The economy of Turkey is an emerging market economy as defined by the International Monetary Fund. Turkey has the world’s 20th-largest nominal GDP and 11th-largest GDP by PPP. Turkey is also defined by economists and political scientists as one of the world’s newly industrialized countries. Over the past 21 years, there have been major developments in the economic and social aspects of Turkey’s economy. There have been increases in levels of employment and income since 2000.
The following tables and chart will tell the change details in last 5-10 years:
Turkey Distribution of workforce from the last 5 years:
Turkey Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Turkey GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture is an important part in the Turkey’s economy. It employs almost 19.3% of the total workforce and contributed almost 6.43% in GDP.
Turkey is the world’s 7th largest agricultural producer, and a top producer and exporter of crops ranging from hazelnuts and chestnuts to apricots, cherries, figs, olives, tobacco and tea.
Major products in this Sector:
Hazelnut: Turkey to date, is so far the world’s leading hazelnut producer, accounting for about 72.9 percent of the total world supply. Turkey has exported hazelnuts to over 100 different countries in the past 10 years and has received more than USD20 billion from this trade.
Grape: Turkey is the world’s fourth largest producer of grapes for wine production, with over 8,120 square kilometers (2,010,000 acres) of vineyards. In 2019 the total exports value of raisins and grapes reached 611 million USD. Turkey is the biggest in the world for production and exporting of sultana raisins. Turkey manages 22% of the total world’s raisin production and exported 85% of whole production to many countries.
Olive: Turkey is the world’s third largest producer of olive oil, with 193,500 tons of virgin olive oil produced in 2019. Turkey is the world’s fourth largest producer of olives, with 1,730,000 tons of olives produced in 2019, and 846,000 hectares of cultivated olive groves in the same year.
Agriculture Subsidy in Turkey:
Total support to agriculture has been as high as 4% of GDP, but has declined as the importance of agriculture in the overall economy has diminished and is now about 1.5% of GDP.
The level of support in Turkey fell in 2018 and 2019, driven mainly by reductions in market price support (MPS) resulting from a depreciation in the value of the Turkish lira. The reduction in MPS has been partially compensated by increased premium payments, which cover the difference between target and market prices. Those for cereals doubled between 2018 and 2019. The largest amounts of these premium payments for cereals are for wheat and barley, but rye, oats, and paddy rice also saw premiums double in 2019.
Despite the reduction, MPS still accounts for two-thirds of the estimated support provided to producers in Turkey. Premium payments, especially for cotton and wheat, acreage payments to reduce the cost of diesel and fertilizer, and subsidized insurance coverage for crops and livestock are the most important budgetary payments providing aid directly to farmers.
Industry is an important part in the Turkey’s economy. It accounts for 27.71% of GDP and employed almost 25% of the workforce.
Major Industries in this Sector:
Automotive: The automotive industry in Turkey plays an important role in the manufacturing sector of Turkish economy. In 2015 Turkey produced over 1.46million motor vehicles, ranking as the 14th largest producer in the world. Turkey’s automotive sector topped the country’s exports with $30.6 billion in 2019, while Istanbul was the largest exporter city in the country. Global car manufacturers with production plants include Toyota, Honda, Ford and Fiat. 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.
Mining: Turkey ranks 10th in the world in terms of mineral diversity, holding 0.4% of the global metallic mineral reserves, 2.2% of the industrial raw material reserves and 1% of the coal reserves, according to data provided by the Turkish energy ministry. Excluding petroleum and coal, there are 53 exploitable minerals and metals and 4,500 mineral deposits in Turkey. The sector’s total production value is USD 4.39 billion in 2019. Turkey is a major producer of boron minerals, feldspar, marble, baryte, celestite (strontium), emery, limestone, magnesite, perlite and pumice.
Service sector is an important part in the Turkey’s economy. It contributes almost 55.91% in the GDP and employed almost 55.7% of the total Turkey’s workforce.
Major Industries in this Sector:
Finance: Banking dominates the Turkish financial sector, accounting for over 70 percent of overall financial services, while insurance services and other financial activities also show significant growth potential. There are 52 banks in Turkey (34 deposit banks, 13 development and investment banks, 5 participation banks). At present, the Turkish banking sector is among the strongest and most expansive in East Europe, the Middle East and Central Asia. The top players in this sector are Ziraat Bank, Isbank, Garanti Bank, AK Bank, Yapi Kredi Bank.
Tourism: Tourism is one of Turkey’s most dynamic and fastest growing economic sectors. Turkey attracted around 51 million foreign tourists, ranking as the sixth-most-popular tourist destination in the world. In 2019, it directly accounted for 7.7% of total employment, directly employing 2.2 million people. Total tourism income represented 3.8% of GDP. Travel exports accounted for 51.9% of total service exports in 2019. Tourism in Turkey is focused largely on a variety of historical sites, and on seaside resorts along its Aegean and Mediterranean Sea coasts. Turkey has also become a popular destination for culture, spa, and health care.
Top Companies in Turkey
|Company Name||Sector||Market Cap (USD)|
|Turkiye Garanti Bankasi||Banking||8.047B|
|Turkiye Petrol Rafinerileri||Oil and Gas||5.441B|
|Turkiye Is Bankasi||Finance||5.412B|
|Enka Insaat ve Sanayi||Construction||5.008B|