Turkey Economy

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.

GDP: 5.3% (2003)

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.)

Population below poverty line: 20% (2002)

Household income or consumption by percentage share: lowest 10%: 2.3% highest 10%: 30.7% (2000)

Distribution of family income - Gini index: 42 (2003)

Inflation rate (consumer prices):

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.)

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

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

Industrial production growth rate: 16.5% (2004 est.)

Electricity - production: 139.7 billion kWh (2003)

Electricity - production by source:

Electricity - consumption: 117.9 billion kWh (2002)

Electricity - exports: 433 million kWh (2002)

Electricity - imports: 3.6 billion kWh (2002)

Oil - production: 48,000 bbl/day (2001 est.)

Oil - consumption: 619,500 bbl/day (2001 est.)

Oil - exports: 46,110 bbl/day (2001)

Oil - imports: 616,500 bbl/day (2001)

Oil - proved reserves: 288.4 million bbl (1 January 2002)

Natural gas - production: 312 million cu m (2001 est.)

Natural gas - consumption: 15.94 billion cu m (2001 est.)

Natural gas - exports: 0 cu m (2001 est.)

Natural gas - imports: 15.75 billion cu m (2001 est.)

Natural gas - proved reserves: 8.685 billion cu m (1 January 2002)

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

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)

Debt - external: $16.9 billion (2004 est.)

Economic aid - recipient: ODA, $635.8 million (2002)

Currency:

Currency code:

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



Links: Turkey Travel Blogs (all) | Turkey Travel Photos | Turkey Travel Forum | Turkey Facts | Map of Turkey

Areas in Turkey: Aegean | Black Sea | Central Anatolia | Eastern Anatolia | Marmara | Mediterranean | Southeastern Anatolia {#[blogfeed]#}{#[photos]#}