Turkey energy markets long-term outlook H2 2016: Will political risk be a drag on energy demand?
With GDP growth forecast at 2.9% a year, Turkey is one of the most dynamic economies in Europe and the country will see strong energy demand growth of 1.5% a year until 2035. However, there are some downside risks to the economic outlook – namely increasingly authoritarian actions by the government, the economic wobbles of the Eurozone and instability in neighbouring countries. Turkish energy supply will further diversify driven by policies aimed at reducing supplier risk and exploiting domestic resources. Gas, oil and coal demand will show robust growth but in relative terms renewables will take the lead.