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Turkey

Turkey Economy Stats

jaacosta47

Author: jaacosta47

The economy of Turkey used to be described by international observers as a miracle. However, it has slowed down and the domestic currency has lingered around record laws as against the US dollar. Some large private corporations are also staring at immense foreign debts. What is the cause of all this disarray? The truth is a lot of developed countries struggled with growth in after the global economic downturn. Turkish Prime Minister attributed Tuyyip Edrogan attributed his country’s progress during the past 10 years for its capability to attract foreign investors from Europe and emerging markets like Russia and China.

Fast economic growth was caused by cheap credit pouring into the country. As the crisis hit developed economies, investors turned to emerging economies which guaranteed higher returns compared to despondent Western markets. Turkey enjoyed a foreign-funded construction surge. Nonetheless, the good times came to a halt when the United States Federal Reserve declared a scale-back in its stimulus program last year. Cash became scarce. There was more security in the American economy. Therefore, investors started withdrawing their investments from upcoming markets.

Yet, Turkey's growth faltered to just above two percent while inflation rose to 7.4 percent in 2013. These figures were still over the five percent target. On the contrary, the national currency (Lira) slumped further at the start of the year compelling Turkey's central bank to espouse a radical approach and interest rates from 7.7 percent to 12 percent. This is an indication of the bank's resolve to prevent foreign capital outflows. Perhaps, this is a sign of the economy’s resilience which grew by 4.4 percent during the last part of 2013.

Overview:

Turkey's economy is increasingly driven by its industry and service sectors, although its traditional agriculture sector still accounts for about 30% of employment. An aggressive privatization program has reduced state involvement in basic industry, banking, transport, and communication, and an emerging cadre of middle-class entrepreneurs is adding a dynamism to the economy. Turkey's traditional textiles and clothing clothing sectors still account for one-third of industrial employment, despite stiff competition in international markets that resulted from the end of the global quota system. Other sectors, notably the automotive, construction, and electronics industries, are rising in importance and have surpassed textiles within Turkey's export mix. Oil began to flow through the Baku-Tbilisi-Ceyhan pipeline in May 2006, marking a major milestone that will bring up to 1 million barrels per day from the Caspian to market. Several gas pipelines also are being planned to help move Central Asian gas to Europe via Turkey, which will help address Turkey's dependence on energy imports over the long term. After Turkey experienced a severe financial crisis in 2001, Ankara adopted financial and fiscal reforms as part of an IMF program. The reforms strengthened the country's economic fundamentals and ushered in an era of strong growth - averaging more than 6% annually until 2009, when global economic conditions and tighter fiscal policy slowed growth to 4.7%, reduced inflation to 6.5% - a 34-year low - and cut the public sector debt-to-GPD ratio below 50%. Turkey's well-regulated financial markets and banking system weathered the global financial crisis and GDP rebounded strongly to 7.3% in 2010, as exports returned to normal levels following the recession. The economy, however, continues to be burdened by a high current account deficit and remains dependent on often volatile, short-term investment to finance its trade deficit. The stock value of FDI stood at $174 billion at year-end 2010, but inflows have slowed considerably in light of continuing economic turmoil in Europe, the source of much of Turkey's FDI. Further economic and judicial reforms and prospective EU membership are expected to boost Turkey's attractiveness to foreign investors. However, Turkey's relatively high current account deficit, uncertainty related to policy-making, and fiscal imbalances leave the economy vulnerable to destabilizing shifts in investor confidence.

Definitions

  • Budget > Revenues: Revenues calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms
  • Budget surplus > + or deficit > -: This entry records the difference between national government revenues and expenditures, expressed as a percent of GDP. A positive (+) number indicates that revenues exceeded expenditures (a budget surplus), while a negative (-) number indicates the reverse (a budget deficit). Normalizing the data, by dividing the budget balance by GDP, enables easy comparisons across countries and indicates whether a national government saves or borrows money. Countries with high budget deficits (relative to their GDPs) generally have more difficulty raising funds to finance expenditures, than those with lower deficits.
  • Debt > Government debt > Public debt, share of GDP: Public debt as % of GDP (CIA).

    No date was available from the Wikipedia article, so we used the date of retrieval.

  • Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
  • Fiscal year: The beginning and ending months for a country's accounting period of 12 months, which often is the calendar year but which may begin in any month. All yearly references are for the calendar year (CY) unless indicated as a noncalendar fiscal year (FY).
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition by sector > Industry: The gross domestic product (GDP) or value of all final goods produced by the industrial sector within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Per capita figures expressed per 1 population.
  • GDP > Per capita > PPP: This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP > Purchasing power parity per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Figures expressed per capita for the same year.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • Gross National Income: GNI, Atlas method (current US$). GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Population below poverty line: National estimates of the percentage of the population lying below the poverty line are based on surveys of sub-groups, with the results weighted by the number of people in each group. Definitions of poverty vary considerably among nations. For example, rich nations generally employ more generous standards of poverty than poor nations.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Unemployment rate: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
STAT AMOUNT DATE RANK HISTORY
Budget > Revenues $185.10 billion 2013 21st out of 223
Budget surplus > + or deficit > - -2.1% of GDP 2012 75th out of 182
Debt > Government debt > Public debt, share of GDP 35.5 CIA 2014 100th out of 153
Exports $163.30 billion 2012 30th out of 189
Fiscal year calendar year 2013
GDP $789.26 billion 2012 18th out of 177
GDP > Composition by sector > Industry 28.1% 2012 93th out of 217
GDP > Per capita $12,998.66 per capita 2010 31st out of 118
GDP > Per capita > PPP $14,800.00 2012 67th out of 188
GDP > Purchasing power parity per capita $13,284.34 2010 66th out of 181
GDP per capita $10,666.06 2012 58th out of 177
Gross National Income $167.00 billion 2001 22nd out of 158
Population below poverty line 16.9% 2010 31st out of 48
Public debt 37.6% of GDP 2012 94th out of 149
Unemployment rate 9.2% 2012 44th out of 112

