Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a small portion on the Balkan Peninsula in ...
has an
emerging market
An emerging market (or an emerging country or an emerging economy) is a market that has some characteristics of a developed market, but does not fully meet its standards. This includes markets that may become developed markets in the future or wer ...
economy, as defined by the
International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glo ...
. The country is a founding member of the
OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
(1961) and the
G-20 major economies
The G20 or Group of Twenty is an intergovernmental forum comprising 19 countries and the European Union (EU). It works to address major issues related to the global economy, such as international financial stability, climate change mitigation ...
(1999). Since 1995, Turkey is a party to the
European Union–Turkey Customs Union
The European Union–Turkey Customs Union is a trade agreement between the European Union (EU) and Turkey. The agreement came into effect on 31 December 1995, following a 6 March 1995 Decision of the European Community–Turkey Associatio ...
. Turkey is often classified as a
newly industrialized country
The category of newly industrialized country (NIC), newly industrialized economy (NIE) or middle income country is a socioeconomic classification applied to several countries around the world by political scientists and economists. They represe ...
by economists and political scientists;
while
Merrill Lynch, the
World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
, the
IMF and ''
The Economist
''The Economist'' is a British weekly newspaper printed in demitab format and published digitally. It focuses on current affairs, international business, politics, technology, and culture. Based in London, the newspaper is owned by The Eco ...
'' magazine describe Turkey as an
emerging market
An emerging market (or an emerging country or an emerging economy) is a market that has some characteristics of a developed market, but does not fully meet its standards. This includes markets that may become developed markets in the future or wer ...
economy.
The World Bank classifies Turkey as an upper-middle income country in terms of the country's per capita GDP.
The
CIA World Factbook adds Turkey to its list of
developed countries (DCs) due to the country's status as a founding member of the
OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
. With a
population
Population typically refers to the number of people in a single area, whether it be a city or town, region, country, continent, or the world. Governments typically quantify the size of the resident population within their jurisdiction using a ...
of 84.6 million as of 2021,
Turkey is among the world's leading producers of agricultural products, textiles, motor vehicles, transportation equipment, construction materials, consumer electronics and home appliances.
Turkey's
nominal GDP
Gross domestic product (GDP) is a money, monetary Measurement in economics, measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjec ...
peaked at $957.5 billion in 2013,
ranking 16th in the world in that year,
while its
nominal GDP per capita
The figures presented here do not take into account differences in the cost of living in different countries, and the results vary greatly from one year to another based on fluctuations in the exchange rates of the country's currency. Such fluc ...
peaked at $12,489 in 2013,
ranking 64th.
The
GDP (PPP) per capita peaked at $38,759 in 2022, ranking 46th.
The declining value of the
Turkish lira
The lira ( tr, Türk lirası; sign: ₺; ISO 4217 code: TRY; abbreviation: TL) is the official currency of Turkey and Northern Cyprus. One lira is divided into one hundred ''kuruş''.
History
Ottoman lira (1844–1923)
The lira, along with ...
, especially during the
2018–2022 Turkish currency and debt crisis, had a significant impact on the recent decrease in the country's
USD
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
-based nominal GDP figures.
High
inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...
continues to be a problem in the early 2020s. According to the IMF's estimates, published in the IMF
WEO Database of October 2022, Turkey is forecasted to have the world's
20th-largest nominal GDP and
11th-largest GDP by PPP by the end of 2022.
Over the past 20 years, there have been major developments in the financial and social aspects of Turkey's economy, such as increases in
employment and average
income
Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. Fo ...
since 2000.
Turkey has recently slowed down in its economic progress, due to considerable changes in external and internal factors, as well as a reduction in the government's economic reforms.
Environmentalists have argued that the economy is excessively dependent on the
construction and contracting sector. President
Recep Tayyip Erdoğan's unorthodox monetary policy increased inflation and devalued the currency in recent years.
Macroeconomic trends
According to
Eurostat data, Turkish GDP per capita adjusted by
purchasing power
Purchasing power is the amount of goods and services that can be purchased with a unit of currency. For example, if one had taken one unit of currency to a store in the 1950s, it would have been possible to buy a greater number of items than would ...
standards stood at 64% of the EU average in 2018.
Turkey's labour force participation rate of 61.5% is by far the lowest of the OECD states which have a median rate of 78%. 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 Turkish economy 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%
Maastricht criteria
The euro convergence criteria (also known as the Maastricht criteria) are the criteria which European Union member states are required to meet to enter the third stage of the Economic and Monetary Union (EMU) and adopt the euro as their currenc ...
" of the EU for
government debt
A country's gross government debt (also called public debt, or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit oc ...
stock since 2004. Similarly, from 2002 to 2011, the budget deficit decreased from more than 10% to less than 3%, which is one of the EU's Maastricht criteria for the
budget balance.
In January 2010, International
credit rating agency
A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely principal and interest payments and the likelihood of Default (finance), default ...
Moody's Investors Service
Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides internationa ...
upgraded Turkey's rating one notch. In 2012, credit ratings agency
Fitch upgraded Turkey's credit rating to
investment grade
In investment, the bond credit rating represents the credit worthiness of corporate or government bonds. It is not the same as an individual's credit score. The ratings are published by credit rating agencies and used by investment professiona ...
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 10 May 2017, the
Borsa Istanbul
The Borsa İstanbul (abbreviated as BIST) is the sole exchange entity of Turkey combining the former Istanbul Stock Exchange (ISE) ( tr, İstanbul Menkul Kıymetler Borsası, IMKB), the Istanbul Gold Exchange ( tr, İstanbul Altın Borsası, İA ...
(BIST-100 Index), the benchmark index of Turkey's stock market, set a new record high at 95,735 points. As of 5 January 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 Index 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%. In May 2018,
Moody's Investors Service
Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides internationa ...
lowered its estimate for growth of the Turkish economy in 2018 from 4% to 2.5% & in 2019 from 3.5% to 2%.
According to a 2013 ''
Financial Times
The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Ni ...
'' 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
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...
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.
In 2018, Turkey went through a
currency and debt crisis, characterised by the
Turkish lira
The lira ( tr, Türk lirası; sign: ₺; ISO 4217 code: TRY; abbreviation: TL) is the official currency of Turkey and Northern Cyprus. One lira is divided into one hundred ''kuruş''.
History
Ottoman lira (1844–1923)
The lira, along with ...
(TRY) plunging in value, high
inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...
, 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 (AKP) increasing
authoritarianism
Authoritarianism is a political system characterized by the rejection of political plurality, the use of strong central power to preserve the political ''status quo'', and reductions in the rule of law, separation of powers, and democratic voti ...
and President
Erdoğan's unorthodox ideas about
interest rate
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ...
policy.
