The Turkish economy is an emerging market economy as defined by the International Monetary Fund. According to the CIA World Factbook, Turkey is among the developed world countries … Turkey is also defined by economists and political scholars as one of the world’s new industrialized nations. Turkey ranks 17th in the world in terms of GDP and 13th in terms of purchasing power parity (PPP). It is one of the world’s leading manufacturers of agricultural products, textiles, vehicles
Located motorcycles, transportation equipment, construction materials and home appliances.
Since August 2018, Turkey has been experiencing a currency and debt crisis, high inflation, high borrowing, and so on. The crisis was caused by the foreign exchange deficit and foreign currency debt combined with the growing tyranny of the Development and Justice Party and President Recep Tayyip Erdogan’s misconceptions about interest rate policy. The Turkish economy includes various sectors such as agriculture, industry, construction and services.
Questions about the economic situation in Turkey may come to the minds of the audience. These questions include:
- Is Turkey a rich country?
Turkey is far from the poverty line, but it is still not that rich. It is classified as an emerging market economy with a per capita GDP of $ 11,000 ($), which is slightly higher than the global average but lower than most European countries.
- What is the state of the Turkish economy?
The Turkish economy has shown resilience in the face of international economic crisis. This is largely due to government grants, a well-regulated and well-funded banking sector, and a diverse and dynamic private sector.
- Is the unemployment rate in Turkey lower than the EU average?
No, according to the European Statistics Office (Eurostat), the average unemployment rate in the European Union (EU) is around 6.3%; While the unemployment rate in Turkey 2019 is about 14.0%.
General information about the Turkish economy
The Republic of Turkey is a country with an emerging and developed economy located in West Asia. This country has a lot to say not only in the field of tourism but also in all economic sectors such as industry and trade. This country is a prestigious and powerful country in the regional and global arenas. The following table summarizes the economic data of Turkey in 2019:
| Common currency | Turkish Lira |
| Fiscal year | January 1 to December 31 |
| Business organizations | G-20, OECD, EU Customs Union, WTO, ECO, BSEC, Developing-8, AIIB |
| Country category | Upper to upper middle income economics in developing / emerging solutions |
Turkish economic conditions
Turkey is a country with a population of about 82319724 people located in a region between Asia and Europe and is connected to Europe through the Bosphorus Strait. Turkey’s gross domestic product (GDP) is about $ 771,274 billion (dollar) (nominal, 2018) with a global ranking of $ 19 and $ 2,300 trillion (dollar) (PPP, 2018). Inflation in Turkey is relatively low, so that in 2018 it was about 16.33%. Meanwhile, inflation in Turkey in 2019 is about 8.55%. Turkey has a high Human Development Index (HDI) of about 0.791. The country’s labor force is about 32613639 million and Turkey’s employment rate in 2018 is about 47.4%.
But let’s hear a little about the unemployment rate in this country; According to the European Statistical Office (Eurostat), the average unemployment rate in the European Union (EU) is about 6.3%, while the unemployment rate in Turkey in 2019 is about 14.0%.
European countries with the lowest unemployment rates in 2018 are:
| the countries | The unemployment rate | Change the percentage point |
|---|---|---|
| Czech Republic | 2.3 | 4.9- |
| Germany | 3.5 | 1.9- |
| Hungary | 3.7 | 7.2- |
| European Union (EU) | 6.3 | 3.9- |
Turkish economic structure
Most people are familiar with the Turkish economy with its tourism industry; This is true, but it does not reflect the whole economic reality of Turkey. As stated earlier, the tourism industry is merely a subset of the Turkish economic services sector; But Turkey is a country with an emerging and developing economy, so it is not a unstructured economy.
The economic structure of Turkey can be divided into 3 main parts. These three sectors, including agriculture (8.6%), industry (27.1%) and services (64.3%), make up the share of the country’s economy. As the statistics show, the most active Turkish labor force with more than 60% belongs to the service group, including the Turkish tourism industry, but the main industries or the parent industries of Turkey include the following:
As the statistics show, the most active Turkish labor force with more than 60% belongs to the service group, including the Turkish tourism industry, but the main industries or the parent industries of Turkey include the following:
- Food processing
- automobile
- manufacturing
- Electronic devices
- tourism
- mine
- Construction
The share of exports and imports in the Turkish economy
First of all, you should know that Turkey is ranked 33rd in the world in terms of ease of doing business. Turkey is a country that has trade exchanges (exports and imports) with most countries in the world, Iran is also one of the countries that play an important role in trade with Turkey. The share of Turkey’s exports to foreign countries is about $ 180.2 billion (dollars) per year; Major export products of Turkey also include textiles, foodstuffs, metals, various equipments, etc. But Turkey’s most important export partners include Germany, Britain, the United Arab Emirates, Iran, Iraq, the United States, Italy, France and Spain, respectively.
Turkey’s imports have overtaken its exports; Most of the country’s imported products and items include machinery, chemicals, semi-finished goods, fuels, transportation equipment and the like. But Turkey’s main import partners are China, Germany, Russia, the United States and Italy. It should be noted that the share of foreign direct investment (FDI) in the global investment market of Turkey is about more than $ 180 billion (dollars) in 2017, which indicates the attraction of foreign investors by the Turkish government.
Investment conditions in the Turkish economy
Turkey is strategically located between the two continents of Asia and Europe, including by sea, air and land. It is a highly developed and highly industrialized country. Turkey is also one of the emerging global markets. It is necessary to know that Turkey is also one of the world famous producers of agricultural products, textiles, electrical appliances and industrial machinery. Therefore, the ground for investing in Turkey is very favorable and provided. But there are many ways to invest in Turkey, such as buying property, registering a company, saving money, buying bonds, and becoming an entrepreneur. Among these methods, the real estate market in Turkey is very hot:
| Type of investment | Conditions (minimum investment) |
|---|---|
| Buy property | $250,000 |
| Forming a commercial company | $500,000 |
| Bank savings or buying bonds | $500,000 |
| Entrepreneurship | Create 50 jobs |
In this way, esteemed investors, in addition to obtaining a residence permit in Turkey, can receive their dual passport after 5 years of permanent residence in this country.
Experts and immigration lawyers of Holding (4K Group) are proud to provide the best consulting services to our dear compatriots, relying on their legal and immigration knowledge as well as their valuable experiences of many years.
