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Turkish economy

Turkish economy. Brief economic history Economic policies Main features of the economy Recent macroeconomic indicators Towards a new agenda. Regular boom-and-bust economic cycles since the 1950s Excessive budgetary expenditures and chronic inflation Very high interest rates

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Turkish economy

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  1. Turkish economy • Brief economic history • Economic policies • Main features of the economy • Recent macroeconomic indicators • Towards a new agenda

  2. Regular boom-and-bust economic cycles since the 1950s Excessive budgetary expenditures and chronic inflation Very high interest rates Major economic crises in 1994, 1998 and 2000-2001 Devastating 1999 earthquake and 2000-2001 crisis Brief Economic History

  3. Signed a customs union with the European Union (EU) in 1995 Became a pre-accession candidate for EU membership at the Helsinki Summit in December 1999 Brief Economic History

  4. Modern Participatory democracy Full integration in Europe A critical role in its region An export-oriented, technology-intensive production structure Economic Policies • Open economy • Capital flows are free • No exchange rate restrictions for investors

  5. A tough IMF program Undercapitalized banks seized, shut down or privatized Energy and telecommunications’ markets liberalized Independent banking regulator created in 2001 Economic Policies

  6. Population of 73 million GNP USD 363 billion and income per capita with USD 4,710 Long term average growth rate is about 5 percent Services and industry have shares of 64 percent and 23 percent Main features of the economy Source: World Bank

  7. Unemployment rate is about 10 percent Exports and imports amount to 90 billions and 127 billions, respectively. The main trade partner is the EU with 50 percent share Main features of the economy Source: World Bank

  8. Recent Macroeconomic Indicators • Since 2002, impressive macro-economic performance • Single-digit inflation after 35 years Source: World Bank

  9. Recent Macroeconomic Indicators • However, transformation also brings about some inherent • risks Source: World Bank

  10. Recent Macroeconomic Indicators • Growth in recent years has been generating new jobs. But, it’s not been enough to lower unemployment rate. • Declining share of agriculture • Rising working age population Risk generating factors Source: Eurostat and Turkish Statistics Instutite

  11. Recent Macroeconomic Indicators • Significant increase in Foreign Direct Investment • Decreasing total debt ratio Source: World Bank

  12. Towards a New Agenda • Picture is not bad at all • Recent growth performance • Macroeconomic stability • A new and healthy incentive structure • Global integration with also growing regional integration • However, risks are serious and require competent management • Current account deficit • High unemployment • There is an urgent need for a new agenda • Setting the priorities, strategic action plans, effective delivery • Managing the EU process as a mechanism to mitigate risks • Building the required capacity for the new environment • Reducing inequality through equitable human and social development • Creating more and better jobs

  13. Turkish economy Absolute independence can just come true by the aid of economic independence.. Kemal ATATURK Founder of Turkish Republic 1881-1938

  14. Turkish economy THANK YOU… QUESTIONS??

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