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Posted On: 15/10/2010
Turkey is the "BRIC of Europe,” said David Cameron in a message sent to an important UK-Turkey business conference held by the Turkish British Chamber of Commerce in Istanbul.
"Everyone is talking about BRIC countries and the rapid growth in [the group's] economies of Brazil, Russia, India, and China. We think that Turkey is a BRIC country of Europe," Cameron said.
Statements like that tend to make so much noise; OMG he has been so bold as to say that, and this can prevent you from really analysing it. In this case, the important thing is not that David Cameron is calling Turkey the BRIC of Europe, it is the fact that Turkey’s rapid growth makes it the fastest growing economy in Europe, and therefore the BRIC of Europe in fact.
In the 1st quarter of this year, the Turkish economy grew 11.7% year on year, the EU grew 0.7% and Slovakia, its fastest growing economy grew 4.6%. Turkey grew 10.3%, compared to 2% for the EU and 5.3% for its fastest growing economy, Luxembourg grew 5.3%. As Luxembourg grew just 2.9% in Q1, Slovakia is the fastest in the period, and it grew 5% year on year in the second quarter.
We all know that unemployment is Turkey’s biggest hurdle, but thank fully it is also falling now. According to the latest figures from Turkish statistical institute Turkstat, the unemployment rate in Turkey fell from 12.8% in the three months ending August 2009, to 10.6% in the same period this year.
This rapid growth led to Turkey being added to another grouping, the CIVETS (Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa), by Michael Geoghegan, CEO of HSBC. Geoghegan also said:
"Emerging markets will grow three times faster than developed countries this year and are driving global recovery."
"It’s a defining moment. Within three years, for the first time, the economic firepower of emerging markets will overtake the developed world, measured by purchasing power parity."
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