Turkey

The Republic of Turkey or Turkey (Turkish: Türkiye), is a bicontinental country that is located mainly in the Middle East (Southwest Asia) and partly in Southeast Europe; The Anatolian peninsula comprises most(97%) of its territory, and is situated between the Black Sea on the north and the Mediterranean Sea to south and west, with the Aegean Sea (and Marmara Sea) in between. A small portion of the country's territory (3%) is situated in southeastern Europe, west of the Bosphorus straits.

Economy

Main article: Economy of Turkey

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Turkey's 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 is estimated that 50% of the population lives under the international standards of poverty, especially in the war torn south-east areas.

Related Topics:
Agriculture - 2001

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Turkey 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 export - 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 many years, but this strong expansion has been 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.

Related Topics:
Banking - Textiles - GNP - 1994 - 1999 - GDP - Inflation

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Perhaps because of these problems, foreign direct investment in Turkey remains low - less than USD 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. Results in 2002 were much better, because of strong financial support from the IMF and tighter fiscal policy. Continued slow global growth and serious political tensions in the Middle East cast a shadow over growth prospects in the future. Turkey has recently adopted a new currency, slashing away many "zeros" from the old currency after years of double digit inflation. For example, a taxi ride would cost a few million liras. Overnight, many "millionaires" were gone. In addition, Turkey is a member country of OECD.

Related Topics:
USD - 2000 - Trade deficit - Lira - IMF - Middle East - OECD

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