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 $20 billion in 2006, doubling that in 2005.
The country has been destined to be a bridge linking Central Asian oil and gas to energy-starved Europe. As a base of stability in an unstable region and a key ally of the Western world, Turkey is a land of opportunities.
|Population||67.4 million||72.9 million|
|GNI||Atlas method (current US$)||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|
|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|