Turkey



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Turkey Economy 2008


Economy - overview: Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that still accounts for more than 35% of employment. It has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication. The largest industrial sector is textiles and clothing, which accounts for one-third of industrial employment; it faces stiff competition in international markets with the end of the global quota system. However, other sectors, notably the automotive and electronics industries, are rising in importance within Turkey's export mix. Real GNP growth has exceeded 6% in many years, but this strong expansion has been interrupted by sharp declines in output in 1994, 1999, and 2001. The economy is turning around with the implementation of economic reforms, and 2004 GDP growth reached 9%, followed by roughly 5% annual growth from 2005-07. Inflation fell to 7.7% in 2005 - a 30-year low - but climbed back to 8.5% in 2007. Despite the strong economic gains from 2002-07, which were largely due to renewed investor interest in emerging markets, IMF backing, and tighter fiscal policy, the economy is still burdened by a high current account deficit and high external debt. Further economic and judicial reforms and prospective EU membership are expected to boost foreign direct investment. The stock value of FDI currently stands at about $85 billion. Privatization sales are currently approaching $21 billion. Oil began to flow through the Baku-Tblisi-Ceyhan pipeline in May 2006, marking a major milestone that will bring up to 1 million barrels per day from the Caspian to market. In 2007, Turkish financial markets weathered significant domestic political turmoil, including turbulence sparked by controversy over the selection of former Foreign Minister Abdullah GUL as Turkey's 11th president. Economic fundamentals are sound, marked by strong economic growth and foreign direct investment. Turkey's high current account deficit leaves the economy vulnerable to destabilizing shifts in investor confidence, however.
GDP (purchasing power parity): $853.9 billion (2007 est.)
GDP (official exchange rate): $663.4 billion (2007 est.)
GDP - real growth rate: 4.5% (2007 est.)
GDP - per capita (PPP): $12,000 (2007 est.)
GDP - composition by sector: agriculture: 8.9% industry: 28.3% services: 62.8% (2007 est.)
Labor force: 23.53 million note: about 1.2 million Turks work abroad (2007 est.)
Labor force - by occupation: agriculture: 35.9% industry: 22.8% services: 41.2% (3rd quarter, 2004)
Unemployment rate: 9.9% plus underemployment of 4% (2007 est.)
Household income or consumption by percentage share: lowest 10%: 2% highest 10%: 34.1% (2003)
Distribution of family income - Gini index: 43.6 (2003)
Investment (gross fixed): 21.5% of GDP (2007 est.)
Budget: revenues: $145.5 billion expenditures: $156.1 billion (2007 est.)
Public debt: 38.9% of GDP (2007 est.)
Inflation rate (consumer prices): 8.7% (2007 est.)
Central bank discount rate: 25% (31 December 2007)
Stock of money: $64.43 billion (31 December 2007)
Stock of quasi money: $254.3 billion (31 December 2007)
Stock of domestic credit: $358.1 billion (31 December 2007)
Agriculture - products: tobacco, cotton, grain, olives, sugar beets, pulse, citrus; livestock
Industries: textiles, food processing, autos, electronics, mining (coal, chromite, copper, boron), steel, petroleum, construction, lumber, paper
Industrial production growth rate: 5.4% (2007 est.)
Electricity - production: 181.6 billion kWh (2007 est.)
Electricity - consumption: 141.5 billion kWh (2006 est.)
Electricity - exports: 2.576 billion kWh (2007 est.)
Electricity - imports: 863 million kWh (2007 est.)
Oil - production: 42,800 bbl/day (2007 est.)
Oil - consumption: 676,600 bbl/day (2007 est.)
Oil - exports: 114,600 bbl/day (2005)
Oil - imports: 714,100 bbl/day (2005)
Oil - proved reserves: 300 million bbl (1 January 2008 est.)
Natural gas - production: 893 million cu m (2007 est.)
Natural gas - consumption: 36.6 billion cu m (2007 est.)
Natural gas - exports: 31 million cu m (2007 est.)
Natural gas - imports: 35.83 billion cu m (2007 est.)
Natural gas - proved reserves: 8.495 billion cu m (1 January 2008 est.)
Current account balance: -$37.58 billion (2007 est.)
Exports: $115.3 billion f.o.b. (2007 est.)
Exports - commodities: apparel, foodstuffs, textiles, metal manufactures, transport equipment
Exports - partners: Germany 11.2%, UK 8.1%, Italy 7%, France 5.6%, Russia 4.4%, Spain 4.3% (2007)
Imports: $162 billion f.o.b. (2007 est.)
Imports - commodities: machinery, chemicals, semi-finished goods, fuels, transport equipment
Imports - partners: Russia 13.8%, Germany 10.3%, China 7.8%, Italy 5.9%, US 4.8%, France 4.6% (2007)
Reserves of foreign exchange and gold: $76.51 billion (31 December 2007 est.)
Debt - external: $247.1 billion (31 December 2007)
Stock of direct foreign investment - at home: $106.4 billion (2007 est.)
Stock of direct foreign investment - abroad: $11.35 billion (2007 est.)
Market value of publicly traded shares: $162.4 billion (2006)
Currency (code): Turkish lira (TRY); old Turkish lira (TRL) before 1 January 2005
Exchange rates: Turkish liras (TRY) per US dollar - 1.319 (2007), 1.4286 (2006), 1.3436 (2005), 1.4255 (2004), 1.5009 (2003) note: on 1 January 2005 the old Turkish lira (TRL) was converted to new Turkish lira (TRY) at a rate of 1,000,000 old to 1 new Turkish lira

NOTE: The economy information regarding Turkey on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Turkey Economy 2008 information contained here. All suggestions for corrections of any errors about Turkey Economy 2008 should be addressed to the CIA.