Throughout 2014 Turkey had to shoulder its fair share of international financial turbulence, especially in terms of currency volatility. However, despite investor concerns, the country has largely retained its appeal as a success story in the region with relatively sound long-term growth potential, provided the appropriate structural reforms are enacted.
Turkey’s stock exchange, the Borsa Istanbul (BIST), had a bumper year in 2014. It was ranked as the fifth most profitable exchange globally, with the BIST 100 index rising by 26% and closing at a record year-end high. While the early months of 2015 were more muted for the BIST, the appeal of the exchange and many of its listed stocks to investors is still strong.
Turkey has spent the last decade trying to maximise the potential of its geographical position and ability to expand its economy with export-led growth. While this has been hampered by a heavy dependence on imports and a bulging current account deficit, the country has made great strides in growing trade and diversifying markets.
Many have hailed Turkey’s notable development performance over the past decade, and for good reason. The country averaged 5.4% growth between 2003 and 2013, one of the highest rates in the world. This was accompanied by drops in joblessness and poverty, as well as gains in school enrolment, home-ownership and life expectancy.
The country is now in the midst of a lengthy political cycle, with the local elections in March 2014 being followed in August by the country’s first-ever, direct presidential elections. 2015 will also see the country’s 18th general election, currently scheduled for June 7. Thus, these are very much political and busy times for Turkey, a characteristic given some edge by...
Turkey’s trade record over the last few years has been relatively impressive. Exports have risen substantially, if erratically. In 2006, exports stood at $85.5bn. By 2014, the figure reached a record high of $157.6bn. However, imports have also grown rapidly, reaching $242.2bn in 2014. This trade deficit, which reached 10% of GDP in 2014, has been a perennial problem for the...
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