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Export opportunities flourish as Turkey prospers

Austrade media release

8 December 2005

Austrade’s Chief Economist Tim Harcourt said export opportunities in Turkey should not be ignored, as the visit to Australia by Turkey’s Prime Minister Erdogan comes to an end this Sunday, 11 December.

“Turkey is a good export prospect for Australian exporters. Turkey’s growth is faster than China’s - and resource rich Russia and Turkey are the sprinters in terms of emerging economies,” Mr Harcourt said.

“Economic expansion prospects for Turkey are robust, with annual rates of growth expected to sit around the five per cent mark, after its strong showing of 8.9 per cent in 2004. Ironically, Turkey’s growth rate currently outstrips the major economies in the European Union.

“In addition, it’s significant that there has been a first visit of a Turkish Prime Minister to Australia which highlights improved economic and investment conditions for our countries,” he said.

Mr Harcourt said a factor driving Australia’s export prospects in Turkey is the ‘Young Turk’ factor with 50 per cent of the Turkish population being under 25.

“Turkey’s unique demographics has helped Australian education providers build their market share there as well as providing a growing consumer base,” he said.

“Apart from the young population, Turkey’s trade prospects for Australia include oil and gas, infrastructure, information and communication technologies (ICT) and food and beverage with a growing presence in service areas such as education, healthcare and recreation.

“Australia and Turkey now have a bilateral agreement called the Investment Promotion and Protection Agreement (signed in June 2005) which seeks to protect investments in either country by ensuring such investments enjoy fair and equitable treatment and imposes an obligation on each country to accord the other Most Favoured Nation status,” Mr Harcourt said.

Tevfik Aksoy, Duetsche Bank’s Chief Economist for Turkey is pleased with Turkey’s current economic performance.

“I would say that Turkey’s economy is in its best shape in 40 years. We have experienced strong levels of economic growth, low inflation and reasonable fiscal discipline in the past few years. The current government is reform-minded and is committed to raising productivity levels and undertaking essential privatisation programs,” Mr Aksoy said.