The economy of Turkey is defined as an emerging market economy by the IMF. Turkey is among the world's developed countries according to the CIA World Factbook. Turkey is also defined by economists and political scientists as one of the world's newly industrialized countries. Turkey has the world's 17th-largest nominal GDP, and 13th-largest GDP by PPP. The country is among the world's leading producers of agricultural products; textiles; motor vehicles, transportation equipment; construction materials; consumer electronics and home appliances.
Since August 2018, Turkey has been going through a currency and debt crisis, characterised by the Turkish lira (TRY) plunging in value, high inflation, rising borrowing costs, and correspondingly rising loan defaults. The crisis was caused by the Turkish economy's excessive current account deficit and foreign-currency debt, in combination with the ruling Justice and Development Party's increasing authoritarianism and President Erdogan's unorthodox ideas about interest rate policy.
|Economy of Turkey|
|Currency||Turkish lira = 0.18 USD|
|1 January – 31 December|
|G-20, OECD, EU Customs Union, WTO, ECO, BSEC, Developing-8|
|GDP|| $766.428 billion (nominal, 2018)|
$2.292 trillion (PPP, 2018)
|GDP rank||19th (nominal, 2018) 13th (PPP, 2018)|
|3.2% (2016) 7.4% (2017) 2.6% (2018e) 1.0% (2019f)|
GDP per capita
| $9,346 (nominal 2018 est.)|
$27,956 (PPP, 2018)
GDP per capita rank
|63rd (nominal, 2017) 52nd (PPP, 2017)|
GDP by sector
services: 64.3% (2016 est.)
| 17.45% (2019f est.) 101% (Hanke est.; annual; August 2018)|
15.39% (official; annual; July 2018)
Population below poverty line
|21.9% (2015 est.)|
|41.9 medium (2016, World Bank)|
|31.709 million (2017 est.) note: about 1.2 million Turks work abroad|
Labour force by occupation
services: 55.3% (2017)
|Unemployment||10.1% (March 2018)|
Average gross salary
|$12,000 annual (2015)|
|$8,000 annual, (2015)|
|Exports||$157.1 billion (32nd) (2017)|
Main export partners
| Germany 9.6% |
United Kingdom 6.1%
United States 5.5%
Spain 4% (2017)
|Imports||$234.2 billion (23rd) (2017)|
Main import partners
| China 10% |
United States 5.1%
Italy 4.8% (2017)
|$180.3 billion (31 December 2017 est.) Abroad: $47.44 billion (31 December 2017 est.)|
|-$47.44 billion (2017 est.)|
Gross external debt
|$452.4 billion (31 December 2017 est.) (26th) |
|26.5% of GDP (2017)|
|-1.5% (of GDP) (2017 est.)|
|Revenues||172.8 billion (2017 est.)|
|Expenses||185.8 billion (2017 est.)|
|Economic aid||donor: $6.182 billion, 0.79% of GNI.|
|$107.7 billion (31 December 2017 est.)|
Turkey has the world's 17th-largest nominal GDP, and 13th-largest GDP by PPP. The country is a founding member of the OECD (1961) and the G-20 major economies (1999). Since 1995, Turkey is a party to the European Union–Turkey Customs Union. The CIA classifies Turkey as a developed country. Turkey is often classified as a newly industrialized country by economists and political scientists; while Merrill Lynch, the World Bank, and The Economist describe Turkey as an emerging market economy. The World Bank classifies Turkey as an upper-middle income country in terms of the country's per capita GDP in 2007. Mean graduate pay was $10.02 per man-hour in 2010. Turkey's labour force participation rate of 56.1% is by far the lowest of the OECD states which have a median rate of 74%. According to a 2014 survey by Forbes magazine, Istanbul, Turkey's financial capital, had a total of 37 billionaires in 2013, ranking 5th in the world. 2017 was the second consecutive year that saw more than 5.000 high net-worth individuals (HNWIs, defined as holding net assets of at least $1 million) leaving Turkey, reasons given as government crackdown on the media deterring investment, and loss of currency value against the U.S. dollar.
A longstanding characteristic of the economy of Turkey is a low savings rate. Since under the government of Recep Tayyip Erdoğan, Turkey has been running huge and growing current account deficits, reaching $7.1 billion by January 2018, while the rolling 12-month deficit rose to $51.6 billion, one of the largest current account deficits in the world. The economy has relied on capital inflows to fund private-sector excess, with Turkey’s banks and big firms borrowing heavily, often in foreign currency. Under these conditions, Turkey must find about $200 billion a year to fund its wide current account deficit and maturing debt, always at risk of inflows drying up, having gross foreign currency reserves of just $85 billion.
Turkey has been meeting the “60 percent EU Maastricht criteria” for public debt stock since 2004. Similarly, from 2002 to 2011, the budget deficit decreased from more than 10 percent to less than 3 percent, which is one of the EU Maastricht criteria for the budget balance. In January 2010, International credit rating agency Moody's Investors Service upgraded Turkey's rating one notch. In 2012, credit ratings agency Fitch upgraded Turkey's credit rating to investment grade after an 18-year gap, followed by a ratings upgrade by credit ratings agency Moody's Investors Service in May 2013, as the service lifted Turkey's government bond ratings to the lowest investment grade, Moody's first investment-grade rating for Turkey in two decades and the service stated in its official statement that the nation's "recent and expected future improvements in key economic and public finance metrics" was the basis for the ratings boost. In March 2018, Moody's downgraded Turkey’s sovereign debt into junk status, warning of an erosion of checks and balances under Recep Tayyip Erdoğan. In May 2018, credit ratings agency Standard & Poor's cut Turkey's debt rating further into junk territory, citing widening concern about the outlook for inflation amid a sell-off in the Turkish lira currency.