On 10 August 2018, Turkish currency lira nosedived following Donald Trump’s tweet about doubling tariffs
A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and po ...
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 13 Aug., 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.
In May 2019, European Bank for Reconstruction and Development (EBRD) released an economic outlook in which it is reported that Turkey's economy will probably see a gradual recovery of growth to around 2.5 percent in 2020.
File:Turkey structure of GDP by sectors.png, The structure of Turkey's GDP by sectors.
File:GDP per capita PPP Emerging economies.png, GDP per capita (PPP) of Turkey vs other emerging economies. The data is retrieved from World Bank
File:Public_debt_as_percent_of_GDP_-_Europe_major_economies.PNG, Public debt of the six major European countries between 2002 and 2009 as a percentage of GDP
File:Gdp_future_forecast_PPP.png, Turkey expected to increase its GDP in long term due to population growth and urbanization.
Data
The following table shows the main economic indicators from 1980 to 2021 (with IMF staff estimates in 2022–2027). Inflation below 10% is in green.
Main economic sectors
Agricultural sector
Industrial sector
Consumer electronics and home appliances
Turkey's Vestel
Vestel is a Turkish home and professional appliances manufacturing company consisting of 18 companies specialised in electronics, major appliances and information technology. Vestel's headquarters and production plant are located in Manisa, while ...
is the largest TV producer in Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a subcontinent of Eurasia and it is located entirel ...
, 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
Beko ( ; stylized as beko) is a Turkish major appliance and consumer electronics brand of Arçelik A.Ş. controlled by Koç Holding.
History
Beko Elektronik A.Ş. was founded by Vehbi Koç, the founder of Koç Holding (who also founded Ar� ...
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
Consumer electronics or home electronics are electronic ( analog or digital) equipment intended for everyday use, typically in private homes. Consumer electronics include devices used for entertainment, communications and recreation. Usuall ...
has increased significantly following the Customs Union
A customs union is generally defined as a type of trade bloc which is composed of a free trade area with a common external tariff.GATTArticle 24 s. 8 (a)
Customs unions are established through trade pacts where the participant countries set up ...
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%.
Textiles and clothing
Turkish companies made clothing
Clothing (also known as clothes, apparel, and attire) are items worn on the body. Typically, clothing is made of fabrics or textiles, but over time it has included garments made from animal skin and other thin sheets of materials and natural ...
exports worth $13.98 billion in 2006; more than $10.67 billion of which (76.33%) were exported to EU member states.
Vakko, Beymen, Yargıcı, Mavi Jeans
Mavi is a Turkish brand of denim and jeans-wear founded in 1991, based in Istanbul, Turkey. The company manufactures jeans for both women and men, targeting a younger age group. The global operation is headquartered in Turkey, with subsidiaries in ...
, Ipekyol, Les Benjamins, Colin's, Nocturne, LC Waikiki, Derimod
Derimod is a Turkish leather goods producer and retailer, with stores in the US as well as in Turkey.
History
The company was founded in 1974. Today Derimod manufactures leather clothing, and accessories. The company also operates 81 retail stor ...
, DESA and Koton are some of the biggest fashion brands in Turkey.
Motor vehicles and automotive products
The automotive industry in Turkey plays an important role in the manufacturing sector
In macroeconomics, the secondary sector of the economy is an economic sector in the three-sector theory that describes the role of manufacturing. It encompasses industries that produce a finished, usable product or are involved in constructio ...
of the Turkish economy. In 2015 Turkey produced over 1.3 million motor vehicles, ranking as the 14th largest producer in the world.
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
The Marmara Region ( Turkish: ''Marmara Bölgesi'') is a geographical region of Turkey.
Located in northwestern Turkey, it is bordered by Greece and the Aegean Sea to the west, Bulgaria and the Black Sea to the north, the Black Sea Region to th ...
. 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.
Global car manufacturers with production plants include Fiat/Tofaş
Tofaş (acronym for ''Türk Otomobil Fabrikası Anonim Şirketi''; ''Turkish Automobile Factory Joint-Stock Company'' pronounced ) is a Turkish automobile manufacturer which was established in 1968 by Vehbi Koç, who was the founder of Koç Ho ...
, Oyak-Renault
Oyak Renault Otomobil Fabrikaları or Oyak-Renault is a Turkish automotive manufacturer located in Bursa. It is co-owned by OYAK (Turkish: Ordu Yardımlaşma Kurumu, English: Army Pension Fund) and Renault. Oyak owns 49% and Renault owns 51% of t ...
, Hyundai, Toyota
is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on . Toyota is one of the largest automobile manufacturers in the world, producing about 10 ...
, Honda
is a Japanese public multinational conglomerate manufacturer of automobiles, motorcycles, and power equipment, headquartered in Minato, Tokyo, Japan.
Honda has been the world's largest motorcycle manufacturer since 1959, reaching a producti ...
and Ford
Ford commonly refers to:
* Ford Motor Company, an automobile manufacturer founded by Henry Ford
* Ford (crossing), a shallow crossing on a river
Ford may also refer to:
Ford Motor Company
* Henry Ford, founder of the Ford Motor Company
* Ford F ...
/Otosan
Ford Otomotiv Sanayi A.Ş. (''Ford Automotive Industry'') is an automotive manufacturing company based in Turkey that is equally owned by Ford Motor Company and Koç Holding. It was established in its current form in 1977, with original relation ...
. Turkish automotive companies like TEMSA, Otokar
Otokar Otomotiv ve Savunma Sanayi A.Ş., also known simply as Otokar, is a Turkish bus and military vehicle manufacturer headquartered in Sakarya, Turkey. Otokar is a subsidiary of Koç Holding.
History
Otokar was founded in 1963 as Turkey's ...
and BMC are among the world's largest van, bus and truck manufacturers. Togg is a new Turkish automotive company established in 2018 for producing EVs. Togg's factory in Gemlik
Gemlik is a town and center of the Gemlik District of Bursa Province. It is located in the east of the Gulf of Gemlik. It is approximately away from Bursa. In antiquity, Gemlik was the location of the ancient Greek town of Cius.
Gemlik is an in ...
, Bursa Province
Bursa Province ( tr, ) is a province in Turkey along the Sea of Marmara coast in northwestern Anatolia. It borders Balıkesir to the west, Kütahya to the south, Bilecik and Sakarya to the east, Kocaeli to the northeast and Yalova to the ...
, was inaugurated on October 29, 2022, the 99th anniversary of the Turkish Republic.
