Venture to Turkey with IE Singapore
Emerging major economy
Turkey’s economic growth rebounded after the global financial recession, with an average annual growth of over 6% from 2010 through 20161. With healthy long-run growth prospects, it is projected to be the world’s 11th largest economy by 2050, ahead of countries such as France and Saudi Arabia, on the back of a 3% average annual growth rate2.
To achieve the goals of Turkey’s 2023 Vision, various economic, social and infrastructure improvements are underway. By 2023, Turkey aims to achieve a GDP of US$2 trillion, up from US$820.8 billion in 2013. It also hopes to achieve a per capita income of US$25,000 and reduce unemployment to 5%.
Infrastructure projects include:
- A third airport in Istanbul that is expected to be one of the world’s largest when it opens in 2019.
- A US$5 billion rail tunnel that will run under the Bosporus.
- A US$2.5 billion luxury high-rise that includes a hotel, a new mall, office space, and a spacious performing arts centre.
Gateway of the region
Turkey enjoys strong historical, cultural and economic ties with countries in the neighbouring regions of Southern Europe, the Commonwealth of Independent States (CIS) and the Middle East. Singapore companies can tap these linkages to expand into nearby countries, either by using Turkey as a hub or by partnering with Turkish companies.
Venture to Turkey
Turkey is integrated to the West through membership in organisations such as NATO, but also has close ties with its Middle Eastern, Asian and African neighbours.
The coup in July 2016 resulted in dipping investor confidence, but business has not been disrupted. Singapore companies have not withdrawn interests and projects continue to move ahead. The Turkish government has assured local and foreign businesses that the events will not affect the economic and investment climate.
We advise Singapore companies to remain cautiously optimistic and monitor the situation. Companies in infrastructure, transport and logistics, healthcare, and construction solutions can expect continued demand.
1: World Bank
2: PwC report, 2017