Economy ::Turkey
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 about 30% of employment. It has a strong and rapidly growing private sector, yet the state remains a major participant 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 GDP growth has exceeded 6% in many years, but this strong expansion has been interrupted by sharp declines in output in 1994, 1999, and 2001. Due to global contractions, annual growth is estimated to have fallen to 1.1% in 2008. Inflation fell to 7.7% in 2005 - a 30-year low - but climbed to over 10% in 2008. 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 stood at nearly $130 billion at year-end 2008. 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 and 2008, 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 and the possible closure of the Justice and Development Party (AKP). Economic fundamentals are sound, marked by moderate economic growth and foreign direct investment. Nevertheless, the Turkish economy may be faced with more negative economic indicators in 2009 as a result of the global economic slowdown. In addition, Turkey's high current account deficit leaves the economy vulnerable to destabilizing shifts in investor confidence.
GDP (purchasing power parity):
$903.9 billion (2008 est.) country comparison to the world: 17 $895.8 billion (2007 est.)
$855.6 billion (2006 est.)
note: data are in 2008 US dollars
GDP (official exchange rate):
$730 billion (2008 est.)
GDP - real growth rate: