Roundup: Growth expected in Trkiye's impoverished regions as stability to return after PKK's disbandment

Malaysia Sun

21-05-2025

ANKARA, May 20 (Xinhua) -- The disbandment of the Kurdistan Workers' Party (PKK) will provide new economic opportunities for Trkiye, especially for its underdeveloped eastern and southeastern regions, said a Turkish official and analysts.
On May 12, the PKK, designated a terrorist organization by Trkiye, the United States, and the European Union, declared it would disband and cease its decades-long armed insurgency against the Turkish state. The move followed a February call from jailed PKK leader Abdullah Ocalan urging the group to lay down its arms.
Turkish Treasury and Finance Minister Mehmet Simsek said the PKK's disbandment will enhance investor confidence in Trkiye and unlock resources for such vital sectors as education, healthcare, and infrastructure, especially in areas neglected due to security concerns.
The conflict with the PKK "has cost the country an estimated 1.8 trillion U.S. dollars," Simsek was quoted recently by local English newspaper Daily Sabah as saying. "Now we can pivot toward productive spending that supports long-term growth," the minister added.
"This is a significant economic development opportunity for Trkiye," Istanbul-based economist Atilla Yesilada told Xinhua. "The return of security and stability in conflict zones would be followed by private investment flows into impoverished regions."
Industrial zones once deemed risky may now attract manufacturers and logistics firms, especially given their strategic proximity to Middle Eastern markets, he noted.
Data from the Turkish Statistical Institute showed that unemployment rates in Trkiye's southeastern provinces have historically remained above the national average, while per capita income in many of those provinces is less than half that of western provinces.
"With proper planning, these regions can become drivers of Trkiye's economy," Yesilada said, highlighting agriculture, tourism, and manufacturing as key sectors for potential growth.
The PKK's disbandment, a "historic shift" for Trkiye, "will lower Trkiye's country risk premium," said Gurkan Yildirim, head of the Turkish Young Businessmen Association.
"Creating a secure and stable environment would boost investor confidence, reduce perceived risks, and highlight Trkiye's economic strengths," he told Xinhua.
The eastern and southeastern Anatolia regions, bordering Syria, Iraq, and Iran, will be well positioned to benefit from new investment opportunities, thereby improving local living standards and contributing to broader national economic growth, Yildirim said.
"Revitalizing the tourism sector in these areas could play a role in driving economic transformation," he added.