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Turkey and Russia worst hit by global crisis

11 September 2009 13:40 (UTC +04:00)

Baku. Nijat Mustafayev â€“ APA-Economics. urkey has been the most affected by the economic crisis, according to Germany-based Dekabank, which investigated the performances of 31 countries during the global financial crisis, Hurriyetdailynews reported.
According to the report released earlier this week, China, India and Poland were the only ones that managed to turn the crisis into an opportunity. The remaining 28 economies contracted significantly.
Turkey has been affected by the crisis the most, according to the research. The country experienced the biggest decline in gross national product, or GNP, with 14.2 percent. Russia followed Turkey to rank second, with an 11 percent contraction in its GNP.
The impact of the global turmoil was also undeniable among the European Union countries. Among the EU members, Germany ranked at the top in economic contractions, followed by Hungary.
Among the 31 countries investigated, Germany ranked eighth with a contraction of 6.9 percent, while Hungary ranked at seven with a contraction of 7.6 percent.
The report revealed that the contraction in the U.S. economy as well as the U.K. economy was lower than expected during the first quarter of the year compared to the same period a year earlier. The United States, which experienced what one can call an earthquake in its banking system as well as real estate industry, saw a contraction of 3.9 percent during just the first quarter of the year. The economic contraction n the U.K. was 5.6 percent during the same period.
â€œIndicators reflect the economic models of the countries. The impact of the crisis was perfectly in line with that countryâ€™s relation to the global conjuncture,â€ said Ulrich Kater, DekaBank chief economist.
Turkey ranked second to last in terms of resources allocated to ease the impact of the global turmoil, according to DekaBank. The country allocated 1.3 billion euros to revive its economy, read the report.
Positive outlook
Turkey has drawn a positive picture in terms of its economy, according to a report by the Independent Commission of Turkey.
Turkey is in a better position than some of the EU countries, according to the report â€œTurkey in Europe: Breaking the vicious circle,â€ which was announced in Brussels on Monday.
Turkey has a functional economy, said the report. The endurance the country showed against the crisis is proof of a significant improvement achieved since the country began its EU accession period, it said.
The Turkish market, which has a young and quickly growing market, also proved it has the capacity to become a hub of quality manufacturing. The country has become a valuable trade center and it presents a major opportunity to the European business world.