Horizon Türkiye

At the crossroads of continents, Turkey is embarking on a new phase of diversification and innovation to elevate its economy to the rank of the most efficient industrial and digital platforms.

Targeted investments in technology, mobility, infrastructure and energy, driven by national champions, are repositioning the country on the map of major international hubs.

For French companies, now is the time to enter a dynamic and evolving market, at the heart of regional and global ambitions.

Maël Mbaye – Regional Manager Middle East North Africa – Bpifrance

KEY FIGURES

• Population : 86 million inhabitants
• GPD : 1437 billion (in USD)
• 18ème world economic power
• Currency Turkish lira (TRY)
• Exchange rate regime : Floating

COUNTRY RISKS

• Monetary vulnerability The country is plagued by strong and recurring inflationary pressures, and by inconsistency in the conduct of its monetary policy.
• External fragility : The degree of external vulnerability is significant, linked to a structural current account deficit (high energy imports, declining price competitiveness with inflation) and a dependence on external financing, exposing the economy to tensions (volatility of capital flows, weakness of foreign exchange reserves, currency depreciation, etc.).
• The economy's landing : After several years of overheating, the authorities are carrying out a rebalancing in order to reduce inflation and are trying to correct external balances, which should result in a slowdown in economic activity, which at this stage is taking the form of a rather soft landing.
• Political tensions Tensions on the local political scene or strained relations with certain partners (European Union, United States) can lead to a deterioration of macroeconomic parameters.

AREA OPPORTUNITIES

• Strategic geolocation Turkey is located at a crossroads between Europe and Asia, which offers export opportunities and represents a lever to become a hub to facilitate gas supply for Europe.
• Strong diversification of activities The Turkish economy is based on several industrial sectors (automotive, textiles, electronics, defense), particularly export-oriented, and also relies on a very dynamic tourism sector.
• A resilient internal market Domestic demand remains strong in Turkey, even in the event of an adverse scenario. Households, benefiting from limited debt levels, have made particular use of consumer credit in recent years.
• Infrastructure development plan : A strategic plan for 2053 includes significant investments in logistics infrastructure and those related to the energy transition (electric vehicles, solar, wind, and nuclear energy).

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