Turkish GDP Growth in Recent Years

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Over the past 10 years, the Turkish economy has grown at one of the fastest and most prosperous rates which resulted in a growth in GDP values of Turkey as well. In this article,  Turkish GDP growth in recent years is explained.

According to the Turkish state website invest.gov.tr, macroeconomic strategies, fiscal policies and structural reforms have brought stability and security to the Turkish financial sector. Thanks to this stability, Turkey has been able to rank among the countries in its region with the highest FDI (foreign direct investment) figures in recent years.

Nevertheless, 2019 will be marked by negative GDP growth in Turkey due to the collapse of the pound since last year. Turkish GDP growth had so far shown exemplary results with an average annual rate of 5.3% between 2003 and 2016. This rate had even been ranked among the best in the world during this period.

Let’s see how this was distributed over the country’s activity in 2017.

GDP by sector in Turkey

In 2017, Turkish GDP by sectors was estimated as follows:

– Agriculture accounts for 6.8% of Turkish GDP

This sector, which, according to the Société Générale study on Turkey, employs nearly 19% of the population, is in constant decline and suffers from a decline in productivity, too. The 11% of land used for agriculture mainly produces wheat, tobacco, and hazelnuts but is not enough to supply the country whose imports, particularly in livestock, are growing exponentially.

– The industry represents 32.3% of Turkish GDP

Turkey has a rich industry that maintains constant and stable growth. The workforce and local know-how allow Turkish industry to stand out while being competitive. Very large infrastructure projects also allow the industry to constantly evolve. The automotive sector, as well as the textile sector, are the two main areas of Turkish industry.

– Services represent 60.7% of Turkish GDP

Globalization and the modernization of the country have strongly elevated the service sector since the early 2000s to undergo a significant decline and then stabilization after 2010. The sector which employs 58% of the Turkish workforce also includes the tourism sector which, after having experienced a significant decline, is returning to the forefront with significant growth which directly affects the Turkish GDP growth.

In 2019, the most active and prosperous Turkish sectors were textiles, automotive, construction, software, jewelry, and chemicals.

Future and forecasts

According to the OECD, Turkey’s growth is expected to be one of the most dynamic between 2015 and 2025 with an average annual rate of 4.9% and its foreign trade should be stimulated. In times of recession, Turkey’s economic performance and Turkish GDP growth are now lower than in previous years (estimated at 0.4% for 2019) but satisfactory given the crisis it is experiencing. Gita Gopinath, head of economic affairs at the IMF, estimates that 2020 will be a better year for Turkey’s economy, which should “emerge from its recession”. In her view, any aid would be “useless”, as the country could recover on its own, focusing in particular on greater transparency.

For further reading, you can have a look at our article about why you should invest in Turkey.

Business Management Service in Turkey

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ERAI Turkey is a business development consulting company based in Istanbul, the economic capital of Turkey, which has been supporting international companies since 2006. The business management service is one of ERAI Turkey’ most sought-after services, that form its core business, along with the following services:

  • the search for Turkish business partners,
  • the comprehensive market research in Turkey,
  • analysis of the potential development projects in Turkey,
  • recruiting employees in Turkey,
  • PEO services in Turkey etc.

You can consult the list of all these services offered by ERAI Turkey on its website.

Over the past 10 years, the ERAI Turkey team has very naturally built lasting trust with its loyal customers who, over time, have increasingly delegated more services to their trusted Turkish partner. This led to the spontaneous creation of a unique service in the consulting field: Business Management in Turkey.

What is Business Management Service? What Does It Include?

The tailor-made business management service tends to support companies in the management of a large number of their administrative, financial, legal and commercial activities in Turkey so that they can focus solely on their business development and turnover. The consulting company ERAI Turkey is part of the management of the client company as a consolidating actor of the puzzle, which brings together all the activity around it with the aim of a harmonized and homogeneous coherence.

Business management service provided by ERAI Turkey, which are carried out thanks to the professional team and partners, includes:

  • The creation of subsidiaries and their administrative management

This service is for any company wishing to set up on the Turkish market with its own entity. This action brings together a large number of very heavy administrative tasks that ERAI Turkey team promises to take care of throughout the laborious process while providing its expertise on the creation of subsidiaries for which it has the know-how along with the support of its loyal partners.

  • Legal management

ERAI Turkey also makes it possible to centralize legal activities by providing its team of legal experts from the Turkish market who have already proven many times their speed and efficiency in the advancement of certain projects that take a lot of time through conventional channels.

  • Financial management

Thanks to its financial service made up of professional accountants and many partners, ERAI Turkey offers to manage all the financial activities, from payroll management, insurance and various payments to companies that trust it.

