Turkey's Economy. Main indicators

Diversified economy of Turkey, in close proximity to Europe, the Middle East, North Africa and Eurasia, the integration of the European markets, young and dynamic workforce, business and management, having the experience of survival in times of crisis, did the Turkish economy one of the strongest in the region.


Main economic indicators of Turkey

Indicator

2007

2008

Turkey's GDP (billions of $)

656.6

741.8

Turkey GDP growth rate (%)

4.5

1.1

GDP per capita (nominal value, $)

9.333

10.436

The inflow of direct foreign investments in Turkey ($)

19.1

14.4

Outflows of foreign direct investment (billions of $)

-743

-35

Unemployment in Turkey (%)

9.9

10.3

Consumer price inflation (%)

8.61

10.54

Turkey exports (billions  $)

107.2

132.0

Turkey imports (billion of $)

170.0

201.8

Turkey's external debt (billions of $)

247.1

284.4

Source: Central Bank of Turkey

As a commercial center for South-Eastern Europe, the Middle East, and Eurasia, Turkey is becoming increasingly important in the economic and diplomatic level country in the region. From 2001 to 2007, Turkey's GDP increased by 242%, which amounted to 656.6 billion dollars, and the country's economy has reached a 15 in the world.


Economic indicators of Turkey (forecasted)

Indicator

2009

2010

Turkey's GDP (billions of $)

657 626

752 996

GDP growth rate (%)

0.4

1.9

GDP per capita (nominal value, $)

13 174

13 446

Turkey exports (billions $)

116 860

122 764

Turkey imports (billion of $)

151 811

161 265

Source: Prediction of the industrial intelligence, January 2009.


Turkey's economy has demonstrated the sustained growth at an average annual rate of 7% over the last 27 quarters.
It is expected that the growth of the Turkish economy will continue in the coming years with more slow because of the global financial crisis. After the financial crisis of 2001, Turkey has implemented important structural reforms, which led to an improvement in the country's financial system.


As a result, Turkey is least affected by the global crisis. And while Turkey should deal with debts, which belong mainly to private enterprises, the impact of the crisis on Turkey does not become a global internal concern of all sectors of the economy, as reflected mainly in the sphere of foreign trade in reducing the demand for exports.
The experience of the crisis experienced in previous years, purchased by the Turkish businessmen and authorities responsible for the economy, made Turkey more resistant to the effects of the global financial crisis today.

International trade in Turkey

 

2002

2003

2004

2005

2006

2007

2008

Turkey Exports ($)

36 059 089

47 252 836

63 167 153

73 476 408

85 534 676

107 271 750

132 002 612

Turkey Imports ($)

51 553 797

69 339 692

97 539 766

116 774 151

139 576 174

170 062 715

201 822 882

Amount ($)

87 612 886

116 592 528

160 706 919

190 250 559

225 110 850

277 334 464

333 825 494

The balance ($)

-15 494 708

-22 086 856

-34 372 613

-43 297 743

-54 041 498

-62 790 965

-69 820 270

Source: TUIK


From 2001 to 2007, the volume of foreign trade of Turkey rose by 281 percent and exports to Turkey increased by 242% and reached $ 107 billion dollars. In 2008, 2012. the volume of foreign trade was valued at 333.8 billion dollars. The main exports are machinery, iron, and steel while oil and natural gas account for the bulk of imports from Turkey.


Principal exports of Turkey ($-2008) - Turkey exports

No railway engines

18 299 890

Iron and steel

14 948 504

Machinery and equipment, means of mechanization, boilers and spare parts to them

10 260 093

Electrical machinery and equipment

8 003 852

Apparel and clothing accessories for clothing

7 832 879

Mineral fuel and oils

7 531 482

Iron and steel products

5 746 210

Pearls, precious stones, coins

5 384 155

Garments and not sewing accessories for clothing

5 326 310

Plastics and articles thereof

3 562 395

Fruit

2 854 331

Ships, boats and watercraft

2 647 845

Salt, sulfur compounds, ground, plastering materials, lime and cement

2 280 427

Other textile accessories

2 097 914

Furniture

1 890 115

Rubber and articles thereof

1 807 689

Aluminum and articles thereof

1 775 810

Cotton. Cotton yarns and fabrics

1 632 015

Vegetable seeds and plants

1 440 495

Synthetic yarn

1 336 688

Source: TUIK


In 2008, 2012. the main partners of Turkey for exports were Germany, the United Kingdom and North Ireland, U.A.E., Italy and France, and major importers are Russia, Germany, China, United States and Italy.


