Mother Earth Travel > Country Index > Turkey > Map Economy History |
| 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.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Turkey > Map Economy History