In the last couple of years, Turkey economy has been augmented by increased exports to its Middle East and north African neighbors, extending pipelines for transferring energy, more air traffic and a number of infrastructure projects, according to The Economist. (Does Turkey need more support?)

Turkey is starting to utilize the soft power of trade and historical links to stabilize the country’s position in the Middle East. Reform needed to meet EU membership has prodded the government to look inward and what resulted was a greater stability in the region.

The realignment of interests has allowed Turkey to gain greater ties with its Muslim neighbors, and the country help bridge the Western countries with the Middle East.

The European Commission estimated Turkey’s GDP will contract 5.8% this year, followed by a 2.8% growth for 2010 and a 3.6% growth for 2011, as stated in Hurriyet Daily News and Economic Review. The commission also expected public debt-to-GDP ratio to rise above 51% of GDP in 2011

The Turkish economy was constrained by exports and investments, which dropped 8.5% and 17.6% respectively, as well as a 5.3% decline in private consumption. The banking sector is well-capitalized but loan growth is decelerating, which could slow the recovery of private consumption and investment. High requirements for public sector borrowing may further limit credit for the private sector.

For more information on Turkey, visit our Turkey category.

• iShares MSCI Turkey Invest Mkt Index (NYSEArca: TUR): up 83% year-to-date

• Market Vectors Gulf States ETF (NYSEArca: MES): up 11.9% year-to-date

Max Chen contributed to this article.

Turkey. Turkey is rapidly developing and there’s no indication that the economy needs aid from the International Monetary Fund (IMF). Growth in the economy could likely accelerate in 2011 after a return to growth in 2010. Turkey’s market index has been driven up by the banking sector, which makes up around 40% of the market. Bank earnings have been bolstered by a series of rate cuts that have reduced interest on customers’ deposits as lending rates remain high. (Does Turkey need more support?)

• iShares MSCI Turkey Invest Mkt Index (NYSEArca: TUR): up 179% since low; up 101.6% year-to-date

Russia. Next year’s growth could top 2% if oil prices stay high. Greater revenues from taxes on energy companies could also ensure this year’s budget deficit is smaller than expected. Economists believe Russia’s GDP growth may gain a foothold as soon as the fourth quarter because of fiscal stimulus. Additionally, the economy will pick up speed once oil prices increase and world economies recover. The Russian economy is dominated by resources and banking. (Russia’s potential stumbling blocks).

• Market Vectors Russia (NYSEArca: RSX): up 161% since low; up 139.5% year-to-date

Brazil. Brazil could sustain average annual economic growth of 5% over the next 10 years. Low inflation and sound fiscal policy have released a tide of investment in Brazil. For now, Brazil’s small-caps are benefiting from the carry trade. Companies are hiring workers to meet growing demand for manufactured goods and new homes. In 2010, Brazil’s economy is expected to grow 4.4%; this year, growth is expected to be around 0.12%. (Seven things to like about Brazil).

• iShares MSCI Brazil Index (NYSEArca: EWZ): up 125% since low; up 114% year-to-date

India. The Indian Prime Minister’s Economic Advisory Council expects the GDP to expand 6.5% to 6.75% in 2009-10, despite a potential decline in agricultural output. Inflationary concerns may be met by tighter monetary and fiscal policies in the coming months. Factors such as capital flows, domestic demand, portfolio flows and a strong savings rate have India in a good position to continue moving forward. (Why India could strengthen).

• WisdomTree India Earnings (NYSEArca: EPI): up 138% since low; up 88.2% year-to-date

Indonesia. A young population and a falling birth rate equate to a surge in the ratio of working population to the number of dependents. Circumspect fiscal policy has left the government with enough cash for infrastructure and public services. Indonesia may enjoy a period of political stability and does not rely too heavily on exports. Declining interest rates have helped boost consumption, which is around 60% of GDP. (Five points in Indonesia’s favor).

• Market Vectors Indonesia ETF (NYSEArca: IDX): up 180% since the low; up 155.6% since Jan. 20 inception

Max Chen contributed to this article.

