The global economy is undergoing a structural transformation that goes well beyond ordinary cyclical fluctuations. Supply-chain disruptions following the COVID-19 pandemic, energy supply problems, geopolitical tensions, particularly war, protectionist trade policies, U.S. tariffs, and intensifying competition in advanced technologies such as artificial intelligence (AI) are reshaping the fundamental parameters of the global economic system.
For decades, global production was largely organized around cost minimization and the concentration of production in the lowest-cost locations. Today, however, production decisions are increasingly shaped not only by cost considerations but also by supply security, logistical continuity, energy availability, technological capacity and geopolitical risk.
This transformation is driving a search for a new equilibrium in the global economy. Production networks are becoming more diversified, while localization and regionalization trends are gaining strength in strategic sectors. In areas such as energy, semiconductors, defense technologies, critical minerals, AI and advanced manufacturing, economic competition is increasingly viewed through the lens of national security. Understanding the global economy correctly is essential for shaping sound and effective policy decisions. For Türkiye, the central challenge is therefore twofold: strengthening resilience against external shocks while transforming the sources of economic growth and achieving lasting price stability.
