Question

A recent study done by Betam puts forward the fact that from 1980 to 2018 employment in agriculture has decreased while it increased by 256% in services, , 152% in industry and 137% in construction. Is it reasonable to devote almost half of investments to construction which has a share of 5-6% in Turkish economy?

Answer 1

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Question:

Answer:

Turkish Economy Outlook:

Turkish is an emerging/developing economy of the world because of large population,growing GDP, Strengthen arm forces , international diplomacy. Turkey has has established itself as a strong country and created a different Identity on global platform. It has a rich culture and tradition. Its economic freedom score is 64.4. Its total population is 82 million, Size of economy is $2.3 trillion, GDP growth is 2.6%, per capita income is $27206, unemployment rate is 10.9%, inflation rate is 12.3% , HDI is 0.806. Labor force by occupation, in agriculture-17%,industry-27% and services-56%. The GDP of construction sector is over 6% and more than 1.5 million people are currently employed by this sector.

According to the question, A recent study done by Betam puts forward the fact that from 1980 to 2018 employment in agriculture has decreased while it increased by 256% in services, 52% in industry and 137% in construction. Government devote almost half of investments to construction which has a share of 5-6% in Turkish economy.

Importance of the construction industry in the economic development:

Its play an important role in economy and work as a backbone in socio-economic development. Its provide speed to the economy through development of road, highways, hospital, institutions, houses etc that creat new job opportunities. Increasing job opportunities increase the income level of people that increase the total out/GDP of the economy. Its attract FDIs, develop the tourism industry, aviation industry, boost supply chain, making strong transportation services, better healthcare system, better education, provide home to live. So, its help to other sectors to grow.

Now see it from Turkish point of view:

If we study the macroeconomic data/indicators or variable then we found that Turkey is a developing nation and its GDP or economic growth is not sufficient and has higher rate of unemployment rate. Its also facing the problem of very high inflation rate. The major sector of Turkish economy is service industry and playing an important role in Turkish economy. But services industry is mostly a capital based industry and has need of high skilled labor. Other side construction industry is labour oriented industry and creat more opportunity of jobs. Here Services industry creating more job because of its big participation and size in Turkish economy. But other side construction sector that is only contributing 6% in Turkish economy providing job for more than 1.5 million people. It will develop the transportation services that will connect to cities and villages with each others that will creat a strong supply chain and reduce the pressure of cost-push inflation.

Conclusion:

So, if government spend on construction industry then it will boost the overall economy and make the socio-economic structure more strong and stable. So, government should invest in the construction industry. A good management or leader more focus on the weakest point and focus on the 360 degree development and it is not only weakest point, its only the nerves of the economy.

Thank You