We all know about the BRIC's countries that spread like wildfire in the early to mid-2000's when they were dubbed as the next big Emerging-Markets. Now that these countries have been seen in more of a light, investors are looking into what the next big investment could be.
A great argument can be made for Turkey. It recently got two investment-grade ratings, including one from Moody's, which in 1994 had downgraded Turkey into the junk-status category. Turkey has a lot of positives going for it, which should help it out. It has great demographics, a low debt to GDP ratio, and a low budget deficit. All these factors are the recipe for growth going forward. Also, interest rates have been cut to 4.5% by the Central Bank of Turkey.
The three things Turkey does need to work on is lowering its current account deficit, lowering inflation levels, and making its exchange rate to become more competitive.
However, the future looks positive for Turkey. Many investment firms and hedge funds have been dubbing Turkey as an emerging market to look into. The question is how far can Turkey go? Is it a country that investors should bet big on or simply place a stake into? As of now, the consensus is that Turkey will experience growth in the future. No doubt, it's a country that investors are looking into to see what kind of returns they can get.
