The strong Turkish economy is currently the envy of Europe. Despite its recently slowing growth, Turkey’s economy is still expanding at a rate that many European countries would kill for.
In contrast to its European neighbors, Turkey’s credit rating has recently been upgraded, its construction industry is booming, its banks are increasing lending, and its stock market was the second-fastest growing in the world last year.
The country also has a solid institutional framework and a skilled work force. In addition, interest rates have been falling, which has encouraged consumers, especially the growing middle class, to spend.
In fact, Goldman Sachs, the international investment bank that in 2001 predicted the future economic significance of the BRIC countries (Brazil, Russia, India, and China) is now pointing towards Turkey as one of the next generation of fast-growing economies.
The success of the strong Turkish economy has attracted many European companies that are looking to enter the Turkish market and tap into the country’s growing middle classes as economic growth at home stalls.
German companies have been particularly active in the Turkish market, exporting goods worth 14 billion pounds to Turkey in 2012. British and Italian companies have also been active in Turkey. For example, Marks & Spencer now operates 48 stores in Turkey and has benefitted from 15 million customer visits in the past year. Italy, meanwhile, exported goods worth 8.7 billion pounds to Turkey last year.
There is particular potential in the sale of luxury goods and electronics because these markets are not yet as well developed in Turkey as they are in other parts of Europe.
In addition to its own potential, doing business with Turkey can also be of strategic interest because it provides access to other markets in the Middle East as well as North Africa and Central Asia.
Emerging countries like Turkey are currently playing a very important role in supporting many stagnant economies in the developed world. The success of emerging markets is extremely important for companies from the industrialized world that needs access to new and growing markets as their home bases falter.
– Caroline Poterio Martinez
Photo: Russian Council