Turkey Overview

Capital City: Ankara

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After going through a deep financial crisis in 2001, causing a severe contraction of the economy, Turkey has recovered growth, thanks to IMF's support. Turkey's GDP growth rate was 5.8% in 2003, 8.9% in 2004 and 5% in 2005. The FMI forecasts a 5% growth in 2006. The confidence climate has improved and consumption as well as investments have recovered dynamism. However, unemployment is worsening and affects 12% of the active population.

Agriculture is generously subsidised, it contributes to 12% of the GDP and employs 29% of the population. Wheat is the main crop. The country is the third largest exporter of tobacco world-wide. Mining natural resources are numerous, but little exploited. The manufacturing industry accounts for more than 20% of the GDP. The main activity sectors are textile and clothing, chemistry, building materials and food-processing. Tourism represents 4% of the GDP with 13 million visitors each year.

Turkey is open to international trade. An EU-Turkey free trade agreement came into effect in 1996 and the country is negotiating its EU membership. Turkey's top three import partners are Germany, Russia and Italy. Its top three export partners are Germany, the United States and the United Kingdom. Turkey mainly imports hydrocarbons, machinery, electronic equipment and metals.