Agriculture in Turkey, which contributes nearly 10% of the GDP and employs practically a third of the population, still suffers from low productivity because of its management system (small farms). Wheat is the main crop. Turkey is the third biggest exporter of tobacco in the world, the leading producer of hazelnuts (70% of world production). Mineral resources are abundant but under-exploited. The manufacturing industry, the main industrial activity of the country, makes up nearly 30% of the GDP and commands almost 18% of the workforce, the textile and automobile sectors being the main activities. The Turkish government gives special priority to large infrastructure projects, particularly in the transport sector, which mostly function under the BOT model (build, operate, transfer).  The tertiary sector contributes slightly less than two-thirds to the GDP. Tourism represents 4% of the GDP with about 13 million tourists a year and almost 22milions in profits, thus making it one of the key sources of foreign currency for the country. 

2. Main Industry Sectors
Economic Overview
Foreign Direct Investment [FDI]
FDI Government Measures
Country Strong Points
Country Weak Points
Foreign Trade Overview

3. Agriculture in Turkey, which contributes nearly 10% of the GDP and employs practically a third of the
population, still suffers from low productivity because of its management system (small farms).
Wheat is the main crop.
Turkey is the third biggest exporter of tobacco in the world, the leading producer of hazelnuts (70% of
world production). Mineral resources are abundant but under-exploited.
The manufacturing industry, the main industrial activity of the country, makes up nearly 30% of the
GDP and commands almost 18% of the workforce, the textile and automobile sectors being the main
activities.
The Turkish government gives special priority to large infrastructure projects, particularly in the
transport sector, which mostly function under the BOT model (build, operate, transfer).
The tertiary sector contributes slightly less than two-thirds to the GDP.
Tourism represents 4% of the GDP with about 13 million tourists a year and almost 22milions
in profits, thus making it one of the key sources of foreign currency for the country.

4. Turkey, a country of 74 million inhabitants, has an economy in transition, a relatively
high degree of dependence on agriculture (11% of its territory is cultivated) and heavy
industry (large mining sector and vast reserves of boron representing 60% of global
reserves), and a tertiary sector in full expansion (hotel and catering business).
After going through a serious economic and political crisis in 2001, Turkey has made a
spectacular recovery thanks to a more favorable political climate but also to
monetary, fiscal and structural reforms inspired by the World Bank and the IMF.
Turkish economy is also based on manufacturing (country's number one industrial
activity). Since the 1980s, tourism has also been a significant source of income.
Turkey is one of the ten most visited countries in the world.

5. The financial crisis of course had an effect on the growth of Turkish economy; nevertheless the
latter recovered relatively quickly and has grown by 3.5% in 2010.
For 2011, the government foresees one point increase, thus bringing the growth rate to 4.3%.
Turkish government has undertaken large economic reforms: adoption of a floating currency
regime, giving total independence to the Central Bank, budgetary discipline and inflation control.
The Turkish economy remains vulnerable due to its high dependence on exports and foreign
investment.
The unemployment rate has soared to around 15%. Turkey is also affected by its large informal
sector.

6. Following the economic and political crisis of 2001, which led to the collapse of its banking
system, Turkey concluded a significant macro-economic stabilization plan with the IMF, in 2002. Within this
stable political context, also characterized by a gradual improvement of the country's economic results, FDI
influx to the country was enormous.
Due to the global financial crisis and the suffocation of the privatization process, the trend has been
reversed: since September 2008, the FDI influx into Turkey has been decreasing.
In 2009, Turkey, with 6 billion of FDI, has been demoted to 32nd place in world's destinations, i.e. 12
places down from 2008.
The effects of the crisis can still be felt. In the first half of 2010, FDI flux totalled 3.2 billion USD, or a
quarter less than on September 1st 2009.
The estimate for 2011 is 7.5 billion USD. In this way, the influx should not return to their
earlier lever before two years from now.
The state has undertaken many legislative reforms in order to attract FDI (tax exemptions and
other incentives), such as creating the Prime Ministry Investment Support and Promotion Agency
of Turkey€?, showcasing the efforts made to attract foreign operators.

7. Since 2003, investors are no longer obliged to acquire a minimum interest.
Turkish government encourages investments in the form of Build Operate Transfer (BOT)
(law n° 4283 of 16 July 1997).
Turkish favors investments in the High Tech, textiles, services
(health, education, transport), telecommunications, shipbuilding, electronics and
biotechnologies sectors.
Export-oriented projects are also promoted.

8. A geographical strategic location;
A well developed industrial basin;
A country whose calling is to join the EU club by 2015-2020;
A rapidly developing consumer middle class;
A Flexible labor law, which favors investment and low labor costs;
A sustained growth influenced by a modern and dynamic private sector;
A strong increase in productivity in recent years;
A legal framework close to European standards and favorable to investment.

9. The slowing down of economic and political reforms observed since the end of 2005;
A strong dependence on hydrocarbon imports and on exports;
An uncertainty regarding the exchange rate;
A disturbing deficit of the balance of current payments;
Insufficient and sometimes obsolete, infrastructures;
An informal sector difficult to reduce.

10. The spearheads of Turkish foreign trade are the automobile and textile industries (the
latter employing 18% of the workforce), followed by the food industry (raw and processed
products), machinery and equipment and electronic equipment, steel and chemical sectors
respectively.
The European Union is by far Turkey's leading customer (56.4% of Turkish
exports), followed by the United States, China and Iraq.
Yet the country shows a high trade deficit level because of its high energy dependency on
Russia and its Middle Eastern neighbours. In addition, like the household appliance
sector, which paradoxically is a high export industry, many components (about 80%) are
imported to subsequently be assembled in Turkey.
Turkish government efforts to promote innovation (namely with the development of
competitiveness centres and the establishment of tax credits in favour of Research and
Development), Turkish exports have relatively low added value.
Turkish exports are still not very present on markets with high development potential
(China or Eastern Europe) and suffer from being compared to German ones.

11. Visit us to download for related reports
Market Opportunities of products and Services in Turkey.
Export and investment sector opportunities in Turkey.
Overview of Trade Regulations, Customs and Standards Turkey.
Turkey Investment guide for beginners.
Business and Project Financing in Turkey.
Business Travel Advisory in Turkey.

12.  China  Australia
 Mexico  Germany
 United States  France
 India  Spain
 Canada  South Korea
 Russia  Vietnam
 Hong Kong  Saudi Arabia
 Colombia  Poland
 Brazil  South Africa
 Turkey  Nigeria
 Indonesia  Argentina
 Egypt  UAE
 Singapore  Netherland
 United Kingdom  Sweden
 Italy  Thailand
 Japan  Israel
and more….
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