Turkish economy – Muhasebe News

Turkish Economy Grows 21.7 percent in Q2 2021

MuhasebeNews — Fri, 10 Sep 2021 07:45:54 +0000

The robust recovery in the Turkish economy continued at full speed and Turkey’s GDP grew by 21.7 percent year-on-year in the second quarter of 2021, posting its highest-ever expansion since 1999 and ranking second in the world after the UK.

The Turkish Statistical Institute (TurkStat) also revised upwards Turkey’s growth in the first quarter of 2021 to 7.2 percent from 7.0 percent. The data released on September 1 revealed that the GDP at current prices reached USD 188,566 million in the second quarter and the Turkish economy expanded by 0.9 percent on a quarterly basis, showing that it kept its strong growth momentum despite the lockdown in May.

A close analysis of GDP’s activities indicated all the components positively contributed to the economic growth except stock changes. Private and government consumption have contributed to Turkey’s growth by 13.7 and 0.7 ppt., while investment expenses and net exports contributed by 5.4 and 7.0 ppt., respectively.

Source: Republic of Turkey Investment Office
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OECD and Fitch Ratings Revise Up their Forecasts for Turkish Economy

MuhasebeNews — Fri, 22 Jan 2021 09:59:53 +0000

The Organization for Economic Cooperation and Development (OECD) raised its 2020 growth forecast for Turkey on January 14, in its “OECD Economic Survey of Turkey.”

Accordingly, OECD revised its 1.3 percent contraction forecast for 2020 to 0.2 percent.

The organization also projected that the Turkish economy will grow 2.6 percent and 3.5 percent in 2021 and 2022 respectively.

“The Turkish economy’s recovery from the first wave of the pandemic was strong but faced headwinds,” the report stated. “Recent stability-oriented policy measures can enhance domestic and international sentiment and support the recovery,” it added.

The report also said that Turkey managed effectively to control the number of cases in the first wave of the Covid-19 outbreak through strong health infrastructure and targeted restrictions.

Meanwhile, global credit rating agency Fitch Ratings forecasts that Turkey’s GDP growth rate will be 3.5 percent in 2021, with an acceleration in the second half. The COVID-19 vaccination, easing of restrictions and acceleration of recovery in Europe will support growth in Turkish economy, the agency said.

Economic Overview

MuhasebeNews — Mon, 13 Mar 2017 12:18:38 +0000

The Turkish economy has shown remarkable performance with its steady growth over the last decade. A sound macroeconomic strategy in combination with prudent fiscal policies and major structural reforms in effect since 2002 has integrated the Turkish economy into the globalized world, while transforming the country into one of the major recipients of FDI in its region.

The structural reforms, hastened by Turkey’s EU accession process, have paved the way for comprehensive changes in a number of areas. The main objectives of these efforts were to increase the role of the private sector in the Turkish economy, to enhance the efficiency and resiliency of the financial sector, and to place the social security system on a more solid foundation. As these reforms have strengthened the macroeconomic fundamentals of the country, the economy grew with an average annual real GDP growth rate of 4.7 percent over the period of 2002 to 2014.

Average Annual Real GDP Growth (%) 2002-2013

Source: OECD, Eurostat and national sources

Moreover, Turkey’s impressive economic performance over the past decade has encouraged experts and international institutions to make confident projections about Turkey’s economic future. For example, according to the OECD, Turkey is expected to be one of the fastest growing economies of the OECD members during 2014-2016, with an annual average growth rate of 3.6 percent.

Annual Average Real GDP Growth (%) Forecast in OECD Countries 2014-2016

Source: OECD, February 2015

Together with stable economic growth, Turkey has also reined in its public finances; the EU-defined general government nominal debt stock fell to 33.5 percent from 67.7 percent between 2003 and 2014. Hence, Turkey has been meeting the “60 percent EU Maastricht criteria” for public debt stock since 2004. Similarly, during 2003-2014, the budget deficit decreased from more than 10 percent to less than 3 percent, which is one of the EU Maastricht criteria for the budget balance.

As the GDP levels increased to USD 800 billion in 2014, up from USD 305 billion in 2003, GDP per capita soared to USD 10,404, up from USD 4,565 in the given period.

The visible improvements in the Turkish economy have also boosted foreign trade, while exports reached USD 158 billion by the end of 2014, up from USD 47 billion in 2003. Similarly, tourism revenues, which were around USD 14 billion in 2003, exceeded USD 34.3 billion in 2014.

Significant improvements in such a short period of time have registered Turkey on the world economic scale as an exceptional emerging economy, the 16th largest economy in the world and the 6th largest economy when compared with the EU countries, according to GDP figures (at PPP) in 2013.

a. Institutionalized economy fueled by USD 144 billion of FDI in the past decade
b. 16th largest economy in the world and 6th largest economy compared with EU countries in 2013 (GDP at PPP, IMF-WEO)
c. Robust economic growth with an average annual real GDP growth of 4.7 percent during 2002-2014
d. GDP reached USD 800 billion in 2014, up from USD 305 billion in 2003
e. Sound economic policies with a prudent fiscal discipline
f. Strong financial structure resilient to the global financial crisis

Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.