The Turkish Economy in 2023: An Important Moment in History
Turkish Economy in 2023
Gross domestic product of Turkey
As of 2022, Turkey’s Gross Domestic Product will be $941 Billion, up from $241 Billion in 2002. There’s no upward mobility like this in the world this century. Due to this scale of economic growth, Turkey has gained status within the globalized economy. Achieving ‘developed’ status within the last two decades has opened up international trade and recognition with the world’s major superpowers.
Investments from abroad
Turkish Ministry of Commerce says over 78,000 people came onshore between 2002-2022. Compared to 2002, there were 6,400 companies. These companies chose Turkey in direct competition with many of Turkey’s European neighbors over this period.
Investing abroad
- 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.
According to the UN, Turkish assets have increased more than 400% over the past 20 years.
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 economy in 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.
Turkey is the fourth most visited destination in the world, with over 30 million visitors in 2021.
- 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)
A pandemic and an inflation
As with the rest of the world today, Turkey is experiencing economic inflation and depressing indicators. Turkish real economy and infrastructure have advanced so dramatically over the past century that their growth prospects have remained stable.
While Ukraine and Russia are at war, Turkey remains steadfast and is positioned to thrive, survive, and capitalize on any opportunities in the 2020s. The world should expect Turkey’s inflation to go down as Turkey’s young population continues to grow. Turkish inflation is expected to drop to 22% in 2024 and 5% by 2025, according to the TCMB and IMF.
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.
Foreign direct investment
Turkey’s growth has been driven by FDI capital coming in from abroad in the past. FDI will increase by $15 billion in 2023, bringing Turkey’s total FDI reserves to $266 billion since 2000.
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.
Tourism
- 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.
Real Estate
- 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.
Turkish economy and development have grown explosively over the past century.
- 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.