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.
Multiple unit trains, locomotives and wagons
TÜLOMSAŞ
TÜLOMSAŞ ( tr, Türkiye Lokomotif ve Motor Sanayi Anonim Şirketi) is a locomotive and wagon builder in Turkey. It is the main locomotive supplier of the Turkish State Railways and is one of the 2 companies that designs and assembles locomotive ...
(1894), TÜVASAŞ (1951) and EUROTEM (2006) are among the major producers of multiple unit train
In rail transport, a train (from Old French , from Latin , "to pull, to draw") is a series of connected vehicles that run along a railway track and transport people or freight. Trains are typically pulled or pushed by locomotives (often ...
s, locomotives and wagons
A wagon or waggon is a heavy four-wheeled vehicle pulled by draught animals or on occasion by humans, used for transporting goods, commodities, agricultural materials, supplies and sometimes people.
Wagons are immediately distinguished from ...
in Turkey, including high-speed EMU
The emu () (''Dromaius novaehollandiae'') is the second-tallest living bird after its ratite relative the ostrich. It is endemic to Australia where it is the largest native bird and the only extant member of the genus '' Dromaius''. The emu ...
and DMU models.
Bozankaya
Bozankaya is a Turkish manufacturer of rolling stock including metro, tram and trolleybus vehicles.
History
The company was originally founded as BBC & C in Wolfenbüttel, Germany by Murat Bozankaya. The company moved its headquarters to ...
is a Turkish manufacturer of rolling stock including metro, tram and trolleybus vehicles in Ankara.
Defense industry
Turkey has many modern armament manufacturers. Annual exports reached $1.6 billion in 2014. MKEK
The Mechanical and Chemical Industry Corporation ( tr, Makina ve Kimya Endüstrisi or MKE for short), established in 1950, is a reorganization of government-controlled group of factories in Turkey that supplied the Turkish Armed Forces with mili ...
, TAI
Tai or TAI may refer to:
Arts and entertainment
*Tai (comics) a fictional Marvel Comics supervillain
*Tai Fraiser, a fictional character in the 1995 film ''Clueless''
*Tai Kamiya, a fictional character in ''Digimon''
Businesses and organisations ...
, Aselsan, Roketsan
Roketsan Roket Sanayii ve Ticaret A.S. is a major Turkish weapons manufacturer and defense contractor based in Ankara, Turkey. Incorporated in 1988 by Turkey's Defense Industry Executive Committee (''SSİK'') to establish the nation's industri ...
, FNSS
FNSS Savunma Sistemleri A.Ş. ( en, FNSS Defence Systems A.Ş.) is a Turkish defense manufacturer founded in 1988. It is owned 51% by Nurol Holding of Turkey and 49% by British–American firm BAE Systems Inc., and operates facilities located i ...
, Nurol Makina, Otokar
Otokar Otomotiv ve Savunma Sanayi A.Ş., also known simply as Otokar, is a Turkish bus and military vehicle manufacturer headquartered in Sakarya, Turkey. Otokar is a subsidiary of Koç Holding.
History
Otokar was founded in 1963 as Turkey's ...
, and Havelsan are major manufacturers. On 11 July 2002, Turkey became a Level 3 partner of the F-35 Joint Strike Fighter
The Lockheed Martin F-35 Lightning II is an American family of single-seat, single-engine, all-weather stealth multirole combat aircraft that is intended to perform both air superiority and strike missions. It is also able to provide ele ...
(JSF) development program. TAI
Tai or TAI may refer to:
Arts and entertainment
*Tai (comics) a fictional Marvel Comics supervillain
*Tai Fraiser, a fictional character in the 1995 film ''Clueless''
*Tai Kamiya, a fictional character in ''Digimon''
Businesses and organisations ...
builds various aircraft types and models, such as the F-16 Fighting Falcon for the Turkish Air Force
The Turkish Air Force ( tr, ) is the aerial warfare service branch of the Turkish Armed Forces. The Turkish Air Force can trace its origins back to June 1911 when it was founded by the Ottoman Empire, however, the air force as it is known to ...
. 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
The Turkish Armed Forces (TAF; tr, Türk Silahlı Kuvvetleri, TSK) are the military forces of the Republic of Turkey. Turkish Armed Forces consist of the General Staff, the Land Forces, the Naval Forces and the Air Forces. The current Chi ...
and a 2m resolution reconnaissance satellite (Project Göktürk-2) for use by the Turkish National Intelligence Organization.
Other important products include the TAI TF-X, TF2000-class destroyer, Milgem class corvette, Baykar MIUS Kızılelma UCAV
An unmanned combat aerial vehicle (UCAV), also known as a combat drone, colloquially shortened as drone or battlefield UAV, is an unmanned aerial vehicle (UAV) that is used for intelligence, surveillance, target acquisition, and reconnaissance ...
, Baykar Akıncı HALE
Hale may refer to:
Places Australia
*Hale, Northern Territory, a locality
*Hale River, in southeastern Northern Territory
Canada
*Hale, Ontario, in Algoma District United Kingdom
* Hale, Cumbria, a hamlet near Beetham, Cumbria
*Hale, Greater Man ...
UCAV, Baykar Bayraktar TB2 MALE
Male (symbol: ♂) is the sex of an organism that produces the gamete (sex cell) known as sperm, which fuses with the larger female gamete, or ovum, in the process of fertilization.
A male organism cannot reproduce sexually without access to ...
UCAV, TAI Aksungur
The TAI Aksungur is an unmanned aerial vehicle (UAV) built by Turkish Aerospace Industries (TAI) for the Turkish Armed Forces. Using existing technology from the TAI Anka series of drones, it is the manufacturer's largest drone with payload cap ...
MALE UCAV, TAI Anka
The TAI Anka is a family of unmanned aerial vehicles developed by Turkish Aerospace Industries primarily for the Turkish Air Force. Envisioned in the early 2000s for aerial surveillance and reconnaissance missions, Anka has evolved into a modul ...
MALE UAV
An unmanned aerial vehicle (UAV), commonly known as a drone, is an aircraft without any human pilot, crew, or passengers on board. UAVs are a component of an unmanned aircraft system (UAS), which includes adding a ground-based controlle ...
/UCAV, Aselsan İzci UGV, Altay main battle tank, T-155 Fırtına self-propelled howitzer, J-600T missile, T-129 attack helicopter, A400M
The Airbus A400M AtlasNamed after the Greek mythological figure. is a European four-engine turboprop military transport aircraft. It was designed by Airbus Military (now Airbus Defence and Space) as a tactical airlifter with strategic capabi ...
