TODAY’S – Turkey falls two places to become 19th-largest economy

Turkey falls two places to become 19th-largest economyTurkey, which was listed as having the worldand#39s 17th-largest economy in 2013, fell two steps to 19th place this year, according to the Centre for Economics and Business Research (CEBR) World Economic League Table (WELT).Amid a year plagued by heavy political tension and a variety of global economic developments, Turkey dropped slightly behind its peers in the worldand#39s top 20 economies.

The primary reason for the decline was due to the Turkish lira losing value against the US dollar this year, according to the report. The change in position does not bode well for Turkeyand#39s 2023 goals, one of which involves joining the ranks of the worldand#39s top 10 economies in time for the centennial of the Turkish Republic.

In fact, Turkey is likely to reach 16th place by 2024 and 14th by 2030, according to the report.The Netherlands and Saudi Arabia took the 17th and 18th places in 2014, pushing Turkey to 19th.

Turkeyand#39s national income dropped from $827 billion in 2013 to $767 billion this year, while the Netherlands and Saudi Arabia posted national incomes of $800.8 billion and $745.

7 billion, respectively.The report forecasts China to take the United Statesand#39 title as the worldand#39s largest economy by 2025, while South Korea, currently the worldand#39s 15th-largest economy, is likely to be at number eight in 2030, coming in right behind Europeand#39s economic giant, Germany.

Earlier this month, the International Monetary Fund (IMF) predicted that Turkeyand#39s economic outlook will not be positive unless the country engages in a policy change.Stating that Turkeyand#39s low domestic saving and challenges related to competitiveness are limiting investment and exports, the report said that IMF staff revised the annual medium-term growth to about 35 percent on current policies and national saving rates.

andldquoThe lower growth rate is expected to contain inflation and the deterioration of the current account, although both will remain elevated at about 6 percent,andrdquo the report read.andldquoPolicies should focus on rebalancing the economy, reducing the external deficit — by boosting savings rather than decreasing investment — and lowering inflation to preserve competitiveness,andrdquo the reportand#39s summary said.

Although Turkey was able to narrow its relatively large current account deficit (CAD), inflation and unemployment rates were disappointingly high this year and the lira sank to record lows amid a flurry of global economic uncertainties and perpetual conflict occurring in neighboring countries.

SOURCE: Today’s Zaman