.
The Turkish economy has been praised in recent months for its resilience in the aftermath of July’s coup attempt. While it was understood there would be some fiscal impacts following the attempt, few could have predicted the Turkish economy’s speedy recovery time. In the week following the event, the value of the dollar against the Turkish lira rose to 3.07 from 2.90, before lowering to previous levels over the course of a few days. During this time, Turkish citizens exchanged more than $11.5 billion in foreign currency. To keep the economy strong, Turkey has implemented new policies, expanded trade, and placed new emphasis on technological development.
Credit Policy
In the weeks following the attempted coup, Turkey implemented new guidelines for citizens making purchases on credit. The coup attempt temporarily removed job security from many Turkish citizens, causing the population to become more hesitant towards making larger purchases. New regulations make it easier for citizens to help stimulate economic growth, even in a time of crisis. However, while Turkey continues to reap the short-term benefits, banks may be faced with citizens unable to compensate for loans and accumulated debts. Many have labeled this policy change as a risky decision, but a necessary choice to help stabilize economic growth and ensure stable income for citizens. Annual economic growth in Turkey has averaged above five percent since 2008, and remains constant following the coup attempt.
Trade
Another factor keeping the Turkish economy strong is the country’s trade with other nations. Currently, Turkey exports primarily to the US, EU, Russia, United Arab Emirates, Iraq, and Iran. As the 27th largest export country in the world, Turkey has seen an impressive rise in the number of goods, both raw and manufactured, moving out of the country. Man-made goods such as cars and vehicle parts, as well as raw materials account for most of Turkey’s exports. In 2014, Turkey exported over $165 billion worth of goods, and the rate of export has only continued to increase as new foreign trade agreements develop.
Turkey has already taken several steps in bolstering trade with foreign governments. During his recent visit to Turkey, British Foreign Secretary Boris Johnson met with President Erdogan to stress the importance of further evolving trade relations between the two countries. He also showed his support for Turkey’s admission into the European Union (EU), as such affairs would further open trade relations and provide the EU easy access to the technologies quickly proliferating in the area. Additionally, Turkey has been expanding their Independent Industrialist’s and Businessmen’s Association (MUSIAD) into other countries with emerging markets such as South Africa. These expansions help facilitate trade between countries, and launch strategic relationships that are crucial to Turkey’s trade enterprises.
Technological Development
Part of what makes Turkey appealing to foreign investment and international trade is the country’s rapid technological boom. New economic reforms have found government investment prioritizing the development of science and tech programs. These reforms also focus on funding university based research programs. The average age in Turkey is only 29.6 years, yielding a young and progressive population determined to develop technologies at a faster pace than the world around them. The city of Istanbul boasts an impressive number of successful startup companies, as well as some of the largest entrepreneurial incubation centers in the world. Technological growth is largely based in the development of mobile technology, as an impressive 84% of the Turkish population own a mobile device. Turkey has also been making its mark on the defense and aerospace market; Turkish Aerospace Industries has been named one of the top companies in the world for defense technology. In addition, Japan and Turkey recently began collaboration on satellite and space technology. Turkey is swiftly becoming one of the fastest-developing countries in the field of science and technology.
Clean Energy
Recently, Turkey has been working to develop clean energy technologies. Pushes are being made towards developing efficiency projects such as solar, hydroelectric, wind, and other renewable energy and conservation sources. Additionally, Ankara has recently partnered with Beijing in creating a more prominent nuclear energy program. These projects have proved to be of interest to potential investors, as foreign investment accounts for billions of dollars going into clean energy development. This year, the World Energy Congress is meeting in Istanbul, where it is expected that 80 countries will be in attendance. As the first global energy conference held following the Climate Change Conference in Paris, the World Energy Congress serves to identify new and emerging discoveries in the field of clean tech, and the effects of these technologies on economic growth patterns. The congress is coming at a crucial period of time, as Turkey’s clean energy movement is at an all-time high.
Turkey has allotted a lot of resources into ensuring the rapid growth of its technological and scientific industries, and it is easy to see why. With the expansion of their tech market, Turkey has seen a surge of foreign investors and trade partnerships bringing economic stability to the country. Turkey’s retention of steady economic growth serves as a reminder that the country has a strong economy with many opportunities for future progression.
Editor’s Note: The Diplomatic Courier is a proud media partner for the forthcoming 35th Annual Conference on U.S.-Turkey Relations, (#USTurkeyConf) organized by the American-Turkish Council (ATC) and the Turkish US Business Council (TAIK). To learn more or RSVP, visit here.
The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.
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From Foreign Trade to Clean Energy: Turkey’s Business, Innovation, and Growth Strategies
Hagia Sophia in Sultanahmet district, Istanbul. Turkey.
