The Turkish Economy
Turkey is one of the countries that could continue its economic growth over the years. The Turkish economy was rather unaffected by the global economic downturn. It was able to continue its transition to a more open and flexible economy. The GDP grew by 8.5 % in 2012. Comparing the figures of the last decade Turkey was able to triple its GDP so that is has become the 18th largest economy in the world. The growth is also reflected by the rapid rise of income and the fast decrease of poverty in the country.
The banking sector in Turkey also proved resilient during the global financial crises and to its effects. At no time the public sector had to provide explicit or implicit support to the financial sector. This was mainly because banks in Turkey had no direct exposures to subprime mortgages or similar products so no immediate losses were made. Because the banks were in good (or certainly better) shape credit flows remained loose. This meant less business collapsing because of lack of credit, and more credit now for businesses to invest and capitalize fully on increasing global demand as the world recovers.
Although the Turkish economy has performing rather well there are some problems the government has to solve over the next years. One of the major points is the unemployment rate of 11.7 %. As the growth of the economy continues, this number is expected to decline in future. This does not have any effect on overseas property owners but shall be mentioned to show the overall performance of the Turkish economy.
Currency: The Turkish Lira
It is common that the value of a currency is changing due to political and economical development in the country as well as overseas. The average exchange rate is 1.00EUR/2.35TYR. When the Lira runs strong this will drop to 1.00EUR/2.30TYR, but when Euro is strong it will be 1.00EUR/2.40TYR. However, recent development caused the Euro to be worth 2.56TYR.
Although some fluctuations may occur, the Turkish Lira is a relatively stable currency, owing to stringent management of currency reserves by the country's banking system as shown in recent days.
Tourism is a major economic factor in Turkey. Since 2006 the numbers of tourists visiting Turkey has more than doubled. According to the Ministry of Culture and Tourism almost 32 Million tourists visited Turkey in 2012. During the high season between 4 and 5 million people arrived every month (June: 4,400,000; July: 5,300,000; August: 5,100,000; September: 4,500,000). Also in the low season Turkey has become more and more famous welcoming over 3,500,000 tourists in May and October and about 2,600,000 in April. The average number of arriving tourists in winter is 1,500,000. Looking at the first quarter of 2013 the statistics shows an increase of 13.48 % for that time so the number of tourists visiting Turkey in 2013 is expected to exceed.