Investors bullish on future of Turkish economy

By Mustafa Caglayan

NEW YORK 

In a bid to quell doubts over the future of Turkish economy, Prime Minister Ahmet Davutoglu held a meeting with a group of investors in New York on Wednesday.

He discussed the economic and political stability that Turkey had achieved over the last 12 years and reaffirmed commitment to fiscal policies that helped the country enjoy a strong growth rate fueled by trade and foreign investment.

The closed-door meeting with Goldman Sachs investors was also attended by Ali Babacan, deputy PM at the helm of the economy, who has recently been at the center of media speculation over an alleged rift with President Recep Tayyip Erdogan on economic policy.

John Waldron, co-head of the Investment Banking Division of Goldman Sachs, said that the meeting was "very effective" and that there was consensus among international investors that Turkey is an attractive target for investment. 

"People are generally pretty optimistic on Turkey," he told The Anadolu Agency after the meeting. "The issue is not so much Turkey, the issue is the countries and the region around Turkey. The bigger risk is not Turkey and Turkey's performance. It is more about what's happening in the neighborhood."

He said Turkey has done "a terrific job" in terms of keeping its economy and policies strong during a tumultuous period in the region with many countries gripped by war and conflict.

"It seems to me there are still big infrastructure opportunities in the country," Waldron said. "Mr. Prime Minister focused on continued investment in infrastructure. The start of an airport project is an example. It seems to be lots of opportunity in infrastructure investing."

He said the Goldman Sachs Group had recently opened an office in Turkey and this showed their confidence in Turkey's economy.

Sarvesh Srivastava, a principal with Emerging Sovereign Group, said the meeting was "very useful" as it clarified certain points of concern in the eyes of investors.

"I do feel somewhat reassured," he said, adding that investors put a lot of trust in the current economic leadership of the country.

He said a major expectation of investors from Turkey is that the country "do more of the same things" it did over the last decade, which has brought a consistent growth rate of almost 5.5 percent since 2002.

He said the finance sector in Turkey is particularly promising for investors.

One of the Turkish businessmen who attended the meeting, Abdullah Kavukcu, said similar gatherings should be organized more in the future to give confidence to investors.

"Investors have very positive expectations about Turkey now," said Kavukcu, who is the chairman of the board of Simit Sarayi, a popular pastry and tea chain specializing in Turkey's national snack, called "simit."

He said Turkey's upcoming elections would bring good outcomes in terms of economy although elections generally scare off investors.