1. THE STRUCTURE OF TURKISH ECONOMY FALL 2011 CLASS 1

2. What Constitutes the Structure of an Economy  The sum of all the different economic activities within the boundaries of an area (city, region or country) constitutes the structure of an economy.

3. http://maps.nationmaster.com/country/tu/1

4. Turkish Economy in Brief  Turkey’s economy is a mix of modern industry and commerce, along with the traditional agriculture sector.  Turkey has a robust and ever-developing private sector, and the state is a major contributor to industry, banking, transport and communication. http://www.economywatch.com/world_economy/turkey/

5. General Economic Indicators 200420052006200720082009 Economic Growth (GDP, annual var. in %)9.48.46.94.70.7-4.7 Inflation (CPI, annual variation in %)9.47.79.78.41.26.5 Exchange Rate (TRY per USD, eop)1348.61.31.41.2-5.91.5 Current Account (% of GDP)-3.7-4.6-6.1-5.9-5.8-2.4

6. Anual Variation in Gross Domestic Product (%)

7. Inflation

8. Exchange Rate (Lira vs. US Dollar)

9. Current Account Balance (% of GDP)

10. Real Sector 200420052006200720082009 Private Consumption (annual var. in %)117.94.6 0.5-2.2 Fixed Investment (annual variation in %)28.417.413.35.4-8.2-19.1 Industrial Production (annual variation in %)9.85.47.37-0.6-9.9 Unemployment (eop, % of active population)10.311.210.510.61413.5

11. Annual Variation in Industrial Production (%)

12. Annual Variation in Consumption (%)

13. Unemployment Rate

14. External Trade 200420052006200720082009 Trade Balance (USD bn)-22.7-33.1-41.1-46.8-53-24.9 Exports (annual variation in %)30.814.319.523.222.1-22.1 Imports (annual variation in %)38.522.120.820.419.5-30.6 Int. Reserves (months of imports)4.75.4 4.46.3 External Debt (% of GDP)41.235.439.438.73845.2

15. Trade Balance (Difference between exports and imports)

16. International Reserves (Months of Imports)

17. External Debt (% of GDP)

18. Composition of GDP

19. Composition of Manufacturing Employment

20. 2010 Growth in GDP (%) Source: IMF World Economic Outlook April 2011, Turkish Statistical Institute (TurkStat)

21. Forecast in GDP Growth (2011-2017) Source: OECD Economic Outlook No: 86

22. 198020012008 GDP (USD billion)70509700 Per capita GDP (USD billion)1.5002.9069.000 Number of Enterprises90.000723.5031.170.248 Export (USD billion)331132 Export per worker ((USD billion)6514566.229 Industry share in export10%92% Number of Exporters1.00025.00047.000 Tourism Revenue (USD billion)0.3821 Ranking in the world (in terms of GDP)25th21st17th Table: Indicators of Turkish Economy Source: EIU, TUIK, TIM

23. FDI in Turkey: Upward Trend in FDI Inflows $ billion ‘000