Published: January 11, 2011
Turkey’s road to recovery should see the country continue to perform well in 2011, says HSBC’s senior economist.
In a new research note, Mark Berrisford-Smith notes that low levels of public debt and a banking system that has performed well during the crisis mean Turkish businesses will be able to benefit from the country’s low cost base and manufacturing competitiveness.
“Despite not manufacturing products that emerging markets like China demand, Turkish manufacturers currently export to the large western European market and have in recent years been diversifying their exports, particularly to the Middle East, a trend we are likely to see continue,” he writes.
Berrisford-Smith adds that international trading will be crucial for many other emerging Europe countries. Although Poland, for example, has a domestic market large enough to offer home-grown opportunities for its manufacturers, smaller countries such as the Czech Republic and Slovakia will need to focus on cross-border trade “by virtue of their size”.