Although there were great negative effects for the Turkish economy like the crisis with Russia, terrorism, Syrian situation and coup attempt, all in 2016, Turkey’s economy grown %3 in 2016. Even with these unexpected things, it can be seen Turkey grew faster than other 20 EU member countries.
Regarding the tourism sector, during normal conditions Turkey would recieve around 40 million tourist all around the World, but in 2016 that figure came to 30 million. As long as the crisis with Russia is over and the terrorism seems to be under control in the country, a much better figure is expected during 2017.
Foreign trade deficit is expected to increase in 2017 due to the increase in imports along with oil prices. The year-end deficit is estimated at 36 billion dollars and the growth rate is estimated at 3.7 percent.
In the first three months of 2017, exports increased by 9.3 percent to $ 37.9 billion, while imports increase by 7.7 percent to $ 50.4 billion. Foreign trade deficit increased by 3.3 percent to $ 12.5 billion as value-based imports were higher.
OECD raised the expectation for growth of Turkish economy in 2017 from 3.3% to 3.4%. For 2018, it is expected to reach 3,5%. On the other hand the 2017 Consumer Price Index is expected to rise from 7.7% to 10.4%, and the 2017 unemployment expectation is expected to raise from 10.7% to 10.8%.
The Turkish economy will see strong growth in the first half of the year thanks to government proctive measures, like loan garantees. However, in order to mantain this growth sustainable, there will be a need to be a significant and lasting improvement in the investment and trust environment. This will largely depend on the steps to be taken on reforms which started already.
Not only household expenditures and public expenditures contribute to economic growth but also exports make a positive contribution to economic growth, indicating that economic growth is based on sustainability and strong background.