2. POPULATION
2.1- A population of 78.7 million (2015, TurkStat)
2.2- Largest youth population compared with the EU (Eurostat)
2.3- Half the population under the age of 31 (2015, TurkStat)
2.4- Young, dynamic, well-educated and multi-cultural population

3. QUALIFIED AND COMPETITIVE LABOR FORCE
3.1- Over 29.7 million young, well-educated and motivated professionals (2015, TurkStat)
3.2- Increasing labor productivity
3.3- Approximately 733,000 students graduate annually from over 193 universities (2015, CoHE)
3.4- More than 950,000 high school graduates with around half from vocational and technical high schools (2015, Ministry of National Education)

4. LIBERAL AND REFORMIST INVESTMENT CLIMATE
4.1- The 2nd biggest reformer among OECD countries in terms of its restrictions on FDI since 1997 (OECD FDI Regulatory Restrictiveness Index 1997-2015)
4.2- Business-friendly environment with an average of 7.5 days to set up a company, while the average in OECD members is more than 15 days (World Bank Doing Business Report 2016)
4.3- Highly competitive investment conditions
4.4- Strong industrial and service culture
4.5- Equal treatment for all investors
4.6- Around 46,800 companies with international capital in 2015 (Ministry of Economy)
4.7- International arbitration
4.8- Guarantee of transfers

5. INFRASTRUCTURE
5.1- New and highly-developed technological infrastructure in transportation, telecommunications and energy
5.2- Well-developed and low-cost sea transport facilities
5.3- Railway transport advantage to Central and Eastern Europe
5.4- Well-established transportation routes and direct delivery mechanism to most of the EU countries

6. CENTRALLY LOCATED
6.1- A natural bridge between both East-West and North-South axes, thus creating an efficient and cost-effective outlet to major markets
6.2- Easy access to 1.6 billion customers in Europe, Eurasia, the Middle East and North Africa
6.3- Access to multiple markets worth USD 24 trillion of GDP

7. ENERGY CORRIDOR AND TERMINAL OF EUROPE
7.1- An important energy terminal and corridor in Europe connecting the East and the West
7.2- 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

8. LOW TAXES & INCENTIVES
8.1- Corporate Income Tax reduced from 33 percent to 20 percent
8.2- Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones, including total or partial exemption from Corporate Income Tax, a grant on employer’s social security share, as well as land allocation
8.3- R&D and Innovation Support Law
8.4- Incentives for strategic investments, large-scale investments and regional investments

9. CUSTOMS UNION WITH THE EU SINCE 1996
9.1- Customs Union with the EU since 1996 and Free Trade Agreements (FTA) with 27 countries (Ministry of Economy)
9.2- More FTAs underway
9.3- Accession negotiations with the EU

10. LARGE DOMESTIC MARKET
10.1- 48.6 million broadband internet subscribers in 2015, up from 0.1 million in 2002 (ICTA, TurkStat)
10.2- 73.6 million mobile phone subscribers in 2015, up from 23 million in 2002 (TurkStat)
10.3- 58 million credit card users in 2015, up from 16 million in 2002 (The Interbank Card Center of Turkey)
10.4- 181 million airline passengers in 2015, up from 33 million in 2002 (TurkStat)
10.5- 35.6 million international tourist arrivals in 2015, up from 13 million in 2002 (TurkStat)

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

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 4.7 percent over the period of 2002 to 2014.

Average Annual Real GDP Growth (%) 2002-2013

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 one of the fastest growing economies of the OECD members during 2014-2016, with an annual average growth rate of 3.6 percent.

Annual Average Real GDP Growth (%) Forecast in OECD Countries 2014-2016 

Source: OECD, February 2015

Together with stable economic growth, Turkey has also reined in its public finances; the EU-defined general government nominal debt stock fell to 33.5 percent from 67.7 percent between 2003 and 2014. Hence, Turkey has been meeting the “60 percent EU Maastricht criteria” for public debt stock since 2004. Similarly, during 2003-2014, 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 800 billion in 2014, up from USD 305 billion in 2003, GDP per capita soared to USD 10,404, 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 158 billion by the end of 2014, up from USD 47 billion in 2003. Similarly, tourism revenues, which were around USD 14 billion in 2003, exceeded USD 34.3 billion in 2014.

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.

a. Institutionalized economy fueled by USD 144 billion of FDI in the past decade
b. 16th largest economy in the world and 6th largest economy compared with EU countries in 2013 (GDP at PPP, IMF-WEO)
c. Robust economic growth with an average annual real GDP growth of 4.7 percent during 2002-2014
d. GDP reached USD 800 billion in 2014, up from USD 305 billion in 2003
e. Sound economic policies with a prudent fiscal discipline
f. Strong financial structure resilient to the global financial crisis

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.