, Roketsan UMTAS anti-tank missile, Roketsan Cirit laser-guided rocket, Panter howitzer
The Panter howitzer is an artillery weapon developed by MKEK for the Turkish Land Forces Command. It has a 155 mm/52-calibre towed howitzer gun and is able to fire NATO projectiles to a maximum range of 40 kilometers using extended-range ...
, ACV-300
ACV-15 is the designation of an amphibious Infantry fighting vehicle family developed by the Turkish defense company FNSS Savunma Sistemleri A.Ş. This vehicle is also manufactured by DRB-HICOM Defence Technologies (DefTech). The design is an a ...
, Otokar Cobra and Akrep, BMC Kirpi
BMC Kirpi ( Turkish for "Hedgehog") is a Turkish made Mine-Resistant Ambush Protected vehicle manufactured by BMC. ''Kirpi'' provides significant protection against mine and ballistic threats. It combines standard and add-on armor providing prot ...
, FNSS Pars 6x6 and 8x8 APC, Nurol Ejder 6x6 APC, TOROS artillery rocket system, Bayraktar Mini UAV, ASELPOD, and SOM cruise missile.
Steel-Iron industry
Turkey ranks 8th in the list of countries by steel production
This article summarizes the world steel production by country.
In 2020, total world crude steel production was 1877.5 million tonnes (Mt). The biggest steel producing country is currently China, which accounted for 57% of world 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.
* Erdemir
Ereğli Demir ve Çelik Fabrikaları T.A.Ş. is a Turkish steel producer. The name is a contraction of the Turkish language ''Ereğli Demir ve Çelik Fabrikaları'', which means "Ereğli Iron and Steel Factories". Erdemir occupies the 43rd place ...
(7.1 million tonnes) (47th) (Only Erdemir-Turkey; Erdemir-Romania is not included)
* Habaş (4.4 million tonnes) (72nd)
* İçdaş (3.6 million tonnes) (76th)
* Diler (2.3 million tonnes) (108th)
* Çolakoğlu (2.1 million tonnes) (110th)
Science and technology
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
The Turkish Energy, Nuclear and Mineral Research Agency was formed from other agencies and the Turkish Atomic Energy Authority which was the official nuclear energy institution of Turkey. The headquarters is located in Ankara
Ankara ( , ...
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
Turkish Aerospace Inc. ( tr, Türk Havacılık ve Uzay Sanayi A.Ş., TUSAŞ) is the center of technology in design, development, manufacturing, integration of aerospace systems, modernization and after sales support in Turkey.
Located in Ankara ...
, ASELSAN, HAVELSAN, ROKETSAN
Roketsan Roket Sanayii ve Ticaret A.S. is a major Turkish weapons manufacturer and defense contractor based in Ankara, Turkey. Incorporated in 1988 by Turkey's Defense Industry Executive Committee (''SSİK'') to establish the nation's industri ...
, 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
A spaceport or cosmodrome is a site for launching or receiving spacecraft, by analogy to a seaport for ships or an airport for aircraft. The word ''spaceport'', and even more so ''cosmodrome'', has traditionally been used for sites capable ...
, the development of satellite launch vehicle
The Satellite Launch Vehicle or SLV was a small-lift launch vehicle project started in the early 1970s by the Indian Space Research Organisation to develop the technology needed to launch satellites. SLV was intended to reach a height of and c ...
s as well as the establishment of remote earth stations.
Construction and contracting sector
The Turkish construction and contracting industry
The Turkish construction and contracting industry is one of the leading industries in Turkey. To improve energy efficiency of buildings it has been suggested that green buildings should be defined.
Turkish contracting in the international marke ...
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 and contracting companies were listed in the Top 250 International Contractors List prepared by the Engineering News-Record
''Engineering News-Record'' (widely known as ''ENR'') is an American weekly magazine that provides news, analysis, data and opinion for the construction industry worldwide. It is widely regarded as one of the construction industry's most authorita ...
.
Over half of Turkey's building stock contravenes housing regulations. An amnesty program to register illegal constructed buildings brought in $3.1 billion, but the safety issues largely remain. In mid-February 2019, an eight-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.
Service sector
Transport
In 2013 there were ninety-eight airports in Turkey
This is a list of airports in Turkey, sorted by location.
Airports
, -
, Ankara
, LTAC
, ESB
, Ankara Esenboğa Airport
, }
, -
, Antalya
, LTFG
, GZP
, Gazipaşa Airport
, }
, -
, Antalya
, LTAI
, AYT
, Antalya Airport
, }
, -
, ...
, including 22 international airports. , Istanbul Atatürk Airport
)
, postal_code_type = Postal code
, postal_code = 34000 to 34990
, area_code = +90 212 (European side) +90 216 (Asian side)
, registration_plate = 34
, blank_name_sec2 = GeoTLD
, blank_i ...
is the 11th busiest airport in the world, serving 31,833,324 passengers between January and July 2014, according to Airports Council International
Airports Council International (ACI) is an organization of airport authorities aimed at unifying industry practices for airport standards. Established in 1991, its headquarters (ACI World) are based in Montreal, Quebec, Canada, and its members ...
. 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.
The state-owned utility Turkish State Railways
The State Railways of the Republic of Turkey ( tr, Türkiye Cumhuriyeti Devlet Demiryolları), abbreviated as TCDD, is a government-owned national railway company responsible with the ownership and maintenance of railway infrastructure in Turkey ...
operates the 12,740–km railway network, 23rd longest in the world. Since 2003, Turkish State Railways
The State Railways of the Republic of Turkey ( tr, Türkiye Cumhuriyeti Devlet Demiryolları), abbreviated as TCDD, is a government-owned national railway company responsible with the ownership and maintenance of railway infrastructure in Turkey ...
has also been investing in high-speed rail lines, which at 2,175 km (1,353 mi) ranked ninth longest in the world.
As of 2010, the country had a roadway network of 426,951 km, including 2,080 km of expressways and 16,784 km of divided highways.
As of 2010, the Turkish merchant marine included 1,199 ships (604 registered at home), ranking 7th in the world.[ Turkey's coastline has 1,200 km of navigable waterways.][
In 2008, of ]natural gas
Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbo ...
pipelines and of petroleum
Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crud ...
pipelines spanned the country's territory.[
]
Communications
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 phone
A mobile phone, cellular phone, cell phone, cellphone, handphone, hand phone or pocket phone, sometimes shortened to simply mobile, cell, or just phone, is a portable telephone that can make and receive calls over a radio frequency link whi ...
s 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
An Internet service provider (ISP) is an organization that provides services for accessing, using, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, non-profit, or otherwise privat ...
in Turkey. The largest mobile phone operators in the country are Turkcell
Turkcell İletişim Hizmetleri A.Ş. (''lit. Turkcell Communication Services'') (, ) is the leading mobile phone operator of Turkey, based in Istanbul. The company has 39,3 million subscribers as of September 2021. In 2015, the company's number o ...
