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Economy

State influence

Turkey’s economy is largely state-run (most of the basic industry, banking, transport and communication sectors are state-controlled), although private business is fast growing in strength. A large proportion of its varied economy is made up of textiles and clothing, which supplies a third of all jobs in industry, although since the end of the global quota system, the sector has suffered against international competitors. Other sectors are growing; Turkey’s electronic and automotive industries are on their way to comprising a major part of the country’s exports.

Economic growth

Turkey has enjoyed several years of high gross national product (GNP) growth, at over 6%, though this is balanced against other years when it has declined sharply. However, following a series of economic reforms, 2004 saw gross domestic product (GDP) at 9%, and growing by around 5% from 2005 - 2006. Inflation in 2005 was at its lowest in 30 years at 7.7%, although it rose again in 2006. It is anticipated that foreign direct investment (FDI) will continue to rise as Turkey continues with its policy of economic reform and in anticipation of its EU membership.

EU membership bid

Turkey agreed to enter into talks with the EU in October 2005, and from that point FDI into the country immediately increased. The Crown Prince of Dubai invested $5 billion into Turkish real estate, reflecting immense confidence in the country’s future. Despite a number of setbacks regarding its EU membership bid, Turkey is receiving a significant amount of FDI in anticipation of entry, demonstrating a confidence in the country’s success as well as being a direct boost to its development overall and its real estate market in particular.

Global potential

The Chairman of the Association of Real Estate Investment Companies (GYODER), Bekir Cumurcu, forecast that FDI will reach $30 billion in 2007, up from $20 billion in 2006. Turkey has the potential, given sufficient levels of FDI and membership of the EU, to become a pivotal player in global relations, bridging the Middle East and Europe in both geographic and political terms.

Related items

Documents and Reports

	Turkey property investment report (551Kb)
	Turkey country guide (999Kb)
	Turkey property buying guide (871Kb)
Documents and Reports

Other related pages

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