Emerging Markets – Opportunities & Threats: Turkey
by Sterling J. Scott, Marketing Communications Coordinator, MHI | @mhi_sterling
Turkey is one of the world’s more complex emerging markets. The country experienced high growth in the aftermath of the global financial crisis of 9.2% and 8.8% in 2010 and 2011. However, that was followed by a sharp decline, dropping to 2.1%, in 2012 and a rebound of 4.0% growth in 2013. Much of this growth is a result of industrialization and investments in infrastructure, primarily transportation. Private investments in shopping centers, malls, hotels, as well as urban buildings and skyscrapers also helped. This growth has also been attributed to a debt bubble.
Sharp increases in lending have fueled both foreign and domestic investments in Turkey, where rates are low due to both fiscal policy and religious doctrine as Sharia law prohibits the lending of money.for profit. Investors are divided on growth projections for Turkey. Many believe that the economy will continue to grow at faster rates, while many others believe that Turkey is moving towards financial crisis.
As one of the more newer and more complex emerging markets, Turkey has a lot of potential and a lot of risk. The country, which is a part of Europe geographically and a part of the Middle East culturally, is a good blend of the two in regard to its politics and economy. Turkey is definitely a country to watch and investors are paying close attention to how things develop.
More information on supply chain trends, recommended strategy, and innovations that drive supply chains are available in the 2014 MHI Annual Industry Report which can be downloaded at www.mhi.org.