  • Back office management

Our service of managing the follow-up of your sales from Turkey is one of the facets of the ERAI Turkey team. Indeed, many companies have entrusted ERAI Turkey with their back-office service in order to deal only with sales and marketing.

Why Dedicate Business Management to ERAI Turkey?

Having a single service provider for different activities is always an undeniable advantage. It makes it possible to consolidate and maintain the harmony and homogeneity of the various departments of the company. In addition, ERAI Turkey is one of the few consulting companies in Turkey to offer so many varied services under one roof, which facilitates the relationship with the client company.

This business management, which brings together a large number of tasks that activity must perform in order for it to function properly, especially abroad, is a laborious task that consumes a lot of time, money and energy, three very precious elements when developing a business. Today, ERAI Turkey is, therefore, proposing to consolidate and delegate these tasks, which are delaying the successful development of its customers’ turnover.

For more information on this unique service in Turkey, do not hesitate to consult our page on ERAI Turkey’s services or by contacting us via the form on this contact page.

Feel free to follow us on the social networks LinkedIn and Twitter for more information on the commercial and business activities in Turkey on a daily basis.

Here are some other articles that may be interesting for you:

·        Domiciling your business in a virtual office in Istanbul

·        ERAI Turkey celebrates its 12th year in consulting at the service of companies around the world!

·         Looking for a prestigious office for rent in Istanbul

Domiciling your business in a virtual office in Istanbul

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Nearly 50% of professionals from the private sector are working remotely today. An activity formerly dedicated to self-employed freelancers has become democratized at the same time as the digital transition and the disappearance of workplaces in favor of virtual offices. Today, working physically from China on behalf of a company based in Turkey is possible and even privileged. We will see in this article what the virtual office is, how this concept helps businesses to access success and how to take advantage of this service in Turkey.

Virtual Office in Istanbul

What does “Virtual Office” mean exactly?

The virtual office allows small and medium-sized businesses that do not demand physical offices to outsource some of their needs. In fact, without their nomadic employees (commercial agents, for example) needing a fixed workspace, the service provider provides them with a prestigious virtual address, a telephone hotline, and a call redirection or call forwarding service. Thanks to these services, the company can receive letters and calls without renting official premises. In other words, the provider offering the virtual office service offers the company a physical identity at a lower cost.

How does this service help businesses perform better?

In addition to the low costs of the virtual office, the business retains the impression of a traditional, high-cost office and infrastructure. Employees can work from home, at their clients’ premises or in suburban offices, while maintaining the prestige reputation that the virtual address often offers in luxurious workplaces. In addition, the lack of bureaucracy and space also makes it possible to hire fewer staff (reception assistants, cleaning staff, etc.) as well as to make significant savings while concentrating all its assets on the productivity of nomadic employees. As a result, revenues are better redistributed, and the company focuses on its business and development only.

What types of businesses can benefit from virtual office service?

The flexibility and many benefits of a virtual office allow many businesses to increase their productivity and sales. Here are some examples of companies:

  • Anyone who starts a business and does not want to use their home address and mobile phone number on their documents
  • Professionals who work in their clients’ offices but still need to maintain an independent identity
  • Companies expanding into new countries and regularly sending employees there.
  • Companies that need a receptionist or a standard but do not want to take any risks, expenses and hassle of hiring an employee etc.

How to benefit from the virtual office service in Turkey, Istanbul?

ERAI Turkey has been providing virtual office services for more than 10 years and has already hosted more than 100 companies from a wide variety of sectors. To benefit from this service and access the services of virtual office professionals in Istanbul, in a prestigious plaza in the business district of the Asian side, do not hesitate to make a simple request via the contact form.

For more information on virtual office service in Istanbul, visit the ERAI Turkey service page.

ERAI Turkey celebrates its 12th year in consulting at the service of companies around the world!

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The company ERAI Turkey is proud to celebrate its 12 years of activities this year with a team of 9 people as well as 22 people working for partner companies, hosted in the premises of ERAI Turkey. Indeed, the company was created in 2006 as a subsidiary of ERAI France in Turkey, in Istanbul. Since then, more than 200 companies have trusted the ERAI Turkey team to guide them into the Turkish market, more than 30 people have been hired and nearly 25 companies have been hosted under the roof of the company.

The core of the company’s activity is consulting and business development support service on the Turkish market with market research, feasibility studies, financial studies or potentiality studies, ERAI Turkey is proud to present you today its most beautiful case studies, the most successful development stories in Turkey supported by the company so far.

It should be noted that each company requesting ERAI Turkey’s consultation has a problem specific to its project and its expectations. The role of ERAI Turkey is first and foremost to understand the stakes of the project to define a procedure to follow and to propose the best implementation option to its client. Thanks to its network of experts and professionals in many sectors as well as its expertise of more than 12 years, supported by many Turkish and French official institutions, ERAI Turkey is today the French/English-speaking leader of the consulting in Turkey.

