When you think of Turkey, what comes to mind first? Is it perhaps the fact that this nation sits at the intersection of two major continents, Asia and Europe? Or is it its significance as a crucial hub in global trade?

Indeed, you are correctTurkey is located along the beautiful eastern coast of the Mediterranean and even extends its vast territory towards the Persian Gulf.

Such a unique geographical position has undoubtedly propelled Turkey's economy to be one of the prominent names in AsiaThose who keep a close eye on the news would know that recently, Turkey's economic output has reached an astonishing $1.15 trillion, captivating both domestic and international audiences

What stage has Turkey's economy actually reached? And how does this achievement stack up against China's?

An Impressive Turkish Economy

For those with an interest in economic trends, it is well known that Turkey's economy has consistently demonstrated resilience and progress over the years.

As early as two years ago, the indicators of Turkey's economic ambitions had already begun to shine bright.

In 2021, the Turkish Statistical Institute released data showcasing that the nation's GDP achieved an astonishing leap of 42.8%, reaching a total of 7.2 trillion Turkish Lira (approximately $518 billion).

This remarkable figure not only represented the fastest growth rate in recent years but also broke records dating back a decade, marking an unprecedented period of prosperity!

In the fervor of that moment, the Turkish Finance Minister, Nureddin Nebati, passionately addressed the audience to convey the state of excitement and encouragement surrounding the current economic climate

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He asserted that Turkey has officially cemented its status as a recognized economic power in the international arena. He specifically noted Turkey's role as one of the fastest-growing members within significant global entities such as G20, OECD, and the European Union.

However, many back then were oblivious to the fact that this momentum would be sustained, framing Turkey's economic journey as just the beginning.

Since achieving that dazzling milestone in 2021, Turkey's economic growth has surged forward without hesitation.

By 2023, Turkey's total economic output soared to $1.15 trillion, with a population of 85 million and a per capita GDP of $13,500.

This level of achievement positions Turkey as a leader in the Middle East and ranks it sixth across the entire Asian continent.

A closer examination of Turkey's economy reveals interesting complexities.

Let’s delve deeper into the economic status in Turkey during the second quarter of 2023. Can you believe it? The GDP growth shockingly reached a remarkable 3.8%! This figure is particularly uplifting for the nation as it signifies a steady upward trajectory in their economic status.

Yet, we must analyze the specifics

It is common knowledge that the service sector tends to outperform the industrial sector in maintaining growthHowever, something curious happened! Turkey’s industrial economy displayed a downward trend in recent months.

Thus, the issue arises: while the service sector thrives, the industrial sector's stagnation could have repercussions on the overall economic landscape.

Why is this a troubling indication?

Have you heard of countries perpetually trapped within the middle-income status, such as Brazil, Argentina, and South Africa? Allow me to explain why.

The core issue lies in their manufacturing sectors being ensnared within international supply chains as though they have hit a wall, yielding no progress to propel national economic growth

Unless that barrier is addressed, any adjustments made will be futile, rendering efforts in vain.

On the other hand, the service sector, buoyed by capital influx, is experiencing substantial growth; however, its overreliance poses risksIf there were a significant withdrawal of speculative funds, the service sector would bear the brunt, thus impacting the entire national economy.

This concept can also be validated in the context of China's economic trajectoryWhy has the Chinese economy remained resilient in the face of persistent U.Ssanctions?

Primarily, it's rooted in its prowess as a manufacturing powerhouseEven following the imposition of U.Stechnology restrictions, the focus has shifted towards research and development, recognizing the importance of manufacturing and technology to ensure a healthy long-term economic trajectory.

The same principles apply to Turkey's economic development.

Nonetheless, that discourse belongs to the future

As it stands, Turkey’s economic growth remains undeniably impressiveBut how does Turkey's accomplishment compare on the Chinese scale?

How Does Turkey Stand Against China?

Based on the exchange rate between Renminbi and U.Sdollars in 2023, with 7.0467 Renminbi equating to 1 dollar, Turkey's economic output roughly translates to about 8.1 trillion Renminbi, with per capita GDP around 95,100 Renminbi.

Now, let’s sift through China's economic landscape! One striking observation is last year's astonishing GDP, a staggering 126.0582 trillion RenminbiDoes this figure lack clarity for you?

Let’s draw a comparison with TurkeyDid you know that Turkey's GDP is approximately 8.25 trillion Renminbi, exceeded by the GDP of our moderately sized Zhejiang province by a remarkable 150 billion Renminbi?

However, do not be misled into thinking that Turkey holds such extraordinary status

In reality, Turkey’s total population is less than a tenth of China'sIf placed in a country of China's size, they might not even make it into the top five.

Speaking of cities, Guangdong stands tallIts GDP totals a whopping 13.57 trillion Renminbi, evoking aweJust imagine, this figure corresponds to the annual revenue of an average nation! It’s no exaggeration! Moreover, Zhejiang is no slouch either; despite a smaller population, their remarkable per capita GDP stands at 131,500 Renminbi, a figure remarkable by any global standard.

Retracing back to Turkey, their per capita GDP of 95,100 Renminbi compared to Zhejiang's 131,500 Renminbi indicates a notable gap, suggesting ample growth potential for Turkey to explore ahead.

It is undeniable that by this measure, Zhejiang outclasses Turkey significantly.

Nevertheless, this isn't the central issue; what truly matters is that Turkey's economic structure holds inherent challenges.

Looking Beyond the Surface

For laymen like ourselves observing Turkey's seemingly robust economy, it may appear that life is good for them

However, this perception shifts slightly upon deeper inspection.

It's common knowledge that Turkey heavily relies on the service industry for revenue, particularly tourism, making them vulnerable to external economic fluctuations, alongside the inherent instability that comes with it.

Moreover, their relaxed stance towards foreign investors has drawn a plethora of foreign real estate companies, thus multiplying economic activitiesYet, this influx inevitably breeds economic instability, leading to chaotic performances, especially considering the considerable external debts they currently carryIt appears that economic development isn't a straightforward journey!

Since 2003, Turkey has adopted economic policies that stimulate growth via low interest rates

This tactic resembles pulling up seedlings prematurely, resulting in excessive corporate leverage that diminishes their ability to weather risks, ultimately causing a vicious cycle hampering economic expansion.

Indeed, on the surface, Turkey has witnessed robust growth, yet a close examination reveals that these achievements are akin to a mirage, and a shift in external conditions can rapidly turn them into dust.

This also elucidates why China has maintained its composure amidst frequent provocation from the U.S.—focusing diligently on advancing core technologies to address vulnerabilities.

Only by retaining control over their own economic trajectory can a nation ensure long-term sustainable developmentOtherwise, even if numerical successes in economic performance are achieved in the short term, amidst a multifaceted international landscape, they risk becoming mere decorative ornaments, devoid of substantive value.

Regardless, reducing dependency on external forces, taking the reins, and nurturing internal capabilities remains the golden rule.