, 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
A fiber-optic cable, also known as an optical-fiber cable, is an assembly similar to an electrical cable, but containing one or more optical fibers that are used to carry light. The optical fiber elements are typically individually coated with ...
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
The Mediterranean Sea is a sea connected to the Atlantic Ocean, surrounded by the Mediterranean Basin and almost completely enclosed by land: on the north by Western and Southern Europe and Anatolia, on the south by North Africa, and on the ...
and Black Sea
The Black Sea is a marginal mediterranean sea of the Atlantic Ocean lying between Europe and Asia, east of the Balkans, south of the East European Plain, west of the Caucasus, and north of Anatolia. It is bounded by Bulgaria, Georgia, Rom ...
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
A communications satellite is an artificial satellite that relays and amplifies radio telecommunication signals via a transponder; it creates a communication channel between a source transmitter and a receiver at different locations on Earth ...
operator of Turkey, controlling the Turksat series of satellites. Göktürk-1, Göktürk-2 and Göktürk-3 are Turkey's earth observation satellites for reconnaissance
In military operations, reconnaissance or scouting is the exploration of an area by military forces to obtain information about enemy forces, terrain, and other activities.
Examples of reconnaissance include patrolling by troops (skirmisher ...
, operated by the Turkish Ministry of National Defense. BILSAT-1
BILSAT-1 (formerly just ''BILSAT'') was an earth observation satellite designed and developed by TÜBİTAK Space Technologies Research Institute (TÜBİTAK UZAY) and produced in Turkey as part of the Disaster Monitoring Constellation (DMC) projec ...
and RASAT
RASAT was an earth observation satellite designed and developed by TÜBİTAK Space Technologies Research Institute (TÜBİTAK UZAY) and produced in Turkey to provide high resolution imagery. It was the first remote sensing satellite fully realize ...
are the scientific observation satellites operated by the TÜBİTAK Space Technologies Research Institute
TÜBİTAK Space Technologies Research Institute ( tr, TÜBİTAK Uzay Teknolojileri Araştırma Enstitüsü) or TÜBİTAK UZAY for short, is a Turkish institution carrying out research and development projects on space technology, electronics, in ...
, which (together with Turkish Aerospace Industries
Turkish Aerospace Inc. ( tr, Türk Havacılık ve Uzay Sanayi A.Ş., TUSAŞ) is the center of technology in design, development, manufacturing, integration of aerospace systems, modernization and after sales support in Turkey.
Located in Ankara ...
and Aselsan) also takes part in the production of Turkey's satellites.
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 user
The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, pub ...
s in Turkey, which ranked 15th in the world;[ while as of 2012, there were 7,093,000 ]internet host
A network host is a computer or other device connected to a computer network. A host may work as a server offering information resources, services, and applications to users or other hosts on the network. Hosts are assigned at least one network a ...
s in the country, which ranked 16th in the world.[
]
Tourism
In 2019, Turkey ranked sixth in the world in terms of the number of international tourist arrivals, with 51.2 million foreign tourists visiting the country. Over the years, Turkey has emerged as a popular tourist destination for many Europeans, competing with Greece
Greece,, or , romanized: ', officially the Hellenic Republic, is a country in Southeast Europe. It is situated on the southern tip of the Balkans, and is located at the crossroads of Europe, Asia, and Africa. Greece shares land borders ...
, Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...
and Spain
, image_flag = Bandera de España.svg
, image_coat = Escudo de España (mazonado).svg
, national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond")
, national_anthem = (English: "Royal March")
, i ...
. Resorts in provinces such as Antalya
la, Attalensis grc, Ἀτταλειώτης
, postal_code_type = Postal code
, postal_code = 07xxx
, area_code = (+90) 242
, registration_plate = 07
, blank_name = Licence plate
...
and Muğla
Muğla () is a city in southwestern Turkey. The city is the center of the District of Menteşe and Muğla Province, which stretches along Turkey's Aegean coast. Muğla's center is situated inland at an altitude of 660 m and lies at a dista ...
(which are located on the Turkish Riviera
The Turkish Riviera ( tr, Türk Rivierası), also known popularly as the Turquoise Coast, is an area of southwest Turkey encompassing the provinces of Antalya and Muğla, and to a lesser extent Aydın, southern İzmir and western Mersin. Th ...
) have become very popular among tourists.
Banking and finance
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
The Borsa İstanbul (abbreviated as BIST) is the sole exchange entity of Turkey combining the former Istanbul Stock Exchange (ISE) ( tr, İstanbul Menkul Kıymetler Borsası, IMKB), the Istanbul Gold Exchange ( tr, İstanbul Altın Borsası, İA ...
(ISE) is the sole securities market
Security market is a component of the wider financial market where securities can be bought and sold between subjects of the economy, on the basis of demand and supply. Security markets encompasses stock markets, bond markets and derivatives mar ...
of Turkey. During the 19th and early 20th centuries, Bankalar Caddesi
Bankalar Caddesi (''Banks Street''), also known as Voyvoda Caddesi (''Voivode Street''), in the historic Galata quarter (present-day Karaköy) of the district of Beyoğlu (Pera) in Istanbul, Turkey, was the financial centre of the late Ottoman E ...
(Banks Street) in Istanbul
)
, postal_code_type = Postal code
, postal_code = 34000 to 34990
, area_code = +90 212 (European side) +90 216 (Asian side)
, registration_plate = 34
, blank_name_sec2 = GeoTLD
, blank_i ...
was the financial center of the Ottoman Empire
The Ottoman Empire, * ; is an archaic version. The definite article forms and were synonymous * and el, Оθωμανική Αυτοκρατορία, Othōmanikē Avtokratoria, label=none * info page on book at Martin Luther University) ...
, 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
Levent is a neighbourhood and one of the main business districts of Istanbul, Turkey, located on the European side of the city. It is a part of the municipality of Beşiktaş and is situated to the north of the Golden Horn, at the western s ...
and Maslak
Maslak is one of the main business districts of Sarıyer, Istanbul, Turkey, located on the European side of the city. It was formerly an exclave of the municipality of Şişli, though being far north and actually closer to the municipalities ...
.[ 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
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by t ...
of listed companies in Turkey was valued at $161,537,000,000 in 2005 by the World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
.
