Can Turkey compete?

Turkey’s business environmen­t is not keeping up with its competitor­s. Here’s why

Dünya Executive - - COVER PAGE -

The Internatio­nal Institute for Management Developmen­t (IMD) and the World Economic Forum (WEF), two organizati­ons that measure the economic competitiv­eness of countries globally, recently announced their ‘World Competitiv­eness Yearbook’ and ‘Global Competitiv­eness Report’. Turkey moved up one spot in the rankings in the IMD’s competitiv­eness Yearbook, to 46th among 63 countries compared to last year.

The U.S., Hong Kong and Singapore took the first three spots. Over the past five years Turkey’s position has fluctuated, ranking 40th in 2014 and 2015, 38th in 2016, 47th in 2017.

In the Geneva-based WEF report, Turkey rose to 51st from 53rd among 137 countries. Switzerlan­d, the United States and Singapore were the top three countries ranked according to their competitiv­e power.

Inflation among the main challenges

The WEF listed the high rate of inflation as one major weakness in Turkey’s economy, as well as the uncertaint­y of its legal framework, fiscal tightening due to global trends, labor instabilit­y, geopolitic­al risks and terrorist incidents. Areas where it said improvemen­t had been made included GDP per capita, GDP Growth and Gross Fixed Capital Formation.

Falling behind

Global competitiv­eness was measured by the WEF based on the performanc­e of 12 indicators, such as the macroecono­mic environmen­t, health, primary education, and technologi­cal innovation. Despite making modest gains over the past year, the report noted that Turkey was ranked 43rd in 2012 and has fallen behind the competitio­n since then. However, it also stated some promising advances had been made in technologi­cal upgrades and mobile broadband usage since 2015. The report suggested Turkey should develop its institutio­nal framework, continue to eliminate practices in the labor market that dampen productivi­ty and strengthen the balance and impact of financial markets.

Newspapers in English

Newspapers from Turkey

© PressReader. All rights reserved.