Economy of Turkey

The economy of the Ottoman Empire was characterised by international trade and commerce, silk and textile weaving, agriculture, dairy farming and pastoralism. The Empire's economy began to stagnate in the 18th century, after it lost important territories in Central and Eastern Europe. By then, the Empire had also lost its monopoly in spice and silk trade between Asia and Europe, as a result of the discovery of new maritime routes which increasingly replaced the Ottoman-controlled land routes. Several other factors also led to the relative economic obsolescence of the late Ottoman Empire, such as its failure to immediately adapt to the innovative methods in industrial production that were introduced with the First Industrial Revolution in the 18th and 19th centuries; though improvements in industrial production took place during and after the Tanzimat reforms, in the late 19th and early 20th centuries. The economic history of the modern Republic of Turkey has four eras. The first era's development policy, put into motion with Atatürk's reforms, was defined by the transition from a mainly agricultural economy into a more diversified and industrialized economy. It emphasized on private accumulation between 1923 and 1929. The second era's focus was on state accumulation in a period of global crises between 1929 and 1945. The third era focused on state-guided industrialization based on import-substituting protectionism between 1950 and 1980. The fourth and current era began with the opening of the economy to liberal trade in goods, services, and financial market transactions on January 24, 1980. == Data ==

The following table shows the main economic indicators from 1980 to 2023 (with IMF staff estimates for 2024–2029). Inflation below 10% is in green. ==Main economic sectors==

