The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Zero margin for mistakes

After falling out with the US over access to Iraq, Turkey is regaining favour with the west as its economy revives. Its long-term goal is EU membership, but how far away does that target remain?

Turkey is the world's fastest growing economy after China

TURKEY IS THE world's fastest-growing economy after China. In the first quarter of this year GDP grew by 8.1%. The central bank's survey of business opinion and manufacturing data has indicated that the pace is continuing and that a figure close to the government target of 5% GNP growth for the full year is assured.

In addition, inflation is falling, unemployment is on the wane and exports are rising. The progress has been praised by the IMF and rewarded by Fitch Ratings, which nudged Turkey's sovereign rating slightly upwards to B-. The Turkish parliament has passed a series of laws that brought Turkey very close to fulfiling the so-called Copenhagen criteria required to start membership negotiations with the EU. Relations with the US, which reached their nadir when Ankara refused American troops transit rights to enter northern Iraq, are improving. "All the things that should matter are moving in the right direction," says Morgan Stanley researcher Serhan Cevik.

Is this as good as it gets or is the Turkish economy at last turning the corner?

First the good news.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree