Economy of Turkey

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Economy - overview: Turkey's dynamic economy is a complex mix of modern industry and commerce along with traditional agriculture that still accounts for nearly 40% 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 most important industry - and largest exporter - is textiles and clothing, which is almost entirely in private hands. In recent years the economic situation has been marked by erratic economic growth and serious imbalances. Real GNP growth has exceeded 6% in most years, but this strong expansion was interrupted by sharp declines in output in 1994 and 1999. Meanwhile the public sector fiscal deficit has regularly exceeded 10% of GDP - due in large part to the huge burden of interest payments, which now account for more than 40% of central government spending - while inflation has remained in the high double digit range. Perhaps because of these problems, foreign direct investment in Turkey remains low - less than $1 billion annually. Prospects for the future are improving, however, because the ECEVIT government since June 1999 has been implementing an IMF-backed reform program, including a tighter budget, social security reform, banking reorganization, and accelerated privatization. As a result, the fiscal situation is greatly improved and inflation has dropped below 40% - the lowest rate since 1987. The country experienced a financial crisis in late 2000, including sharp drops in the stock market and foreign exchange reserves, but is recovering rapidly, thanks to additional IMF support and the government's commitment to a specific timetable of economic reforms.

GDP: purchasing power parity - $444 billion (2000 est.)
GDP - real growth rate: -5% (1999 est.), 6% (2000 est.)
GDP - per capita: purchasing power parity - $6,800 (2000 est.)
GDP - composition by sector:
agriculture: 18%
industry: 29%
services: 53% (1998)
Inflation rate (consumer prices): 65% (1999 est.)
Labor force: 23.8 million (April 1999)
note: about 1.5 million Turks work abroad (1994)
Labor force - by occupation: agriculture 45.8%, services 33.7%, industry 20.5% (April 1999)
Unemployment rate: 7.3% plus underemployment of 6.9% (April 1999 est.)
Budget:
revenues: $45.2 billion
expenditures: $66.7 billion, including capital expenditures of $3.4 billion (1999)
Industries: textiles, food processing, autos, mining (coal, chromite, copper, boron), steel, petroleum, construction, lumber, paper
Industrial production growth rate: -5.2% (1999 est.)
Electricity - production: 116.5 billion kWh (1999)
Electricity - production by source:
fossil fuel: 69.4%
hydro: 30.5%
nuclear: 0%
other: 0.1% (1999 est.)
Electricity - consumption: 118.5 billion kWh (1999)
Electricity - exports: 209 million kWh (1999 est.)
Electricity - imports: 2.3 billion kWh (1999 est.)
Agriculture - products: tobacco, cotton, grain, olives, sugar beets, pulse, citrus; livestock
Exports: $26 billion (f.o.b., 1999 est.)
Exports - commodities: apparel 28%, foodstuffs 17%, textiles 12%, metal manufactures 9% (1998)
Exports - partners: Germany 21%, United States 9%, United Kingdom 7%, Italy 6%, France 6% (1999)
Imports: $40 billion (c.i.f., 1999 est.)
Imports - commodities: machinery 29%, semi-finished goods 16%, chemicals 14%, transport equipment 11%, fuels 8% (1998)
Imports - partners: Germany 14%, Italy 8%, United States 8%, France 8%, Russia 6%, United Kingdom 5% (1999)
Debt - external: $104 billion (1999)
Economic aid - recipient: ODA, $195 million (1993)
Currency: Turkish lira (TRL) = 100 kurus (theoretical)

SOURCE: The World Factbook

Mother Earth Travel > Country Index > Turkey > Map Economy History