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Market |
Defence |
Report Type |
Market Research |
Country |
Turkey |
Published |
5 March 2010 |
Number of Pages |
80 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
Turkey will be among the best performing major economies in emerging Europe in 2010 we anticipate, with real GDP growth forecast to rise back to 3.7%. A fundamentally stable banking system, low levels of private sector leverage, attractive demographic conditions and government-led market reforms augur well for a robust convergence process.
We expect Turkey to maintain recent trends of army and arms expenditure as one of the world’s largest arms importers. The country has the second-largest armed forces in NATO. That said, Turkey’s defence budget and number of troops will probably fall in the coming years with a weaker economy and a changing risk profile.
Although momentum is building towards some form of political settlement in Turkey’s long-standing conflict with the terrorist Kurdistan Worker’s Party (PKK), tension remain, as seen with the January 2010 arrest 60 people, including two journalists suspected of belonging to or aiding the PKK. Prime Minister Tayyip Erdogan has promised to expand Kurdish political rights, as well as freedom of the press, to meet European Union membership standards.
Erdogan called on all PKK supporters to return to the country and permanently end the decades-long insurgency. While a relatively minor tactical victory for the government, the surrender is a positive signal that Ankara’s effort to improve ethnic Kurdish rights is having a positive impact on the conflict. One key issue is the country’s relationship with Israel, not long ago a beacon of hope for such relationships in the region. Israeli defence minister Ehud Barak visited his Turkish counterpart in Ankara on January 17 2010 in an effort to diffuse increasingly tensions that have been rising since the assault on Gaza. Turkey’s increasingly friendly relationships with Iran and Syria mean the tension is unlikely to abate in the short term.
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