"Within one month our revenues had jumped over 50%."

Turkey Economy Facts

business in Turkey
How is business in Turkey and is it a good country to trade with? To find this out, data has to be gathered about the country’s economy, business industries and trade markets. Below, we’ve complied information regarding these points and how they affect business in Turkey.
Turkey is a democratic, secular, unitary, constitutional republic with an ancient cultural heritage. Turkey has become increasingly integrated with the West through membership in organisations such as the Council of Europe, NATO, OECD, OSCE and the G-20 major economies. Turkey has also fostered close cultural, political, economic and industrial relations with the Middle East, the Turkic states of Central Asia and the African countries through membership in organisations such as the Turkic Council, Joint Administration of Turkic Arts and Culture, Organisation of Islamic Cooperation and the Economic Cooperation Organisation. Turkey’s location at the crossroads of Europe and Asia makes it a country of significant geostrategic importance, according to private intelligence firm,Stratfor. Given its strategic location, large economy and military strength, Turkey is a major regional power.

Turkey has the world’s 15th largest GDP-PPP, measured at $15,340 and 17th largest Nominal GDP, measured at $735.264 billion, according to the IMF. Turkey has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment and the privatisation of publicly owned industries, and the liberalisation of many sectors to private and foreign participation has continued amid political debate, according to BBC.  Tourism in Turkey has experienced rapid growth in the last twenty years, and constitutes an important part of the economy. In 2008 there were 31 million visitors to the country, who contributed $22 billion to Turkey’s revenues, according to Turkstat. Other key sectors of the Turkish economy are banking, construction, home appliances, electronics, textiles, oil refining, petrochemical products, food, mining, iron and steel, machine industry and automotive. Turkey has a large and growing automotive industry, which produced 1,147,110 motor vehicles in 2008, ranking as the 6th largest producer in Europe and the 15th largest producer in the world, according to OICA. Turkey is also one of the leading shipbuilding nations, according to Catania Investment.

In 2010, the agricultural sector accounted for 9% of GDP, while the industrial sector accounted for 26% and the services sector 65%, according to the CIA World Factbook. Turkey’s economy is becoming more dependent on industry in major cities, mostly concentrated in the western provinces of the country, and less on agriculture. However, traditional agriculture is still a major pillar of the Turkish economy. By 2009 exports were $110 bn and in 2010 it was $117 bn (main export partners in 2009: Germany 10%, France 6%, UK 6%, Italy 6%, Iraq 5%). However larger imports, which amounted to $166 billion in 2010, threatened the balance of trade (main import partners in 2009: Russia 14%, Germany 10%, China 9%, US 6%, Italy 5%, France 5%), according to the World Factbook. The economy of Turkey is defined as an emerging market economy by the IMF and is largely developed, making Turkey one of the world’s newly industrialized countries. Turkey had a rapidly growing private sector, yet the state still plays a major role in industry, banking, transport, and communications. The country’s wealth is mainly concentrated in the northwest and west, while the east and southeast suffer from lower economic production and higher levels of unemployment, according to the Economist.

Overall, Turkey is a promising market to invest and do trade in. With a population of 73,722,988, according to a government census in 2010, the Turkish market is of considerable size. The Turkish economy grew by approximately 9% in 2010, so clearly the economy is growing at a fast rate. There are signs of some overheating in the country’s real estate market, according to an article by the Foreign Policy magazine. However, most of the growth in the Turkish market seems to be real and likely to continue for at least the next few years. In the World Bank survey, Turkey was ranked as the 71th most easiest country to do business in.

 

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Author:Globial International Business Team

The Globial International Business Team researches, analyzes, and reports on all things related to global trade and business.

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