The future of the Turkish economy and its indicators in 2023
Over the past two decades, Turkey’s economy has proven its viability and ability to grow contrary to pessimistic expectations. The closest example is the remarkable growth of Turkey’s economy in recent years despite the global crises. Like the coronavirus pandemic crisis and international tensions.
The most critical questions about Turkey’s economy are: What is the ranking of Turkey’s economy today? How did he face global crises? What will be the future of Turkey’s economy? We will answer them in detail in this article.
Ranking of Turkey’s economy
In 2022, Turkey’s economy ranked 18th globally. With a GDP of $736.716 billion.
Turkey’s economy grew by 0.25% in 2022. This rate is expected to be established in 2023. Turkey will reach the tenth place in the world’s strongest economies in 2023.
Turkey’s economy is constantly rising, thanks to government fiscal policies, which have substantially supported the development of the Turkish economy.
How did Turkey’s economy withstand crises?
Turkey’s economic growth is thanks to government mechanisms for dealing with challenges and problems. The most prominent of these are:
1. Attracting foreign investment to Turkey
The Turkish Government seeks to attract foreign investment to boost the growth of Turkey’s economy. Through the promulgation of new laws to invest in Turkey for foreigners.
Turkey offers many facilities and incentives for foreign investors, such as obtaining real estate citizenship through real estate investment in Turkey and obtaining real estate residency in Turkey.
More details in our article on the most significant amendments to the Turkish citizenship law via investment.
2. Bank deposits and interest cuts
Turkey’s inflation rate fell at the end of last year to 64.3%, thanks to maintaining the lira’s strength through bank deposits. That prevented the lira’s continued to decline against the dollar.
In addition to the above, the Government has reduced interest, reflecting positively on the reduction of the cost of borrowing from banks to be used in development and production projects, which have affected Turkish exports.
3. Turkish exports
Turkish exports have supported the growth of Turkey’s economy over the past years. Turkey’s exports broke a record last year (2022), reaching $254.2 billion.
The breaking of that record positively impacted stock support from foreign exchange reserves, bringing the figure to approximately $130 billion.
Turkey aims to enter the list of the most exporting countries in the coming years.
More details you find in our article on Turkey’s exports in 2022
What are the prospects for Turkey’s economy?
The global economy is expected to begin recovering from the fallout from the coronavirus pandemic and other crises in the second half of 2023. But the Turkish Government plans to start the economic recovery plan in the first half of this year.
Turkey’s economic development plan includes reducing taxes on primary entrances to citizens, such as electricity and gas. Dispense the import of energy that burdens the budget and trade balance, and replace it with alternative and local power.
The launch of the Turkish electric vehicle is also approaching, which will play a significant role in supporting the growth of Turkey’s economy.
Mahmoud Ismail, President of the Association of Independent Industrialists and Entrepreneurs (Musayyad), expects Turkey to see further growth in industry and exports during 2023.
Asmali predicted that improving the global economy would contribute to further growth of Turkey’s economy and exports.
Turkey was the only country in the Group of 20 (G20) after China to achieve economic growth during 2020, in which the coronavirus pandemic cast a shadow over the global economy.
This great optimism among economists and positive outlook is confirmed by the results of PwC, one of the world’s largest professional service companies.
The study showed that Turkey’s economy would be the 12th largest in the world by 2030, against a gross domestic product that could rise to $ 2.996 trillion.
But since Turkey’s economy has returned to its surprises and contravenes all expectations, Turkey’s economy can reach the top 10 levels before the expected date.
Turkey’s economy is characterized by competitive ground in all economic sectors, such as industry, agriculture and real estate, trusted by international parties interested in the economy and investors worldwide.
Are you interested in real estate investment in Turkey? Contact us today for a consultation from our real estate experts!