As of November 2023, there are 1,086,670 registered companies based in Turkey. The sector with the highest number of companies registered in the country is manufacturing with 241,362 companies. This is followed by wholesale trading and services with 197,476 and 187,325 companies respectively. Agricultural sector is the largest of the 22 dams in the Southeastern Anatolia Project. The program includes 22 dams, 19 hydraulic power plants, and the irrigation of 1.82 million hectares of land. The total cost of the project is estimated at $32 billion. Industrial sector Heavy industry is tending to move out of the EU due to Turkey's laxer pollution regulations and cheaper energy. Consumer electronics and home appliances Turkey's Vestel is the largest TV producer in Europe, accounting for a quarter of all TV sets manufactured and sold on the continent in 2006. By January 2005, Vestel and its rival Turkish electronics and white goods brand Beko accounted for more than half of all TV sets manufactured in Europe. Another Turkish electronics brand, Profilo Telra, was Europe's third-largest TV producer in 2005. Textiles and clothing Turkey is the world's fifth-largest exporter of textiles, accounting for 10% of the country's GDP and employing 750 000 people in 2018. Turkish companies made clothing exports worth $13.98 billion in 2006; more than $10.67 billion of which (76.33%) were exported to the European Union. Motor vehicles and automotive products The automotive industry in Turkey, which plays an important role in the manufacturing sector of the Turkish economy, produced 1,352,648 motor vehicles in 2022, ranking as the 13th largest producer in the world (production peaked at 1,695,731 motor vehicles in 2017, when Turkey also ranked 13th). Turkish automotive companies like TEMSA, Otokar and BMC are among the world's largest van, bus and truck manufacturers. Togg, or Turkey's Automobile Joint Venture Group Inc. is the first all-electric vehicle company of Turkey. The automotive industry is an important part of the economy since the late 1960s. The companies that operate in the sector are mainly located in the Marmara Region. With a cluster of car-makers and parts suppliers, the Turkish automotive sector has become an integral part of the global network of production bases, exporting over $22.94 billion worth of motor vehicles and components in 2008. Global car manufacturers with production plants include Fiat/Tofaş, Oyak-Renault, Hyundai, Toyota, Honda and Ford/Otosan. Turkish automotive companies like TEMSA, Otokar and BMC are among the world's largest van, bus and truck manufacturers. Togg is a new Turkish automotive company established in 2018 for producing EVs. Togg's factory in Gemlik, Bursa Province, was inaugurated on 29 October 2022, the 99th anniversary of the Turkish Republic. Auto exports hit a record high for the fourth straight year. Production grew 9% year on year in 2016 to 1.48 million units, setting a new record for the second consecutive year. Nearly 80% of vehicles produced in Turkey were exported. Multiple unit trains, locomotives and wagons 's M8 line is among the new lines with fully automated driverless trains and platform screen doors for increasing passenger safety. TÜLOMSAŞ (1894), TÜVASAŞ (1951) and EUROTEM (2006) are among the major producers of multiple unit trains, locomotives and wagons in Turkey, including high-speed EMU and DMU models. Bozankaya is a Turkish manufacturer of rolling stock including metro, tram and trolleybus vehicles in Ankara. Defence industry , a twin engine fifth generation air superiority fighter, completed its maiden flight on February 21, 2024. TAI Anka-3, a flying wing type stealth UCAV, completed its maiden flight on December 28, 2023. during the naval parade for celebrating the centennial of the Turkish Republic on October 29, 2023. The Bayraktar TB3 and the jet-powered, low-observable Kızılelma are two UCAVs designed to operate on TCG Anadolu. The construction of the first MUGEM-class aircraft carrier, the first Tepe-class destroyer and the first Atılay-class submarine began on January 2, 2025. Turkey has many modern armament manufacturers. Annual exports reached $1.6 billion in 2014. MKEK, TAI, Aselsan, Roketsan, FNSS, Nurol Makina, Otokar, and Havelsan are major manufacturers. On 11 July 2002, Turkey became a Level 3 partner of the F-35 Joint Strike Fighter (JSF) development program. TAI builds various aircraft types and models, such as the F-16 Fighting Falcon for the Turkish Air Force. Turkey has recently launched domestically built new military/intelligence satellites including a 0.8m resolution reconnaissance satellite (Project Göktürk-1) for use by the Turkish Armed Forces and a 2m resolution reconnaissance satellite (Project Göktürk-2) for use by the Turkish National Intelligence Organization. Other important products include the TAI TF Kaan stealth air superiority fighter, Tepe-class destroyer, Istanbul-class frigate, Ada-class corvette, Atılay-class submarine, TAI Anka-3 flying wing type stealth UCAV, Baykar MIUS Kızılelma UCAV, Baykar Akıncı HALE UCAV, Baykar Bayraktar TB2 MALE UCAV, Baykar Bayraktar TB3 carrier-based MALE UCAV, TAI Aksungur MALE UCAV, TAI Anka MALE UAV/UCAV, Aselsan İzci UGV, Altay main battle tank, T-155 Fırtına self-propelled howitzer, J-600T missile, T-129 attack helicopter, A400M, Roketsan UMTAS anti-tank missile, Roketsan Cirit laser-guided rocket, Panter howitzer, ACV-300, Otokar Cobra and Akrep, BMC Kirpi, FNSS Pars 6x6 and 8x8 APC, Nurol Ejder 6x6 APC, TOROS artillery rocket system, Bayraktar Mini UAV, ASELPOD, and SOM cruise missile. Steel-Iron industry Turkey ranks 8th in the list of countries by steel production. In 2013, total steel production was 35.134 million tonnes. Turkey's crude steel production reached a record high of 34.1 million tons in 2011. Notable producers (above 2 million tonnes) and their ranks among top steel producing companies. • Erdemir (7.1 million tonnes) (47th) (Only Erdemir-Turkey; Erdemir-Romania is not included) • Habaş (4.4 million tonnes) (72nd) • İçdaş (3.6 million tonnes) (76th) • Diler (2.3 million tonnes) (108th) • Çolakoğlu (2.1 million tonnes) (110th) Science and technology Turkey boasts over 80 technoparks where around 6,000 national and multinational companies engage in R&D activities. TÜBİTAK is the leading