International Monetary Fund Chief Dominique Strauss-Kahn stated that there is “no need now” for Turkey to agree on a loan deal, but the IMF is open to dealings if the case presents itself, writes Ibon Villelabeitia for Reuters. Turkey is rapidly developing and has a strong economy, with no indication that the economy needs aid from the IMFat this point, Strauss-Kahn said.

An increase in investor confidence has allowed the Turkish government to revise growth and budget targets. Economists are doubtful on whether Turkey is capable of reaching the new targets without IMF financing.

The Economy Ministry revised Turkey’s 2009 economic contraction to 6%. Growth in the economy could likely accelerate in 2011 after a return to growth in 2010.

Turkey’s Central Bank cut its refinancing rate to a record low of 7.25%, reports Laura Mandaro for MarketWatch. The accompanying statement made by the monetary policy committee was “dovish” and included remarks that easing bias may remain.

• iShares MSCI Turkey Invest Mkt Index (NYSEArca: TUR)

For more stories on Turkey, visit our Turkey category.

Max Chen contributed to this article.

According to mortgage specialist Conti, property investors looking to snatch up houses overseas are sticking to proven, more traditional locations for long-term investment, according to NuWire Investor.

Locations of interest has France in the lead with 31% of inquiries received by the company, followed by Spain with 22%. Turkey remains in third with 13%, Portugal in fourth and Italy in fifth. Location interest is waning in countries such as Bulgaria and the United States.

• France. France has a relatively stable market. The country’s financial system is eager to lend to foreign investors, so much so that it may be possible to borrow up to 100% of the property value. Interest is low and many property sellers are still dropping prices.
• Spain. Buyers have a large selection of available properties and the benefit of low interest rates. But there are problems with exposure to corrupt licensing laws or land grab issues.
• Turkey. Turkey is situated in a nice Mediterranean location and overseas buyers won’t be up against a strong euro. Tourism is on the rise, which should increase demand for quality rental properties in tourist areas.
• Portugal. Portugal has seen a drop in interest rates and lower property prices, with some locations down 30%. Recently, the country reported an end to its recession.
• Italy. Italy can yield profitable acquisitions in more popular areas with international tourists.
• Bulgaria. Lenders have been in a bind with development and the market has a glut of  buildings. The result is a steep drop in valuations and banks are questioning asset security, which inevitably has lead to lower overseas demand.
• United States. The main reason overseas buyers look to the United States is because of a depreciating dollar, which has made properties cheaper.

• SPDR Dow Jones Wilshire International Real Estate (NYSEArca: RWX): up 36.4% year-to-date; France is 11.3%, Italy is 0.14%

• iShares FTSE/NAREIT Global ex-U.S. (NASDAQ: IFGL): up 41.8% year-to-date; France is 7.1%, Italy is 0.2%

For more information on the real estate sector, visit our real estate category.

Max Chen contributed to this article.

India’s economy is forecast to see “definite signs of recovery” in the second half of the current fiscal year, reports The Economic Times. Growth is predicted to be in the 6% to 6.5% range. But there are a number of investors who want to expand their horizons beyond the BRIC countries.

While BRIC countries have been growing and moving, the expansion of other developing nations is widening the choices investors have. For instance, Vietnam, Thailand and Turkey have all gone through growth that is every bit as significant, explains Don Dion for TheStreet.

While the idea of Vietnam or South Korea may appear refreshing if you’re looking for some fresh blood for your portfolio, it’s key to remember that emerging markets entail risk. The best thing to do is watch on the sidelines for the moving averages, then get in slowly. If you enter with a discipline and a sell point, you’ll check your emotions at the door.

As Don Dion for The Street explains, these funds can be volatile, so a small asset allocation to these funds is appropriate if you plan to take a buy-and-hold approach.

The consideration that goes into single-country ETFs is that as an investor, you are subject to politics, social traumas and reforms, and of course, concentration in a particular sector. This re-iterates the need for every investor to brush up and do some research before going in.

