Istanbul, Turkey

Turkey has a young population and a growing labor force.  Similar to Mexico’s position vis-à-vis the United States, Turkey has a labor cost advantage in manufacturing relative to its primary market of Western Europe.  As of May 2012, exports to Europe represent 40% of the Turkish economy.  Clearly, the economic stagnation in Western Europe is affecting Turkey, but as labor costs rise precipitously in China, Turkey is becoming relatively more competitive in many new areas of manufacturing.  As the economic growth continues in the Middle East, Istanbul is well positioned geographically, historically, and culturally to be a regional financial capital as it was for a millennium after its founding in 330 AD.  We expect Turkey’s GDP and standard of living will expand over the next two decades.