Hagia Sophia in Istanbul . View of the St . Sophia Cathedral at sunset ( image : Shutterstock . com ).
AN EYE ON TURKEY
We outline economic and manufacturing forecasts , as well as metalworking machinery opportunities , in Turkey .
“ The country ’ s particular metalworking machinery strengths include laser processing machine tools , forging and punching machines ( including presses ).”
Situated at the crossroads of the Balkans , Caucasus , Middle East and eastern Mediterranean , Turkey occupies a unique geographic position ( lying partly in Asia and partly in Europe ). Its geographic position has made the country an important manufacturing and distribution hub . Turkey positions itself in the global value chain by leveraging its logistical advantages , offering lower labour costs and flexible production capabilities .
With a population of circa 84.6 million , Turkey is among the world ’ s leading producers of agricultural products ; textiles ; motor vehicles ; transportation equipment ; construction materials ; metalworking / machine tools ; consumer electronics and home appliances . One of its critical competitive advantages is its proximity to Europe , the Middle East and North Africa , which can all be reached within three hours ’ flight time and together encompass 1.5 billion customers . In 1995 , Turkey signed up to the EU ’ s Customs Union .
Manufacturing ’ s share of Turkish GDP increased to 18.83 % in the last decade and Turkey aims to boost it to 21 % by 2023 through its 2023 Industry and Technology Strategy . The country has a strong industrial base , particularly for metalworking and machine tools . It also offers a skilled workforce , generous investment incentives , an innovationoriented infrastructure and a strong supply base ( including domestic clusters ).
The country has a strong industrial base , particularly for metalworking and machine tools
Economic forecasts
Turkey was among the few countries with positive growth performance in 2020 ( at 1.8 per cent ), on account of a sizable credit push by its government . According to the World Bank , Turkey ’ s economy grew 11 per cent in 2021 , the fastest among the G20 countries , as COVID- 19-related measures were gradually relaxed and authorities loosened monetary policy . Turkey ’ s goods and services exports were supported by buoyant external demand , sharp nominal depreciation of the lira and global supply chain disruptions that diverted global demand to Turkey .
“ However , the monetary stimulus also caused deteriorating macrofinancial conditions . The lira depreciated to record lows and inflation rose to record highs , with the former reaching a peak of 18.00 to the U . S . dollar on 20 December 2021 , and the latter reaching 61.1 per cent year-on-year in March 2022 . External and fiscal buffers deteriorated as the Central Bank dipped into foreign reserves to support the lira and the
38 | www . ismr . net | ISMR July / August 2022