Why investing in Turkey will pay off in the long run

  Date posted: 3rd of October 2012

Turkish economy has been one of the best performing over the past decade.

The country’s GDP has rocketed by threefold since 2001, and a strengthening Lira has encouraged spending and imports. This year, Turkey’s stockmarket index has gained more than 30 per cent.

This kind of dramatic turnaround in fortune goes some way to explaining the appeal of Turkey as an emerging market. With its low levels of debt at both the individual and the government level, and young population, Turkey’s capacity for long term growth exceeds that of the ‘old world’ of the US, Europe and Japan.

Vice president of Garanti Bank, Turkey’s second largest bank, says there is still “huge potential” for domestic market growth.

‘Only half of the 52 million adults in Turkey have a bank account or financial product such as a debit card. Mortgage penetration is low, with only about one million mortgage accounts in total.’ The country’s GDP has rocketed by threefold since 2001, and a strengthening Lira has encouraged spending and imports. This year, Turkey’s stockmarket index has gained more than 30 per cent.

This kind of dramatic turnaround in fortune goes some way to explaining the appeal of Turkey as an emerging market. With its low levels of debt at both the individual and the government level, and young population, Turkey’s capacity for long term growth exceeds that of the ‘old world’ of the US, Europe and Japan.

Vice president of Garanti Bank, Turkey’s second largest bank, says there is still “huge potential” for domestic market growth.

‘Only half of the 52 million adults in Turkey have a bank account or financial product such as a debit card. Mortgage penetration is low, with only about one million mortgage accounts in total.’ 

All of these conditions mean that the conditions for investment in Turkey could not be better right now.