Could 2012 see the euro-zone crisis hit Turkey?

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With 2010 seeing a growth of 8.9% for the Turkish economy, government officials remain confident of their ability to remain on top despite the European debt crisis. However, leading analysts have warned that Turkey could suffer if a recession hits Europe in 2012.

The current Euro-Zone crisis, which has affected a number of European Nations, has led to a number of economies struggling against difficult conditions.

Despite warnings from analysts, the Deputy Prime Minister for Turkey, Ali Babacan, remains confident over the country’s ability to avoid any negative impacts from the crisis.

Babacan had previously boasted that Turkish leaders would have solved the crisis “within three months” had they been in charge and claims the country’s economy will “surpass one by one” nations which are currently positioned above it.

The Turkish economy is currently ranked seventeenth in the world, with officials aiming to move into the top ten over the next decade.

However, Sarp Kalkan, an analyst at TEPAV, warned that “whatever happens in Europe closely concerns Turkey” – due to a customs union agreement that has linked the country with the EU since 1995.

Kalkan also commented on how exports from Turkey to the EU have suffered since the 2008 global crisis, falling from 56% to 47%.,

The brief recession which is expected to hit the euro-zone has seen the OECD (Organisation for Economic Co-operation and Development) predict a slower growth of 3% for Turkey this year following their 7.4% growth last year.

Other economic factors, such as foreign direct investment, have also experienced a slow-down of late, with the $19.1billion figure seen in 2007 decreasing to just $6.3billion dollars in 2010.

Transfer Money to Turkey

If you are looking to invest in Turkey, think carefully about how you will be transferring money to Turkey. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are looking to send money to Turkey – which you will inevitably have to do if you are looking to make a property investment, be sure to compare the market before you buy your overseas currency.

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