During the same period, Turkey’s foreign trade volume went from $80 billion in 2002 to $614 billion in 2022. As foreign trade and foreign investment grew in Turkey, the economy boomed.
Purchasing power per person
Turkey developed many technological products from this boom and modernized its infrastructure, making it one of the world’s most promising emerging economies. According to the IMF and World Bank, Turkey jumped from the 20th to the 11th largest economyin terms of per capita purchasing power.
The tourism industry
Travelers around the world have noticed an increase in status. The tourism sector in Turkey, whether it’s historical, leisure, medical, or anything else, has had a big impact on the economy this century.
That year, it beat out European competitors like Spain, England, and Italy. We can see the new level Turkey has achieved when compared to 5.4 million visitors in 1990.
The real estate market
With this new exposure to Turkey, many foreigners are investing in Turkey’s foreigner-friendly Turkish real estate market. Foreigners bought about 12,000 homes in Turkey in 2013. As of 2021, that number is over 58,000. More than half of these 58,000 sales are second or third purchases. This market is full of experienced investors.
The current Turkish environment (2020-2025)
What’s coming up for Turkey in the next decade (2025-2030)
Turkish Economy in 2023
Gross domestic product of Turkey
As things stand, one should be confident brushing aside Turkey’s medium-long-term growth prospects given the current economic environment.
Turkish economic growth potential, however, needs to be understood and would be a mistake. By 2030, Turkey’s GDP will reach $1 Trillion and $1.7 Trillion, according to IMF and PwC.
Inflation-adjusted per capita purchasing power
While the global economy is recessed and inflated, Turkey’s real, on-the-ground purchasing power has steadily increased.
Turkey’s young, educated population is largely responsible for this.
The per capita PPP was $11 in 2002. It’ll be $41 in 2023.
By 2030, IMF and PwC say it’ll be $55. Despite Turkey’s Lira, inflation, and other negative indicators, Turkish citizens will see their quality of life improve steadily over the next decade.
A prosperous place will attract tourists.
The Mediterranean Sea is a great place for prosperity. It could stand tall for years to come if Turkey can capitalize on the gains in tourism it made from the pandemic.
Because Turkey has the most Mediterranean coastline of any country, it’s well positioned to host waves of Europeans.
There’s been a big wave of Ukrainian and Russian visitors to Turkey’s Mediterranean coast, settling there permanently. Also, Istanbul has seen a steady increase in immigrants.
In terms of real estate, as long as the central Turkish powers focus on FDI, there will be plenty of opportunities to buy.
The COVID pandemic, rocketing inflation, and regional war have stunned Turkey’s economy just like everyone else’s. Even so, Turkey is as well positioned as any emerging market to continue its explosive growth trajectory and even outpace it after this economic environment.
Foreign investment has plenty of risks, but Turkey’s demographics and economy provide investors with a rare combination of quality location, quality development, and quality growth.
Turkey also adds extra citizenship and exchange incentives to entice FDI.
There aren’t going to be these opportunities forever, and they might not even last until 2030 before Turkey pivots into a new era as a global central superpower.
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