Turkish Economic Development Looks Positive, but is Tied to Global Risks
New markets provide ample opportunities for international organizations to find success and prosper. One emerging market, the nation of Turkey, is poised for growth over the coming year, but its fiscal health is closely tied to global risks in nearby nations.
According to the Organization for Economic Cooperation and Development (OECD), Turkey’s growth forecast rose from 2.8 percent to 3.3 percent in 2014. This rate of expansion was strong in 2013 as well, and the country has had one of the world's strongest economies over the past several years. Even so, the OECD pointed out that changes will have to be made to control Turkish economic development and minimize volatility in the region.
Overall, the future of Turkey's economic success, and its appeal to organizations and investors, hinges on several key factors. The OECD explained that new financial and monetary policies must be enacted to address inflation, exchange rates, and credit issues. In addition to better control over these factors, Turkey must also create markets that are more growth-friendly to encourage businesses to operate in the nation.
Furthermore, the OECD stated that growth could also be hampered by global risks, such as rising tensions in the Middle East and North Africa as well as between Ukraine and Russia, according to the Wall Street Journal. However, recent political elections in Turkey may help ease some concerns.
Elections will impact future Turkish economic development
These elections in Turkey will have a direct impact on the nation's future economic growth and success. According to the media outlet Middle East Online, election of the front runner for the presidency and current prime minister Recep Tayyip Erdogan will have a major influence on Turkish economic development.
Erdogan is incredibly optimistic about Turkey's economy, and its recent growth is a good indication as to why. He also emphasized his focus on making the nation one of the 10 best economies by 2023 if he is elected, despite potential problems. At the moment, Turkey is coping with a corruption scandal and political protests, not to mention violence in nearby Ukraine, Syria, and the Gaza Strip.
As Turkey emerges as a desirable market for global businesses, interested companies must understand the risks and prepare accordingly. To access the risks and learn more about safety and security, make sure to visit Turkey risk assessment guide.