Economy
From The Report: Turkey 2012
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The Turkish economy rebounded from the global crisis to become an island of economic stability between Europe and the MENA region. The 15th-largest economy globally and the 6th-largest in Europe has experienced an unprecedented transformation in the past decade, as per capita GDP has risen more than three times. While the economy is plagued by a structural current account deficit, due to dependence on foreign energy resources, the nation’s consumer population drove significant GDP growth of 11.9% in 2011, and each of the sectors dependent on consumer spending have seen significant returns. With increased interest in Turkey from the Gulf states and new partners in Africa and Southeast Asia, exporters are finding new alternatives to crisis-plagued Europe, ensuring the growth of foreign trade.

The Economy chapter contains interviews with Ali Babacan, the Deputy Prime Minister responsible for the economy; Mustafa V. Koç, the Chairman of Koç Group; Hüsnü Özyeğin, the Chairman of FIBA Holding; and Jim O’Neill, the Chairman of Goldman Sachs Asset Management.

Articles from this Chapter

Overview

A country transformed: Growth is expected to continue at a measured pace
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Undergoing a major transformation over the past decade, the Turkish economy is now the world’s 15th largest and the sixth largest in Europe, according to 2011 World Bank figures for GDP at purchasing power parity (PPP). The country has an estimated population of 74.7m, giving it the second-largest internal market in Europe, after Germany. Bordering that continent, as well as the Middle East and the Caucasus, and with a coastline on both the Mediterranean and Black Seas, Turkey also has a unique…

Analysis

Facilitating business: While the country is moving up in the rankings, there is still plenty of room for improvement
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There was good news for Turkey in 2012 in the pages of the World Bank/International Finance Corporation’s “Doing Business 2012” report. In 2011 the country rose two places in the global rankings, to 71st out of 183 economies. This placed it ahead of the Eastern Europe and Central Asia average of 77th and well ahead of some regional competitors, such as Russia – which took 120th place – and Ukraine on 152nd. BUSINESS REGULATIONS: The report – the ninth issued so far – takes a…

Interview

OBG talks to Ali Babacan, Deputy Prime Minister
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Interview: Ali Babacan What steps is Turkey taking to achieve a sustainable level of economic expansion? What factors drive growth in the face of global instability? ALI BABACAN: Turkey’s endurance during the global crisis is the result of consistent and determined efforts to achieve structural reforms in economic, financial and social issues. Reforms of the past decade have successfully transformed the Turkish economy into one of high growth rates, generating jobs for millions. One of the key…

Analysis

Raising revenue: Fresh bidding rounds are under way for privatisation of state assets
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The year 2012 is scheduled to be a banner one for privatisation in Turkey, if all goes according to plan, with moves ahead on gas and electricity grids, bridges, highways and ports. Yet these plans are also likely to be subject to the temperature of the global economy, as those charged with organising the sell-offs try to launch when investor interest is at a peak. With 2012 starting out on uncertain terms, there were several postponements to scheduled privatisations announced, with the dates…

Interview

OBG talks to Mustafa Koç, Chairman, Koç Holding
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Interview: Mustafa Koç Which sectors of the economy have attracted the most attention from the country’s holding companies and investors more generally? MUSTAFA KOÇ: The country’s growth prospects, demographic dynamics and low penetration and consumption rates (compared to developed countries) make many sectors in Turkey very attractive to local and international players alike. The energy sector is one specific area to which the large holdings are shifting their attention. Demand for electricity…

Interview

OBG talks to Hüsnü Özyeğin, Chairman, FIBA Holding
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Interview: Hüsnü Özyeğin As e-commerce grows, how can small and medium-sized enterprises (SMEs) use technology to their advantage and what is its overall economic impact? HUSNU ÖZYEĞİN: Turkish companies and consumers have adapted to increased use of the internet and social media networks. Turkish “.com” companies such as yemeksepeti.com, a food delivery website, are now trying to enter foreign markets like Russia, while some large US .coms have paid hundreds of millions of dollars to…

Analysis

A win-win relationship: Recent years have seen a jump in trade with Gulf states
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One major success story in recent years has been the rapid rise in bilateral trade between Turkey and the countries of the Gulf Cooperation Council (GCC). Indeed, Turkey enjoys trade surpluses with all the GCC states except Saudi Arabia and Qatar, with energy imports accounting for the deficits there. With the UAE, Kuwait, Bahrain and Oman, Turkish goods and services exported outstrip imports, with trade in all regards expanding significantly in the past few years. BOLSTERING TRADE: Early…

Analysis

Towards 100: Setting the sights high for long-term development
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With 2023 the centennial of the establishment of the Republic of Turkey, elections in 2011 saw the government unveil a long-term vision for the country’s development that stretches ahead for more than a decade. The ruling Justice and Development Party (AKP), able to capitalise on an unprecedented period of political stability after winning its third consecutive general election, has set some ambitious goals. By 2023, the government expects to be exporting $500bn of goods and services. With…

Viewpoint

Jim O’Neill, Chairman, Goldman Sachs Asset Management, on Turkey and the Next 11
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Many years ago, Goldman Sachs studied the growth prospects of a number of economies which we felt had the potential to become as big as the so-called BRICs (Brazil, Russia, India and China) in the future. We examined all those nations that had populations just below their BRIC counterparts – the next-largest countries, in terms of number of people – because the key features determining economic size are the number of people that work and their level of productivity. None of the countries…