Main Reasons to invest

  1. Main Reasons to Invest

    Main-Reasons
  2. 1 – Successful Economic Performance

    Successful Economic Performance

    • Booming economy; more than tripling its GDP, reaching USD 820 billion in 2013, up from USD 231 billion in 2002 (TurkStat)
    • Stable economic growth with an average annual real GDP growth rate of 5.1 percent over the past decade (TurkStat)
    • Promising economy with a bright future as it is expected to become the fastest growing economy among the OECD members during 2012-2017 with an average annual real GDP growth rate of 5.2 percent (OECD Economic Outlook No. 91)
    • 16th largest economy in the world and 6th largest economy compared with the EU in 2013 (GDP at PPP, IMF WEO)
    • Institutionalized economy fueled by USD 135 billion of FDI in the last decade. (CBRT)
    • A dynamic and mature private sector with USD 152 billion worth of exports and an increase of 245 percent between 2004 and 2013 (TurkStat)
  3. 2 – Young and Dynamic Population

    Young and Dynamic Population

    • A population of 76.7 million (2013, TurkStat)
    • Largest youth population compared with the EU (Eurostat)
    • Half the population under the age 30.4 (2013, TurkStat)
    • Young, dynamic, well-educated and multi-cultural population
  4. 3 – Qualified and Competetive Labor Force

    Qualified and Competetive Labor Force

    • Over 28.3 million young, well-educated and motivated professionals (2013, TurkStat)
    • Increasing labor productivity
    • Approximately 610,000 students graduate annually from over 183 universities (2012, Student Selection and Placement Center-OSYM)
    • More than 700,000 high school graduates with around half from vocational and technical high schools (2012, TurkStat)
  5. 4 – Liberal and Reformist Investment Climate

    Liberal and Reformist Investment Climate

    • The second biggest reformer among OECD countries in terms of its restrictions on FDI since 1997 (OECD FDI Regulatory Restrictiveness Index 1997-2012)
    • Business-friendly environment with average of 6 days to set up a company, while the average in OECD members is more than 11 days (World Bank Doing Business Report 2014)
    • Highly competitive investment conditions
    • Strong industrial and service culture
    • Equal treatment for all investors
    • Around 36,950 companies with international capital in 2013 (Ministry of Economy)
    • International arbitration
    • Guarantee of transfers
  6. 5 – Infrastructure

    Infrastructure

    • New and highly developed technological infrastructure in transportation, telecommunications and energy
    • Well-developed and low-cost sea transport facilities
    • Railway transport advantage to Central and Eastern Europe
    • Well-established transportation routes and direct delivery mechanism to most of the EU countries
  7. 6 – Centrally Located

    Centrally Located

    • A natural bridge between both East-West and North-South axes, thus creating an efficient and cost effective outlet to major markets
    • Easy access to 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa
    • Access to multiple markets worth USD 25 trillion of GDP
  8. 7 – Energy Corridor and Terminal of Europe

    Energy Corridor and Terminal of Europe

    • An important energy terminal and corridor in Europe connecting the East and the West
    • Located at a close proximity of more than 70 percent of the world’s proven primary energy reserves, while the largest energy consumer, which is Europe, is located right to the west of Turkey, thus making the country a linchpin in energy transit and an energy terminal in the region
  9. 8 – Low taxes and incentives

    Low taxes and incentives

    • Corporate Income Tax reduced from 33 percent to 20 percent
    • Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones could include total or partial exemption from Corporate Income Tax, a grant on employer’s social security share, as well as land allocation
    • R&D and Innovation Support Law
    • Incentives for strategic investment to decrease imports, for large-scale investments, as well as for regional investments
  10. 9 – Customs Union with EU since 1996

    Customs Union with EU since 1996

    • Customs Union with the EU since 1996 and Free Trade Agreements (FTA) with 20 countries (Ministry of Economy)
    • More FTAs underway
    • Accession negotiations with the EU
  11. 10 – Large Domestic Market

    Large Domestic Market

    • 6 million broadband internet subscribers in 2013, up from 0.1 million in 2002 (ICTA, TurkStat)
    • 6 million mobile phone subscribers in 2013, up from 23 million in 2002 (TurkStat)
    • 57 million credit card users in 2013, up from 16 million in 2002 (The Interbank Card Center of Turkey)
    • 131 million airline passengers in 2012, up from 33 million in 2002 (TurkStat)
    • 2 million international tourist arrivals in 2012, up from 13 million in 2002 (TurkStat)

Economic Outlook

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 5 percent over the past decade between 2002 and 2012.

Average Annual Real GDP Growth (%) 2002-2012

ASK-Avarage-Annual-Real-GDP-Growth

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 the fastest growing economy of the OECD members during 2012-2017, with an annual average growth rate of 5.2 percent.

Annual Average Real GDP Growth (%) Forecast in

OECD Countries 2012-2017

ASK-Annual-Real-GDP-Growth

Source: OECD Economic Outlook No: 91, June 2012

 

Together with stable economic growth, Turkey has also reined in its public finances; the EU-defined general government nominal debt stock fell to 36.3 percent from 67.7 percent between 2003 and 2013. Hence, Turkey has been meeting the “60 percent EU Maastricht criteria” for public debt stock since 2004. Similarly, during 2003-2013, 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 820 billion in 2013, up from USD 305 billion in 2003, GDP per capita soared to USD 10,782, 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 152 billion by the end of 2013, up from USD 47 billion in 2003. Similarly, tourism revenues, which were around USD 14 billion in 2003, exceeded USD 32.3 billion in 2013.

 

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.

 

  • Institutionalized economy fueled by USD 135 billion of FDI in the past decade
  • 16th largest economy in the world and 6th largest economy compared with EU countries in 2013 (GDP at PPP, IMF-WEO)
  • Robust economic growth over the last decade with an average annual real GDP growth of 5.1 percent 2003-2013
  • GDP reached USD 820 billion in 2013, up from USD 305 billion in 2003
  • Sound economic policies with a prudent fiscal discipline
  • Strong financial structure resilient to the global financial crisis
ASK ConsultantsMain Reasons to invest

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