Turkey

turkey

Quick facts:

Territory 783,562 km2
Population 75.62 million (2013)
Currency Turkish lira (TRY)
Capital Ankara
Official language Turkish
Memberships The EU Customs Union, the Council of Europe, NATO, OECD, OSCE, G-20 major economies etc. EU membership is a strategic target.
Real GDP per capita 10,818 USD / ca 8150 EUR per inhabitant (F2013)
Growth of GDP, % 9.0% (2010). Forecast: 3.5% in 2013, 3.0% in 2014, 4.3% in 2015
Average gross salary 2,193 TRY / ca 775 EUR (2011)
VAT rate 18%
Company Income Tax 20%
Phone code +90
Top domain .tr

Turkey enjoys a perfect geographical location at the crossroads of Europe and Asia. It borders with Bulgaria, Greece, Georgia, Armenia, Iran, Nakhichivan (the Azerbaijani exclave), Iraq and Syria. Turkey’s shores include the Mediterranean Sea to the south, the Aegean Sea to the west and and the Black Sea to the north. The Sea of Marmara, the Bosphorus and the Dardanelles demarcate the boundary between Thrace and Anatolia and separate Europe and Asia. Turkey is one of the world’s most popular tourism destinations. About a half of Turkey’s population is under the age of 30. The country is 5th largest amongst the European countries in terms of its working population (after Russia, Germany, England and France). The vast majority of the population is Muslim.

During 2004-2007 the Turkish economy was growing dynamically at more than 7% per year, attracting significant amounts of FDI. Since 2002, the Turkish real GDP per capita has tripled and reached 10,497 USD in 2012. Turkey’s FDIs in 2010 amounted to 16 billion USD, with industrial manufacturing being the main investment sector.

In 2008 the impact of the global financial crisis started to show slowing down the growth to 0.7%. In 2009 it fell by almost 5%. Turkey has managed to quickly recover from the economic downturn and to remain among the least affected by the global financial crisis. Thus, in 2010 a remarkable 9.2% of GDP growth was recorded. Since 2012 the economy has been growing at a slower pace.

During 2013, Turkey’s GDP (at current prices) continued to increase and according to the Turkish Ministry of Development by the end of the year it will reach 823 billion USD. Private consumption contributed most to this, while investment reported a decline on an annual basis. Gross value added posted the strongest increase in hotels and restaurants and financial intermediation, while mining recorded the most significant decline. The unemployment rate remained broadly unchanged in the first half of the year (9.8%) in sync with the ongoing economic activity growth.  According to the Eurostat forecast during 2013-2015 the Turkish GDP will be growing at around 4% per year.   

Turkey’s main export products include: motor vehicles, machinery & equipment, iron & steel, textiles, electronics, jewellery, mineral products, fuels & oils and plastics. Turkey’s total exports amounted to 67.1 billion USD in 2013 (almost 8% decrease against 2012). At the same time the volumes of imports exceeded the exports by almost 50%. Turkey’s main export countries are Germany, Iraq, the UK, Russian and Italy. The main import countries – China, Russia, Germany, USA and Italy.

One of the country’s priorities is energy efficiency and the use of renewable energy, there are many projects in this field aiming to be fulfilled by 2023.

The country is actively developing and promoting its Service sector including Tourism, Construction, Engineering & Architecture, Technical Consulting and Contracting Services as well as Commercial Services.