A sample of BRIC ETFs, and a couple alternatives:

• iShares MSCI BRIC (NYSEArca: BKF): up 66.9% year-to-date
• Claymore/BNY BRIC (NYSEArca: EEB): up 66.1% year-to-date
• Market Vectors Russia (NYSEArca: RSX): up 104.3% year-to-date
• iShares MSCI South Korea (NYSEArca: EWY): up 67.3% year-to-date
• Market Vectors Vietnam (NYSEArca: VNM): up 10% since Aug. 14 inception
• iShares MSCI Turkey (NYSEArca: TUR): up 84.3% year-to-date
• iShares MSCI Thailand (NYSEArca: THD): up 73.6% year-to-date

For more stories about BRIC ETFs, visit our BRIC category.

Growth in Turkey will occur, say most analysts, but perhaps the only area in which it will not take place is the economy. The democratic country does have a bad imbalance of wealth distribution, and this undermines the social and cultural problems as well, explains Turkish NY.

• The country must focus on the economic, political and cultural development as a unit and not separate them, analysts say
• The democracy should also be preserved, as this will help create the platform necessary for future success
• Matt Robinson for Reuters reports that open borders from Armenia to Turkey may help both countries make gains; Armenia and Turkey said on Monday they would begin six weeks of domestic consultations before signing accords on establishing diplomatic relations under a road map announced in April.

• iShares MSCI Turkey Investable Market Index (TUR): up 78.6% year-to-date

For more stories about Turkey, visit our Turkey category.

As the major equity markets are starting to build up to 10-month highs, some have even surpassed them, and certain ETFs are reflecting the success. Billy Fisher for Investopedia noted some of the top ETFs, and we’ve thrown in a few of the ones we’ve noticed, as well.

Sizable gains, a payback to the government and better-than-anticipated earnings are signaling a bottom may have been touched upon within the financial sector. There’s still a need for caution, though: financial ETFs have gained more than 100% off the March 9 market low, but the Federal Deposit Insurance Corporation (FDIC) reported that banks lost $3.7 billion in the second quarter in bad loans made to homebuilders, commercial real estate developers and small- and mid-size businesses,

• PowerShares FTSE RAFI Financials (PRFF): up 60% in the last three months

It’s not just big banks that have been a part of the rally. Regional banks have participated, too. IAT is up 16% for the past four weeks, but tread lightly- Rochadale Securities analyst Richard Bove said that an additional 150-200 banks could go under during the current banking crisis.

• iShares Dow Jones U.S. Regional Banks (IAT): up 12.9% in the last three months

VNQ had fallen 40% last year, but has recovered around 20%. Companies in this space will soon be facing debt payments resetting at higher rates, but it appears that most of the damage has already been taken into account by the market.

• Vanguard REIT Index (VNQ): up 22.5% in the last three months

The insurance sector is showing some signs of recovery. Layoffs within the sector are slowing down. In August, 8,000 layoffs are predicted – the smallest loss within the sector since July 2008, reports Insurance Working News.

• SPDR KBW Insurance ETF (KIE): up 27% in the last three months

Turkey’s market index has been driven up by the help of the banking sector, which make up around 40% of the market. Bank earnings have been bolstered by a series of rate cuts that has reduced interest on customers’ deposits as lending rates remain high. The Turkish economy shrank 13.8% in the first quarter year-over-year, as tax revenue receded because of a 23% fall in industrial production and rising unemployment.

• iShares MSCI Turkey (TUR): up 40% in the last three months

For more stories about banks, REITs and Turkey, visit the financial, Turkey and REITs categories.

The Turkish Central Bank cut its benchmark overnight borrowing to a record 7.75% low last  Tuesday, and further cuts will be necessary if no signs of a robust economic recovery occur, reports Nevzat Devranoglu for Forbes.

The yield on the benchmark bond hit a fresh low of around 9.6%. However, interest rate expectations have been lowered to about 6.5%-6.75%.

Turkey’s market index has been driven up by the help of the banking sector, which make up around 40% of the market. Bank earnings have been bolstered by a series of rate cuts that has reduced interest on customers’ deposits as lending rates remain high.

