Turkey

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Turkey - In Short.

Overview of Turkey

Modern Turkey was founded in 1923 from the remnants of the defeated Ottoman Empire by national hero Mustafa KEMAL, who was later honored with the title Ataturk or “Father of the Turks.” Under his leadership, the country adopted radical social, legal, and political reforms. After a period of one-party rule, an experiment with multi-party politics led to the 1950 election victory of the opposition Democrat Party and the peaceful transfer of power. Since then, Turkish political parties have multiplied, but democracy has been fractured by periods of instability and military coups (1960, 1971, 1980), which in each case eventually resulted in a return of formal political power to civilians. In 1997, the military again helped engineer the ouster – popularly dubbed a “post-modern coup” – of the then Islamic-oriented government. An unsuccessful coup attempt was made in July 2016 by a faction of the Turkish Armed Forces. Turkey intervened militarily on Cyprus in 1974 to prevent a Greek takeover of the island and has since acted as patron state to the “Turkish Republic of Northern Cyprus,” which only Turkey recognizes. A separatist insurgency begun in 1984 by the Kurdistan Workers’ Party (PKK), a US-designated terrorist organization, has long dominated the attention of Turkish security forces and claimed more than 40,000 lives. In 2013, the Turkish Government and the PKK conducted negotiations aimed at ending the violence, however intense fighting resumed in 2015. Turkey joined the UN in 1945 and in 1952 it became a member of NATO. In 1963, Turkey became an associate member of the European Community; it began accession talks with the EU in 2005. Over the past decade, economic reforms, coupled with some political reforms, have contributed to a growing economy, although economic growth slowed in recent years, with occasional bouts of turmoil. From 2015 and continuing through 2016, Turkey witnessed an uptick in terrorist violence, including major attacks in Ankara, Istanbul, and throughout the predominantly Kurdish southeastern region of Turkey. On 15 July 2016, elements of the Turkish Armed forces attempted a coup that ultimately failed following widespread popular resistance. More than 240 people were killed and over 2,000 injured when Turkish citizens took to the streets en masse to confront the coup forces. The government accused followers of the Fethullah Gulen transnational religious and social movement (“Hizmet”) for allegedly instigating the failed coup and designates the movement’s followers as terrorists. Since the attempted coup, Turkish Government authorities arrested, suspended, or dismissed more than 130,000 security personnel, journalists, judges, academics, and civil servants due to their alleged connection to Gulen’s movement. Following the failed coup, the Turkish Government instituted a State of Emergency from July 2016 to July 2018. The Turkish Government conducted a referendum on 16 April 2017 in which voters approved constitutional amendments changing Turkey from a parliamentary to a presidential system. The amendments went into effect fully following the presidential and parliamentary elections in June 2018.
Value
Country Full Name
Turkey
Country Code
TUR
Region
Europe & Central Asia
Income Group
Upper middle income
Currency Unit
GDP
7.20E+11
Population
84339067
Land Area
769630
Net National Income Per Capita
7137.44775
GDP per Capita (PPP)
27235.42583

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Turkey - Economic

Economy of Turkey

Turkey’s largely free-market economy is driven by its industry and, increasingly, service sectors, although its traditional agriculture sector still accounts for about 25% of employment. The automotive, petrochemical, and electronics industries have risen in importance and surpassed the traditional textiles and clothing sectors within Turkey’s export mix. However, the recent period of political stability and economic dynamism has given way to domestic uncertainty and security concerns, which are generating financial market volatility and weighing on Turkey’s economic outlook.Current government policies emphasize populist spending measures and credit breaks, while implementation of structural economic reforms has slowed. The government is playing a more active role in some strategic sectors and has used economic institutions and regulators to target political opponents, undermining private sector confidence in the judicial system. Between July 2016 and March 2017, three credit ratings agencies downgraded Turkey’s sovereign credit ratings, citing concerns about the rule of law and the pace of economic reforms.Turkey remains highly dependent on imported oil and gas but is pursuing energy relationships with a broader set of international partners and taking steps to increase use of domestic energy sources including renewables, nuclear, and coal. The joint Turkish-Azerbaijani Trans-Anatolian Natural Gas Pipeline is moving forward to increase transport of Caspian gas to Turkey and Europe, and when completed will help diversify Turkey’s sources of imported gas.After Turkey experienced a severe financial crisis in 2001, Ankara adopted financial and fiscal reforms as part of an IMF program. The reforms strengthened the country’s economic fundamentals and ushered in an era of strong growth, averaging more than 6% annually until 2008. An aggressive privatization program also reduced state involvement in basic industry, banking, transport, power generation, and communication. Global economic conditions and tighter fiscal policy caused GDP to contract in 2009, but Turkey’s well-regulated financial markets and banking system helped the country weather the global financial crisis, and GDP growth rebounded to around 9% in 2010 and 2011, as exports and investment recovered following the crisis.The growth of Turkish GDP since 2016 has revealed the persistent underlying imbalances in the Turkish economy. In particular, Turkey’s large current account deficit means it must rely on external investment inflows to finance growth, leaving the economy vulnerable to destabilizing shifts in investor confidence. Other troublesome trends include rising unemployment and inflation, which increased in 2017, given the Turkish lira’s continuing depreciation against the dollar. Although government debt remains low at about 30% of GDP, bank and corporate borrowing has almost tripled as a percent of GDP during the past decade, outpacing its emerging-market peers and prompting investor concerns about its long-term sustainability.

Unemployment Rate

Inflation Rate

Turkey - GDP Composition

GDP Composiiton & Value Added of Turkey

Last Updated: Jan, 2021, Updated For 2020.

Turkey - GDP, Value Added

Demographics of Turkey

the most densely populated area is found around the Bosporus in the northwest where 20% of the population lives in Istanbul; with the exception of Ankara, urban centers remain small and scattered throughout the interior of Anatolia; an overall pattern of peripheral development exists, particularly along the Aegean Sea coast in the west, and the Tigris and Euphrates River systems in the southeast
Geographic Location

Southeastern Europe and Southwestern Asia (that portion of Turkey west of the Bosporus is geographically part of Europe), bordering the Black Sea, between Bulgaria and Georgia, and bordering the Aegean Sea and the Mediterranean Sea, between Greece and Syria

Races

Turkish 70-75%, Kurdish 19%, other minorities 7-12% (2016 est.)

Languages

Turkish (official), Kurdish, other minority languagesmajor-language

Religion

Muslim 99.8% (mostly Sunni), other 0.2% (mostly Christians and Jews)

Dependency & Expectancy of Turkey

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

Politics & Policies of Turkey

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ADB (nonregional member), Australia Group, BIS, BSEC, CBSS (observer), CD, CE, CERN (observer), CICA, CPLP (associate observer), D-8, EAPC, EBRD, ECO, EU (candidate country), FAO, FATF, G-20, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IDB, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, NATO, NEA, NSG, OAS (observer), OECD, OIC, OPCW, OSCE, Pacific Alliance (observer), Paris Club (associate), PCA, PIF (partner), SCO (dialogue member), SELEC, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNRWA, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO, ZC

Import of Turkey

Export of Turkey

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Export Destination