Until 1991, establishing a private sector bank in Turkey 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
Ahmet Mesut Yılmaz () (6 November 1947 – 30 October 2020) was a Turkish politician. He was the leader of the Motherland Party ( tr, Anavatan Partisi, ANAP) from 1991 to 2002, and served three times as Prime Minister of Turkey. His first two p ...
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 the Süzer Group); ''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
Tansu Çiller (; born 24 May 1946) is a Turkish academic, economist and politician who served as the 22nd Prime Minister of Turkey from 1993 to 1996. She is Turkey's first and only female prime minister to date. As the leader of the True Path ...
, 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
The lira ( tr, Türk lirası; sign: ₺; ISO 4217 code: TRY; abbreviation: TL) is the official currency of Turkey and Northern Cyprus. One lira is divided into one hundred ''kuruş''.
History
Ottoman lira (1844–1923)
The lira, along with ...
, which was pegged to the U.S. dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
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
The Middle East ( ar, الشرق الأوسط, ISO 233: ) is a geopolitical region commonly encompassing Arabia (including the Arabian Peninsula and Bahrain), Asia Minor (Asian part of Turkey except Hatay Province), East Thrace (Europ ...
and Central Asia
Central Asia, also known as Middle Asia, is a subregion, region of Asia that stretches from the Caspian Sea in the west to western China and Mongolia in the east, and from Afghanistan and Iran in the south to Russia in the north. It includes t ...
. 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
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...
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 26 February 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
The lira ( tr, Türk lirası; sign: ₺; ISO 4217 code: TRY; abbreviation: TL) is the official currency of Turkey and Northern Cyprus. One lira is divided into one hundred ''kuruş''.
History
Ottoman lira (1844–1923)
The lira, along with ...
", on 1 January 2005, to cement the acquisition of the economic reforms and erase the vestiges of an unstable economy. On 1 January 2009, the New Turkish lira was renamed once again as the "Turkish lira", with the introduction of new banknotes and coins
A coin is a small, flat (usually depending on the country or value), round piece of metal or plastic used primarily as a medium of exchange or legal tender. They are standardized in weight, and produced in large quantities at a mint in order t ...
.
Medical tourism
There are numerous private hospitals in Turkey, which has benefited from medical tourism in recent years. Health tourism generated revenues worth $1 billion in 2019 for Turkey's economy. A total of 662,087 patients were treated at Turkish hospitals in 2019 within the scope of health tourism, with around 60% of the income being obtained from plastic surgeries.
Largest companies
Koç Holding, Sabancı Holding
Hacı Ömer Sabancı Holding A.Ş., commonly abbreviated as Sabancı Holding, is an industrial and financial conglomerate with headquarters in Istanbul, Turkey. The company's primary activities are in financial services, energy (electricity generat ...
, Anadolu Group, Eczacıbaşı Holding and Zorlu Holding are among the country's largest industrial conglomerates, with business operations in a multitude of different sectors.
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
''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also rep ...
. 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:
Long term GDP forecasts
The following table is an OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
Long Term Projections made in February 2022 for largest 16 economies by GDP using PPP exchange rates from 2030 to 2060.
External trade and investment
As of 2016, the main trading partners of Turkey are Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
, Russia
Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eig ...
and the United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
, UAE, Iraq, Italy and China, many being top in both export as well as import. 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.
A very large aspect of Turkey trade revolves around the automotive industry, where its top exports are cars, accounting for $13.2 billion. Other top exports from the country are gold, delivery trucks, vehicle parts and jewelry, which are respectively, $6.96 billion, $5.04 billion, $4.64 billion, and $3.39 billion. These values are calculated using the 1992 revision of the Harmonized System classification. Comparatively, it imports many of the same industries, such as, gold valued at $17.1 billion, refined petroleum at $9.8 billion, cars at $8.78 billion, vehicle parts at $6.34 billion and scrap iron at $5.84 billion.
Turkey is also a source of foreign direct investment in central and eastern Europe
Eastern Europe is a subregion of the European continent. As a largely ambiguous term, it has a wide range of geopolitical, geographical, ethnic, cultural, and socio-economic connotations. The vast majority of the region is covered by Russia, whic ...
and the CIS, with more than $1.5 billion invested. 32% has been invested in Russia
Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eig ...
, primarily in the natural resources and construction sector, and 46% in Turkey's Black Sea
The Black Sea is a marginal mediterranean sea of the Atlantic Ocean lying between Europe and Asia, east of the Balkans, south of the East European Plain, west of the Caucasus, and north of Anatolia. It is bounded by Bulgaria, Georgia, Rom ...
neighbours, Bulgaria
Bulgaria (; bg, България, Bǎlgariya), officially the Republic of Bulgaria,, ) is a country in Southeast Europe. It is situated on the eastern flank of the Balkans, and is bordered by Romania to the north, Serbia and North Macedo ...
and Romania
Romania ( ; ro, România ) is a country located at the crossroads of Central, Eastern, and Southeastern Europe. It borders Bulgaria to the south, Ukraine to the north, Hungary to the west, Serbia to the southwest, Moldova to the east, and ...
. Turkish companies also have sizable FDI stocks in Poland
Poland, officially the Republic of Poland, is a country in Central Europe. It is divided into 16 administrative provinces called voivodeships, covering an area of . Poland has a population of over 38 million and is the fifth-most populou ...
, at about $100 million.
The construction and contracting companies, such as Enka
is a Japanese music genre considered to resemble traditional Japanese music stylistically. Modern ''enka'', however, is a relatively recent musical form, which adopts a more traditional musical style in its vocalism than '' ryūkōka'' music, ...
, Rönesans Holding and Tekfen
Tekfen Holding A.S. (Tekfen Group) is a Turkey-based holding company involved in engineering and construction, textile, food processing and other industrial sectors.
History
With foundations laid in 1956 by three civil engineers – Feyyaz Berk ...
, have been significant players in the country's economy.
Without a carbon price
Carbon pricing (or pricing), also known as cap and trade (CAT) or emissions trading scheme (ETS), is a method for nations to reduce global warming. The cost is applied to greenhouse gas emissions in order to encourage polluters to reduce the co ...
exporters to the EU will have to pay the CBAM from 2026.
Turkey had many improvements in the ease of doing business index
The ease of doing business index was an index created jointly by Simeon Djankov, Michael Klein, and Caralee McLiesh, three leading economists at the World Bank Group. The academic research for the report was done jointly with professors Edward ...
. Its rank increased from 68th in 2017 to 33th in 2020. As of 2021, it was performing better than countries like the Netherlands and Belgium.
