Skip to main content
CNN
Part of complete coverage on
Marketplace Europe

Turkey boom dampened by Europe's troubles

From CNN staff
updated 8:58 AM EST, Fri January 13, 2012
STORY HIGHLIGHTS
  • Istanbul is seen as a potentially pivotal center for relations between Europe and Asia
  • Turkey's economy is proving to be one of the strongest in the European region
  • Sabanci Group chair, Guler Sabanci, warns Europe's slowdown is "an important issue" for Turkey

(CNN) -- Turkey's Istanbul, the city where east meets west, is seen as a potentially pivotal center for relations between Europe and Asia.

Now Turkey, once home of the Ottoman Empire -- one of the most powerful empires in the world before its demise in the 1920s -- is on the rise again, with its economy proving to be one of the strongest in the European region.

"Turkey has outperformed Europe in the last two years, consecutively growing around 9%," Guler Sabanci, Sabanci Group chair, told CNN.

World's top economies in 2050 will be...

Turkey, unlike many economies on the continent, has been in the midst of an economic boom. But the debt woes of those nearby inevitably impacts Turkey's health.

Nearly half of Turkey's exports head to the eurozone, while around 75% of the country's foreign investment is injected by Europe. Further 75% of the country's tourism comes from Europe.

Sabanci, who helms one of Turkey's largest companies, warns Europe's slowdown is "an important issue" for the country, and will create headwinds in the months ahead.

But Sabanci expects Turkey to continue its pitch for European Union membership, noting the country is already "economically integrated" with the region.

Short-term gain or long-term pain? UK says no to treaty

She points to the UK's relationship with the European Union as one Turkey could emulate. "Is the UK a full member or not? Yes it is but is has a different model," she said. "I used to say that Turkey's accession to Europe is not a revolution, it's just an evolution," she added.

ADVERTISEMENT
Part of complete coverage on
Europe's financial crisis
updated 9:26 AM EDT, Tue May 14, 2013
The flags of the countries which make up the European Union, outside the European Parliament in Strasbourg, France.
The "rich man's club" of Europe faces economic decay as it struggles to absorb Europe's "poor people", according to economic experts on the troubled region.
updated 11:32 AM EDT, Tue May 7, 2013
Unemployment at a 16-year high and the lowest approval rating for a president in modern French history; this is the wreckage from Francois Hollande's first year in office.
updated 6:44 AM EDT, Thu May 2, 2013
As European financial markets close for the spring celebration of May Day, protesters across Europe and beyond have taken to the streets to demonstrate.
updated 8:10 AM EDT, Fri April 26, 2013
As Croatia prepares to enter the 27-nation European Union, the country's Prime Minister says Italy must return to being the "powerhouse of Europe."
updated 12:56 PM EDT, Thu April 25, 2013
Spain's unemployment rate rose to a record high of 27.2% in the first quarter of 2013, the Spanish National Institute of Statistics said Thursday.
updated 8:46 AM EDT, Fri April 12, 2013
Turkey is a "source of inspiration" to show how Islam and democracy can go hand-in-hand, the country's deputy prime minister has told CNN.
updated 10:39 AM EDT, Thu March 28, 2013
Cypriots are discussing the long-term effects of their 10 billion euro bailout. How come the Irish and the Spanish didn't lose their savings? Why us?
updated 9:55 AM EDT, Mon March 25, 2013
The financial uncertainty in Cyprus is generating images of long lines at ATM machines and anti-European Union protests.
updated 7:30 AM EDT, Fri March 22, 2013
Opinion: We must be careful to avoid panic and reckless measures that would exacerbate the crisis.
updated 2:15 PM EDT, Mon March 25, 2013
Cyprus will "step up efforts in areas of fiscal consolidation." Where have we heard that before? Oh yes. Greece.
updated 2:13 PM EDT, Mon March 25, 2013
Lapland summit
Finland's political leaders held an informal summit in Saariselka, Lapland. Quest: This was an opportunity to see leaders "at their most honest."
updated 10:18 AM EDT, Wed March 27, 2013
Cyprus has become the latest eurozone nation to apply for a bailout amid a financial crisis linked to debt defaults in Greece.
updated 10:49 AM EDT, Wed March 27, 2013
BRICS leaders meet in South Africa to make deal on development bank. But instead of BRICS, today everyone is talking about the "CIVETS."
updated 9:39 PM EDT, Fri March 22, 2013
The Cyprus debt crisis is being felt by the banks but also by the people who work at them. Nick Paton Walsh reports.
updated 8:10 PM EDT, Thu March 21, 2013
CNN's Nick Paton Walsh reports on a Russian hotel maid caught up in Cyprus' financial crisis.
updated 12:08 PM EDT, Mon March 18, 2013
Never underestimate the capacity of the Eurozone to shoot itself in both feet, says CNN's Richard Quest.
updated 7:00 AM EDT, Tue March 12, 2013
Thousands of Greeks are unable to obtain life-saving drugs as pharmaceutical firms say they are limiting supplies to Greece over unpaid debts.
updated 11:03 AM EST, Thu February 21, 2013
Spain has seen hundreds of protests since the "Indignados" movement erupted in 2011, marches and sit-ins are now common sights in the capital.
ADVERTISEMENT