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

2. Brief Economic History
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
Devastating 1999 earthquake and crisis
Turkey enjoyed regular boom-and-bust economic cycles since the 1950s.
Excessive budgetary expenditures and chronic inflationary pressures were the norm.
Very high interest rates
Major economic crises in 1994, 1998 and
1999 earthquake and crisis devastated all sectors of Turkish economy and society.

3. Brief Economic History
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
Turkey signed a customs union with the European Union (EU) in 1995 and became a pre-accession candidate for EU membership at the Helsinki Summit in December Turkey officially started negotiations for full membership in October 2005, and has so far completed negotiations in the science and research chapter. The screening process for other chapters is in progress.

4. Economic Policies Open economy Capital flows are free
No exchange rate restrictions for investors
Modern
Participatory democracy
Full integration in Europe
A critical role in its region
An export-oriented, technology-intensive production structure
Turkey is an open economy
Capital flows are free
No exchange rate restrictions for investors
The Government's vision for the country is for a modern, participatory democracy with close ties to national history and traditions, full integration in Europe, a critical role in its region, and an export-oriented, technology-intensive production structure.

5. Economic Policies A tough IMF program
Undercapitalized banks seized, shut down or privatized
Energy and telecommunications’ markets liberalized
Independent banking regulator created in 2001
Since 2001, Turkish governments implemented a tough IMF program.
Undercapitalized banks seized, shut down or privatized. Number of banks slashed from 80 in 2000 to 48 in 2005.
Energy and telecommunications’ markets liberalized.
Independent banking regulator created in 2001.

6. Main features of the economy
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
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
Source: World Bank

7. Main features of the economy
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
Unemployment rate is about 10 percent
Exports and imports amount to 76 billions and 116 billion, respectively.
The main trade partner is the EU with 50 percent share
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
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 However,
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
Macro economic policies in conjunction with a positive international environment led to economic performance to improve considerably since 2002.
Disinflationary monetary and tight fiscal policies supported by some the structural reforms created an environment for higher growth led by the private sector.
Capital inflow and foreign direct investment increased.
The start of accession negotiations further reinforces the dynamism of Turkey to complete economic reforms enhancing Turkey’s integration with the EU.

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

14. Turkish economy
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