Turkey is an important emerging economy with a positive growth rate. Turkey is the fastest growing economy in Europe, the world’s 25th largest, and the 6th largest European economy. Turkey has established open trade relations with foreign countries opening up its areas of foreign investments.
Overview Of The Economy Of Turkey
Turkey has a GDP of $1.665 trillion and a nominal GDP of $751 billion. The nominal GDP ranks 18th and the 17th by PPP. Turkey has an estimated GDP growth rate of 3.0% in 2014 and is projected to be at 3.5% in 2017. The GDP per capita was estimated at $21,198 PPP and a nominal GDP of $9562. Services contribute 64.2%, industry 27.7%, and agriculture contributes 8.1% to the GDP. Turkey had an inflation rate of 6.57%. 16.9% of the population lives below the poverty line with an unemployment of 9.3% in the country. Turkey’s labor force in various sectors is as follows: agriculture 25.5%, industry 26.2% and services 48.4%. More than 1.2 million Turks work abroad. The public debt accounts for 31.2% of the GDP. The gross external debt is estimated at $402.4 billion. Turkey has about $135.638 billion in foreign investments. The country draws revenue of $225 billion with expenses of $234 billion. The economy is among the fastest growing in Europe with a rate of 8.5% in 2011.
Main Industries In Turkey
The major industries in Turkey are based on agricultural production with products such as pomegranates, hazelnuts, quinces and watermelons, tea, tomatoes, eggplants, tobacco, apples, wheat and rye. The industries include textiles, food processing, automotive, electronics, tourism, mining of coal, chromate, copper and boron, steel, petroleum, construction, lumber, and paper.
Top Export Goods And Partners
Turkey is the 28th largest world exporter with exports worth $153.6 billion. The top exports include cars, vehicle parts, raw iron bars, delivery trucks, jewelry, apparel, foodstuffs, and textiles. The top export partners include Germany 9.3%, UK 7.3%, Iraq 5.9%, Italy 4.8%, US 4.5%, and France 4.1%.
Top Import Goods And Partners
Turkey is the 23rd largest importer in the world with imports worth $204.3 billion in 2015. The top imports include machinery, chemicals, semi-finished goods, refined petroleum, transport equipment, and scrap iron. The top import partners are China 12%, Germany 10.3%, Russia 9.9%, US 5.4% and Italy 5.1%. The value of Turkey’s imports is higher than exports leading to a negative trade balance of about $50 billion. Turkey is the 51st most complex economy in the world with an economic complexity index of 0.391.
Challenges Faced By The Economy Of Turkey
While Turkey is a fairly wealthy nation, the wealth is distributed mainly to the northern and eastern regions leaving the south and western parts in poverty. Other problems include environmental pollution, especially of air and water resources. Turkey established the ministry of environment and urban planning to oversee the management and control of water and waste treatment plants. Turkey has plans to exploit nuclear energy to meet the country’s energy needs. The major nuclear plant in Turkey is Candu which exploits natural uranium. The newer projects are expected to be set up in Akkuyu district, Inceburun and Igneada.
What type of economy does Turkey have?
Turkey is an important emerging economy with a positive growth rate. Turkey is the fastest growing economy in Europe.
About the Author
Benjamin Elisha Sawe holds a Bachelor of Arts in Economics and Statistics and an MBA in Strategic Management. He is a frequent World Atlas contributor.
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