Saturday 7th August 2010
Turkish Finance Minister Mehmet Şimşek on Turkey's future prospects
At a conference on 'Investing in Emerging and Developing Markets' held in London, the Turkish Minister of Finance, Mehmet Simsek, was a key speaker and spoke about the future prospects of Turkey and other emerging markets.
He said that by 2050, emerging markets will have undergone drastic changes, recalling a study by Goldman Sachs that was recently undertaken. He suggested comments made in the study, that by 2050 Turkey will be among the top 10 world economies in terms of GDP, were "quite plausible arguments". In terms of GDP, Turkey is currently the 17th largest economy on the planet.
Pointing out that international capital is flowing towards emerging markets such as Turkey; he claimed that the reason for this is that in emerging markets, growth rates are relatively high and less risky than developing markets.
He also claimed that with the accumulation of large foreign currency reserves, emerging markets such as Turkey have seen greater price stability over the past couple of years. He continued by claiming that whereas developed markets are suffering from increasing public debt, emerging markets have favourable current accounts and fewer deficits in budget.
He goes on to highlight another advantage that Turkey has, which is that the country has a population of primary and high school students that is greater than the total population of some European countries. With some 20 million students in the country, Simsek explained that such statistics are a great indicator of Turkey's future growth potential and a similar picture can be seen in other emerging markets.
He also said that countries such as Turkey that have developed rights to property, enabled the freedom to do business by the removal of barriers and provided a proper and just legal system, were providing an environment that is better for competition.
In his address, he commented that: "Turkey is experiencing its own transformation process", no matter what Europe thinks or does.
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