1. Recovery and progression after the 2001 economic crisis
     The launch of new economic programs    New government structure and work with the International Monetary Fund  

2. Indications of long term growth after 2004
     Increase in private investments, labor productivity, and continued growth    Increased number of exports  

3. Results of macroeconomic stabilization

4. Future economy

5. References

Having experienced one of the highest growth rates of the 2000s, Turkey saw a decrease in unemployment rates, increase of education rates, and higher life expectancy throughout the country.^[1] Turkey's continued economic growth throughout the 2000s was due to multiple factors, including a string of reforms inaugurated by then-Minister of Economic Affairs, Kemal Derviş.

Recovery and progression after the 2001 economic crisis

The launch of new economic programs

In the spring of 2001, the Turkish government launched a number of macroeconomic policies under the new economic program. These new medium-term policies led to recovery within the country and later rise of real GDP beginning in the second quarter of 2002.^[2] The most significant contributor to the rise in real GDP was the recovery of domestic demand, due to the resurgence of the investment sector.^[2]

New government structure and work with the International Monetary Fund

The Turkish government changed significantly after the November 2002 elections. The new AKP political party was elected, removing the DSP and MHP parties who had political power in the 1990s.^[3] Following this election, the political landscape of Turkey became much less varied, with the AKP has a majority of the power. This new government partnered with the International Monetary Fund, an organization made up of 189 countries whose goals include promoting low unemployment, economic stability, financial security, and increasing international trade.^[4] In 2002, the International Monetary Fund agreed to lend Turkey roughly $16 billion over the following three years in an attempt to lower public debts by creating a surplus in budget revenues.^[5] The Turkish government went on to implement a number of public reforms, with the most significant being the adoption of a public sector primary surplus 6.5% of the nation's GNP target for 2003 onwards.^[2]

Indications of long term growth after 2004

Increase in private investments, labor productivity, and continued growth

Despite the rapid changes seen following the 2001 financial crisis, there were strong indications of long term growth to come, post-2004. There was a double-digit increase in private investment in 2002 and 2003.^[2] Although this growth occurred in 2002 and 2003, private investment can be a sign of long term growth to follow within a country.^[6]

Along with the increase in private investments in Turkey, the country also saw an increase in labor productivity within the labor markets.^[2] The increases in private investments and labor productivity were two relevant factors that likely contributed to the long term economic growth in Turkey in 2004 and beyond.

Increased number of exports

During this time in 2002 and 2003, Turkey also saw an improvement in external financing.^[2] With the improvement in external financing came positive portfolio flows, and combined with the funds provided by the International Monetary Fund and an overall increase in investments, an increase in gross foreign reserves occurred within the country.^[2] The external finance adjustments and improvements that were made, combined with the increase in labor productivity, domestic production within Turkey rose significantly.^[2] In the early 2000s, the Turkish Lira experienced significant depreciation,^[2] and along with the improvement in external competitiveness and finance, Turkey saw a rise in their total exports.^[7] In total, the number of products and goods and services exported from Turkey, in terms of volume, rose roughly 7% in both 2002 and 2003.^[2] This increase in exports plausibly played a role in Turkey's growth through the 2000s and it also served as an indicator for future growth to follow post-2004.^[2]

Results of macroeconomic stabilization

The economic growth that Turkey experienced was unlikely, was it not for the macroeconomic stabilization that the country implemented between 2002 and 2007. Maintaining stability has been achieved by lowering public debt substantially by 2007, while also instilling confidence in investors and meeting monetary inflation expectations.^[2] From 2001 to 2007, Turkey was able to reduce its public sector borrowing from roughly 12% of GDP to almost 0% by 2007.^[2] Additionally, Turkey achieved a central budget surplus of around 3% between 2002 and 2007, which enabled the country to have a near-balanced central budget beginning in 2006.^[2]

The macroeconomic stabilization also saw support from the monetary side of the country. The central bank decided to make price stability in the country a priority and succeeded as the annual inflation rate declined from 54.2% in 2001 to around 8.8% in 2007.^[2] This monetary success was another piece of the economic stabilization that Turkey achieved from 2002 to 2007.

Future economy

High real GDP growth rates between 2002 and 2007 were accompanied by an increase in private investments, exports, labor productivity, and macroeconomic stabilization. Factors which could continue to drive future economic growth include a young, growing population, a strong base for human capital and its strategic location between both Europe and Asia.^[2] According to a 2008 projection by Goldman Sachs, Turkey has the potential to become a $6 trillion economy by 2050, which would make Turkey the 3rd largest economy in Europe.^[2]

References

• Wollin, Brandenburg
• Wollin (Fläming)
• Wollinghuizen
• Wollman rink
• Wollman Rink
• Wollmerath
• Wollomombi
• Wollondilly
• Wollondilly Shire
• Wollondilly Shire, New South Wales
• Wollongong Advertiser
• Wollongong Botanic Gardens
• Wollongong Breakwater Lighthouse
• Wollongong Central
• Wollongong City Council
• Wollongong Conservatorium of Music
• Wollongong Entertainment Centre
• Wollongong High School of the Performing Arts
• Wollongong, NSW
• Wollongong railway station
• Wollongong Showground
• Wollongong the Brave
• Wollongong the brave
• Wollongong Undergraduate Students' Association
• Wollongong University Students' Association