2021 Expectations for Turkish Economy
The world economy has taken significant damage in the year 2020 because of the non-expected COVID-19 pandemic. Affecting everyone around the globe, the pandemic shifted the economic balance of our world. Having financial problems through the recent years, Turkey was experienced and did not take fatal damages from COVID-19 due to the quick adaptation of the government and people. Although this global crisis has resulted in a decrease in employment rates and economic activities, initial responses to the problem have proved their worth. Turkey has focused on various changes in its policies to improve its response to this pandemic significantly. Precautions against the COVID-19 were taken as early as the first days of the outbreak. As with the Turkish people's great respect for the government's decisions considering the pandemic, Turkey was able to reduce the number of cases with a lockdown. Even with the latest increase in the number of cases before the vaccination, Turkey was able to function without the need for an additional lockdown. With such significant economic changes, Turkey has promising expectations for 2021. Without a doubt, the discovery of COVID-19's vaccine and its implementation will fasten up the economy's recovery, stated by various experts.
In essence, foundations such as International Monetary Fund and World Bank have stated that they expect growth for Turkey in terms of economy as of 2021. According to The World Bank, Turkish gross domestic product (GDP) is expected to grow by 4,5% in 2021 despite losing value against the US dollar. International Monetary Fund (IMF) has stated that they are expecting a general growth of 6% in the Turkish economy. The International Monetary Fund stated, "Inflation is expected to decrease modestly by the end of 2021… and the current account deficit is expected to decrease to 3,5% of GDP, in large part reflecting gold imports and the recovery of tourism."
Even with the lira's decreasing value against the US dollar, Turkey has been one of the most promising countries for many investors. With low rates and well-profitable investment possibilities in various fields, Turkey is expected to attract investments. As declared by IMF, Turkey will be a primary target for investors due to its low exchange rate. Turkish government works in the most efficient ways to welcome foreign investors through state incentives, investment supports, easy access to citizenship, and much more. With the new Turkish Ministry of Finance and Treasury's bright policies, the Turkish economy looks forward to growth in 2021. The new minister has already enacted various changes in policies that aim to lower inflation and unemployment rates.
Financial experts in Turkey expect an increase in many fields, but especially in the real estate sector. With the high demand and number of people that wish to own property in Turkey, real estate seems to be one of the most promising fields to invest in. Turkish government provides profitable ways of establishing a business in many areas, and it is a good reason to be a Turkish citizen. By government's policies, a person of another nationality can obtain Turkish citizenship by purchasing a property that has a minimum value of $250,000. With the increasing number of foreign investors who wish to invest in Turkey, demand for real estate grows continuously. As of 2021, it is expected that Turkey's economy will show inclination, especially in the real estate sector.
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