Turkey, the ‘New Tiger’ amongst foreign investors
Turkey’s unique geographical location affords easy access to 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa – combined these markets are worth around USD 25 trillion of GDP – which is one of the reasons why Turkey’s economy is so successful.
In fact, Turkey’s economy is booming with its GDP tripling from USD 221 billion in 2002 to USD 786 billion in 2012 (TurkStat). Statistics like these lead to expectations that Turkey’s economy will be the faster growing amongst OECD members from 2014-2018 with a real GDP average annual growth rate of 5.2% (OECD Economic Outlook No.91).
Indeed, Turkey has the 16th largest economy in the world and the 6th largest economy when compared with the EU in 2012 (GDP at PPP, IMF), in addition to a mature private sector with USD 153 billion worth of exports with an increase of 325% between 2002 and 2012 (TurkStat).
Turkey enjoys well-developed and low-cost sea transportation facilities plus a new and highly developed technological, communications and energy infrastructure – with established transportation routes and direct delivery mechanisms to most of the EU.
Since 1996, Turkey has enjoyed a Customs Union with the EU and Free Trade Agreements (FTA) with 22 countries – negotiations to become a full member of the EU are also well underway.
Recently, the corporate income tax was reduced from 33% to 20% – with tax benefits and incentives in Technology, Industrial and Free Development Zones that could include total or partial exemption from corporate income tax.
There are over 27 million young, educated and highly motivated professionals in Turkey making for a qualified and competitive labour force – over 170 universities produce approximately 600,000 graduates annually.
The domestic market in Turkey is sizable too with over 20 million broadband internet and 68 million mobile phone subscribers in 2012 (TurkStat) – its no wonder Turkey has earned the nickname ‘New Tiger’ among foreign investors who are rushing to pour money into the country.