Natural resources
Energy
The energy sector is the main source of greenhouse gas emissions by Turkey
Coal, cars and lorries vent more than a third of Turkey's five hundred million tonnes of annual greenhouse gas emissions—mostly carbon dioxide—and are part of the cause of climate change in Turkey. The nation's coal-fired power stations ...
and contributes to climate change in Turkey
Climate change in Turkey includes changes in the climate of Turkey, their effects and how the country is adapting to those changes. Turkey's annual and maximum temperatures are rising, and 2020 was the third hottest year on record. Turkey wil ...
, which is in turn affecting the economy by increasing droughts, which reduce agriculture and hydropower in Turkey. By 2020, according to Carbon Tracker
Carbon Tracker is a London-based not-for-profit think tank researching the impact of climate change on financial markets.
Carbon Tracker popularized the notion of a carbon bubble, which describes the incompatibility between the continued devel ...
, both new wind and solar power were cheaper than building new coal power plants; and they forecast that wind would become cheaper than existing coal plants in 2027, and solar in 2023: so they say that constructing Afşin-Elbistan C power station would be a waste of money (estimated 17 billion lira).
By the end of the 2010s Turkey had achieved energy security
Energy security is the association between national security and the availability of natural resources for energy consumption. Access to (relatively) cheap energy has become essential to the functioning of modern economies. However, the uneven d ...
- in part by increasing regasification
Regasification is a process of converting liquefied natural gas (LNG) at −162 °C (−260 °F) temperature back to natural gas at atmospheric temperature. LNG gasification plants can be located on land as well as on floating barges, i.e. a Float ...
capacity and gas storage capacity. Coal power subsidies have been described as economically irrational, for increasing air pollution
Air pollution is the contamination of air due to the presence of substances in the atmosphere that are harmful to the health of humans and other living beings, or cause damage to the climate or to materials. There are many different typ ...
.
Renewable energy
Fossil fuels
=Gas
=
=Oil
=
Turkey is an oil
An oil is any nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobic (does not mix with water) & lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturated ...
producer, but the level of production by the state-owned TPAO
Türkiye Petrolleri Anonim Ortaklığı (TPAO) (Turkish Petroleum Corporation) was founded in 1954 by Law No. 6327 with the responsibility of being involved in hydrocarbon exploration, drilling, production, refinery and marketing activities of o ...
is not nearly enough to make the country self-sufficient, which makes Turkey a net importer of oil. The Energy Market Regulatory Authority sets a ceiling on gasoline and diesel prices.
The pipeline network in Turkey included for crude oil and for petroleum products in 1999. The Baku–Tbilisi–Ceyhan pipeline
The Baku–Tbilisi–Ceyhan (BTC) pipeline is a long crude oil pipeline from the Azeri–Chirag–Gunashli oil field in the Caspian Sea to the Mediterranean Sea. It connects Baku, the capital of Azerbaijan and Ceyhan, a port on the south-easter ...
, the second-longest oil pipeline in the world, was inaugurated on 10 May 2005. The pipeline delivers crude oil from the Caspian Sea
The Caspian Sea is the world's largest inland body of water, often described as the world's largest lake or a full-fledged sea. An endorheic basin, it lies between Europe and Asia; east of the Caucasus, west of the broad steppe of Central Asia ...
basin to the port of Ceyhan
Ceyhan () is a city and a district in the Adana Province, in southern Turkey, east of Adana. With a population of over 157,000, it is the largest district of the province, outside the city of Adana. Ceyhan is the transportation hub for Middle Ea ...
on Turkey's Mediterranean
The Mediterranean Sea is a sea connected to the Atlantic Ocean, surrounded by the Mediterranean Basin and almost completely enclosed by land: on the north by Western Europe, Western and Southern Europe and Anatolia, on the south by North Africa ...
coast, from where it is distributed with oil tankers to the world's markets.
=Coal
=
Minerals
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
The Central Intelligence Agency (CIA ), known informally as the Agency and historically as the Company, is a civilian foreign intelligence service of the federal government of the United States, officially tasked with gathering, processing, ...
World Factbook
''The World Factbook'', also known as the ''CIA World Factbook'', is a reference resource produced by the Central Intelligence Agency (CIA) with almanac-style information about the countries of the world. The official print version is available ...
, other natural resources include coal
Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen.
Coal is formed when ...
, iron ore, copper
Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkis ...
, chromium, uranium
Uranium is a chemical element with the symbol U and atomic number 92. It is a silvery-grey metal in the actinide series of the periodic table. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons. Uranium is weak ...
, antimony
Antimony is a chemical element with the symbol Sb (from la, stibium) and atomic number 51. A lustrous gray metalloid, it is found in nature mainly as the sulfide mineral stibnite (Sb2S3). Antimony compounds have been known since ancient t ...
, mercury, gold
Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile me ...
, silver
Silver is a chemical element with the symbol Ag (from the Latin ', derived from the Proto-Indo-European ''h₂erǵ'': "shiny" or "white") and atomic number 47. A soft, white, lustrous transition metal, it exhibits the highest electrical ...
, barite, borate
A borate is any of several boron oxyanions, negative ions consisting of boron and oxygen, such as orthoborate , metaborate , or tetraborate ; or any salt with such anions, such as sodium metaborate, and disodium tetraborate . The name also re ...
, celestine ( strontium), emery, feldspar
Feldspars are a group of rock-forming aluminium tectosilicate minerals, also containing other cations such as sodium, calcium, potassium, or barium. The most common members of the feldspar group are the ''plagioclase'' (sodium-calcium) felds ...
, limestone
Limestone ( calcium carbonate ) is a type of carbonate sedimentary rock which is the main source of the material lime. It is composed mostly of the minerals calcite and aragonite, which are different crystal forms of . Limestone forms whe ...
, magnesite, marble
Marble is a metamorphic rock composed of recrystallized carbonate minerals, most commonly calcite or dolomite. Marble is typically not foliated (layered), although there are exceptions. In geology, the term ''marble'' refers to metamorphose ...
, perlite
Perlite is an amorphous volcanic glass that has a relatively high water content, typically formed by the hydration of obsidian. It occurs naturally and has the unusual property of greatly expanding when heated sufficiently. It is an industrial ...
, pumice
Pumice (), called pumicite in its powdered or dust form, is a volcanic rock that consists of highly vesicular rough-textured volcanic glass, which may or may not contain crystals. It is typically light-colored. Scoria is another vesicular v ...
, pyrites
The mineral pyrite (), or iron pyrite, also known as fool's gold, is an iron sulfide with the chemical formula Fe S2 (iron (II) disulfide). Pyrite is the most abundant sulfide mineral.
