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"The Turkish economy is currently growing strongly, but as most people know the biggest economic problem Turkey faces is massive unemployment. Unemployment fell 1% in the second quarter of this year compared to last year, and the Turkish state minister for foreign trade Zafer Caglayan said on Monday that Turkey's unemployment rate would continue to decrease and soon reach one-digit figures.
This is massively important for Turkey, because it will affect the country's ability to join the EU, but also because falling unemployment causes the cycle of growth -- falling unemployment means more people in employment, which causes increased consumer confidence, increasing affluence, both of which increase consumer spending, leading to further economic growth and further reduced unemployment -- that is necessary for a country to go from risky emerging market to fully developed, world leading economy.
According to the data the fall in youth unemployment, which is of particular concern for Turkey was particularly impressive; falling from 24.9% to 19.8%.
This is one more economic indicator to turn positive in Turkey, following the reports of 11.4% year on year GDP growth in the first quarter, and 9% growth in tourism for the first half of the year. On top of that private investment in Turkish firms, stocks and bonds is also reportedly increasing.
As well as increasing consumer confidence and fuelling further growth from within Turkey as mentioned, these continued reports of Turkey's economic fortunes and growth, is also increasing confidence among foreign property buyers. In the aftermath of the downturn confidence in emerging markets was shattered, but as Turkey grows strongly while Europe's leaders struggle to pay their debts, foreign property buyers will continue to look at property in Turkey in an increasingly favourable light.
