Turkey’s medium-term growth prospects are just about the best in Emerging Europe. But realising the economy’s full potential will require raising domestic savings. If the authorities can achieve this then GDP could grow by 7% per annum over the next 25 years or so, making Turkey one of the world’s ten largest economies by 2035. But without such measures, much needed investment will have to be funded from overseas, making it highly likely that periods of good growth will be interrupted by sporadic balance of payments problems.
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