Share prices in Turkey nearly doubled over the course of 2009. On May 10, 2017, the Borsa Istanbul (BIST) 100 Index, the benchmark index of Turkey's stock market, set a new record high at 95,735 points. As of January 5, 2018, the Index reached 116,638 points. However, in the course of the 2018 Turkish currency and debt crisis, the index dipped back below 100.000 in May. In early June, the BIST-100 dropped to the lowest level in dollar terms since the global financial crisis in 2008.
In 2017, the OECD expected Turkey to be one of the fastest growing economies among OECD members during 2015-2025, with an annual average growth rate of 4.9 percent. In May 2018, Moody's Investors Service lowered its estimate for growth of the Turkish economy in 2018 from 4 percent to 2.5 percent and in 2019 from 3.5 percent to 2 percent.
According to a 2013 Financial Times Special Report on Turkey, Turkish business executives and government officials believed the quickest route to achieving export growth lies outside of traditional western markets. While the European Union used to account for more than half of all Turkey’s exports, by 2013 the figure was heading down toward not much more than a third. However, by 2018 the share of exports going to the EU was back above fifty percent. Turkish companies’ foreign direct investment outflow has increased by 10 times over the past 15 years, according to the 2017 Foreign Investment Index.
With policies of Recep Tayyip Erdoğan fuelling the construction sector, where many of his business allies are active, Turkey as of May 2018 had around 2 million unsold houses, a backlog worth three times average annual new housing sales. The 2018 Turkish currency and debt crisis ended a period of growth under Erdoğan-led governments since 2003, built largely on a construction boom fueled by easy credit and government spending.
On August 10, 2018, Turkish currency lira nosedived following Trump's tweet about doubling tariffs on Turkish steel and aluminum that day. The currency weakened 17% that day and has lost nearly 40% of its value against the dollar till that time. The crash of the lira has sent ripples through global markets, putting more pressure on the euro and increasing investors' risk aversion to emerging-market currencies across the board. On Aug. 13, South Africa’s rand slumped nearly 10%, the biggest daily drop since June 2016. Lira crisis spotlighted deeper concerns about the Turkish economy that have long signaled turmoil long ago.
By the end of 2018, Turkey went into recession. The Turkish Statistical Institute claimed that the Turkish economy declined by 2.4% in the last quarter of 2018 as compared to the previous quarter. This followed a 1.6% drop the previous quarter. Lira shrank down to 30% against the US dollar in 2018.
The following table shows the main economic indicators in 1980–2017. Inflation under 5% is in green.
(in Bil. US$ PPP)
|GDP per capita
(in % of GDP)
|1980||155.4||3,491||−0.8 %||110.6 %||7.2 %||n/a|
|1981||177.3||3,896||4.4 %||36.4 %||7.2 %||n/a|
|1982||194.8||4,168||3.4 %||31.1 %||7.6 %||n/a|
|1983||212.1||4,278||0.3 %||31.3 %||7.5 %||n/a|
|1984||234.6||4,624||6.8 %||48.4 %||7,4 %||n/a|
|1985||252.4||4,863||4.3 %||44.5 %||7.0 %||n/a|
|1986||275.4||5,190||6.9 %||34.6 %||7.7 %||n/a|
|1987||310.7||5,731||10.0 %||38.9 %||8.1 %||n/a|
|1988||328.4||6,158||2.1 %||73.7 %||8.7 %||n/a|
|1989||342.1||6,323||0.3 %||63.3 %||8.6 %||n/a|
|1990||387.5||7,002||9.3 %||60.3 %||8.0 %||n/a|
|1991||404.1||7,158||0.9 %||66.0 %||7.7 %||n/a|
|1992||438.1||7,633||6.0 %||70.1 %||7.9 %||n/a|
|1993||484.6||8,308||8.0 %||66.1 %||8.4 %||n/a|
|1994||467.9||7,896||−5.5 %||104.5 %||8.0 %||n/a|
|1995||512.0||8,507||7.2 %||89.6 %||7.1 %||n/a|
|1996||557.9||9,130||7.0 %||80.2 %||6.1 %||n/a|
|1997||610.1||9,837||7.5 %||85.7 %||6.3 %||n/a|
|1998||635.8||10,106||3.1 %||84.7 %||6.4 %||n/a|
|1999||623.7||9,773||−3.4 %||64.9 %||7.2 %||n/a|
|2000||680.2||10,509||6.6 %||55.0 %||6.0 %||51.6 %|
|2001||654.3||9,973||−6.0 %||54.2 %||7.8 %||76.1 %|
|2002||707.0||10,648||6.4 %||45.1 %||9.8 %||72.1 %|
|2003||761.6||11,335||5.6 %||25.3 %||9.9 %||65.7 %|
|2004||858.0||12,615||9.6 %||8.6 %||9.7 %||57.7 %|
|2005||965.4||14,018||9.0 %||8.2 %||9.5 %||50.7 %|
|2006||1,065.8||15,284||7.1 %||9.6 %||9.0 %||44.7 %|
|2007||1,149.2||16,280||5.0 %||8.8 %||9.2 %||38.2 %|
|2008||1,181.6||16,522||0,8 %||10.4 %||10.0 %||38.2 %|
|2009||1,134.6||15,635||−4.7 %||6.2 %||13.1 %||43.9 %|
|2010||1,245.9||16,900||8.5 %||8.6 %||11.1 %||40.1 %|
|2011||1,412.9||18,909||11.1 %||6.5 %||9.1 %||36.5 %|
|2012||1,507.9||19,938||4.8 %||8.9 %||8.4 %||32.7 %|
|2013||1,662.4||21,683||8.5 %||7.5 %||9.0 %||31.4 %|
|2014||1,779.6||22,905||5.2 %||8.9 %||9.9 %||28.8 %|
|2015||1,908.4||24,236||6.1 %||7.7 %||10.3 %||27.6 %|
|2016||1,994.3||24,986||3.2 %||7.8 %||10.9 %||28.3 %|
|2017||2,173.2||26,893||7.0 %||11.1 %||11.0 %||28.5 %|
As of 2016, Turkey is the world's largest producer of hazelnuts, cherries, figs, apricots, and pomegranates; the second-largest producer of quinces and watermelons; the third-largest producer of cucumbers, green peppers, lentils and pistachios; the fourth-largest producer of apples, tomatoes, eggplants, and olives; the fifth-largest producer of tea, chickpeas and sugar beet; the sixth-largest producer of almonds and onions; the seventh-largest producer of lemons, grapefruit, and cotton; and the eighth-largest producer of barley. Turkey has been self-sufficient in food production since the 1980s. In the year 1989, the total production of wheat was 16.2 million tonnes, and barley 3.44 million tonnes. The agricultural output has been growing at a respectable rate. However, since the 1980s, agriculture has been in a state of decline in terms of its share in the total economy. Turkish agriculture emits greenhouse gases and suffers from climate change in Turkey.
