11/1/2011

Deputy Prime Minister: Turkey a safe bet for foreign investors

Hurriyet - Foreign companies that have invested in Turkey are enjoying huge profits, according to Turkey’s Deputy Prime Minister, Ali Babacan. Speaking at the first Turkish-German CEO Forum held in Berlin, Babacan provided some insights into Turkey’s economic success and encouraged German companies to increase their investments in Turkey.

“The government’s policy of building confidence on matters relating to fiscal discipline has led to a very strong financial system in Turkey,” Babacan said, noting that no Turkish bank had experienced any serious difficulty during the global economic turmoil. “Turkey is the only OECD member country that has not resorted to bank bailouts. Foreign companies investing in today’s Turkey are proving to be highly successful,” he added.

Highlighting the two important issues of strained public finances and unhealthy banking systems that the majority of the world’s developed nations are facing, Babacan drew a parallel with Turkey’s situation. “Turkey’s earlier public finance and banking reforms made it more resilient to the global economic contraction in 2009. Turkey’s growth rates following the crisis are among the world’s highest: 9 percent in 2010 and a predicted 7 percent in 2011,” Turkey’s Deputy Prime Minister remarked. Babacan also gave details of the employment situation in Turkey, stating, “Turkey has created 3 million jobs since 2009 and unemployment is down by 4 percent from its 2009 level.”

Babacan also hinted at the Turkish government’s plans to reform the labor market, improve the investment environment, and turn Istanbul into one of the world’s leading finance centers.
Babacan also called on the two organizers of the forum, the Turkish Industrialists' and Businessmen's Association (TUSIAD) and the Federation of German Industries (BDI), to do more to strengthen economic ties between Turkey and Germany.

Considered to be the locomotive of Europe’s economy, Germany is also Turkey’s biggest trade partner according to the figures for 2010. Trade between the world’s 5th largest and 16th largest economies stood at nearly USD 30 billion in 2010, and has already surpassed USD 25 billion in the first 8 months of this year. Some 4700 German companies with an estimated USD 4.7 billion of investments are active in Turkey.
Turkey; turkish economy; turkey economic reforms; turkey global crisis; turkish banking system; turkish-german trade; turkish-german ceo forum; tusiad; bdi; ali babacan