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Strong Indicators for the development of the Turkish Economy

Strong Indicators for the development of the Turkish Economy
Publication date: 2020-02-07 Category: Turkish Economic Affairs

The Turkish state suffered in the recent time from severe economic fluctuations, which were overcome through a large package of measures and reforms announced by the economic administration, in which the level of internal development was raised, and foreign risks were overcome. The capital was also attracted to the country through the law of granting Turkish citizenship to foreign investors and encouraging them to invest in Turkey or buy a property for sale in turkey.

A Quick Look at the Past-Year Economy:

In the second half of 2019 and early 2020, we witnessed a frequent reduction in the interest rates by central banks in order to support the economy, and thus international institutions adjusted their expectations for a higher rate of growth, as the International Monetary Fund expected a growth rate of 3% instead of 2.5%.

This was accompanied by a decrease in the inflation rate in Turkey as a result of reducing the interest rate from 24% to 10.56%. What further strengthens the economic position is the low level of public debt in the country.

In the last year, the following occurred:

  • The economy has moved from shrinking to growth.
  • The Turkish State witnessed high records in exports.
  • Surplus in the current account and balance of trade for the first time in 17 years.

Al-Bairaq's strong statements on the new economic program:

The Turkish Minister of Treasury and Finance "Patents of Al Bairaq" stated the goal of the new economic program to reduce the rate of inflation in the years 2020-2021-2022 to reach below 5%.

Where the plan came as follows:

  • The goal of reducing the inflation rate for the years 2020-2021-2022 is as follows: respectively 8.2% - 5.4% - 4.9%.
  • In addition, there is a plan to reduce unemployment, to 11.8% in 2020, to 10.6% in 2021, and to 9.8% in 2022.
  • However, expectations for lower interest rates ranged between 9% and 10.5% in 2020.

Statistics for 2019:

  • The Turkish Statistics Authority announced that the exports of the Turkish state achieved a record number during the past year 2019, amounting to more than 171 billion dollars.
  • This was stated in a report prepared by the Turkish Statistics Authority in cooperation with the Ministry of Trade, where it shared data on the capacity of foreign trade for the year 2019.

The report stated that:

  • Turkish exports achieved a 2.1% increase in 2019 compared to the previous year, which hit a record high of 171 billion and 531 million dollars, after it was 36 billion in 2002.
  • The volume of Turkish imports in 2019 decreased by 9.1% compared to 2018, recording 201 billion and 705 million dollars.
  • Foreign exchange reserves in the Turkish Central Bank increased to more than 100 billion dollars.

The Turkish government has provided $ 540 million in support to Turkish companies and exporters during 2019, the highest amount to support exports in the country's history pledging to increase support to 640 million in 2020.

Turkey's World Classification:

  • Turkish President Recep Tayyip Erdogan has pledged to continue to work and strive to advance Turkey and bring it to the list of the ten most powerful economic countries in the world.
  • Turkey currently ranks 16th in terms of economic power worldwide.
  • It should be noted that Turkey ranked seventh in the world in terms of the best countries to live and work according to the HSBC HOLDING group.

Summary:

  • Turkey attempts now to expand its growing strength over domestic and foreign market demand for local products.
  • Turkey is now seeking to reduce poverty rates and raise the level of per capita income.
  • Turkey is now at the height of scientific, military and industrial progress (clothing, textiles, steel and cars, in addition to minerals such as copper, iron and mercury), and at the height of agricultural, technical and health development, infrastructure and service centers.

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