According to a report yesterday in the Daily Sabah, Turkey’s Prime Minister believes, “Turkey is preforming well”. He believes that the countries current economic reform agenda holds the key for investors seeking opportunities in today’s problematic economy.
Turkey’s PM Ahmet Davutoglu arrived in London yesterday on a whistle stop 2 day official visit. With a variety of meetings scheduled with politicians, journalists, business officials and British Prime Minister David Cameron, Davutoglu intends on speaking on a broad range of topics and promoting international relations and investment in Turkey. Over the two days he will discuss Turkey’s stand on the Syrian conflict and Cypriot peace, Turkey’s political and economic situation, and how Turkey can best help their NATO allies combat ISIL.
These positive talks come at a time when many are hesitant and questioning investments in Turkey. The countries volatile political situation and recent terror attacks have had serious negative affects on many industry sectors including property and tourism.
Reuters, also covering the PMs London talks, quoted Davutoglu saying, “Turkey is being impacted by the current financial market volatility and slowdown in emerging market economies”. The PM continued, “no economy is isolated from global economic trends”. The PM suggested three main causes of the current negative trends; “first is the great volatility in the financial system of the world economy which is affecting all economies including Turkey. Second is the slowdown in emerging economies, third are geopolitical risks such as collapsing neighbouring states like Syria”. When asked about Turkey’s high inflation driven up by the sudden drop in the value of the Turkish lira last year, Davutoglu insisted Turkey would “continue to fight high inflation using anti-inflation policies”.
According to the Daily Sabah, Davutoglu addressed other concerns saying “we have several collapsed states where there is no functioning economy anymore”. That,”despite these negative trends that are affecting Turkey, we have some very positive developments as well, which makes Turkey a safe port for investment as well as a safe haven for economic agencies and institutions to work in”. Quoting figures, Davutoglu said public sector debt was down from 74 percent in 2002, falling to a third of domestic product in 2015 therefore well within the EU’s economic development criteria. The PM believes it should be noted that, “Turkish economic growth continued in 2015 despite the uncertainty created by two parliamentary elections and terrorist attacks”. That, “this is a very good indication that our economy and our budget discipline is preforming very well”.
Well let’s just hope that Davutoglu’s London trip is productive. That his discussions will indeed go some way towards finding solutions to key issues and reassure those reluctant to consider investment in Turkey.
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