The country's large agricultural sector accounted for 29.5% of the employment in 2009. Historically, Turkey's farmers have been fairly fragmented. According to the 1990 census, "85% of agricultural holdings were under 10 hectares and 57% of these were fragmented into four or more non-contiguous plots." Many old agricultural attitudes remain widespread. Turkey is dismantling the incentive system. Fertilizer and pesticide subsidies have been curtailed and remaining price supports have been gradually converted to floor prices. The government has also initiated many planned projects, such as the Southeastern Anatolia Project (G.A.P project). The program includes 22 dams, 19 hydraulic power plants, and the irrigation of 1.82 million hectares of land. The total cost of the project is estimated at $32 billion. The total installed capacity of power plants is 7476 MW and projected annual energy production reaches 27 billion kWh. The physical realization of G.A.P. was 72.6% as of 2010
The livestock industry, compared to the initial years of the Republic, showed little improvement in productivity, and the later years of the decade saw stagnation. However, livestock products, including meat, milk, wool, and eggs, contributed to more than 1⁄3 of the value of agricultural output. Fishing is another important part of the economy; in 2005 Turkish fisheries harvested 545,673 tons of fish and aquaculture.
The EU imported fruit and vegetables from Turkey worth €738.4 million up to September 2016, an increase of 21% compared to the same period in 2015, according to Eurostat data processed by FEPEX (Federación Española de Asociaciones de Productores). Turkey is the EU's fourth largest non-EU vegetable supplier and the seventh largest fruit supplier. The European Commission had already started the formal process for extending the Customs Union Agreement to agricultural products, before European Union–Turkey relations deteriorated and efforts to extend and modernize the Customs Union Agreement came to a halt in 2018.
Olio Officina Globe reported 2016 olive statistics for Turkey: There are 180 million trees covering 700,000 hectares (1,700,000 acres) with a production of 500,000 tonnes (490,000 long tons; 550,000 short tons) of table olives and 300,000 tonnes (300,000 long tons; 330,000 short tons) of olive oil. Exports are 70,000 tonnes (69,000 long tons; 77,000 short tons) of table olives and 60,000 tonnes (59,000 long tons; 66,000 short tons) of olive oil a year. Edremit (Ayvalık) is the main variety in northern Turkey and Memecik in the south. Gemlik is a black table olive and other varieties are Büyük Topak, Ulak, Çakır, Çekişte, Çelebi, Çilli, Domat, Edincik Su, Eğriburun, Erkence, Halhalı, İzmir Sofralık, Kalembezi, Kan Çelebi, Karamürsel Su, Kilis Yağlık, Kiraz, Manzanilla, Memeli, Nizip Yağlık, Samanlı, Sarı Haşebi, Sarı Ulak, Saurani, Taşan Yüreği, Uslu, and Yağ Celebi.
Turkey's Vestel is the largest TV producer in Europe, accounting for a quarter of all TV sets manufactured and sold on the continent in 2006. By January 2005, Vestel and its rival Turkish electronics and white goods brand Beko accounted for more than half of all TV sets manufactured in Europe. Another Turkish electronics brand, Profilo Telra, was Europe's third-largest TV producer in 2005. EU market share of Turkish companies in consumer electronics has increased significantly following the Customs Union agreement signed between the EU and Turkey: in color TVs from 5% in 1995 to more than 50% in 2005, in digital devices from 3% to 15%, and in white goods from 3% to 18%.
The automotive industry is an important part of the economy since the late 1960s. The companies that operate in the sector are mainly located in the Marmara Region. With a cluster of car-makers and parts suppliers, the Turkish automotive sector has become an integral part of the global network of production bases, exporting over $22.94 billion worth of motor vehicles and components in 2008.
Turkey's annual auto exports, including trucks and buses, surpassed 1 million units for the first time in 2016 as foreign automakers' investment in new models and a recovery in its mainstay European market lifted shipments. According to industry group the Automotive Manufacturers Association, or OSD, Turkey exported 1.14 million units in 2016, up 15% from the year before. Auto exports hit a record high for the fourth straight year. Production grew 9% year on year in 2016 to 1.48 million units, setting a new record for the second consecutive year. Nearly 80% of vehicles produced in Turkey were exported.
