The economic situation of Turkey is still very contradictory. On the one hand a very large gap between the industrialized west and its modern industry exists (in particular the large metropolises) and the agrarian structured and little developed the east.

Structural problems

The region Istanbul reaches for example 41% of the average income of the 15 "„old "“European Union states, the east however only 7%. Various projects, among other things the large dam projects project (GAP)) are to help the east to develop better.

Besides there are substantial structural problems within the Turkish national economy. Thus the agriculture contributes 11.9% to the BSP only, however 30.6% of the workers employ.

The industry contributes 29.6% to the BSP and the service sector 58.5%. In the industry 19.3% of all employed persons work and in the service 44.5%. Since 1996 a customs union between Turkey and the European Union (51.6% of the exports go into the European Union) exists.

The number of the employed persons liable to social security rose August 2005 in relation to the previous year of 44,6% to 48,9%.

Turkey seems to have gotten their chronic inflation meanwhile into the grasp. The inflation reached occasional three-figure, almost hyper+inflationary numbers (1994/1995 amounted to it 150%), 2003 sank it on 18,4%, according to estimations amounted to it 2004 approx. 9.4%. On 1 January 2005 the old "„Turkish Lira was replaced "“by "„the new Turkish Lira "“(Yeni Lirasi). Thus the Turkish Lira loses 6 zeros. In addition the subunit of the Lira, is again introduced the Kurus. The Kurus was abolished approx. two decades ago, because due to the high inflation the Lira had lost strongly at value. On the fronts of the new 20, 50 and 100 Lira lights like up to then the Turkish state State of is to be seen. To end of 2005 both currencies are valid. A further economic challenge for Turkey represents the high debt conditions. Related to the BSP it amounts to 78.7% (conditions 2003). In it Turkey dresses world-wide the 22. Place relative to few indebted states.

Structure

The private industrial sector is dominated by familyfamily families such as Sabanci and

Industry

The textile industry is the most important industrial sector of Turkey and represents at the same time the largest portion with export. However 2004 exported the Turkish textile industry goods in the value of approx. 20 billion $ (2003 were still 15 billion $). The strong position of the Turkish textile industry is favoured by the fact that Turkey is the sixth-largest cotton manufacturer of the world. Increasingly the Turkish textile enterprises out go producing in addition over instead of cheap mass-produced goods mark mode and to drive. Thus the Turkish enterprises of the competition from China try to evade. Turkey belongs world-wide to the most important textile producers. The textile industry concentrates predominantly around the cities Istanbul and Bursa. Altogether it employs approx. 4 million humans.

Since at the beginning of of 2006 is the Turkish textile industry in a deep crisis and several 100,000 humans had to dismiss, since them cannot compete with the cheap wages from China. Native manufacturers weight about the fact Chinese "“entrepreneurs"” even industrial waste and domestic refuse as "“raw materials"” use.

Besides the automobile industry and the electronics industry win increasingly in meaning. In Turkey 2004 862,000 cars were produced, by which 519,000 was exported. Center of the automobile industry is the city Bursa. The automobile industry inclusive autosupporting industry exported 1999 goods in the value of 2.2 billion dollar. 2004 rose the exports to 10.7 billion, 2005 reached 13.7 billion dollar. The main export goals are Europe and the Gulf region. Meanwhile possess Toyota, DaimlerChrysler, Ford, Fiat and Renault production locations in Turkey. About 500,000 humans work in this industry.

A special strength became in the last years the production of television sets. Almost all large mark manufacturers let build with the three Turkish enterprises Vestel, Beko or Profilo Telra. A third of all in Europe televisions sold to 2005 in Turkey were produced. Last due to this strength the Beko electronics A.S. bought up the steeped in tradition German enterprise Grundig AG. 1999 amounted to production in the electrical industry 2.4 billion dollar. Color television sets in the value of 674 million dollar were exported 1999. Besides the meaning of production of household appliances rises like e.g. refrigerators.

Food industry concentrates on Westanatolien. The state is still active with enterprises such as sugars, dte, tobacco and alcoholic beverages.

Tourism

The tourism is an important sector of the economy of Turkey and one of the most important Devisenquellen of the country. 2005 reached the number of the foreign tourists, in the first 11 months, with 20,5 million holiday-makers a new record level (2004 there was still about 17.2 million). In addition about 3.6 million domestic tourists come. The Germans place the largest national group among the Turkey tourists followed from the Russians (1.6 millions) and the Britisher with approx. 4 million (1.3 millions). Touristi centers are the southern coast and the Turkish Riviera in such a way specified between Antalya and cape Anamur. 2005 obtained Turkey with the tourism, incomes of approx. 18.1 billion dollar. 2004 had been it still 15.9 billion dollar. The foreign tourists on the average spent 679 $ per head.

Banking

2001 uncovered chartered accoutant inconsistencies with many private banks. This restaurant economics was at that time one of the causes for the heavy economic crisis. Thereupon many banks were brought under national control and denationalized after the reorganization. The largest banks of the country are the national Ziraat bank and the private Is and Akbank.

Agriculture

About 33% of the surface are agriculturally used. In Turkey grain, various fruit and vegetable places are cultivated, besides Turkey is world market leader with Important are besides cotton, tobacco and olives. Since 1980 the viticulture wins meaning.

With the help of the gigantic project the agricultural use, an area of the size of the Benelux countries, is to be made possible. With the help of the project the agricultural cultivation is to be more strongly diversified.

Mining industry

In Turkey chrome, hard coal, brown coal, iron and to smaller quantities lead, zinc, copper and silver are promoted. 2004 was exported products in the value of approx. 1.08 billion $. With the new mining industry - laws and new private extraction areas counts the government 2006 on an export volume of 2 billion $.

Energy

Turkey refers the majority of the energy over imported goods of gas and oil. Main suppliers are Iran and Russia. Approximately 20% of the power production are produced by hydro-electric power plants and a further considerable part by the domestic hard coal.

At present the government plans the building of 12 atomic reactors with an overall capacity of 5000 megawatts. Commencement of construction for the first reactor should be 2007. Until at the latest 2015 is to be attached all reactors to electricity mains. The atomic energy organization of Turkey (Taek) has for this sieves possible locations selected. The government under prime minister Tayyip Erdogan must select now three locations. France promotes the building of the atomic reactors, with which Turkey also military power wants to receive and become the country possessing atomic weapons wants and may.

Foreign trade

Externaleconomically Turkey looks for a closer binding to the European Union and at the same time a stronger influencing control on the centralasiatic (among other things Kazakhstan, Usbekistan, Turkmenistan, Azerbaijan).

46% of the entire imported goods originate from the European Union, this were in the first half-year 2003 11 billion US dollar. Also to the development of the sales markets into the earlier GUS states, the addresses of the European companies play an important role.

Germany is also over 13% (9.4 billion $) of the imported goods and approx. 17% (9.4 billion $) of the exports the largest trade partner of Turkey. Further important trade partners are the USA (exports 3.7 and imported goods 3.4 billion $), Great Britain (exports 3.7 and imported goods 3.5 billion $), Italy (exports 3.2 and imported goods 5.4 billion $), Russia (exports 1.5 and imported goods 5.4 billion $) and France (exports 2.8 and imported goods 4.2 billion $).

Turkey accepts sixth rank as sales market for the European union meanwhile. At the same time Turkey grew to the seventh largest export country. The negative trade deficit with the European Union could be lowered compared to 2004 around 0,4 billion "€ on 4,7 billion "€.

See also: Centralasiatic-Turkish summit, black sea restaurant economics

Articles in category "Economics of Turkey"

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