Turkey’s electronics sector has suffered from a lack of investment, high competition and a lack or lack of support for innovation, the government said on Thursday.
The announcement by Prime Minister Ahmet Davutoglu comes as a year of rapid economic growth has left the country on a fragile balance sheet.
Turkey has invested more than $100bn in its electronics industry, mostly in manufacturing, according to data compiled by consultancy Deloitte, and is now at the forefront of the global electronic manufacturing sector, producing the world’s fastest-growing smartphone market.
Davutoglu’s plan will allow Turkey to create more than 2,000 new manufacturing jobs, including 300 new manufacturing units.
The government has been trying to boost its electronics sector and attract more foreign investment, but the economic slowdown has made the country’s economy look increasingly fragile.
The manufacturing sector is also the main source of Turkish exports to Europe, with exports to Germany accounting for around 80% of the countrys exports.
In 2016, Turkey was ranked second on the World Economic Forum’s (WEF) global competitiveness index behind China.
Its position has also been affected by a falling stock market.
The government cut its GDP forecast in 2016 by 1.2%, to 6.8% from 8% last year.
The economy grew 1.7% in 2016, down from 1.9% in 2015.
But the fall in GDP was largely due to the global financial crisis, which led to an economic contraction that affected Turkey’s exports and imports.