Turkish defense expenditure registered a CAGR of -1.50% during the review period (2008-2012), and valued US$14.99 bn in 2008 and US$14.11 bn in 2012. Overall, the country spent a total of US$70.89 bn on defense during the review period. Over the forecast period (2013-2017), defense expenditure is expected to record a CAGR of 7.67% and reach US$20.3 bn by 2017, largely due to the internal and external security threats faced by the country(reference see graph).
Until 2004, the Turkish Ministry of Defense was highly trusted, and defense deals were not scrutinized for instances of corruption and bribery. However, during the review period, high ranking defense officials were convicted on charges of malpractice. Despite the fact that the country has ratified the Organization for Economic Co-operation and Development (OECD) anti-bribery convention, and implemented legislation which renders the bribery of foreign and domestic officials an illegal offense, several foreign firms operating in Turkey perceive the corruption present in the defense industry to be a continuing challenge.
Throughout the review period, Turkey has invested in substantial defense procurements, and its military modernization program is currently approaching completion. The country is in possession of a well-developed domestic defense industry which is primarily dependent on Turkish defense expenditure. However, the country has now achieved the majority of its military modernization plans and this, coupled with the impact of the global economic recession, has resulted in the postponement of a number of defense procurement programs.
The The Turkish Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 report is now available at ASDReports.com!
Source: ASDReports - Market Research
Date: Aug 7, 2012