Turkey has many modern armament manufacturers. Annual exports reached $1.6 billion in 2014. MKEK, TAI, Aselsan, Roketsan, FNSS, Nurol Makina, Otokar, and Havelsan are major manufacturers. On July 11, 2002, Turkey became a Level 3 partner of the F-35 Joint Strike Fighter (JSF) development program. TAI builds various aircraft types and models, such as the F-16 Fighting Falcon for the Turkish Air Force. Turkey has recently launched domestically built new military/intelligence satellites including a 0.8m resolution reconnaissance satellite (Project Göktürk-1) for use by the Turkish Armed Forces and a 2m resolution reconnaissance satellite (Project Göktürk-2) for use by the Turkish National Intelligence Organization. Other important products include the Altay main battle tank, A400M, TAI TFX, TF-2000 class AAW frigate, Milgem class corvette, TAI Anka UAV, Aselsan İzci UGV, T-155 Fırtına self-propelled howitzer, J-600T missile, T-129 attack helicopter, Roketsan UMTAS anti-tank missile, Roketsan Cirit laser-guided rocket, Panter Howitzer, ACV-300, Otokar Cobra and Akrep, BMC - Kirpi, FNSS Pars 6x6 and 8x8 APC, Nurol Ejder 6x6 APC, TOROS artillery rocket system, Bayraktar Mini UAV, ASELPOD, and SOM cruise missile.
Turkey ranks 8th in the list of countries by steel production. In 2013, total steel production was 29 million tonnes. Turkey’s crude steel production reached a record high of 34.1 million tons in 2011. Notable producers (above 2 million tonnes) and their ranks among top steel producing companies.
TÜBİTAK is the leading agency for developing science, technology and innovation policies in Turkey. TÜBA is an autonomous scholarly society acting to promote scientific activities in Turkey. TAEK is the official nuclear energy institution of Turkey. Its objectives include academic research in nuclear energy, and the development and implementation of peaceful nuclear tools.
Turkish government companies for research and development in military technologies include Turkish Aerospace Industries, Aselsan, Havelsan, Roketsan, MKE, among others. Turkish Satellite Assembly, Integration and Test Center is a spacecraft production and testing facility owned by the Ministry of National Defence and operated by the Turkish Aerospace Industries. The Turkish Space Launch System is a project to develop the satellite launch capability of Turkey. It consists of the construction of a spaceport, the development of satellite launch vehicles as well as the establishment of remote earth stations.
The Turkish construction and contracting industry is made up of a large number of businesses, the largest of which was ranked 40th in the world by size. In 2016 a total of 39 Turkish construction/contracting companies were listed in the Top 250 International Contractors List prepared by the Engineering News-Record.
Over half of Turkey's building stock contravenes housing regulations. An amnesty program to register illegal constructed buildings brought in $3.1billion, but the safety issues largely remain. In mid-February 2019, an 8 story building that was registered in the amnesty collapsed killing 21 people. As Turkey is prone to strong earthquakes, poor building quality is even more concerning.
In 2013 there were ninety-eight airports in Turkey, including 22 international airports. As of 2015, Istanbul Atatürk Airport is the 11th busiest airport in the world, serving 31,833,324 passengers between January and July 2014, according to Airports Council International. The new (third) international airport of Istanbul is planned to be the largest airport in the world, with a capacity to serve 150 million passengers per annum. Turkish Airlines, flag carrier of Turkey since 1933, was selected by Skytrax as Europe's best airline for five consecutive years from 2011 and 2015. With 435 destinations (51 domestic and 384 international) in 126 countries worldwide, Turkish Airlines is the largest carrier in the world by number of countries served as of 2016.
The total length of the rail network was 10,991 km in 2008, ranking 22nd in the world, including 2,133 km of electrified track. The Turkish State Railways started building high-speed rail lines in 2003. The first line, which has a length of 533 km from Istanbul (Turkey's largest metropolis) via Eskişehir to Ankara (the capital) is under construction and will reduce the travelling time from 6–7 hours to 3 hours and 10 minutes. The Ankara-Eskişehir section of the line, which has a length of 245 km and a projected travel time of 65 minutes, is completed. Trials began on April 23, 2007, and revenue earning service began on March 13, 2009. The Eskişehir-Istanbul section of the line is scheduled to be completed by 2012, and includes the Marmaray tunnel which will enter service in 2012 and establish the first direct railway connection between Europe and Anatolia.Second high-speed rail line, which has length of 212 km between Ankara and Konya become operational in 2011.
As of 2008, there were 17,502,000 operational landline telephones in Turkey, which ranked 18th in the world; while there were 65,824,000 registered mobile phones in the country, which ranked 15th in the world during the same year. The largest landline telephone operator is Türk Telekom, which also owns TTNET, the largest internet service provider in Turkey. The largest mobile phone operators in the country are Turkcell, Vodafone Turkey, Avea and TTNET Mobil.
The telecommunications liberalisation process started in 2004 after the creation of the Telecommunication Authority, and is still ongoing. Private sector companies operate in mobile telephony, long distance telephony and Internet access. Additional digital exchanges are permitting a rapid increase in subscribers; the construction of a network of technologically advanced intercity trunk lines, using both fiber-optic cable and digital microwave radio relay, is facilitating communication between urban centers. The remote areas of the country are reached by a domestic satellite system, while the number of subscribers to mobile-cellular telephone service is growing rapidly.
The main line international telephone service is provided by the SEA-ME-WE 3 submarine communications cable and by submarine fiber-optic cables in the Mediterranean Sea and Black Sea that link Turkey with Italy, Greece, Israel, Bulgaria, Romania, and Russia. In 2002, there were 12 Intelsat satellite earth stations; and 328 mobile satellite terminals in the Inmarsat and Eutelsat systems.
Türksat A.Ş. is the primary communications satellite operator of Turkey, controlling the Turksat series of satellites. TÜBİTAK and Turkish Aerospace Industries have developed scientific observation satellites and reconnaissance satellites like the RASAT, Göktürk-1 and Göktürk-2.
As of 2001, there were 16 AM, 107 FM, and 6 shortwave radio stations in the country.
As of 2015, there were 42,275,017 internet users in Turkey, which ranked 15th in the world; while as of 2012, there were 7,093,000 internet hosts in the country, which ranked 16th in the world.