Pyrite's metallic luster and pale brass-yellow hue ...
( sulfur) and clay
Clay is a type of fine-grained natural soil material containing clay minerals (hydrous aluminium phyllosilicates, e.g. kaolin, Al2 Si2 O5( OH)4).
Clays develop plasticity when wet, due to a molecular film of water surrounding the clay par ...
.
In 2019, the country was the 2nd largest world producer of chromium; the world's largest producer of boron; 6th largest world producer of antimony
Antimony is a chemical element with the symbol Sb (from la, stibium) and atomic number 51. A lustrous gray metalloid, it is found in nature mainly as the sulfide mineral stibnite (Sb2S3). Antimony compounds have been known since ancient t ...
; 9th largest world producer of lead
Lead is a chemical element with the symbol Pb (from the Latin ) and atomic number 82. It is a heavy metal that is denser than most common materials. Lead is soft and malleable, and also has a relatively low melting point. When freshly cu ...
; 13th largest world producer of iron ore; 11th largest world producer of molybdenum; 4th largest world producer of gypsum
Gypsum is a soft sulfate mineral composed of calcium sulfate dihydrate, with the chemical formula . It is widely mined and is used as a fertilizer and as the main constituent in many forms of plaster, blackboard or sidewalk chalk, and drywal ...
; 15th largest world producer of graphite
Graphite () is a crystalline form of the element carbon. It consists of stacked layers of graphene. Graphite occurs naturally and is the most stable form of carbon under standard conditions. Synthetic and natural graphite are consumed on lar ...
; in addition to being the 11th largest world producer of salt
Salt is a mineral composed primarily of sodium chloride (NaCl), a chemical compound belonging to the larger class of salts; salt in the form of a natural crystalline mineral is known as rock salt or halite. Salt is present in vast quant ...
.
As a gold producer Turkey is currently ranked 22nd globally. Hosting some of the largest gold deposits in the European continent it is currently Europe's largest gold producer, producing 42 Tonnes of gold in 2020. World class deposits include Kisladag Mine 17Moz and Copler 10Moz. The country hosts 18 mid sized deposits from 1-10Moz gold, these include the Kiziltepe Gold Mine, Salinbas, Hod Maden, Ovacik and Efemcukuru.
Environment
Almost all post-covid stimulus was detrimental to the environment, with Russia being the only worse country. In the 21st century, Turkey's fossil fuel subsidies are around 0.2% of GDP, including at least US$14 billion (US$169 per person) between January 2020 and September 2021. Data on finance for fossil fuels by state-owned banks and export credit agencies
An export credit agency (known in trade finance as an ECA) or investment insurance agency is a private or quasi-governmental institution that acts as an intermediary between national governments and exporters to issue export insurance solutions ...
is not public.
Employment
In 2021 trade unions complained that TurkStat data showed unemployment falling whereas that of the government employment agency showed it rising. Environmentalists argue that some actions to improve the environment would also benefit the economy, for example: that investing in wind power in Turkey and solar power in Turkey
The climate of Turkey is very suitable for solar energy as solar potential is very high, especially in the South Eastern Anatolia and Mediterranean regions. Solar is a growing part of renewable energy in the country, with solar panels generatin ...
would create jobs and is competitive with fossil fuels.
Regional disparities
According to Eurostat data, Turkish GDP per capita adjusted by purchasing power
Purchasing power is the amount of goods and services that can be purchased with a unit of currency. For example, if one had taken one unit of currency to a store in the 1950s, it would have been possible to buy a greater number of items than would ...
standards stood at 64 percent of the EU average in 2018.
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 rapid growth of Turkey's GDP during the first two decades of the 21st century (with brief periods of stagnation and recession), parts of Anatolia
Anatolia, tr, Anadolu Yarımadası), and the Anatolian plateau, also known as Asia Minor, is a large peninsula in Western Asia and the westernmost protrusion of the Asian continent. It constitutes the major part of modern-day Turkey. The ...
began reaching a higher economic standard. These cities are known as the Anatolian Tigers
In the context of the Turkish economy, Anatolian Tigers ( tr, Anadolu Kaplanları) are a number of cities in Turkey which have displayed impressive growth records since the 1980s, as well as a defined breed of entrepreneurs rising in prominence a ...
.
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
See also
* Economic history of Turkey
The economic history of the Republic of Turkey may be studied according to sub-periods signified with major changes in economic policy:
# 1923–1929, when development policy emphasised private accumulation;
# 1929–1945, when developmen ...
* World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
* OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
* National debt of Turkey
*World Gold Council
The World Gold Council is the market development organisation for the gold industry. It works across all parts of the industry, from gold mining to investment, with the aim of stimulating and sustaining demand for gold.
They frequently publish ...
* List of companies of Turkey
*List of countries by labour force
This is a list of countries by size of the labour force mostly based on The World Factbook
''The World Factbook'', also known as the ''CIA World Factbook'', is a reference resource produced by the Central Intelligence Agency (CIA) with alm ...
Turkey, 19th
*List of countries by real GDP growth rate
This article includes a lists of countries and dependent territories sorted by their real gross domestic product growth rate; the rate of growth of the value of all final goods and services produced within a state in a given year. The statistics ...
Turkey, 15th
*List of countries by total wealth
National net wealth, also known as national net worth, is the total sum of the value of a country's assets minus its liabilities. It refers to the total value of net wealth possessed by the residents of a state at a set point in time. This fig ...
Turkey, 28th
*List of countries by number of millionaires
This is a list of countries by the number of millionaires by net worth (in United States dollars) based on an annual assessment of wealth and assets compiled and published by the Swiss bank Credit Suisse. According to estimates, in the middle of 20 ...
Turkey, 34th
*List of countries by number of billionaires
This is a list of countries by their number of billionaire residents, based on annual assessments of the net worth in United States Dollars of wealthy individuals worldwide.
''Forbes''
''Knight Frank's Wealth Report''
''Hurun Global R ...
Turkey, 23rd
* List of countries with the most skyscrapers Turkey, 14th
References
External links
Invest in Turkey
Turkey Discover the potential
OECD
Turkey Trade Statistics, World Bank
*
*Tariffs applied by Turkey as provided by ITC'
, ITC Market Access Map
an online database of customs tariffs and market requirements
Green growth knowledge platform
World Bank
{{DEFAULTSORT:Economy Of Turkey
Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a small portion on the Balkan Peninsula in ...
Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a small portion on the Balkan Peninsula in ...
Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a small portion on the Balkan Peninsula in ...