Turkey has its fair share of problems but the country doesn’t seem to be in dire straits. The economy, along with related exchange traded fund (ETF), looks to be recovering, but the recovery isn’t going to take place overnight.
Pesky fiscal deficit concerns without a solid accord with the International Monetary Fund (IMF), a rise in risk as 2011 election approaches and the unease over potential conflicts between the AK Party and the military may turn investors away from Turkey, reports Simon Cameron-Moore for Forbes. But analysts still maintain a positive outlook for Turkey as the country continues to recover.
The World Bank Group stated that Turkey’s economy will be the first amongst Eastern European economies to emerge out of the global crisis, according to Hurriyet Daily News. However, the World Bank notes that the the recent downturn will dampen Easter Europe’s economic growth for a long time. [Why Turkey ETF is coming out ahead.]
The study provided by the World Bank reveals that about 70% of Eastern European companies noted a significant drop in demand. A serious decline was seen in the sales of young and innovative companies while companies operating in domestic markets in non-trading sectors have shown growth.
Employment diminished around 8% between December 2007 and June 2009 in Turkey. In the same period, average capacity usage rate declined from 65% to 51%, and sales decreased 22%. Turkish companies remain optimistic and more than 50% of companies expect higher sales numbers in the next six months, according to the study.
Fore more information on Turkey, visit our Turkey category.
- iShares MSCI Turkey Invest Mkt Index (NYSEArca: TUR): up 98.2% year-to-date
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.