Tourism is one of the most dynamic and fastest developing sectors in Turkey. According to travel agencies TUI AG and Thomas Cook, 11 of the 100 best hotels of the world are located in Turkey. In 2005, there were 24,124,501 visitors to the country, who contributed $18.2 billion to Turkey's revenues, with an average expenditure of $679 per tourist. In 2008, the number of visitors rose to 30,929,192, who contributed $21.9 billion to Turkey's revenues. For 2011, the World Tourism Organisation (UNWTO) reported 34,654,000 arrivals and US$25 billion in receipts for Turkey. According to the World Travel & Tourism Council, in 2012 travel and tourism made a total contribution of 10.9% to Turkish GDP and supported 8.3% of all jobs in the country. Over the years, Turkey has emerged as a popular tourist destination for many Europeans, competing with Greece, Italy and Spain. Resorts in provinces such as Antalya and Muğla (which are located on the Turkish Riviera) have become very popular among tourists.
The Central Bank of the Republic of Turkey (Türkiye Cumhuriyet Merkez Bankası) was founded in 1930, as a privileged joint-stock company. It possesses the sole right to issue notes. It also has the obligation to provide for the monetary requirements of the state agricultural and commercial enterprises. All foreign exchange transfers are exclusively handled by the central bank.
Originally established as the Ottoman Stock Exchange (Dersaadet Tahvilat Borsası) in 1866, and reorganized to its current structure at the beginning of 1986, the Istanbul Stock Exchange (ISE) is the sole securities market of Turkey. During the 19th and early 20th centuries, Bankalar Caddesi (Banks Street) in Istanbul was the financial center of the Ottoman Empire, where the headquarters of the Ottoman Central Bank (established as the Bank-ı Osmanî in 1856, and later reorganized as the Bank-ı Osmanî-i Şahane in 1863) and the Ottoman Stock Exchange (1866) were located. Bankalar Caddesi continued to be Istanbul's main financial district until the 1990s, when most Turkish banks began moving their headquarters to the modern central business districts of Levent and Maslak. In 1995, the Istanbul Stock Exchange moved to its current building in the Istinye quarter. The Istanbul Gold Exchange was also established in 1995. The stock market capitalisation of listed companies in Turkey was valued at $161,537,000,000 in 2005 by the World Bank.
Until 1991, establishing a private sector bank in Turkey wasn't easy and was subject to strict government controls and regulations. On 10 October 1991 (ten days before the general elections of 20 October 1991) the ANAP government of Prime Minister Mesut Yılmaz gave special permissions to five prominent businessmen (who had close links to the government) to establish their own small-scale private banks. These were Kentbank (owned by Süzer); Park Yatırım Bankası (owned by Karamehmet); Toprakbank (owned by Toprak); Bank Ekspres (owned by Betil); and Alternatif Bank (owned by Doğan.) They were followed by other small-scale private banks established between 1994 and 1995, during the DYP government of Prime Minister Tansu Çiller, who introduced drastic changes to the banking laws and regulations; which made it very easy to establish a bank in Turkey, but also opened many loopholes in the system. In 1998, there were 72 banks in Turkey; most of which were owned by construction companies that used them as financial assets for siphoning money into their other operations. As a result, in 1999 and 2001, the DSP government of Prime Minister Bülent Ecevit had to face two major economic crises that were caused mostly by the weak and loosely regulated banking sector; the growing trade deficit; and the devastating İzmit earthquake of 17 August 1999. The Turkish lira, which was pegged to the U.S. dollar prior to the crisis of 2001, had to be floated, and lost an important amount of its value. This financial breakdown reduced the number of banks to 31. Prime Minister Bülent Ecevit had to call the renowned economist Kemal Derviş to tidy up the economy and especially the weak banking system so that a similar economic crisis would not happen again.
At present, the Turkish banking sector is among the strongest and most expansive in East Europe, the Middle East and Central Asia. During the past decade since 2001, the Turkish lira has also gained a considerable amount of value and maintained its stability, becoming an internationally exchangeable currency once again (in line with the inflation that dropped to single-digit figures since 2003.) The economy grew at an average rate of 7.8% between 2002 and 2005. Fiscal deficit is benefiting (though in a small amount) from large industrial privatizations. Banking came under stress beginning in October 2008 as Turkish banking authorities warned state-run banks against the pullback of loans from the larger financial sectors. More than 34% of the assets in the Turkish banking sector are concentrated in the Agricultural Bank (Ziraat Bankası), Housing Bank (Yapı Kredi Bankası), Isbank (Türkiye İş Bankası) and Akbank. The five big state-owned banks were restructured in 2001. Political involvement was minimized and loaning policies were changed. There are also numerous international banks, which have branches in Turkey. A number of Arabian trading banks, which practice an Islamic banking, are also present in the country.
Government regulations passed in 1929 required all insurance companies to reinsure 30% of each policy with the Millî Reasürans T.A.Ş. (National Reinsurance Corporation) which was founded on February 26, 1929. In 1954, life insurance was exempted from this requirement. The insurance market is officially regulated through the Ministry of Commerce.
After years of low levels of foreign direct investment (FDI), in 2007 Turkey succeeded in attracting $21.9 billion in FDI and is expected to attract a higher figure in following years. A series of large privatizations, the stability fostered by the start of Turkey’s EU accession negotiations, strong and stable growth, and structural changes in the banking, retail, and telecommunications sectors have all contributed to the rise in foreign investment.
In recent years, the chronically high inflation has been brought under control and this has led to the launch of a new currency, the "New Turkish lira", on January 1, 2005, to cement the acquisition of the economic reforms and erase the vestiges of an unstable economy. On January 1, 2009, the New Turkish lira was renamed once again as the "Turkish lira", with the introduction of new banknotes and coins.
