Turkey

A drive to restructure Turkey’s agricultural sector that includes ambitious plans to expand fruit and vegetable production is set to open the door for foreign investors looking to meet growing demand back home. Plans to drill new geothermal wells this year to help boost greenhouse production should further increase exports. However, the expansion is also prompting concerns that the introduction of new technology could lead to job losses.

Next year, 2014, marks the beginning of a cycle of anniversaries set to last until the end of 2018, as countries across Europe, North America and beyond commemorate the centenary of the First World War. Turkey is looking to combine the expected spike in interest in historic events with a concerted drive to boost tourism revenue.

After watching growth top 8% in 2010 and 2011, Turkey is now seeing its economic expansion ease amid a slowdown in growth both globally and in the eurozone, the impact of civil war in Syria and the doubling of interest rates throughout 2012. Increased focus on domestic demand and exports could see growth rebound in 2013, however.

As the Turkish government drums up support for investment in renewable energy, international firms continue to face significant challenges in conducting environmental impact studies, securing funding and acquiring licences.

A landmark return by Turkey to investment grade territory following an 18-year hiatus has brought fresh confidence to the country and could pave the way for a new era of investment.

As the pension sector in Turkey prepares for upcoming regulatory changes, moves are under way in the private sector to transfer the pension departments of banks into more independent segments. Both of these developments are promising, given that they may lead to an increase in the domestic savings rate, which is currently low.