E-Commerce Opportunities and Challenges in Turkey

Background

Turkey is also the 6th largest economy in the EU, in less than a decade per capita income in the country has nearly tripled and now exceeds $10.000. Although economic growth was slowed by the onset of the global economic crisis in 2008, Turkey continues to be competitive market in the region. Labor markets have also recovered fast after the crisis and employment rates have also improved on the pre-crisis levels.

Turkey has made considerable advances in competitiveness over the past decade, moving ahead 21 spots to number 45 in Global Competitiveness Index for 2014/2015. Additionally, foreign direct investment has grown from just over $8.5 billion to an average of $ 13 billion in the past five years.

Furthermore, fundamental reforms carried out after 2001 have allowed Turkey’s financial sector to remain relatively strong in spite of the global economic crisis. Turkey initiated comprehensive structural reforms in the aftermath of the crisis which would sustain macroeconomic stability, improve economy’s resiliency, productiveness and efficiency. These reforms strengthened macroeconomic development. Especially, the soundness of the financial sector provided a buffer against external shocks.