agency for developing science, technology and innovation policies in Turkey. The Turkish Academy of Sciences is an autonomous scholarly society acting to promote scientific activities in Turkey. TAEK is the official nuclear energy institution of Turkey. Its objectives include academic research in nuclear energy, and the development and implementation of peaceful nuclear tools. Turkish government companies for research and development in military technologies include Turkish Aerospace Industries, ASELSAN, HAVELSAN, ROKETSAN, MKE, among others. Turkish Satellite Assembly, Integration and Test Center is a spacecraft production and testing facility owned by the Ministry of National Defence and operated by the Turkish Aerospace Industries. The Turkish Space Launch System is a project to develop the satellite launch capability of Turkey. It consists of the construction of a spaceport, the development of satellite launch vehicles as well as the establishment of remote earth stations. Construction and contracting sector The Turkish construction and contracting industry is made up of a large number of businesses. In 2016 a total of 39 Turkish construction and contracting companies were listed in the Top 250 International Contractors List prepared by the Engineering News-Record. From the beginning of the 1970s to the end of 2022, Turkish contractors have completed more than 11,605 projects in 133 countries. Their business volume abroad has reached 472 billion US Dollars in 2022. The two major earthquakes on 6 February 2023 in southern Turkey have revealed that some of the recently built structures that collapsed were not constructed in accordance with the latest safety regulations. Service sector Banking and finance and other state-owned banks such as Ziraat Bank, VakıfBank and Halkbank have their new headquarters at the Istanbul Financial Center (IFC). During the 19th and early 20th centuries, Bankalar Caddesi (Banks Street) in Istanbul was the financial center of the Ottoman Empire, where the headquarters of the Ottoman Bank (established as the Bank-ı Osmanî in 1856, and later reorganized as the Bank-ı Osmanî-i Şahane in 1863) and the Ottoman Stock Exchange (1866) were located. Bankalar Caddesi continued to be Istanbul's main financial district until the 1990s, when most Turkish banks began moving their headquarters to the modern central business districts of Levent and Maslak. In 1995, the Istanbul Stock Exchange moved to its current building in the Istinye quarter. The Istanbul Gold Exchange was also established in 1995. The Central Bank of the Republic of Turkey (Türkiye Cumhuriyet Merkez Bankası) was founded in 1930 as a privileged joint-stock company. The CBRT possesses the sole right to issue notes. It also has the obligation to provide for the monetary requirements of the state agricultural and commercial enterprises. The "New Turkish lira" (TRY) was introduced on 1 January 2005. On 1 January 2009, the New Turkish lira was renamed once again as the "Turkish lira", with the introduction of new banknotes and coins. Banking came under stress beginning in October 2008, as a result of the 2008 financial crisis. Turkish banking authorities warned state-run banks against the pullback of loans from the larger financial sectors. business district in Ankara, Turkey's capital and second largest city Turkey's economy resumed its growth between 2009 and 2013, which was followed by a period of stagnation and recession between 2014 and 2020. Turkey's GDP began to recover and grow again in the period between 2020 and 2024. In 2020, the total value of assets of the banking sector in Turkey amounted to more than $800 billion. As of January 2021, there were a total of 48 banks operating with 9,880 branches in Turkey and 71 branches abroad. , the foreign currency deposits of the citizens and residents in Turkish banks stood at $234 billion, equivalent to around half of all deposits. , the foreign currency reserves of the Turkish Central Bank were $85 billion, its gold reserves were $67.4 billion, while its official reserve assets stood at $159.8 billion. Transport , flag carrier of Turkey, has been selected by Skytrax as Europe's best airline for five years in a row (2011–2015). With destinations in 129 countries worldwide, Turkish Airlines is the largest carrier in the world by number of countries served . is the main international airport serving Istanbul, Turkey. It is a major hub in the world. In 2013 there were 98 airports in Turkey, including 22 international airports. , Istanbul Atatürk Airport was the 11th busiest airport in the world, serving 31,833,324 passengers between January and July 2014, according to Airports Council International. The new (third) international airport of Istanbul is planned to be the largest airport in the world, with a capacity to serve 150 million passengers per annum. on the Dardanelles strait, connecting Europe and Asia, is the longest suspension bridge in the world. The state-owned utility Turkish State Railways operates the 12,740–km railway network, 23rd longest in the world. Since 2003, Turkish State Railways has also been investing in high-speed rail lines, which at 2,175 km (1,353 mi) ranked ninth longest in the world. high-speed train of the Turkish State Railways at the ATG terminal in Ankara As of 2010, the country had a roadway network of 426,951 km, including 2,080 km of expressways and 16,784 km of divided highways. As of 2010, the Turkish merchant marine included 1,199 ships (604 registered at home), ranking 7th in the world. while there were 65,824,000 registered mobile phones in the country, which ranked 15th in the world during the same year. In 2019, Turkey ranked sixth in the world in terms of the number of international tourist arrivals, with 51.2 million foreign visitors. Over the years, Turkey has emerged as a popular tourist destination for many Europeans, competing with other Mediterranean countries such as Greece, Italy and Spain. Resorts in provinces such as Antalya and Muğla (which are located on the Turkish Riviera) have become very popular among tourists. Medical tourism in Istanbul There are numerous private hospitals in Turkey, which has benefited from medical tourism in recent years. Health tourism generated revenues worth $1 billion in 2019 for Turkey's economy. ==Largest companies==

