LONDON/ANKARA - Morgan Stanley, the international investment bank, has indicated that the pension burden would lower economic growth and worsen socio-economic conditions in Turkey.
According to the Morgan Stanley, the social security deficit already widened from 0.3 percent of gross domestic product (GDP) in 1990 to almost 5 percent this year.
"Despite the all challenges, Turkey still enjoys a `demographic dividend` -a young and growing population- that is a great advantage in putting the pension system on a sustainable basis," it said.
Noting that the average age in Turkey was 26.5 and the working-age population was still growing, the Morgan Stanley noted, "Turkey has a narrowing window of opportunity to create a sustainable pension system."
"However, time is running out. Demographic shifts like lower fertility rates and increasing longevity will bring significant change in the age structure of the population over coming decades," it said.