In 2014, 12 Turkish companies were listed in the Forbes Global 2000 list - an annual ranking of the top 2000 public companies in the world by Forbes magazine. Banking industry leads with 5 companies in the list followed by telecommunication industry which has 2 companies in the list. There are also 2 conglomerates followed by transportation and beverages industries with 1 companies each. As of 2014, listed companies were:
|Market Value |
|274||Türkiye İş Bankası||Banking||14.58||2.32||114.27||9.92|
|1507||Efes İçecek Grubu||Beverages||4.83||1.37||10.41||6.75|
|1872||Türk Hava Yolları||Transportation||9.87||0.36||11.82||4.29|
As of 2016, the main trading partners of Turkey are Germany, Russia and the United Kingdom. Turkey has taken advantage of a customs union with the European Union, signed in 1995, to increase industrial production for exports, while benefiting from EU-origin foreign investment into the country. In addition to Customs Union, Turkey has free-trade agreements with 22 countries.
Turkey is also a source of foreign direct investment in central and eastern Europe and the CIS, with more than $1.5 billion invested. 32% has been invested in Russia, primarily in the natural resources and construction sector, and 46% in Turkey’s Black Sea neighbours, Bulgaria and Romania. Turkish companies also have sizable FDI stocks in Poland, at about $100 million.
The construction and contracting companies have been significant players, such as Enka, Tekfen, Gama, and Üçgen İnşaat, as well as the three industrial groups, Anadolu Efes Group, ŞişeCam Group and Vestel Group.
The energy sector is the main source of greenhouse gas emissions by Turkey and contributes to climate change in Turkey, which is in turn affecting the economy by increasing droughts, which reduce agriculture and hydropower in Turkey.
Turkey is an oil and natural gas producer, but the level of production by the state-owned TPAO is not enough to make the country self-sufficient, which makes Turkey a net importer of both oil and gas.
The pipeline network in Turkey included 1,738 kilometres (1,080 mi) for crude oil, 2,321 kilometres (1,442 mi) for petroleum products, and 708 kilometres (440 mi) for natural gas in 1999. The Baku–Tbilisi–Ceyhan pipeline, the second-longest oil pipeline in the world, was inaugurated on May 10, 2005. The pipeline delivers crude oil from the Caspian Sea basin to the port of Ceyhan on Turkey's Mediterranean coast, from where it is distributed with oil tankers to the world's markets. The planned Nabucco Pipeline will also pass from Turkey and provide the European Union member states with natural gas from the Caspian Sea basin. The Blue Stream, a major trans-Black Sea gas pipeline, is operational since November 17, 2005, and delivers natural gas from Russia to Turkey. The Tabriz–Ankara pipeline is a 2,577-kilometre-long (1,601-mile) natural gas pipeline, which runs from Tabriz in northwestern Iran to Ankara in Turkey. The pipeline was commissioned on July 26, 2001. In Erzurum, the South Caucasus Pipeline, which was commissioned on May 21, 2006, is linked to the Iran-Turkey pipeline. In the future, these two pipelines will be among the main supply routes for the planned Nabucco Pipeline from Turkey to Europe.
To cover the increasing energy needs of its population and ensure the continued raising of its living standards, Turkey plans to build several nuclear power plants. Following the construction of experimental reactors, proposals to build large scale nuclear power plants were presented as early as in the 1950s by Turkish Atomic Energy Authority, but plans were repeatedly canceled even after bids were made by interested manufacturers because of high costs and safety concerns. Turkey has always chosen CANDU reactors because they burn natural uranium which is cheap and available locally and because they can be refueled online. This has caused uneasy feelings among Turkey's neighbours because they are ideal for producing weapons-grade plutonium. Turkey's first nuclear power plants are expected to be built in Mersin's Akkuyu district on the Mediterranean coast; in Sinop's İnceburun district on the Black Sea coast; and in Kırklareli's İğneada district on the Black Sea coast.
Turkey is a partner country of the EU INOGATE energy programme, which has four key topics: enhancing energy security, convergence of member state energy markets on the basis of EU internal energy market principles, supporting sustainable energy development, and attracting investment for energy projects of common and regional interest.
The proportion of renewable energy in Turkey is twice the EU average, at around 25–26%. Turkey plans to raise this to 30% by 2023.
The share of renewable energy, which serves as one of the most important pillars of the National Energy and Mine Policy and led by hydro, wind and solar energy, reached 32 percent in the third quarter of 2017, surpassing the target of 30 percent that was set for 2023.
Turkey led the way in Europe with an increase of 1.79 GW in solar capacity making the country one of the most promising markets in terms of solar business.
Turkey is the tenth-ranked producer of minerals in the world in terms of diversity. Around 60 different minerals are currently produced in Turkey. The richest mineral deposits in the country are boron salts, Turkey’s reserves amount to 72% of the world's total. According to the CIA World Factbook, other natural resources include coal, iron ore, copper, chromium, uranium, antimony, mercury, gold, barite, borate, celestine (strontium), emery, feldspar, limestone, magnesite, marble, perlite, pumice, pyrites (sulfur), clay, arable land, hydropower, and geothermal power.
With the establishment of the Turkish Environment Ministry on August 9, 1991 (currently the Ministry of Environment and Urban Planning), Turkey began to make significant progress addressing some of its most important environmental problems. The most dramatic improvements were significant reductions of air pollution in Istanbul and Ankara. The most urgent needs are for water treatment plants, waste water treatment facilities, solid waste management and the conservation of biodiversity.
The country's wealth is mainly concentrated in the northwest and west, while the east and southeast suffer from poverty, lower economic production and higher levels of unemployment. However, in line with the continuous economic growth in Turkey during the recent decade, parts of Anatolia began reaching a higher economic standard. These cities are known as the Anatolian Tigers.
