Turkey already has a very low debt to gross domestic product ratio in comparison with many other countries, and it’s now set to fall to just 37% by the end of the year, according to the Central Bank Governor. According to the governor this low debt to GDP ratio is one of the major factors that help differentiate Turkey from Europe, and the rate is already below 40%.
In comparison Greece has one of the highest debts to GDP ratios in Europe at 160%. Many of the other countries within the European Union are not doing much better, as in Italy the ratio is 120%, while it is 106% in Portugal, 104% in Ireland, and 68% in Spain. In Germany, which is one of the strongest countries in the EU, the ratio is 81%, while the ratio in France is 86%.
One of the main problems faced by Turkey is its huge bill for gas and oil, and this is one of the major reasons that international ratings agencies haven’t yet promoted the country to an investable level. In spite of this the current account gap is closing, and Turkey has made considerable efforts to amend the energy shortage in the country.
As part of this drive Turkey is aiming to become one of the major producers of solar energy and as solar panels, for which it is due to begin accepting project applications in June next year. Its target is to install 600 MW of solar, but it’s anticipated project applications will exceed this target so this figure is likely to be revised to an even higher level.
There is currently more than 1.6 million megawatts of solar thermal hot water generation installed in Turkey, and this is second only to China. It’s not inconceivable to imagine the same could happen with solar photovoltaic power.