Here are 3 case studies of companies with very different issues and the evolution of their implementation with the support of the consulting service of ERAI Turkey team.

 

Example 1: CEGID, a leading French company in the computer software industry

Context:

CEGID is a leading provider of enterprise management solutions for retail and industry. In 2012, during its first steps in the Turkish market, CEGID contacted ERAI Turkey to conduct a feasibility study of its project and define a market entry strategy. ERAI Turkey has prepared a comprehensive report consisting of recent information on the relevant sector, general information on retail and industry, market intelligence, competitor’s analysis, distribution networks, price analysis as well as the testimonials of actors and users of the market.

Result:

After finalizing the report, an implementation strategy was put in place and the search for value-added resellers (VAR) in retail and production was started. A total of 4 partners matching the criteria were found and presented to CEGID who interviewed each.

Thanks to its retail value-added resellers (VAR), CEGID has obtained very large projects including very large retail chains as well as the billing system of the largest cosmetics company present in Turkey.

Through its value-added resellers (VAR) in production, CEGID has become the official solution provider for OSTM (Defense and Aviation Cluster) member companies operating in the defense sector. Product localization has been successfully completed.

 

Example 2: NTN SNR, a pioneer in the automotive sector settled permanently in Turkey

Context:

This Japanese-French company, one of the largest bearing manufacturers in the world, has been consulting ERAI Turkey for almost 8 years. The company wanted to develop expansion strategies in the Turkish industrial market with the long-term objective of knowing the industrial sectors in Turkey and the best solution that would increase local sales and finalize a sustainable implementation.

Result:

A large feasibility study explaining the promising sectors, the potential and how to succeed in Turkey has been drafted. Recruitment, hosting and management of the sales team to better manage distributors and key accounts in Turkey. Implementation has been finalized, the local team has been successfully set up, three highly qualified sales managers and a marketing manager on this team have been recruited by ERAI Turkey since 2012.

 

Example 3: PERNAT, a company that imposed itself in the heart of Turkish industry

Context:

PERNAT Industrie is a supplier of machining of high precision metal parts of any machinable material. A leading French automotive supplier! PERNAT Industrie contacted ERAI Turkey in 2006 to ask for advice on the strategy to adopt for its project to set up in Turkey. The strategy adopted would be that of creating a liaison office and subsequently a joint venture or the acquisition of a local company. As a result of these projects, ERAI Turkey supported the greenfield creation project and was present throughout the process of creating the local company PERNAT TURKIYE, both for wage-carrying and accounting, or looking for a production site and its activation.

Result:

The company has made an investment of more than 2 million euros in the Organized Industrial Zone of Eskisehir. Every year, the company sees its turnover and its number of employees increase and provides local quality service to third-party automotive suppliers as well as in various other sectors (defense, etc.).

We have dozens of other projects that we have successfully completed so far. We are confident in our expertise and guarantee success through tailor-made solutions always adapted to the specific circumstances. Do not hesitate to contact us if you are interested in our consulting service.

Invest in Turkey in 2019?

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The offices of ERAI Turkey, based in Istanbul, are like a window that receives the echoes of everything that happens in Turkey as in France, at the economic level and at the level of trade. Since the fall of the value of the Turkish lira in the summer of 2018, the question that is most often asked to the director Simay SOYLU is: “Is it wise to invest in Turkey in 2019 when the country is in such a complicated economic phase? And to this question, she always answers:

“ERAI Turkey offices have never been as busy and as busy with their services as they are today. Why? Because the crisis has not scared those who know the Turkish market well: our old customers. They are realistic about the fact that Turkey is a country that has seen a great many economic, political and social crises, and that it has always been successful. Turkey will also recover from this crisis very quickly. Only companies that know nothing about the Turkish market are afraid of this climate. Turkey will be better tomorrow, and to prepare for it, it is now! We are here to answer any requests and to accompany the most separate in their discovery of the Turkish market.”

Invest In Turkey has published a list of 10 reasons to invest in Turkey and ERAI Turkey supports each of the points which are stated below:

1 / A well-performing economy

If we look at economic indicators such as the growth rate or the economic ranking of Turkey in the world rank, it is well positioned as it is in 19th place and intends to improve.

2 / The population (80 million inhabitants)

3 / A qualified and competitive workforce

4 / A liberal and reformist investment climate

5 / Infrastructures

6 / An ideal central location

7 / A corridor and an energy terminal for Europe

8 / Reduced taxes and incentives

9 / Customs union with the European Union since 1996.

10 / A large internal market

To read the details of these points, click here.

To contact ERAI Turkey and get an appointment, send an email to [email protected] or call us on +90 216 463 33 66.

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