EDRC (Economic Development and Review Committee)

Turkey Economic Review

Introductory Remarks by Ambassador Mithat Rende, June 12, 2014


Mr. Chairman, Excellencies, Distinguished Participants,

I would like to make a few, brief remarks before handing over to Mr. Erhan Usta, Deputy Undersecretary of Ministry of Development, who is leading our team from capital.

I would like to start by expressing my most sincere gratitude to Mr. Bill White, Chair of the EDRC, and the Secretariat for the comprehensive work they put into the draft Economic Review of Turkey 2014.

This report, just as many other reviews, contains both positive and negative elements. This meeting today provides a real opportunity for a detailed discussion and gives us the chance to give an update on the recent state of affairs, while examining some of those elements in the report.

Allow me at this point to highlight a few points regarding Turkey’s economic performance and recent developments.

• In general terms, despite the global economic downturn, Turkey has emerged as one of the stronger OECD economies.

• Our performance has naturally been adversely affected by global and regional developments.

• Yet, despite many difficulties encountered, Turkey stands as the 6th biggest economy in Europe and 17th globally.

• Vibrant domestic market and diverse and strong export sector contribute to this outlook. In the past five years, employment numbers increased by 4.7 million, meaning the growth rate achieved was complimented with job creation.


Mr. Chairman,

• The 2012 OECD report “Looking to 2060” forecasts the growth rate of the Turkish economy the highest among the OECD economies for the period of 2011-2030 with an annual average of 4.5 percent. This is significantly higher than the global average of 3.7 percent.

• Fiscal discipline and strong banking have been elements of strength for the past decade despite the financial crises.

• OECD studies estimate that Turkey will continue to register biggest growth rates in the OECD area in the next 20 years and will be a center in many ways both at regional and global levels.

• Turkish Airlines flies to 203 international destinations. It ranks first globally in this regard. Istanbul, which has been a magnet for foreigners throughout history, has become a pivotal hub for international aviation and transport. One of the largest airports with six runways and a capacity of 160 million passengers is under construction to meet the growing demand in the years ahead.

• Istanbul is also rapidly becoming the financial and business center of the region. Increasing number of multinational companies and banks are basing their headquarters or regional centers in Istanbul for easier access to the Turkish domestic market to the surrounding region.

• Tourism is one the strengths of Turkish economy, which is a good source of youth employment. Last year we hosted over 34 million tourists, 10 million of which visited Istanbul.

• In addition, because of its strategic location combined with right policies, Turkey is fast becoming an energy hub for the region and internationally.

Distinguished Delegates and Participants,

It is true that strong growth rates also led to high levels of current account deficit. It is also true that in the past decade, Turkish economy has transformed as a result of ambitious structural reforms.

It is our hope that the current reform agenda and the Development Plan of Turkey will help the Turkish economy to improve its sustainability and performance.

The reason I cite these elements is to provide a context. One that points out to the trend that Turkey will consolidate its position as one the major economic players in the region and beyond.

This is the context in which I hope these discussions and deliberations will transpire today.

I thank you once again for your active participation and engagement in this work, which I hope will serve Turkey and all the member states.

Now let me please turn to Mr. Erhan Usta for his presentation.