Richest and poorest NUTS-2 regions (GDP PPP 2017)
Source: Eurostat - ESA 95
Richest and poorest NUTS-1 regions (GDP PPP 2017)
Source: Eurostat - ESA 95
Anatolian Tigers (Turkish: Anadolu Kaplanları) is a term internationally used in the context of the Turkish economy to refer to and to explain the phenomenon of a number of cities in Turkey which have displayed impressive growth records since the 1980s, as well as to a defined new breed of entrepreneurs rising in prominence and who can often be traced back to the cities in question and who generally rose from the status of SMEs.Where particular cities are concerned, the term is most often used for the capitals or depending centers of Denizli, Gaziantep, Kayseri, Bursa, Konya, Kocaeli, Kahramanmaraş. Within Turkey, the accent is laid on cities that have received little state investments or subsidies over the years. Çorum, Denizli, Gaziantep and Kahramanmaraş, in particular, are cited among the cities who "made it themselves". In time order, while Denizli in Turkey's Aegean Region was the early hour precursor for rapid growth in an Anatolian Tiger pattern, Gaziantep, Malatya, Konya and Kayseri are the most recently cited prominent Tigers on the basis of the number of companies they have among Turkey's 500 biggest. These largest are the forerunners of further large companies and a multitude of smaller ones.
Aside from their production units, the definition generally excludes companies who have their headquarters in the largest cities of Turkey; namely İstanbul, Ankara, İzmir, Bursa and Adana, as well as companies constituted with public capital.
The term is also echoed, in the form "Anatolian Lions" (Turkish: Anadolu Aslanları), by the name of the private sector association Askon that brings together businessmen from a number of other cities who have found common grounds between each other. This association has branches in Ankara, Burdur, Bursa, Gebze, İzmit, Konya, Malatya and Trabzon. These lions are less often cited among the tigers for several reasons.
Other variations of the term, such "Turkey's Tigers" or "Turkish Tigers", as used by the PBS without excluding the most commonly used form of "Anatolian Tigers" have also been pronounced.
Beyond their shared characteristics in an economical perspective, references have also been made, especially in international media, to different political connotations within the term, including by associating this capital with Islamic values or extending its whole under such definitions as "Islamic capital" or "green capital". The political choices and the voting trends of the cities and of particulars in question may differ widely between each other. A 2005 study by the European Stability Initiative that was focused on Kayseri uses the term "Islamic Calvinists" to define the entrepreneurs and their values.Several business awards or conferences in Turkey draw reference from the term "Anatolian Tigers" or its variants.
The term was copied after the Asian Tigers.Blue Tunnel Project
Blue Tunnel Project, is an effort to provide large-scale irrigation to arid lands of Konya Plain, in the Turkish heartland, where agriculture and wildlife are under threat.Blue Tunnel, the most important part of the Konya Plain Project, is the second-largest irrigation scheme of Turkey after the Southeastern Anatolia Project (GAP), and aims to provide the region with a yearly 414 million cubic meters of water.Borsa Istanbul
The Borsa İstanbul (abbreviated as BIST) is the sole exchange entity of Turkey combining the former Istanbul Stock Exchange (ISE) (Turkish: İstanbul Menkul Kıymetler Borsası, IMKB), the Istanbul Gold Exchange (Turkish: İstanbul Altın Borsası, İAB) and the Derivatives Exchange of Turkey (Turkish: Vadeli İşlem Opsiyon Borsası, VOB) under one umbrella. It was established as an incorporated company with a founding capital of 423,234,000 (approx. US$240 million) on April 3, 2013, and began to operate on April 5, 2013. Its logo is the traditional Ottoman mark for Istanbul, the tulip. Its slogan is “worth investing”.Shareholders of Borsa İstanbul are: 49% Government of Turkey, 41% IMKB, 5% VOB, 4% IMKB members, 1% IMKB brokers and 0.3% IAB members. It is planned that all the Government-owned shares will be offered for sale. Among the executives of the nine-member board of directors, which is presided by chairman Himmet Karadağ, are former deputy chairman of ISE Osman Akyüz, former head of VOB Işınsu Kestelli, Merrill Lynch Investment Bank General Manager Hüseyin Kelezoğlu and Chairman of Turkish Association of Capital Market Intermediary Institutions Attila Köksal.Coşkun Can Aktan
Coşkun Can Aktan (born 1963) is an economist and a professor at the Faculty of Economics and Management at Dokuz Eylül University in İzmir, Turkey. He is also founder and currently chairman of the Social Sciences Research Society (SOSRES). He earned his undergraduate and graduate degrees from Dokuz Eylul University and began teaching there in 1986, obtaining full professorship in 1996. Aktan is a leading expert on the privatization of the Turkish economy, analyzing and writing on the movement of Turkey from a statist to a market economy from its early days, making Aktan an early and internationally known source of information on Turkey's move toward a market-based economy.Eastern Anatolia Development Programme
The Eastern Anatolia Development Programme is an integrative development programme financed by the European Structural Funds for the east of Turkey.Economic Cooperation Organization
The Economic Cooperation Organization or ECO is a Eurasian political and economic intergovernmental organization which was founded in 1984 in Tehran by the leaders of Iran, Pakistan, and Turkey. It provides a platform to discuss ways to improve development and promote trade and investment opportunities. The ECO is an ad hoc organisation under the United Nations Charter. The objective is to establish a single market for goods and services, much like the European Union. The ECO's secretariat and cultural department are located in Iran, its economic bureau is in Turkey and its scientific bureau is situated in Pakistan.
The nature of the ECO is that it consists of predominantly Muslim-majority states as it is a trade bloc for the Central Asian states connected to the Mediterranean through Turkey, to the Persian Gulf via Iran, and to the Arabian sea via Pakistan. The current framework of the ECO expresses itself mostly in the form of bilateral agreements and arbitration mechanisms between individual and fully sovereign member states. This makes the ECO similar to ASEAN in that it is an organisation that has its own offices and bureaucracy for implementation of trade amongst sovereign member states.