business district on the European side of Istanbul In 2025, ten publicly traded Turkish companies were listed in the Forbes Global 2000 list – an annual ranking of the top 2000 public companies in the world by Forbes magazine. The banking industry leads with four companies in the list, followed by the airline, automotive and retailer industries with one company each. There are also three conglomerates. As of 2025, the listed public companies were: == Long-term GDP forecasts ==

The following "OECD Long Term Projections" table was published in February 2022 for the 16 largest economies by GDP using PPP exchange rates from 2030 to 2060. ==External trade and investment==

As of 2016, the main trading partners of Turkey are the European Union, Russia, the United Kingdom, the UAE, Iraq, and China, many being top in both export as well as import. Turkey has taken advantage of a customs union with the EU, signed in 1995, to increase industrial production for exports, while benefiting from EU-origin foreign investment into the country. In addition to the European-Turkish Customs Union, the Turkish government has signed free-trade agreements with 22 countries. A very large aspect of Turkey trade revolves around the automotive industry, where its top exports are cars, accounting for $13.2 billion. Other top exports from the country are gold, delivery trucks, vehicle parts and jewelry, which are respectively, $6.96 billion, $5.04 billion, $4.64 billion, and $3.39 billion. These values are calculated using the 1992 revision of the Harmonized System classification. Comparatively, it imports many of the same industries, such as, gold valued at $17.1 billion, refined petroleum at $9.8 billion, cars at $8.78 billion, vehicle parts at $6.34 billion and scrap iron at $5.84 billion. The construction and contracting companies, such as Enka, Rönesans Holding and Tekfen, have been significant players in the country's economy. The Turkish emissions trading system is a response to the EU Carbon Border Adjustment Mechanism but is handicapped by technological lock-in - for example coal power plants built in the 2010s. it is in pilot phase. Turkey had many improvements in the ease of doing business index. Its rank increased from 68th in 2017 to 33rd in 2020. As of 2021, it was performing better than countries like the Netherlands and Belgium. == Natural resources ==

Energy Renewable energy in the far west Fossil fuels The Right to Clean Air Platform has estimated that the lack of a legal limit on fine particulate air pollution has cost the economy 10% of GDP in 2024. Gas Oil Coal Minerals In 2019, the country was the world's 2nd largest producer of chromium; the largest producer of boron; 6th largest producer of antimony; 9th largest producer of lead; 13th largest producer of iron ore; 11th largest producer of molybdenum; 4th largest producer of gypsum; 15th largest producer of graphite; in addition to being the 11th largest producer of salt. As a gold producer Turkey is currently ranked 22nd globally. Hosting some of the largest gold deposits on the European continent it is currently Europe's largest gold producer, producing 42 tonnes of gold in 2020. World class deposits include Kisladag Mine 17Moz and Copler 10Moz. ==Environment==

Almost all "post-COVID" stimulus was detrimental to the environment, with Russia being the only worse country. In the 21st century, Turkey's fossil fuel subsidies are around 0.2% of GDP, including at least US$14 billion (US$169 per person) between January 2020 and September 2021. Data on finance for fossil fuels by state-owned banks and export credit agencies is not public. As of 2023 fossil gas is subsidized more than electricity - equalizing the subsidies would benefit the environment. == Employment ==

The minimum wage in Turkey is ₺ 28,075 (US$ 652.41) as of 1 January 2025. In 2022 the daily median income was US$ 19.94 (PPP). TurkStat estimated unemployment at 9.4% in 2023. The province with the highest unemployment rate was Hakkari at 23.3% and the province with the lowest unemployment rate was Sinop at 4.8%. In 2021, trade unions complained that according to TurkStat data the unemployment rate was falling, whereas the data provided by the government's Employment Agency (İŞKUR) showed that it was rising. Environmentalists argue that some actions to improve the environment would also benefit the economy. For example, investing in wind power in Turkey and solar power in Turkey would create jobs and is competitive with fossil fuels. ==Poverty==

Turkey made steady progress in reducing poverty from the early 2000s to the mid-2010s, after which the trend levelled off. In 2022, social security expenditure stood at 12.4% of GDP according to OECD data. ==Regional disparities==

According to Eurostat data, Turkish GDP per capita adjusted by purchasing power standards stood at 64 percent of the EU average in 2018. Istanbul has the largest GDP, while Kocaeli comes first in GDP per capita. The country's wealth is mainly concentrated in the northwest and west, while the east and southeast suffer from poverty, lower economic production and higher levels of unemployment. However, in line with the rapid growth of Turkey's GDP during the first two decades of the 21st century (with brief periods of stagnation and recession), parts of Anatolia began reaching a higher economic standard. These cities are known as the Anatolian Tigers. Richest and poorest NUTS-2 regions (GDP PPP 2022) Source: Eurostat – ESA Richest and poorest NUTS-1 regions (GDP PPP 2022) Source: Eurostat – ESA ==See also==