Turkey's main imports ($-2008) - Turkey import of goods

Mineral fuel and oils

48 207 184

Iron and steel

23 157 625

Machinery and equipment, means of mechanization, boilers and spare parts to them

22 515 382

Electrical machinery and equipment

13 868 030

No railway engines

12 790 092

Plastics and articles thereof

9 385 397

Pearls, precious stones, coins

5 653 770

Organic chemicals

4 421 328

Medicines

4 360 040

Optical apparatus and instruments

3 442 138

Copper and articles thereof

3 275 912

Paper and cardboard

2 604 034

Aluminium and articles thereof

2 539 440

Cotton. Cotton yarns and fabrics

2 330 337

Iron and steel products

2 227 035

Rubber and articles thereof

2 219 352

Grain

2 137 315

Various chemical products

1 732 506

Artificial staple fiber

1 695 433

Inorganic chemicals

1 684 512

Source: TUIK


The main export destinations of Turkey ($ 2008)

Germany

12 958 895

The United Kingdom and Northern Ireland

8 168 650

U.A.E

7 981 284

Italy

7 816 821

France

6 622 261

RF

6 481 663

United States

4 290 146

Spain

4 051 264

Romania

3 981 895

Iraq

3 912 191

Netherlands

3 143 422

Switzerland

2 857 127

Greece

2 430 549

Saudi Arabia

2 197 152

Ukraine

2 184 289

Bulgaria

2 149 395

Belgium

2 122 550

Iran

2 028 452

Israel

1 935 244

Azerbaijan

1 666 091

Source: TUIK


Foreign direct investment in Turkey


Turkey is of interest for foreign investors for a number of reasons:

  • The State maintains a liberal policy in respect of all types of foreign investments
  • A wide and growing market
  • Exceptional location between Asia and Europe
  • Relatively cheap workforce and a large
  • The Customs Union operates January 1, 1996
  • Turkey has free trade agreements with the European Free Trade Association (EFTA) and 11 countries (Israel, Macedonia, Croatia, Bosnia and Herzegovina, Morocco, Palestine, Tunisia, Syria, Egypt, Georgia, Albania); It is also planned to sign free trade agreements with some other countries in the future
  • Promotion is conducted in several privatization projects

In particular, over the past six years, Turkey started to use large amounts of foreign capital, thanks to rapid recovery after the crisis of 2001, major projects on privatization and long stability coupled with surplus liquidity on international markets. In the past year, according to the UN Conference on trade and development (UNCTAD), Turkey ranked 23 in the world and 9 among developing market economies on indicators of attractiveness for foreign direct investment. Turkey also won 59 out of 181 in the ranking of the simplification of the business of the World Bank, 41 out of 121 in the index of business activity in the Forbes and became the 15th in the ranking of the most attractive countries for foreign direct investment in UNCTAD World Investment Survey for 2008-2010 biennium.
Occupying a place in the world and 15 6 places in Europe on the development of the economy, Turkey in recent 3 years, has become a goal for many major investment projects, totaling more than 50 billion dollars.
In 2003, when a new investment law was adopted in Turkey there were about 6 500 foreign companies, whereas by 2007, their number has risen to 18 300. Despite the global crisis, the total amount of direct foreign investment totaled 14.5 billion dollars in 2008, with a slight decrease.


Income of foreign direct investment in Turkey by country investors (million $)

 

2007

2008

The Countries Of Europe

Germany

France

Netherlands

The United Kingdom and Sev. Ireland

Italy

Other EU countries

12 600

954

368

5 433

702

74

5 059

11 008

1 048

680

1 767

2 281

219

5 013

Rest of Europe (non-EU)

373

289

Countries In Africa

5

83

United States

4 212

848

Canada

11

24

Central and South America and the Caribbean

494

60

Asia

The Gulf States

Countries In The Middle East

1 405

311

297

2 129

1 746

223

Other countries Asia

797

160

Octal′nye country

36

1

Total:

19 136

14 442

Source: Central Bank of Turkey


FDI inflows by sector of Turkey (million $)

Economy of Turkey

2008

Agriculture, hunting, forestry and aquaculture

44

Mining industry

168

Processing

Food, beverages and tobacco

Textiles

Chemical products

Machines and equipment

Automotive

Another

3 734

1 278

189

121

219

67

1 860

Electricity, gas, water

1 034

Construction

887

Wholesale and retail trade

2 059

The hotel and restaurant sector

27

Transport, telecommunications, and logistics

169

Credit and financial institutions

5 456

Real estate

656

Other social and personal services

208

Total:

14 442

Source: Central Bank of Turkey


An overall analysis of the sector companies with foreign financing from 1957 to 2007, showed that 30% of these companies operate in the field of distributive trade, 19% in the manufacturing sector and 15% in the real estate and rental property. Construction (9%); transport, storage and communications (9%), hotel and restaurant sector (7%); other community, social and personal services (6%), mining and mineral extraction (2%); agriculture, hunting, fishing, and forestry (2%); electricity, gas and water supply (1%) form other sectors.


Turkish investment in other countries (million $)

2000

1 029

2001

604

2002

283

2003

505

2004

815

2005

1 065

2006

1 667

2007

2 275

2008

2 604

2003-2008

8 922

1991-2008

12 635

Source: Central Bank of Turkey


Turkish companies deemed important foreign investor recently completed several significant projects and bought such leading brands like Godiva, Razi, Trader Media East and Grundig. Moreover, the Turkish contractors have undertaken projects recently, totaling 135 billion surpluses dollars at the end of 2008, respectively, 23 Turkish contractors have entered the top 225 largest global contracting companies.
Turkish companies are investing in the banking sector, production of household appliances and telecommunications in Eastern Europe in the energy sector, tourism, financial and logistics sectors in Eurasia, in the sphere of chemical production, manufacturing and logistics sector in the countries of the Persian Gulf and in the food, textile and instrument-making in the Middle East.