6 Aralık 2012 Perşembe

Radical economic shifts in next decades




Globalization has pushed the world to enter into an inclusive change, in other words it has taken the world into a restructuring and integration process.

Until now seemingly the world cannot be able to completely adapt to the global system and global economy in a healthily way. Because of economic crisis has not yet been recovering for years across the world.

The weak data about economies is likely to put pressure on the government to boost stimulus measures to spur growth.

Thereby, more belt-tightening measures and austerity budget are foreseen in particular throughout Europe by the governments for 2013, too.

Workers across the European Union are staging a series of protests and strikes to show their reaction against rising unemployment and austerity measures. The bad condition in economy throughout Europe, of course, takes the entire world under its contagious effect more or less…

Meanwhile, when we have a look at Turkish economy, it has enjoyed crucial development, despite some negative events both in its surrounding countries and the world. Regarding confidence and stability which are the indispensable stipulation of sustainable development have been established, the country has recorded noteworthy gains almost in every area through last decade.

In this achievement, due to the ruling party being winner alone of the general elections three times without any gap has played important role in this development, as well as its consistent policies.

Building confidence and stability feature a crucial importance in terms of attracting and encouraging investors for investment from both home and abroad.

Thanks to the ruling Ak Party’s smart governance during last decade, the country has gained great earnings ranging from domestic issues to foreign ones.

In the macroeconomic area, such as production, consumption, exports, per capita income, gross domestic product have outstandingly boosted when compared to the previous term.

Exports of Turkey have consistently boosted in the last decade.

For 2012, targeted figure is some $150 billion. In the first eleven months this year, the accomplished export figures show that the year-end target would be achieved.

Setting stability and perceiving capacity in macroeconomic indicators, the government has scheduled some objectives for the upcoming years.

One of them is to achieve exports worth $500 billion and second one is to enter into ten biggest economies in the world by 2023, the centenary celebration of Turkish Republic.

The ruling party also aims to achieve per capita income by $25 thousand and $1 trillion worth of trade volume at the end of next decade.

Meanwhile, the world economy has been also experiencing some fundamental changes.

According to a report of OECD, the balance of economic power is expected to shift dramatically over the next half century, with fast-growing emerging-market economies accounting for an ever-increasing share of global output.

The United States is expected to cede its place as the world's largest economy to China, as early as 2016, India’s GDP is also expected to pass that of the United States over the long term, the OECD recorded.

OECD also predicts, combined, the two Asian giants would soon surpass the collective economy of the G7 nations. Fast-ageing economic heavyweights, such as Japan and the euro area, will gradually lose ground on the global GDP table to countries with a younger population.

The report also highlighted that shifting balance of long-term global output would lead to corresponding improvements in living standards, with income per capita expected to more than quadruple in the poorest countries by 2060 and the gap that currently exists in living standards between emerging-markets and advanced economies will have narrowed by 2060.

The indicators and conditions signal that radical shifts would happen in the favor of emerging economies, in the next decades.