A PricewaterhouseCoopers (PwC) report, “Turkey in 2041: Looking to the future,” which was released on Wednesday to shed light on the next 30 years of the Turkish economy, highlighted five industries with the potential to become “regional centers of excellence.”
The report, prepared to mark the 30th anniversary of PwC and announced jointly by PwC UK Chief Economist John Hawksworth and PwC Turkey Territory Senior Partner Cansen Başaran-Symes at a press conference in İstanbul, underlined the five sectors where Turkey is expected to have particular sustainable comparative advantage: food and beverage processing, agricultural research and development (R&D) and services, alternative energy, automobile production, and tourism.
In the food and beverage processing sector, the report suggested that Turkey had continued to expand its food and beverage sector as well as focus on organic and halal food production and distribution. The report recommended that Turkey become one of the most competitive regions in the world by pursuing high technology, R&D, greenhouse systems, and seed and soil improvement. It also said the energy sector should focus on renewable energy resources to cope with its rising domestic demand. Along with these, the automobile and tourism sectors were seen as leading sectors that were already fundamental to the economy and it predicted major expansion in these areas.
Responding to questions from the press, Hawksworth said: “Turkey has seen a remarkable turnaround in its economic fortunes over the past decade, and we see this strong performance continuing over the next three decades, pushing Turkey up to 12th in the global GDP [gross domestic product] league table by 2040. This reflects Turkey's dynamic, relatively youthful labor force and strategic location at the cross-roads between Europe and Asia, [and] fully justifies our decision in 2006 to include Turkey in our ‘E7' grouping of the top emerging markets to look out for over the period to 2050, together with China, India, Brazil, Russia, Indonesia and Mexico.
” He added that “Turkey has many areas of potential industrial strength, but in a fast-changing world, economies need to be flexible to succeed so that they will be investing in the infrastructure, institutions and skills needed to adjust to evolving economic events over future decades, rather than to put all your eggs in any particular industrial basket.”
In the section titled “Turning challenges into opportunities,” the report emphasized the importance of structural reforms to boost Turkey's global competitiveness. Improving transport infrastructure, the legal framework and tax collection efficiency were cited as priorities for fostering sustainable growth over the long term. It said that “the success of the Turkish economy over the next 30 years will depend on Turkey's ability to develop an international competitive advantage, to attract foreign investment and to develop industries into ‘international centers of excellence' that can help the country export goods and expertise to its region and beyond
Also according to report, the GDP per capita in the country was expected to more than double by 2041 and exceed $35,000, which would mean that Turkey would significantly narrow the income gap between itself and developed countries like the US over the next 30 years.