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"According to Jones Lang LaSalle, the Turkish economy will see the fastest growth in Europe between now and 2015. Turkey was the fastest-growing economy in the world during the first quarter of this year with growth of 8.9% compared to the same quarter in 2010, and although growth has slowed the report still expects Turkey to maintain its momentum during the next few years, and a recently introduced government economic program expects economic growth to stabilise at around 5% by the end of next year. The International Monetary Fund has calculated that Turkey's share of budget deficit in its GDP will decrease to 10.3% by the end of this year, and to 7.2% by the end of next year.
Earlier in the year Standard & Poor increased the country's credit rating to investment-grade (BB-) and other credit rating agencies are expected to follow suit, helping to improve the country's appeal to investors. However the report points out that the Turkish investment market still needs to overcome certain structural problems, even though demand for investment remains high.
In addition to this improved confidence, the central bank is also expected to provide $3 billion extra liquidity to the markets, and is being proactive to ensure any possible liquidity crisis in global markets doesn't have a negative effect on domestic markets. The government is also looking at ways of creating new jobs, with one initiative being to decrease the average working week so extra hours are available to create new jobs. Turkey's unemployment rate is declining, and was 9.2% in June which is 1.2% less than a year earlier.
The country is expected to see increased demand in retail markets as well as the logistics market, but one of the largest increases is expected to be seen in the tourism industry as Turkey is one of the fastest growing markets in Europe.
