World Business | Asia | Asia Business | Turkey

Economy - overview:
Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that in 2004 still accounted for more than 35% of employment. It has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication. The largest industrial sector is textiles and clothing, which accounts for one-third of industrial employment; it faces stiff competition in international markets with the end of the global quota system. However, other sectors, notably the automotive and electronics industries, are rising in importance within Turkey's export mix. In recent years the economic situation has been marked by erratic economic growth and serious imbalances. Real GNP growth has exceeded 6% in many years, but this strong expansion has been interrupted by sharp declines in output in 1994, 1999, and 2001. Inflation, in recent years in the high double-digit range, fell to 9.3% by 2004 - a 30-year low. Despite these strong economic gains in 2002-04, which were largely due to renewed investor interest in emerging markets, IMF backing, and tighter fiscal policy, the economy is still plagued with high debt and deficits. The public sector fiscal deficit exceeds 6% of GDP - due in large part to the huge burden of interest payments, which accounted for more than 40% of central government spending in 2004, and to populist spending. Foreign direct investment (FDI) in Turkey remains low - averaging less than $1 billion annually, but further economic and judicial reforms and prospective EU membership are expected to boost FDI. A major political and economic issue over the next decade is whether or not Turkey will become a member of the EU.
 

Agriculture - Products
tobacco, cotton, grain, olives, sugar beets, pulse, citrus; livestock

Airlines
Airlines in Asia
Airlines Worldwide

Airports
Airports in Asia
Airports Worldwide

Country Budget
revenues: $78.53 billion
expenditures: $110.9 billion, including capital expenditures of NA (2004 est.)

Currency (code)
Turkish lira (TRL), New Turkish lira (YTL) after 1 January 2005

Currency Exchange Rates
Turkish liras per US dollar - 1,425,500 (2004), 1,500,900 (2003), 1,507,200 (2002), 1,225,600 (2001), 625,200 (2000)
Note: on 1 January 2005 the old Turkish Lira (TRL)was converted to New Turkish Lira (YTL) at a rate of 1,000,000 old to 1 New Turkish Lira

Fiscal Year: calendar year

GDP (Gross Domestic Product)
GDP (purchasing power parity): $508.7 billion (2004 est.)
GDP - real growth rate: 8.2% (2004 est.)
GDP - per capita: purchasing power parity - $7,400 (2004 est.)
GDP - composition by sector:
agriculture: 11.7%
industry: 29.8%
services: 58.5% (2003 est.)

Imports / Exports
Exports: $69.46 billion f.o.b. (2004 est.)
Exports - commodities: apparel, foodstuffs, textiles, metal manufactures, transport equipment
Exports - partners: Germany 13.9%, UK 8.8%, US 7.7%, Italy 7.4%, France 5.8%, Spain 4.2% (2004)

Imports: $94.5 billion f.o.b. (2004 est.)
Imports - commodities: machinery, chemicals, semi-finished goods, fuels, transport equipment
Imports - partners: Germany 12.9%, Russia 9.3%, Italy 7.1%, France 6.4%, US 4.8%, China 4.6%, UK 4.4% (2004)

Industries
textiles, food processing, autos, mining (coal, chromite, copper, boron), steel, petroleum, construction, lumber, paper

Investing
Forex, Foreign Exchange Market: Currency Trading

Labor Force & Unemployment Rate
Labor force: 25.3 million
note: about 1.2 million Turks work abroad (2003 est.)
Labor force - by occupation: agriculture 35.9%, industry 22.8%, services 41.2% (3rd quarter, 2004)
Unemployment rate: 9.3% (plus underemployment of 4.0%) (2004 est.)