Economic Trends/Outlook in Turkey
Turkey, a country of 74 million inhabitants, has an economy in transition, a relatively high degree of dependence on agriculture (11% of its territory is cultivated) and heavy industry (large mining sector and vast reserves of boron representing 60% of global reserves), and a tertiary sector in full expansion (hotel and catering business). After going through a serious economic and political crisis in 2001, Turkey has made a spectacular recovery thanks to a more favorable political climate but also to monetary, fiscal and structural reforms inspired by the World Bank and the IMF. Turkish economy is also based on manufacturing (country’s number one industrial activity). Since the 1980s, tourism has also been a significant source of income: Turkey is one of the ten most visited countries in the world. The financial crisis of course had an effect on the growth of Turkish economy; nevertheless the latter recovered relatively quickly and has grown by 3.5% in 2010. For 2011, the government foresees one point increase, thus bringing the growth rate to 4.3%. Indeed, the government has undertaken large economic reforms: adoption of a floating currency regime, giving total independence to the Central Bank, budgetary discipline and inflation control.
However, the Turkish economy remains vulnerable due to its high dependence on exports and foreign investment. With the current economic crisis, the unemployment rate has soared to around 15%. Turkey is also affected by its large informal sector.
|GDP (billions USD)||614.47e||741.85e||797.61e||876.58e||943.43e|
|GDP (Constant Prices, Annual % Change)||-4.7e||8.2e||4.6e||4.5e||4.1e|
|GDP per Capita (USD)||8,711e||10,399e||11,054e||12,012e||12,783e|
|General Government Balance (in % of GDP)||-4.2||-3.5e||-3.1e||-2.9e||-2.4e|
|General Government Gross Debt (in % of GDP)||45.5||41.7e||39.4e||37.6e||36.4e|
|Inflation Rate (%)||6.3||8.6e||5.7e||6.0e||5.4e|
|Unemployment Rate (% of the Labor Force)||14.0||11.9e||11.4e||11.0e||10.6e|
|Current Account (billions USD)||-13.85e||-28.35e||-32.53e||-33.46e||-|
|Current Account (in % of GDP)||-2.3e||-4.0e||-4.4e||-4.3e||-|
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
Main Sectors of Industry
Agriculture in Turkey, which contributes nearly 10% of the GDP and employs practically a third of the population, still suffers from low productivity because of its management system (small farms). Wheat is the main crop. The country is the third biggest exporter of tobacco in the world, the leading producer of hazelnuts (70% of world production). Mineral resources are abundant but under-exploited.
The manufacturing industry, the main industrial activity of the country, makes up nearly 30% of the GDP and commands almost 18% of the workforce, the textile and automobile sectors being the main activities. The Turkish government gives special priority to large infrastructure projects, particularly in the transport sector, which mostly function under the BOT model (build, operate, transfer).
The tertiary sector contributes slightly less than two-thirds to the GDP. Tourism represents 4% of the GDP with about 13 million tourists a year and almost 22milions in profits, thus making it one of the key sources of foreign currency for the country.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||26.2||25.7||48.1|
|Value Added (in % of GDP)||9.3||25.8||64.9|
|Value Added (Annual % Change)||3.5||-8.4||-3.2|
Source: World Bank - Last Available Data.
Indicator of Economic Freedom
- Moderately free
- World Rank:
- Regional Rank:
Sources of General Economic Information
State Planning Organization
Ministry of Agriculture and Rural Affairs
Ministry of Industry and Trade
Turkish Ministry of Finances
- Statistical Office
Turkish Statistical Institute
- Central Bank
Central Bank of The Republic of Turkey
- Stock Exchange
Istanbul Stock Exchange
- Other Useful Resources
Export Promotion Center of Turkey
- Main Online Newspapers
Turkish Daily News
Turkish Press News
- Economic Portals
Ministry of Foreign Trade
Capital Markets Board of Turkey
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Alongside with a more restrictive monetary and fiscal policy mix, Turkey is forecast to see a more humble GDP growth of 3.2% in 2012.
Hong Kong Trade Development Council (HKTDC) on 30 Sep 2012 related to Economic Trends/Outlook in Turkey
Turkey has significantly liberalised its import regime, especially in the last decade.
Hong Kong Trade Development Council (HKTDC) on 1 Jul 2012 related to Economic Trends/Outlook in Turkey
A Report on the significant economic and agricultural changes in Turkey.
Foreign Agricultural Service on 20 May 2012 related to Economic Trends/Outlook in Turkey
2012 Country Commercial Guide for U.S. Companies doing business in Turkey.
U.S.Commercial Service Turkey on 27 Apr 2012 related to Economic Trends/Outlook in Turkey
Turkey has significantly liberalised its import regime, especially in the last decade. Any individual or enterprise can freely register to engage in the import business. It is a member of the WTO, and its tariff scheme is based on the Harmonised System (HS) for commodity coding.
Hong Kong Trade Development Council (HKTDC) on 27 Sep 2011 related to Economic Trends/Outlook in Turkey
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