October 11, 2016
The Turkish economy has been praised in recent months for its resilience in the aftermath of July’s coup attempt. While it was understood there would be some fiscal impacts following the attempt, few could have predicted the Turkish economy’s speedy recovery time. In the week following the event, the value of the dollar against the Turkish lira rose to 3.07 from 2.90, before lowering to previous levels over the course of a few days. During this time, Turkish citizens exchanged more than $11.5 billion in foreign currency. To keep the economy strong, Turkey has implemented new policies, expanded trade, and placed new emphasis on technological development.
Credit Policy
In the weeks following the attempted coup, Turkey implemented new guidelines for citizens making purchases on credit. The coup attempt temporarily removed job security from many Turkish citizens, causing the population to become more hesitant towards making larger purchases. New regulations make it easier for citizens to help stimulate economic growth, even in a time of crisis. However, while Turkey continues to reap the short-term benefits, banks may be faced with citizens unable to compensate for loans and accumulated debts. Many have labeled this policy change as a risky decision, but a necessary choice to help stabilize economic growth and ensure stable income for citizens. Annual economic growth in Turkey has averaged above five percent since 2008, and remains constant following the coup attempt.
Trade
Another factor keeping the Turkish economy strong is the country’s trade with other nations. Currently, Turkey exports primarily to the US, EU, Russia, United Arab Emirates, Iraq, and Iran. As the 27th largest export country in the world, Turkey has seen an impressive rise in the number of goods, both raw and manufactured, moving out of the country. Man-made goods such as cars and vehicle parts, as well as raw materials account for most of Turkey’s exports. In 2014, Turkey exported over $165 billion worth of goods, and the rate of export has only continued to increase as new foreign trade agreements develop.
Turkey has already taken several steps in bolstering trade with foreign governments. During his recent visit to Turkey, British Foreign Secretary Boris Johnson met with President Erdogan to stress the importance of further evolving trade relations between the two countries. He also showed his support for Turkey’s admission into the European Union (EU), as such affairs would further open trade relations and provide the EU easy access to the technologies quickly proliferating in the area. Additionally, Turkey has been expanding their Independent Industrialist’s and Businessmen’s Association (MUSIAD) into other countries with emerging markets such as South Africa. These expansions help facilitate trade between countries, and launch strategic relationships that are crucial to Turkey’s trade enterprises.
Technological Development
Part of what makes Turkey appealing to foreign investment and international trade is the country’s rapid technological boom. New economic reforms have found government investment prioritizing the development of science and tech programs. These reforms also focus on funding university based research programs. The average age in Turkey is only 29.6 years, yielding a young and progressive population determined to develop technologies at a faster pace than the world around them. The city of Istanbul boasts an impressive number of successful startup companies, as well as some of the largest entrepreneurial incubation centers in the world. Technological growth is largely based in the development of mobile technology, as an impressive 84% of the Turkish population own a mobile device. Turkey has also been making its mark on the defense and aerospace market; Turkish Aerospace Industries has been named one of the top companies in the world for defense technology. In addition, Japan and Turkey recently began collaboration on satellite and space technology. Turkey is swiftly becoming one of the fastest-developing countries in the field of science and technology.
Clean Energy
Recently, Turkey has been working to develop clean energy technologies. Pushes are being made towards developing efficiency projects such as solar, hydroelectric, wind, and other renewable energy and conservation sources. Additionally, Ankara has recently partnered with Beijing in creating a more prominent nuclear energy program. These projects have proved to be of interest to potential investors, as foreign investment accounts for billions of dollars going into clean energy development. This year, the World Energy Congress is meeting in Istanbul, where it is expected that 80 countries will be in attendance. As the first global energy conference held following the Climate Change Conference in Paris, the World Energy Congress serves to identify new and emerging discoveries in the field of clean tech, and the effects of these technologies on economic growth patterns. The congress is coming at a crucial period of time, as Turkey’s clean energy movement is at an all-time high.
Turkey has allotted a lot of resources into ensuring the rapid growth of its technological and scientific industries, and it is easy to see why. With the expansion of their tech market, Turkey has seen a surge of foreign investors and trade partnerships bringing economic stability to the country. Turkey’s retention of steady economic growth serves as a reminder that the country has a strong economy with many opportunities for future progression.
Editor’s Note: The Diplomatic Courier is a proud media partner for the forthcoming 35th Annual Conference on U.S.-Turkey Relations, (#USTurkeyConf) organized by the American-Turkish Council (ATC) and the Turkish US Business Council (TAIK). To learn more or RSVP, visit here.
The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.