The Turkish economy shrank 13.8% in the first quarter year-over-year, as tax revenue receded because of a 23% fall in industrial production and rising unemployment, writes Joe Parkinson for The Wall Street Journal. Turkey’s GDP is projected to drop 10% this year.

Economists think Turkey may not need to ask for assistance from the IMF after a successful round of government bond auctions. Another sign of optimism for the Turkish economy came as Germany and France, the two largest export markets for Turkey in the eurozone, have returned to growth.

• iShares MSCI Turkey Invest Mkt Index (TUR): up 83.9% year-to-date

For more information on Turkey, visit our Turkey category.

Max Chen contributed to this article.

There have been a number of stellar performers in recent weeks – these are just a few that caught our notice. Bear in mind that wherever you choose to place your money, always have a strategy for both entry and exit, since no trend lasts forever.

Turkey has several factors in its favor: the central bank has reduced rates to its lo a record low, consumer confidence is on the rise and jobless claims are declining. The country’s stocks have recently recovered to pre-crisis levels and it is reflected in the country’s ETFs.

• iShares MSCI Turkey Invest Mkt Index (TUR): up 76% year-to-date; up 19.5% in the last two weeks

Oil is what makes the world go ’round, and the price of oil may continue to rise as economies recover. Once the global economy sees normalcy, some feel that it’s likely that oil will see higher demand and a lower supply, which would naturally result in the higher price of oil and gas at the pumps.

• United States Gasoline (UGA): up 82.1% year-to-date; up 14.5% in the last  two weeks

Coal has a couple of good things going for the sector: reduction in capital expenditure by producers, a weaker U.S. dollar, as well as increases in both steel and electricity consumption. Lobbyists are also fighting on Capitol Hill for more perks for the industry.

• Market Vectors Coal ETF (KOL): up 93% year-to-date; up 14.9% in the last two weeks

In retail, some high-end consumers are increasing their intake of goods. Many countries are reporting rises in exports and trade surplus, and some luxury retailers are quietly discounting items to drum up more business. So far, the tactic seems to be working.

• Claymore/Robb Report Global Luxury (ROB): up 32.4% year-to-date; up 11.9% in the last two weeks

The ETF that tracks regional banks is producing impressive results considering that many believe regional banks are closing or in trouble because of commercial REITs. MarketWatch says strong profits and good reports from large banks has helped buoy the financial sector and regional banks may be along for the ride.

• SPDR KBW Regional Banking (KRE): down 25.2% year-to-date; up 23.7% in the last two weeks

Max Chen contributed to this article.

Negotiations between Turkey and the EU regarding possible membership have stalled at a time when the EU is suffering from “enlargement fatigue,” internal divisions, strengthening nationalist sentiments and ineffective policies, reports Benjamin Katcher for World Politics Review. Europeans are also concerned about the costs of including a large and relatively poor country into their union.

Membership negotiations began in 2005, but talks have slowed because of Turkey’s lack of reform programs and popular opposition to Turkey’s bid. The EU claims that Turkey falls short of EU standards in judicial reform, civil-military relations, human rights and press freedoms.

However, Turkey can offer some benefits such as its army, which is the second-largest in NATO, and the incorporation of a Muslim country could help integrate the growing Muslim minority in Europe.

The Istanbul stock market has reached an 11-month high and bond yields are at a historic low of 1.05% after the Central Bank hinted at more interest rate cuts, writes Sujata Rao for Forbes. Five-year yields are down to 0.6%.

Turkey’s economy is likely to contract 5.2% in 2009, reports China View. GDP dropped 8.4% in the second quarter after falling 13.8% in the first quarter. In the fourth quarter, GDP will likely grow at an annual rate of 3.7%. Inflation could reach 5.5% at the end of the year.

• iShares MSCI Turkey Invest Mkt Index (TUR): up 58.6% year-to-date

For more information on Turkey, visit our Turkey category.

Max Chen contributed to this article.