How political risks wreck Turkey’s economic prospects
Turkey has lost its investment grade status with all top three credit-rating agencies, falling behind many regional countries despite its geopolitical edge.
Invest in Turkey — a promotional website by the Turkish government — lists 10 main reasons why foreign investors should put their money in the country. Highlighting geopolitical advantages, the site describes Turkey as “a natural bridge between both East-West and North-South axes, thus creating an efficient and cost-effective outlet to major markets.” The country, it says, has an “easy access to 1.6 billion customers in Europe, Eurasia, the Middle East and North Africa” and “multiple markets worth $24 trillion” in gross domestic product.
Turkey’s role as an “energy corridor” is also highlighted: The country sits “at a close proximity of more than 70% of the world’s proven primary energy reserves, while the largest energy consumer, which is Europe, is located right to the west of Turkey, thus making the country a linchpin in energy transit and an energy terminal in the region.”
