AKP: at least good for the economy

The mildly Islamist Justice and development (AK) party came to power in 2002 since then the economy has been booming and FDI reached a record $22 billion in 2007. GDP growth has averaged 6.6%, inflation has been controlled and FDI has boomed. On february 28th a law passed offering tax breaks to companies employing more than 50 people in research and development. The new law will bring more automotive and technology firms and help to boost high-tech exports in Turkey. Nevertheless with around 40% of Turkish banks and 70%of the stockmarket in foreign hands, there is negative image against foreign investment. It is true that the GDP has signigicantly increase and there is less uncertainty in the country but figures like 20% of FDI in 2007 created new jobs, the rest was mergers and acquisitions 70% and land purchases 10% is scaring high-minded ideals in Turkey. The political uncertainty and the mounting religious presence in the country is an other scare off for foreign investors.