Turkey: Success story with uncertain future prospects
DIW Berlin Weekly Report 24 / 2011
Parliamentary elections were held in Turkey on 12 June 2011. This is an opportunity to take a closer look at the country’s recent economic development. This is characterised by high economic growth, albeit marred by the severe recessions of 2001 and 2008/2009. With a growth rate of nine percent, Turkey was even the fastest growing economy in Europe last year. As an emerging market, it is also an increasingly attractive destination for international investors. However, the short-term orientation of foreign capital flows and the low investment share of gross domestic product for an emerging market are increasingly a problem. For in view of a rapidly growing population, long-term investments in infrastructure and the education system are needed above all. The continuation of the Turkish success story thus depends on the upcoming economic policy decisions.