished by its general competitive ground in various economic sectors. Moreover, the Turkish economy is a vibrant economy that has been the subject of trust among the international parties interested in the economic aspect, and among the investors in general. The rank of the Turkish economy globally continuous to improve, thanks to many reasons, the most important of them are:
Political Stability: A Pillar of Growth:
One of the foundational factors contributing to Turkey’s economic growth is its relatively stable political environment. Stable governance fosters investor confidence, encouraging both domestic and foreign investment. Political stability contributed to the development of infrastructure and promoted the establishment and opening of huge and giant projects such as airports, roads, bridges, buildings and many vital facilities.
Increasing GDP:
Turkey’s consistent increase in Gross Domestic Product (GDP) has been a striking indicator of its economic resilience. By diversifying its industries and embracing sectors beyond traditional agriculture and textiles, the country has managed to bolster its economy. Industries such as automotive manufacturing, electronics, and chemicals have been instrumental in this growth, showing Turkey’s adaptability and dynamism.
During the past year 2022, the Turkish economy grew by 7.6%, according to the data of the Turkish Statistical Authority. Moreover, the economy in Turkey achieved a good growth of 4% during the first quarter of this year 2023.
Turkey’s foreign trade and export volumes:
An active participant in international trade, Turkey’s foreign trade and export volumes have been pivotal drivers of its economic expansion. Its strategic location has facilitated its role as a key transit point for goods traveling between Europe, Asia, and the Middle East. By nurturing trade relationships with various nations, Turkey has leveraged its position to enhance its export capabilities, further fueling economic growth.
It is worth noting that in the current year’s statistics, the total volume of Turkish exports during the first third of this year 2023 amounted to about 80 billion and 873 million dollars.
As for the latest data of the Turkish Statistics Authority, the volume of Turkish foreign trade in local currency amounted to 349 billion and 488 million liras during the first half of this year. An increase of 129.3%, compared to the same period last year.
Turkish exports increased in local currency during the aforementioned period compared to last year by 86.7%, to reach 94 billion and 580 million pounds.
Foreign investment:
One of the most important reasons for the growth of the Turkish economy is the foreign investment. The volume of foreign investments in Turkey increased to more than 254 billion dollars between 2002-2023. It was only about 14 billion dollars during the seventies of the last century until the beginning of the year 2000. Also, the number of foreign companies has increased dramatically from 5,600 companies in 2002 statistics, to 79,564 in 2023 statistics.
Tourism Revenue:
Tourism in Turkey plays a major and essential role in stimulating the Turkish economy. Millions of visitors come to Turkey annually. Tourism in Turkey depends largely on the historical sites and coastal resorts on the Sea of Marmara, the Mediterranean and the Black Sea, which have become destinations for tourists from all over the world.
Moreover, Turkey is among the well-known medical destinations as it has hospitals offering high-quality patient care. Moreover, medical expertise, qualitative private healthcare infrastructure, easily accessible, convenient location have made Turkey one of the top destinations for medical tourism with more than 30 million tourists annually.
Low unemployment:
Turkey’s emphasis on job creation and workforce development has contributed to maintaining a relatively low unemployment rate. By promoting entrepreneurship, supporting startups, and investing in education and vocational training, the government has nurtured a skilled workforce that drives economic productivity and growth.
Edited by: Ebla Group Real Estate
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