Turkish Economy Continues Rapid Growth
13 September 2011
The Turkish economy has continued its incredible growth into the second quarter, with 8.8% GDP growth year on year according to the latest data from Turkish statistical body Turkstat. The body also revised its first quarter figure up from 11% -- which was in itself a record -- to 11.6%.
Turkey's first quarter performance made it the fastest growing economy in the world, considerably faster than second-placed Argentina with 9.9% and China with 9%, but China pushed Turkey into second in Q2 with its growth of 9.5%.
Adding the 8.8% in Q2 to the revised 11.6% for Q1 makes Turkey the fastest growing economy in the world in the first half with growth of 20.4%, beating China's 18.5%.
Unsurprisingly this strong economic growth, coupled with the dire European debt debacle and the Arab world still feeling the effects of the Arab Spring, Turkey is seeing massive growth in foreign direct investment. According to the Central Bank of the Republic of Turkey (CBRT) capital inflows into the country increased by 324% in the first half of this year compared to last year.
Istanbul, the country's financial centre is seeing a lot of this investment. The Istanbul property market is attracting its fair share of this, not least because of its massive housing shortfall. Data shows that the city will need up to 250,000 homes in the next year, while production will be lucky to hit 180,000.