Economy :

TURKEY

Population : 76,805,524 (July 2009 est.)
(country comparison to the world: 18 )

ECONOMIC GROWTH

Sound economic policies combined with vigorous economic reforms have yielded favorable results; the economy sustained robust economic growth over the last seven years. Due to decisively implemented structural reforms and successful macroeconomic policies, Turkey has become one of the fastest growing economies in the world. The annual average real GDP growth rate, which was 0.8% during the period of 1998-2002, reached 6% in the period of 2002-2008.

Stability and high performance in the economy

Between 2003 and 2008:

• GDP increased by 143%, reaching USD 742 billion
• Annual average real GDP growth of 6%
• Exports increased by 179% and reached USD 132 billion
• Foreign trade increased by 186%
• Exports to neighboring countries rose 278%
• Imports from neighboring countries grew by 274%

FOREIGN TRADE OF TURKEY

In 2008, exports and imports reached an all-time high; exports increased 23 percent, reaching USD 132 billion, while imports rose 19 percent, hitting USD 202 billion. The following table shows Turkey's historical trade figures for 2002 to 2008.

Foreign trade statistics

Exports

Exports by activity

Turkey’s export markets are highly diversified. In 2008, Germany, with its share of 9.8%, continued to be the largest export market for Turkish products. Turkey’s second largest export market was the United Kingdom, with a share of 6.2%, whereas the UAE, with its share of 6.0%, constituted the third largest market for Turkish export products. In addition, Italy, France, the Russian Federation, the USA and Spain have been other major export markets, with shares of 5.9%, 5.0%, 4.9%, 3.3% and 3.1%, respectively.

Turkey’s exports to the Middle-Eastern and Asian countries have increased overall since 1990. As the UN embargo on trade with Iraq was lifted in May 2003, Turkey realized USD 4 billion of exports to Iraq in 2008, with a share of 3% in total exports, and Iraq has been Turkey’s 10th major export partner .

Imports

The Turkish import regime highlights the liberalization of Turkish imports in line with its commitments to complete the Customs Union with the EU, its relationship with EFTA and its obligations under the World Trade Organization (WTO). Turkey has placed special emphasis on its commitment to reduce customs duties in order to align itself with the Common Customs Tariff. Turkey has made necessary modifications to its import regime, and by January 1, 1996 the Customs Union with the EU became effective.

The basic aims of the Turkish import policy since the early 1980s can be summarized as follows:

• Reduction of protectionist measures in conformity with the new GATT rules.
• Reduction of bureaucratic procedures.
• Securing a supply of raw materials and intermediary goods at suitable prices with certain quality standards.

Turkey's membership of international trade organizations

Turkey has been a member of the WTO since 1995. Its commitment to integrating regional and international trade norms is seen in Turkey’s participation and membership of various organizations, including the Economic Cooperation Organization (ECO), UNCTAD, the Black Sea Economic Cooperation Organization, the World Customs Organization, the International Chamber of Commerce, D-8 and various other organizations.    

In addition to the Customs Union with the EU, Turkey has signed Free Trade Agreements (FTA) with EFTA, Georgia, Israel, the Former Yugoslav Republic of Macedonia, Croatia, Bosnia-Herzegovina, Tunisia, Morocco, the Palestinian Authority, Syria, Egypt and Albania.

Source : invest.gov.tr - CIA Factbook