10 Reasons to Invest in TURKEY

Booming economy; more than tripling its GDP, reaching USD 851 billion in 2017, up from USD 231 billion in 2002 (TurkStat)

Stable economic growth with an average annual real GDP growth rate of 5.8 percent between 2002 and 2017 (TurkStat)

Promising economy with a bright future as it is expected to become one of the fastest growing economies among the OECD members during 2018-2019 with an average annual real GDP growth rate of 5.0 percent (OECD)

13th largest economy in the world and 5th largest economy compared with the EU in 2017 (GDP at PPP, IMF WEO)

Institutionalized economy fueled by USD 193 billion of FDI in the last 15 years (CBRT)

A dynamic and mature private sector with USD 157 billion worth of exports and an increase of 335 percent between 2002 and 2017 (TurkStat)

A population of 81 million (2017, TurkStat)

Largest youth population compared with the EU (Eurostat)

Half the population under the age of 31.7 (2017, TurkStat)

Young, dynamic, well-educated and multi-cultural population

Over 30.5 million young, well-educated and motivated professionals (2016, TurkStat)

Increasing labor productivity

Approximately 800,000 students graduate annually from over 183 universities (2016, CoHE)

More than 950,000 high school graduates with around half from vocational and technical high schools (2016, Ministry of National Education)

The 2nd biggest reformer among OECD countries in terms of its restrictions on FDI since 1997 (OECD FDI Regulatory Restrictiveness Index 1997-2017)

Business-friendly environment with an average of 6.5 days to set up a company (World Bank Doing Business Report 2018)

Highly competitive investment conditions

Strong industrial and service culture

Equal treatment for all investors

Around 58,400 companies with international capital in 2017 (Ministry of Economy)

International arbitration

Guarantee of transfers

New and highly-developed technological infrastructure in transportation, telecommunications and energy

Well-developed and low-cost sea transport facilities

Railway transport advantage to Central and Eastern Europe

Well-established transportation routes and direct delivery mechanism to most of the EU countries

A natural bridge between both East-West and North-South axes, thus creating an efficient and cost-effective outlet to major markets

Easy access to 1.7 billion customers in Europe, Eurasia, the Middle East and North Africa

Access to multiple markets worth USD 25 trillion of GDP

An important energy terminal and corridor in Europe connecting the East and the West

Located at a close proximity of more than 70 percent of the world’s proven primary energy reserves, while the largest energy consumer, which is Europe, is located right to the west of Turkey, thus making the country a linchpin in energy transit and an energy terminal in the region

Corporate Income Tax reduced from 33 percent to 20 percent (22 percent for 2018, 2019 and 2020)

Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones, including total or partial exemption from Corporate Income Tax, a grant on employer’s social security share, as well as land allocation

R&D and Innovation Support Law

Incentives for strategic investments, large-scale investments and regional investments

Customs Union with the EU since 1996 and Free Trade Agreements (FTA) with 21 countries (Ministry of Trade)

More FTAs underway

Accession negotiations with the EU

69 million broadband internet subscribers in 2017, up from 0.1 million in 2002 (ICTA, TurkStat)

78 million mobile phone subscribers in 2017, up from 23 million in 2002 (TurkStat)

62.5 million credit card users in 2017, up from 16 million in 2002 (The Interbank Card Center of Turkey)

193 million airline passengers in 2017, up from 33 million in 2002 (TurkStat)

38 million international tourist arrivals in 2017, up from 13 million in 2002 (TurkStat)

Economic Outlook
Turkey’s economy has performed remarkably well with its steady growth over the past 15 years. A sound macroeconomic strategy, prudent fiscal policies, and major structural reforms have all contributed to the integration of Turkey’s economy into the world at large, while also transforming the country into one of the major recipients of FDI in its region.

These reforms have increased the role of the private sector in Turkey’s economy, have placed public finance on a more solid foundation, and have enhanced the efficiency and resiliency of the financial sector. Together these strengthened the macroeconomic fundamentals of the country, which allowed the economy to grow at an annual average real GDP growth rate of 5.8 percent from 2003 to 2017.

Annual Average Real GDP Growth (%) 2003-2017

Turkey’s impressive economic performance over the past 15 years has encouraged experts and international institutions to draw confident projections about the country’s economic future. For example, according to the OECD, Turkey is expected to be one of the fastest growing economies among OECD members during 2015-2025, with an annual average growth rate of 4.9 percent.

Annual Average Real GDP Growth (%) Forecast in OECD Countries 2015-2025 (USD at 2010 PPP)

Together with stable economic growth, Turkey has also reined in its public finances; the EU-defined general government nominal debt stock fell to 28.3 percent in 2017 from 72.1 percent in 2002. Turkey has been meeting the EU’s 60 percent Maastricht criteria for public debt stock since 2004. Similarly, during 2002-2017, the budget deficit decreased from more than 10 percent to less than 3 percent as a ratio to GDP, which is also one of the EU Maastricht criteria for the budget balance.

GDP levels increased to USD 851 billion in 2017, up from USD 238 billion in 2002, which saw GDP per capita hit USD 10,537, up from USD 3,589 in 2002.

The visible improvements in Turkey’s economy have also boosted foreign trade. Exports reached around USD 157 billion by the end of 2017, up from USD 36 billion in 2002. Meanwhile, tourism revenues, which were around USD 12.4 billion in 2002, exceeded USD 22 billion in 2017.

Significant improvements in such a short period of time have registered Turkey on the world economic scale as an exceptional emerging economy. It is the 17th largest economy in the world and the 6th largest economy when compared with the EU countries, according to GDP figures in 2017.

Institutionalized economy fueled by around USD 193 billion of FDI in the past 15 years
17th largest economy in the world and 6th largest economy compared with EU countries in 2017 (GDP, IMF)
Robust economic growth with an annual average real GDP growth of 5.8 percent during 2003-2017
GDP reached USD 851 billion in 2017, up from USD 238 billion in 2002
Sound economic policies with prudent fiscal discipline
Strong financial structure that is resilient to global financial crises