When you look at the growth of the Turkish economy, the profits of Turkish banks and just the volume of positive information coming out of Turkey right now, it is hard to find its equal, or even a close competitor in Europe.
Turkey is an emerging market, and so any investment in the country must still be considered risky, but according to experts it is very close to receiving an investment grade rating from ratings agencies.
With emerging market investments risk can come from the banking system, the currency, the political system. But with Turkey all those things are creating minimal risk now, and in the foreseeable future. Both the banking system and the currency/foreign reserves system were overhauled and received a serious of reforms in the 2001 Turkish financial crisis, and the success of these reforms is now proven in the way Turkish banks have barely been affected and recorded strong profits throughout the Turkish recession in 2009, fuelling the way the Turkish economy has rebounded from said recession.
Don’t get me wrong, unemployment is still a massive problem for Turkey, and it still has a long way to go before it can call itself a developed economy, but for investors looking for growth in Europe in the next 5 years, it is hard to see anywhere bringing anywhere near the returns Turkey looks capable of.
What’s more the Turkish government seems determined to re-invest in future growth. Recent announcements have included a 400 million lira investment to make Izmir a yachting centre within Turkey and Europe. The announcement was made at the opening of the 15 million euro Cesme marina, and the investment will start with the expansion of Izmir port. Just some of the aforementioned positive news coming out of Turkey.
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