Turkish exports in crises and investment prosper in Turkey

When someone asks you, is Turkey a rich or poor country? You find yourself in need to have a look on the Turkish economy in order to find an answer. Turkey is far from poverty, but it is not rich! In economic terms, it can be described as an emerging market, with a per capita GDP of about $11,000, within the average range of the world but less than most European countries.

In 2018, Turkey was ranked 19th in the world economy in terms of GDP current (US dollars), ranked 29th in total exports, ranked 26th in total imports. In 2018, Turkey exported $177 billion and imported $202 billion, resulting in a negative trade balance of $25 billion. In 2018, Turkey's per capita exports amounted to 2.14 thousand dollars, and its imports amounted to 2.45 thousand dollars.

The index for the year 2020 shows that Turkey's economy ranked the 71st most free economic, as Turkey ranks 36th among the countries in Europe, and its total points are lower than the regional average and higher than the global average.

Turkish exports:

Turkey's largest exports are cars ($12.9 billion), delivery trucks ($5.38 billion), vehicle spare parts ($4.63 billion), in addition to jewelry exports ($4.29 billion). The value of the exports of crude oil is ($3.65 billion).

Most of the destinations of Turkish exports are to Germany (16.6 billion dollars), the United Kingdom (11.9 billion dollars), Italy (10.1 billion dollars), the United States (8.57 billion dollars), and Iraq (8.35 billion dollars).

Turkish imports:

Turkey's largest imports are refined petroleum ($12.4 billion), gold ($11.3billion), scrap iron ($6.47 billion), vehicle parts ($6.45 billion) and cars ($6.11 billion).

Imports are mostly from Germany ($22.1 billion), China ($19.2billion), Russia ($15.9 billion), the United States ($10.6 billion) and Italy ($10.4 billion).

Turkish economy in crises:

In the last few years, Turkey has faced several economic crises:

1 . The Turkish currency lost its value against the dollar by about 30% during 2019, and the stock market decreased by 17%.

2 . The high costs of government borrowing, as lending for 10 years in the Turkish currency costs 18% per year, and in the dollar currency it costs for Turkey by around 7%.

The deficit in international trade as it imports more than it exports, meaning it spends more than it earns, which makes Turkey surrounded by debt.

4 . Turkey has a high level of debt to repay in the near future, which makes Turkey obliged to refinance the debt, and the total financing needs in Turkey in 2019 were estimated at around 230 billion dollars.

5.Many Turkish companies have resorted to borrowing in foreign currency, and these loans have become more expensive to repay after the value of the national currency has fallen.

6 . The Turkish president's opposition to the idea of raising the interest rate is disturbing the markets and most economists, and the result is that investors are not convinced that the central bank will do what is required to stabilize the currency, which makes them more cautious about the outlook for Turkish financial assets.

7 . Like many countries of the world, the Turkish economy has been significantly affected by the covid-19 pandemic, as the gross domestic product has shrunk significantly by 2.9%, and expectations are that the percentage will increase to 4.7% in 2021.

Turkish investment:

Despite the economic crises that Turkey has gone through, it is still known as a safe place for foreign and Arab investors. Everyone who invests in the Turkish market certainly wins.

The fluctuations of the Turkish lira that lead to its depreciation, the foreign investor considers this as a good opportunity to invest in real estate. As the real estate field in Turkey maintains the same prices against the dollar, investment professionals say: If you purchase a property today, its value will increase once the Turkish lira increases its value.

Not only is real estate one of the investment projects in Turkey, but also transportation projects. The greater the number of tourists, the greater the traffic between long distances in Turkey.

Highways between Turkey and the European Union plays an important role in facilitating trade in Turkey, importing and exporting goods, and facilitating investment opportunities.

One of the signs of successful investment is the consumption products or materials provided by investment projects.by a large consumer market of the population of Turkey.

Turkey's population is more than 81 million people. They play an important role in consuming local and foreign products. In addition, most of Turkey's population is young, where 50% of Turkey's population is under the age of 30 years who adds value to foreign investment through their educational and cultural level and contributing in competitive workforce.

The population also plays a noticeable role in securing a professional workforce for all kinds of investment in Turkey. Turkey has a well-educated, scientifically qualified workforce, as well as plenty of labor in various industries in Turkey.

Another influential factor in Turkey's economy is the presence of millions of Arab immigrants who live in it for long periods, as well as the Gulf and Moroccan communities that are growing day by day motivated by work and investment.

Investment prospers in Turkey:

The future of investment in Turkey is prosperous, and the Turkish economy is moving forward and growing in various sectors. A large number of opportunities and renewable offers on a daily basis with full advisory support in all matters related to the purchase of real estate in Turkey with the provision of appropriate offers for Turkish citizenship.

Tourism in Turkey is a key element of the Turkish economy. Investment projects are focused in aspects that support tourism, for example: The construction of the new Istanbul Airport adds new incentives for the establishment of tourism companies in Turkey, as it is the largest airport in Europe, which may add great value to tourism investment.

All areas and properties surrounding the airport have become a strong investment importance as they are exempt from taxes and provide many opportunities for trade and investment.

In Conclusion:

Turkey is an economically free country whose economy is always moving for the better despite the crises and obstacles it is going through yet it remains a the investors preferred place. Turkey supports the local and foreign investors by reducing value-added tax, customs taxes, and investment in privatization, interest subsidies, tax exemption and many forms support.

Turkish exports in crises and investment prosper in Turkey

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