International Investing: Turkey
Economic Overview: Turkey has a volatile economy whose growth rate has exceeded 6 percent in many years (and reached 9 percent in 2004), but suffered sharp reversals in 1994, 1999, and 2001.
The government plays major roles in basic industry, banking, transportation, and communications, but privatization sales are currently approaching $21 billion. Agriculture still accounts for more than 35 percent of employment; the largest industrial sectors are textiles and clothing, but competition has grown sharply with the end of the global quota system.
The economy is burdened with a high current account deficit and substantial debt. The opening of a new oil pipeline and the promise of EU membership are expected to improve a relatively low level of foreign direct investment.
What to Watch: With a population of 72 million, Turkey is Europe's second largest market, the world's 17th largest economy and Europe’s seventh.
The country is a prominent actor in international trade and a hub for foreign direct investments.
Having joined the European Union, improved macroeconomic fundamentals and strengthened GDP growth by 7 percent on average over the last four years, Turkey continues its rapid integration into the global economy.
While Turkish contractors have undertaken $75.2 billion in projects abroad, the country attracted $20 billion in 2006, doubling that in 2005.
The country has been destined to be a bridge linking Central Asian oil and gas to energy-starved Europe. As a base of stability in an unstable region and a key ally of the Western world, Turkey is a land of opportunities.
Turkey
| 2000 | 2006 | ||||
|---|---|---|---|---|---|
| Population | 67.4 million | 72.9 million | |||
| Economy | |||||
| GNI | Atlas method (current US$) | 201.2 billion | 393.9 billion | ||
| GNI per capita | Atlas method (current US$) | 2 | 980.0 | 5 | 400.0 |
| GDP (current US$) | 199.3 billion | 402.7 billion | |||
| GDP growth (annual %) | 7.4 | 6.1 | |||
| Inflation | GDP deflator (annual%) | 49.9 | 11.5 | ||
| Agriculture | value added (% of GDP) | 15.4 | 12.9 | ||
| Industry | value added (% of GDP) | 25.3 | 22.4 | ||
| Services | etc. | value added (% of GDP) | 59.4 | 64.7 | |
| Exports of goods and services (% of GDP) | 24.0 | 28.0 | |||
| Imports of goods and services (% of GDP) | 31.5 | 34.1 | |||
| Gross capital formation (% of GDP) | 24.5 | 27.0 | |||
| Revenue | excluding grants (% of GDP) | 27.8 | N/A | ||
| Cash surplus/deficit (% of GDP) | -7.9 | N/A | |||
| States and Markets | |||||
| Time required to start a business (days) | N/A | 9.0 | |||
| Market capitalization of listed companies (% of GDP) | 35.0 | 40.3 | |||
| Military expenditure (% of GDP) | 5.0 | N/A | |||
| Fixed line and mobile phone subscribers (per 1 | 000 people) | 512.1 | N/A | ||
| Internet users (per 1 | 000 people) | 37.1 | N/A | ||
| Roads | paved (% of total roads) | 35.3 | N/A | ||
| High-technology exports (% of manufactured exports) | 4.8 | N/A | |||
| Global Links | |||||
| Merchandise trade (% of GDP) | 41.3 | 55.2 | |||
| Net barter terms of trade (2000 = 100) | 100.0 | 96.2 | |||
| Foreign direct investment | net inflows (BoP | current US$) | 982.0 million | N/A | |
| Long-term debt (DOD | current US$) | 84.0 billion | N/A | ||
| Total debt service (% of exports of goods | services and income) | 36.0 | N/A | ||
| Official development assistance and official aid (current US$) | 326.8 million | N/A | |||
| Workers' remittances and compensation of employees | received (US$) | 4.6 billion | 851.0 million |