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flag Turkey Turkey: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators


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.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 614.42735.49e763.10e801.87871.52
GDP (Constant Prices, Annual % Change) -4.88.96.62.23.4
GDP per Capita (USD) 8,71010,309e10,57610,98811,808
General Government Balance (in % of GDP) -4.1-3.5e-2.1-1.5-1.1
General Government Gross Debt (in % of GDP) 46.142.240.338.136.3
Inflation Rate (%) 6.38.66.06.95.3
Unemployment Rate (% of the Labor Force) 14.011.910.510.710.2
Current Account (billions USD) -14.30-48.42-78.28-59.66-56.97
Current Account (in % of GDP) -2.3-6.6-10.3-6.5-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

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) 22.9 25.3 51.7
Value Added (in % of GDP) 9.8 28.0 62.2
Value Added (Annual % Change) 7.7 10.1 4.9

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Turkish New Lira (TRY) - Average Annual Exchange Rate For 1 USD 1.431.301.301.551.50

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Turkey on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
64.2/100
Position:
Moderately free
World Rank:
63/179
Regional Rank:
29/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

The spearheads of Turkish foreign trade are the automobile and textile industries (the latter employing 18% of the workforce), followed by the food industry (raw and processed products), machinery and equipment and electronic equipment, steel and chemical sectors respectively. The European Union is by far Turkey's leading customer (56.4% of Turkish exports), followed by the United States, China and Iraq. Yet the country shows a high trade deficit level because of its high energy dependency on Russia and its Middle Eastern neighbors. In addition, like the household appliance sector, which paradoxically is a high export industry, many components (about 80%) are imported to subsequently be assembled in Turkey. Despite government efforts to promote innovation (namely with the development of competitiveness centers and the establishment of tax credits in favor of Research and Development), Turkish exports have relatively low added value. Similarly, Turkish exports are still not very present on markets with high development potential (China or Eastern Europe) and suffer from being compared to German ones.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 139,576170,063201,964140,928185,497
Exports of Goods (million USD) 85,535107,272132,027102,143113,899
Imports of Services (million USD) 10,72914,52816,56915,54418,210
Exports of Services (million USD) 25,24628,58634,39632,62632,750
Imports of Goods and Services (Annual % Change) 6.910.7-4.1-14.315.2
Exports of Goods and Services (Annual % Change) 6.67.32.7-5.34.5
Imports of Goods and Services (in % of GDP) 27.627.528.324.426.2
Exports of Goods and Services (in % of GDP) 22.722.323.923.223.2
Trade Balance (million USD) 41,05646,85253,02124,85056,445
Trade Balance (Including Service) (million USD) 27,50133,56935,7108,10141,746
Foreign Trade (in % of GDP) 50.349.852.247.749.4

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Germany 10.1%
United Kingdom 6.4%
Italy 5.7%
France 5.3%
Iraq 5.3%
See More Countries 67.2%
Main Suppliers
(% of Imports)
2010
Russia 11.6%
Germany 9.5%
China 9.3%
United States 6.6%
Italy 5.5%
See More Countries 57.5%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.4%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 3.5%
Bars and rods, of iron or non-alloy steel, not...Bars and rods, of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but incl. those twisted after rolling (excl. in irregularly wound coils) 3.0%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab 2.9%
T-shirts, singlets and other vests, knitted or...T-shirts, singlets and other vests, knitted or crocheted 2.4%
See More Products 82.7%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 5.9%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 5.2%
Ferrous waste and scrap; remelting scrap ingots of...Ferrous waste and scrap; remelting scrap ingots of iron or steel (excl. slag, scale and other waste from the production of iron or steel; radioactive waste and scrap; fragments of pigs, blocks or other primary forms of pig iron or spiegeleisen) 3.8%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 3.7%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 2.4%
See More Products 79.0%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
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
Search Engines
Netbul
Turk Evi
Turk Net
Turkey Web
Economic Portals
Ministry of Foreign Trade
Capital Markets Board of Turkey

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Political Outline

Executive Power
The President of the Republic is the Head of State. He is elected by indirect universal suffrage for a single 7 year term of office, by secret ballot in Parliament. However, following a constitutional change in 2007, the next election (2014) will be by direct universal suffrage. He has the function of an arbitrator (promulgation of laws, signature of decrees..) and he appoints the Prime Minister and the Council of Ministers. The President also appoints the judicial organs and other governmental organs. His role is above all ceremonial but his position benefits from considerable symbolic importance.
The Prime Minister is the head of the government. He is elected by Parliament when there is a vote of confidence in the government, for a five year term of office. He holds the executive power, which includes law enforcement and managing the current business of the country. The government he directs is responsible before Parliament which can overturn it with an absolute majority of its members.
Legislative Power
Legislative power in Turkey is unicameral. The Parliament, called Great National Assembly of Turkey, has 550 seats, and its members are elected by universal suffrage for five years according to a system of proportional representation.
Main Political Parties
- The AKP (Justice and Development Party) - a conservative party, moderately Islamic
- The CHP (Republican People's Party) - a nationalist, social-democratic party
- The MHP (Nationalist Movement Party) - extreme right nationalist party
- The DEHAP (Democratic People's Party) and Independents - left wing party, pro-Kurd
- The ANAP (Motherland Party) - center right and liberal party
- The DYP ( Just Way Party) - non-religious, right wing conservative party.
Current Political Leaders
President : Abdullah GÜL (since August 2007) - AKP and former Minister of Foreign Affairs (March 2003 to July 2007 )
Prime Minister: Recep Tayyip ERDOGAN (since March 2003) - AKP
Minister of Foreign Affairs: Ali BABACAN
Minister of Foreign Trade: Kürsad TÜZMEN
Minister of Finance: Kemal UNAKITAN
Minister of the Interior: Besir ATALAY
Next Election Dates
Presidential : August 2014
Legislative : November 2012
 

Indicator of Freedom of the Press

World Rank:
138/178
Evolution:
15 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Partly Free
Political Freedom:
3/7
Civil Liberties:
3/7

Map of freedom 2010

 

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Last Updates: January 2012