26 Ağustos 2010 Perşembe

First decade of 21st century in Turkish economy

Prosperity and development are the basic elements of many countries in order to enable their people to enjoy fundamental rights and opportunities. Despite many international organizations via their finance and know-how to enable and encourage nations to realize their developments, there are lots of countries which had not achieved in this issue across the world. So the rules of development involve mainly the related nation’s exclusive efforts, good governance, skilled and well educated staff through a democratic regime.

In recent years, Turkey’s economy has recorded outstanding developments. In this advancement, current government’s policy has played a significant function. Removing some barriers and taboos one by one that remained in front of the country’s improvement, the administration has achieved noteworthy advancements.

In this progress, while strict economic rules have played outstanding role, also coming into the power as a single political party is an important function.

Since the government has come to the office, it has made radical changes almost in every aspect. Almost Turkey has been enjoying a breeze of change in many areas ranging from economy to foreign policy and lawful regulations. In addition, acting determinatively and faithfully has catalyzed to realize the reforms.

Letting potential investment areas get into activity, Turkish economy has been enjoying pleasant progresses. Foreign investors have been assured in order to inflow their foreign direct investment higher than ever before to Turkey in the first decade of 2000s.

In this process, interest and inflation rates, which had been in the double digits for long years, have plunged from the double digit to single digit. Exports have folded nearly three times from $36 billion to over $110.
Thanks to its zero problem policy with its neighboring and surrounding countries, Turkey's trade has also showed a development.

Activating its idle potential Turkey has expanded its GDP from $230 billion to $730 within 6 years. While per capita income was $3 thousand in 2002, this figure raised by $10 thousand in 2008. Regarding the global economic crisis reducing by $8 thousand 500, it is expected per capita income will reach by $10 thousand in 2010. Ridding of the global crisis successfully earlier than other countries without any important loss, Turkey is shown as an example to the world due to its successful and stable economic development.

Meanwhile Turkey’s harmonization process with the European Union has enabled the country to take steps in the democratic and economic areas.

In the past suffering from a series of coalition governments with weak economic policies, Turkish economy experienced a deep economic downturn (GNP fell 9.5% in 2001) and an increase in unemployment, according to the source.

Following recovery program, Turkey's economy grew an average of 6.0% per year from 2002 to 2007; it is shown one of the highest sustained rates of growth in the world. As well as inflation and interest rates fell significantly, the currency stabilized, and government debt declined to more supportable levels (39.5% of GDP in 2008).

However, booming economic growth contributed to a growing current account deficit (-5.6% of GDP or $41.6 billion in 2008).

Due to the global economic slowdown and reduced exports, growth was 1.1% in 2008 and the economy contracted by 4.7% in 2009. Having recovered quickly in the last quarter of 2009, in the first quarter of 2010 growth became 11.7 percent. This indicates that this year’s growth would be 6.5 percent.

Finally, in the first decade of 2000s apart from the first two years, Turkey has seen a remarkable progress. Turkey has also built a solid base for the next decade in its development. If the single party can maintain its ability with this determination and enthusiasm, Turkey’s economy would achieve to enter first 10 economies of the world.