Turkey | G20 Tracker

Turkey's prospects

Inflation is heading lower and debt levels have come down. Political risks remain.

Jul 9

1. Geopolitical Location: Turkey's strategic location bridges Europe and Asia, providing access to important trade routes.

2. Diverse Economy: The country has a diverse economy with sectors like manufacturing, services, agriculture, and tourism.

3. Tourism: Turkey's rich cultural heritage and natural attractions contribute significantly to its tourism industry.

4. Youthful Workforce: The country has a young population, which can support economic growth and innovation.

5. Infrastructure Development: Turkey has been investing in infrastructure projects to enhance connectivity and economic development.

1. Political Instability: Geopolitical tensions and internal political factors can impact investor confidence and economic stability.

2. Economic Volatility: Turkey has faced periods of high inflation, currency depreciation, and economic instability.

3. External Debt: The country has significant external debt levels, which could impact fiscal stability and borrowing costs.

4. Trade Deficit: Turkey's trade deficit and reliance on imports can affect foreign exchange reserves.

5. Labor Market Challenges: High unemployment rates and informal employment can impact workforce productivity.

1. Infrastructure Investment: Continued investment in transportation, energy, and communication infrastructure can drive economic growth.

2. Tourism Development: Enhancing tourism infrastructure and offerings can attract international visitors and boost revenue.

3. Manufacturing Growth: Expanding the manufacturing sector can create jobs, boost exports, and drive economic diversification.

4. Renewable Energy: Developing renewable energy sources aligns with sustainability goals and can create new industries.

5. Youth Empowerment: Focusing on skills development and youth employment programs can harness the potential of the young workforce.

1. Global Economic Uncertainty: Turkey's economy is linked to global fluctuations, making it vulnerable to economic shifts and trade tensions.

2. Geopolitical Tensions: Geopolitical conflicts and political disputes in the region can impact stability and investor confidence.

3. Currency Depreciation: Fluctuations in the Turkish lira can impact purchasing power and foreign investment.

4. Domestic and Regional Conflicts: Political tensions and conflicts in neighbouring countries can impact trade and overall stability.

5. Inflation: High inflation rates can erode purchasing power and impact consumer and investor confidence.