Economy of Turkey
Turkey has the world’s 13th largest GDP by PPP and 17th largest nominal GDP. The country is among the founding members of the OECD and the G-20.
The EU – Turkey Customs Union in 1995 led to an extensive liberalisation of tariff rates, and forms one of the most important pillars of Turkey’s foreign trade policy. Turkey’s exports were $143.5 billion in 2011 and reached $163 billion in 2012 (main export partners in 2012: Germany 8.6%, Iraq 7.1%, Iran 6.5%, UK 5.7%, UAE 5.4%). However, larger imports which amounted to $229 billion in 2012 threatened the balance of trade (main import partners in 2012: Russia 11.3%, Germany 9%, China 9%, United States 6%, Italy 5.6%).
Turkey has a sizeable automotive industry, which produced over 1.3 million motor vehicles in 2015, ranking as the 14th largest producer in the world. Turkish shipbuilding exports were worth US$1.2 billion in 2011. The major export markets are Malta, Marshall Islands, Panama and the United Kingdom. Turkish shipyards have 15 floating docks of different sizes and one dry dock. Tuzla, Yalova, and İzmit have developed into dynamic shipbuilding centres. In 2011, there were 70 active shipyards in Turkey, with another 56 being built. Turkish shipyards are highly regarded both for the production of chemical and oil tankers up to 10,000 dwt and also for their mega yachts.
Beko and Vestel are among the largest producers of consumer electronics and home appliances in Europe.
Turkish brands like Beko and Vestel are among the largest producers of consumer electronics and home appliances in Europe, and invest a substantial amount of funds for research and development in new technologies related to these fields.
Other key sectors of the Turkish economy are banking, construction, home appliances, electronics, textiles, oil refining, petrochemical products, food, mining, iron and steel, and machine industry. In 2010, the agricultural sector accounted for 9 percent of GDP, while the industrial sector accounted for 26 percent and the services sector for 65 percent. However, agriculture still accounted for a quarter of employment. In 2004, it was estimated that 46 percent of total disposable income was received by the top 20 percent of income earners, while the lowest 20 percent received only 6 percent. The rate of female employment in Turkey was 30 percent in 2012, the lowest among all OECD countries.
Foreign direct investment (FDI) was $8.3 billion in 2012, a figure expected to rise to $15 billion in 2013. In 2012, Fitch Group upgraded Turkey’s credit rating to investment grade after an 18-year gap; this was followed by a ratings upgrade by Moody’s in May 2013, as the service lifted Turkey’s government bond ratings to the lowest investment grade Baa3. In September 2016, Moody’s cut Turkey’s sovereign debt to junk status. In the economic crisis of 2016 it emerged that the huge debts incurred for investment during the AKP government since 2002 had mostly been consumed in construction, rather than invested in sustainable economic growth. Private bank debts in Turkey were 6.6 billion TL in 2002 and had increased to 385 billion TL by the end of 2015. Turkey’s gross external debt reached $453.2 billion at the end of December 2017.Turkey’s annual current account deficit was $47.3 billion at the end of December 2017, compared to the previous year’s figure of $33.1 billion