This consists of the historically integrated agricultural region of the Ferghana Valley which allows for trade and common agricultural production in the border region of Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan. Free trade agreements between the industrial nations of Iran and Turkey are due to be signed in 2017. Likewise the Pakistan-Turkey Free Trade Agreement is due to be signed. Pakistan has free trade agreements with both Afghanistan and Iran which are signed and are in the process of implementation, and currently most of Afghanistan trade is through Pakistan. And the Afghanistan-Pakistan Transit Trade Agreement is designed to facilitate trade for goods and services for Central Asia via both Afghanistan and Pakistan. This is in addition to the Ashgabat agreement which is a multi-modal transport agreement between the Central Asian states.Further cooperation amongst members is planned in the form of the Iran–Pakistan gas pipeline, as well as a Turkmenistan–Afghanistan–Pakistan pipeline. Current pipelines include the Tabriz–Ankara pipeline in addition to the planned Persian Pipeline. This is in addition to the transportation of oil and gas from resource rich Central Asian states such as Kazakshtan and Turkmenistan of minerals and agriculture that complements the industrialisation underway in Iran, Pakistan and Turkey. Pakistan plans to diversify its source of oil and gas supplies towards the Central Asian states including petroleum import contracts with Azerbaijan.Electricity sector in Turkey
Each year about 300 TWh of electricity is used in Turkey, which is almost a fifth of the amount of primary energy in Turkey. As the electricity sector in Turkey burns a lot of local and imported coal the largest source of greenhouse gas emissions by Turkey is the country's coal-fired power stations, many of which are subsidized. Imports of gas, mostly for power stations in Turkey, is the main import cost for the economy of Turkey. However solar power in Turkey and wind power in Turkey are being increased and balanced by the country's existing hydropower.Energy in Turkey
Turkey consumes over 6 exajoules of primary energy per year, over 20 megawatt hours (MW/h) per person. 88% of energy is fossil fuels and the energy policy of Turkey includes reducing fossil fuel imports, which are a quarter of import costs. As of 2016 greenhouse gas emissions by Turkey were 6.3 tons/person year, more than the global average.Lakes District Technocity
The Lakes District Technocity(established in 2004) is a science park located on the campus of Süleyman Demirel University. The technocity is a full member of International Association of Science Parks. The science park occupies 112000 squaremeters area.The activities of the technocity include Energy and Renewable Energy, Internet Technology and Services / E-Business, Plasma Technology, and Environment Technologies.
As of 2010, 57% of firms on the tecnocity involved in the area of computer software industry.Land Ownership in Turkey
Land ownership in Turkey had been constrained by the Ottoman Empire in the 19th century. This was to prevent foreigners from competing with natives for desirable property. This policy was continued when Turkey became independent in the early 20th century. The policy was relaxed during the 21st century.In 2003, property purchases were opened to foreign nationals though restrictions were retained for various provinces. When these restrictions were violated in 2005, the law was annulled by Turkish courts. Despite this, property purchases continue. As of 2008, 63,085 individual properties have been sold to over 73,103 foreigners. This includes 38,623,661 square metres (415,741,630 sq ft) of land valued at US$10.4 billion, mostly by German, British and Greek citizens.List of Governors of the Central Bank of Turkey
The following is a List of Governors of the Central Bank of Turkey.
From its foundation until January 26, 1970, the heads of the Central Bank were in the status of General Director. Thereafter the title was changed to Governor.List of Turkish people by net worth
This is a list of Turkish billionaires based on an annual assessment of wealth and assets compiled and published by Forbes magazine in 2017.List of Turkish provinces by GDP
This is a list of Turkish provinces by GDP and GDP per capita. The equivalent countries which are comparable to the Turkishs provinces in GDP per capita are chosen by Worldbank data for the same year.List of Turkish regions by Human Development Index
This is a list of Turkish NUTS1 statistical regions by Human Development Index as of 2018 with data for the Year 2017.MINT (economics)
MINT is an acronym referring to the economies of Mexico, Indonesia, Nigeria, and Turkey. The term was originally coined by Fidelity Investments, a Boston-based asset management firm, and was popularized by Jim O'Neill of Goldman Sachs, who had created the term BRIC. The term is primarily used in the economic and financial spheres as well as in academia. Its usage has grown specially in the investment sector, where it is used to refer to the bonds issued by these governments. These four countries are also part of the "Next Eleven".Merkez Türkiye
The Merkez Türkiye (English: Centre Turkey, Hub Turkey or Central Turkey) project is a proposal for a planned megacity put forward by Turkey's main opposition Republican People's Party (CHP) on 21 May 2015, as part of their June 2015 general election campaign. The project plans to use Turkey's strategic geographical positioning to establish a centre for global trade and commerce in Central Anatolia. It was branded as Turkey's 'economic empowerment project' (Ekonomi Yükseliş Projesi) and was nicknamed 'the Project of the Century' (Yüzyılın projesi).Privatization Board of Turkey
The Privatization Board of Turkey (Turkish: T.C. Başbakanlık Özelleştirme İdaresi Başkanlığı), founded on 27 November 1994, Law No.4046, is a government structure under Prime Minister of Turkey. It is responsible for the privatization process of public sector companies.Süreyya Serdengeçti
Süreyya Serdengeçti (born 1952) is a Turkish economist and former Governor of the Central Bank of Turkey. He is currently working as an instructor in Turkish and world economics at the TOBB University of Economics and Technology in Ankara, Turkey.Turkish construction and contracting industry
The Turkish construction and contracting industry is one of the leading industries in Turkey. A total of 33 Turkish construction/contracting companies were listed for the Top 250 International Contractors List prepared by the Engineering News-Record in 2009.
|States with limited|
Economic classification of countries
|Gross domestic product (GDP)|
|Gross national income (GNI)|
|Other national accounts|
|Net international |
investment position (NIIP)