Economy - overview Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that in 2001 still accounted for 40% of employment. It has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication. The most important industry - and largest exporter - is textiles and clothing, which is almost entirely in private hands. In recent years the economic situation has been marked by erratic economic growth and serious imbalances. Real GNP growth has exceeded 6% in most years, but this strong expansion was interrupted by sharp declines in output in 1994, 1999, and 2001. Meanwhile the public sector fiscal deficit has regularly exceeded 10% of GDP - due in large part to the huge burden of interest payments, which in 2001 accounted for more than 50% of central government spending - while inflation has remained in the high double digit range. Perhaps because of these problems, foreign direct investment in Turkey remains low - less than $1 billion annually. In late 2000 and early 2001 a growing trade deficit and serious weaknesses in the banking sector plunged the economy into crisis - forcing Ankara to float the lira and pushing the country into recession. Prospects for 2002 are much better, because of strong financial support from the IMF, tighter fiscal policy, a major bank restructuring program, and the enactment of numerous other economic reforms.

GDP purchasing power parity - $443 billion (2001 est.)

GDP - real growth rate -6.5% (2001 est.)

GDP - per capita purchasing power parity - $6,700 (2001 est.)

GDP - composition by sector
agriculture: 14.5%
industry: 28.4%
services: 57.1% (2000)

Population below poverty line NA%

Household income or consumption by percentage share
lowest 10%: 2.3%
highest 10%: 32.3% (1994)

Distribution of family income - Gini index 41.5 (1994)

Inflation rate (consumer prices) 69% (2001)

Labor force 23.8 million (2001 3rd quarter)
note: about 1.2 million Turks work abroad (1999)

Labor force - by occupation agriculture 39.7%, services 37.9%, industry 22.4% (2001 3rd quarter)

Unemployment rate 10.6% (plus underemployment of 6.1%) (2001 4th quarter)

Budget
revenues: $42.4 billion
expenditures: $69.1 billion, including capital expenditures of $NA (2001)

Industries textiles, food processing, autos, mining (coal, chromite, copper, boron), steel, petroleum, construction, lumber, paper

Industrial production growth rate -8.9% (2001)

Electricity - production 119.18 billion kWh (2000)

Electricity - production by source
fossil fuel: 74.09%
hydro: 25.65%
other: 0.26% (2000)
nuclear: 0%

Electricity - consumption 114.192 billion kWh (2000)

Electricity - exports 437 million kWh (2000)

Electricity - imports 3.791 billion kWh (2000)

Agriculture - products tobacco, cotton, grain, olives, sugar beets, pulse, citrus; livestock

Exports $33.8 billion (f.o.b., 2001)

Exports - commodities apparel 24.8%, foodstuffs 12.8%, textiles 12.7%, metal manufactures 8.8%, transport equipment 8.5% (2000)

Exports - partners Germany 17.4%, US 10.2%, Italy 7.5%, UK 7.0%, France 6.1% (2001 est.)

Imports $39.7 billion (c.i.f., 2001 est.)

Imports - commodities machinery 25.4%, chemicals 13.4%, semi-finished goods 13.7%, fuels 14.0%, transport equipment 12.4% (2000)

Imports - partners Germany 13.3%, Italy 8.6%, Russia 8.4%, US 8.1%, France 5.7%, UK 4.5% (2001 est.)

Debt - external $118.8 billion (September 2001)

Economic aid - recipient ODA, $195 million (1993)

Currency Turkish lira (TRL)

Currency code TRL

Exchange rates Turkish liras per US dollar - 1,223,140 (January 2002), 1,223,140 (2001), 625,219 (2000), 418,783 (1999), 260,724 (1998), 151,865 (1997)

Fiscal year calendar year

NOTE: The information regarding Turkey on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Turkey Economy 2002 information contained here. All suggestions for corrections of any errors about Turkey Economy 2002 should be addressed to the CIA.