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 2010, 2011, 2012, 2013; Wikipedia: List of countries by public debt (List) (Public debt , The World Factbook , United States Central Intelligence Agency , accessed on March 21, 2013.); All CIA World Factbooks 18 December 2003 to 18 December 2008; World Bank national accounts data, and OECD National Accounts data files.; CIA World Factbook 2010, 2011, 2012, 2013; CIA World Factbooks 18 December 2003 to 28 March 2011. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; CIA World Factbooks 18 December 2003 to 28 March 2011

Citation

"Turkey Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/Turkey/Economy

NationMaster

Turkey Economy Profiles (Subcategories)

Adjusted savings 3 International tourism 4
Aid 5 Labor force 3
Balance of payments 34 Long-term debt 4
Bank and trade-related lending 4 Market capitalization of listed companies 4
Budget 10 Merchandise 4
Business 11 Merchandise imports 4
Changes in net 4 Micro 4
Commercial service 4 National accounts 105
Commercial service imports 4 Natural gas 8
Companies 39 Net capital account 4
Consumption 8 Net current transfers 4
Currency 12 Net current transfers from abroad 5
Current account balance 5 Net errors and omissions 4
Current transfers 4 Net financial flows 20
Debt 75 Net income 4
Economic aid 3 Net income from abroad 5
Economic growth 5 Net trade in goods 4
Economic structure 4 Net trade in goods and services 4
Electricity 8 Official development assistance and official aid 4
Entrepreneurship 12 Oil 10
Exports 3 Portfolio investment 12
External balance on goods and services 7 Poverty 23
External debt 215 Poverty and inequality 17
Final 11 Private investment 3
Financial sector 32 Private nonguaranteed debt 4
Foreign aid 43 Public and publicly guaranteed debt service 6
Foreign direct investment 14 Public and publicly guaranteed (PPG) debt 3
GDP 42 Public expenditure 4
GDP growth 4 Purchasing power parity 11
GDP per capita 4 Reserves 6
GNI 12 Retail 3
Goods 4 Royalty and license fees 4
Goods imports 4 Savings 44
Government 14 Service 4
Government debt 8 Service imports 4
Government spending 5 Services 10
Gross capital formation 10 Spending 73
Gross domestic savings 5 Steel 4
Gross fixed capital formation 10 Stock of direct foreign investment 6
Gross national expenditure 9 Stocks traded 5
Gross savings 6 Support and aid 5
Gross value added at factor cost 9 Tax 71
High-technology 4 Taxes 3
Household final 23 Total 9
IBRD loans and IDA credits 4 Total debt service 6
Income 24 Tourism 21
Income distribution 4 Tourism expenditures 5
Income payments 4 Tourism receipts 5
Income receipts 4 Tourist arrivals by region of origin 8
Inequality 13 Trade 1643
Inflation 10 Trademark applications 4
Innovation 31 Transnational corporations 4
Interest payments 3 Use of IMF credit 4
  • Turkey ranked first for debt > external amongst Muslim countries in 2012.
  • Turkey ranked first for companies > trademark applications, total amongst Europe in 2011.
  • Turkey ranked first for inflation rate > consumer prices amongst NATO countries in 2012.
  • Turkey ranked first for consumer price index amongst Emerging markets in 2005.
  • Turkey ranked first for GDP amongst Potential Future EU Members in 2012.
  • Turkey ranked 4th last for GDP per capita amongst Non-religious countries in 2012.

1

The economy of Turkey used to be described by international observers as a miracle. However, it has slowed down and the domestic currency has lingered around record laws as against the US dollar. Some large private corporations are also staring at immense foreign debts. What is the cause of all this disarray? The truth is a lot of developed countries struggled with growth in after the global economic downturn. Turkish Prime Minister attributed Tuyyip Edrogan attributed his country’s progress during the past 10 years for its capability to attract foreign investors from Europe and emerging markets like Russia and China.

Fast economic growth was caused by cheap credit pouring into the country. As the crisis hit developed economies, investors turned to emerging economies which guaranteed higher returns compared to despondent Western markets. Turkey enjoyed a foreign-funded construction surge. Nonetheless, the good times came to a halt when the United States Federal Reserve declared a scale-back in its stimulus program last year. Cash became scarce. There was more security in the American economy. Therefore, investors started withdrawing their investments from upcoming markets.

Yet, Turkey's growth faltered to just above two percent while inflation rose to 7.4 percent in 2013. These figures were still over the five percent target. On the contrary, the national currency (Lira) slumped further at the start of the year compelling Turkey's central bank to espouse a radical approach and interest rates from 7.7 percent to 12 percent. This is an indication of the bank's resolve to prevent foreign capital outflows. Perhaps, this is a sign of the economy’s resilience which grew by 4.4 percent during the last part of 2013.

Posted on 20 May 2014

jaacosta47

jaacosta47

423 Stat enthusiast