Turkey to prove its dynamism for economics & growth

Grant Thornton’s Global Dynamism Index research ranked countries based on 22 indicators. The purpose of this research was to rank the countries providing the most suitable environment for business growth, in other words to name the most dynamic countries.

According to the overall ranking that has taken a total of 22 indicators of dynamism across 5 categories into account, the economy of Turkey ranked 36th. Whereas Turkey fell behind countries such as Germany, China and Japan; it surpassed countries such as Italy, Spain and Russia in this list. On the other hand, Turkey ranked 8th and surpassed countries such as Russia, Japan, Italy and UK basing on the economics & growth category.

Latest research of Grant Thornton aims to provide a road map for investors and companies looking to expand their operations. The survey, which is conducted with over 400 senior executives, basing on a total of 22 indicators of dynamism across 5 categories, revealed the ranking of countries providing the most suitable and most dynamic environment for business growth to investors. According to this multidimensional research which is far beyond from being an ordinary GPD ranking, Turkey ranked 36th in overall ranking, which is a combination of a total of 22 indicators and ranked 8th in economics & growth category.

5 categories evaluated in the research methodology were business operating environment, Science & technology, Labor & human capital, Financing environment, Economics & growth. Survey was conducted basing on a total of 22 sub-categories under these five main categories. 22 indicators were selected from the basic indicators referred by Economist Intelligence Unit, World Bank, Thomson Financial and UNESCO.

The ranking was decided by modeling the indicators and categories results in scores of 0-100 for each country, where 100 represents the most dynamic environment and 0 the least. After survey respondents from different countries and various sectors were asked to assign an importance to each of the indicators for their company, each category was weighted evenly and translated into percentage points.

Aykut Halit, Director, Grant Thornton Turkey, stated that the first thing that springs to mind when thinking about dynamism is economic growth, however this research did not only consider the economic growth, but also the business operating environment, R&D activities, science and technology and financing issues at the same time and revealed the holistic framework. Halit also stated that Turkey’s being 36th in overall ranking and 8th under economics and growth category ranking is not surprising. Aykut Halit pointed out that Turkey’s being at the top especially in the economics & growth ranking is closely associated with the growth figures in 2011. Halit also emphasized that especially the economic recession in developed countries and debt crisis in some EU countries is a great opportunity for Turkey to increase its performance.

406 senior executives, from a broad range of countries and industries, were interviewed by Thought Leadership team at the EIU for this research.

• 29% of respondents were CEOs, a further 23% were in other C-Suite or board roles, and the remainder occupied other senior decision making roles

• 49% of businesses represented in the survey had global annual revenues exceeding $500m

• 33% of respondents were based in North America, followed by Asia-Pacific, Europe (both 26%), Middle East & Africa (8%) and Latin America (7%)

• 19 different sectors were represented in the survey, led by financial services (14%), professional services (11%), technology (10%) and manufacturing (9%)

 

OVERALL RANKING

1     Singapore        72.1            6     Australia                65.6

2     Finland            70.5            7     Switzerland         65.1

3     Sweden           69.6            8     South Korea         64.9

4     Israel               69.3            9     Germany              64.8

5     Austria            66.1            10   America               64.1

 

DYNAMISM OF ECONOMICS & GROWTH: TOP 10

(Real GDP growth, Private consumption growth per head Change in $ value of stock market index)

1      Argentina         95.6           6     Indonesia                      79.8

2      China                94.6            7     Nigeria                           79.4

3      Uruguay          82.3           8     Turkey                            78.0

4      Chile                  80.6           9     Singapore                     75.3

5      India                 80.0           10   Colombia/Russia      73.8