With so much of the world in financial turmoil, investors are quick to pounce on stable countries, and Turkey may be on this list. Last year foreign direct investment into the country increased by 74%, and foreigners invested around $15.7 billion. Part of the reason for this is Turkey is increasingly being seen as politically and financially stable.
The Justice and Development Party (AK Party) has been elected three times since first coming to power in 2002, and has radically changed the fortunes of the country. During the last 10 years Turkey has been successful in reducing its public debt from 74% of GDP to around 42% in 2010. It’s also repaid nearly two thirds of its debt to the IMF, reducing it from $23.5 billion in 2002 to just $7 billion in 2009. It’s estimated the total debt will be repaid by 2015.
The government has completely reformed the banking system and removed much of the military involvement in governance. Turkey is also enjoying an enviable rate of economic growth. During the last couple of years it became one of the fastest-growing economies in the world. Last year economic growth was forecast to be 6.6%, and between 2002 and 2010 GDP grew from $230 billion-$736 billion, an average growth rate of 4.8% a year. Turkey also has the youngest population in region, as half are below the age of 29.
This dynamic population is increasingly well educated and multicultural, and the Turkish population as a whole is becoming more affluent. This means more and more people have access to credit, and this will fuel demand for goods and a better standard of housing. More large businesses are choosing to invest in Turkey which is partially due to its unique geographical location. Its location is also increasing its popularity as a tourist destination.