IV.

Economy

In 2004, according to World Bank estimates, Turkey’s GNP was US$269 billion, equivalent to US$4,750 per capita.

Turkey has become increasingly integrated into the West European economic scene. The economy has improved significantly since the 1994 crisis of triple-digit inflation, but the government has a difficult task in balancing the need for new austerity measures and tough structural reforms with increased demand for continued growth. Some industries are under pressure from EU competition, with the possibility that much-needed revenues will decline with the elimination of import tariffs and surcharges.

Prices rose by 150 per cent between 1994 and 1995, while average wage increases lagged 30 per cent behind. Farming still engages almost half the labour force, while unemployment in the cities stood at 12 per cent in 1995.

The annual gross domestic product (GDP) of Turkey in 2005 was US$363 billion. About 23.7 per cent of GDP was contributed by industry, 11.9 per cent by agriculture, and 64.5 per cent by government and private services in 2005.

A.

Agriculture, Forestry, and Fishing

Since 1950 agricultural output in Turkey has increased through the use of more machinery and fertilizer and better plant varieties, but productivity remains comparatively low, as many farmers still use inefficient methods and most farms are extremely small. The diversity of climates in Turkey allows many speciality crops to be grown, such as tea.

In 2005, the annual production of Turkey’s principal crops included 21 million tonnes of wheat, 14 million tonnes of sugar beet, 9 million tonnes of barley, 34.6 million tonnes of cereals, 4.17 million tonnes of potatoes, 4 million tonnes of grapes, 25.4 million tonnes of vegetables and melons, and 3.50 million tonnes of corn. Other important crops include onions, aubergines, nuts, cabbage, rye, cotton, tobacco, tomatoes, apples, olives, and citrus fruit. Livestock on farms (2005) include some 25.2 million sheep, 10.1 million cattle, 6.61 million goats, 462,000 donkeys, 212,414 buffalo, 255,000 horses, 303 million poultry.

Although 13.2 per cent of Turkey’s area is classified as forested, the timber industry is relatively unimportant, with no more than one third of the forests having commercial value. In 2005 roundwood production was about 16.2 million cu m (572 million cu ft) and sawnwood production was about 6.44 million cu m (228 million cu ft).

Total fish catch in 2004 was 644,492 tonnes; most of the catch comes from the Mediterranean and Black seas. Anchovies generally account for more than half the catch. Mackerel, sardines, mullet, and carp are also caught.

B.

Mining

Turkey maintains an important place in world mineral production. The country’s principal mineral products include lignite, coal, crude oil, chromite, bauxite, iron ore, manganese, boron, antimony, lead, zinc, copper, and sulphur. In 2003 coal production was 48.2 million tonnes, and crude oil was 16.5 million barrels. A special mineral produced is meerschaum, which is used to make tobacco pipes.

C.

Manufacturing

Leading manufactured products in the early 1990s in Turkey included processed food, textiles, iron and steel, refined oil, chemicals, cement, vehicles, paper, and cigarettes. İstanbul, İzmir, and Bursa were important manufacturing centres.

D.

Energy

In 2003 Turkey produced about 133.6 billion kWh of electricity. About 26.17 per cent of the electricity was generated in hydroelectric facilities, including a large plant on the River Euphrates near Elâzığ. In April 1995 Azerbaijan and Turkey signed an important agreement increasing the Turkish stake to 6.75 per cent in a multi-billion dollar deal to develop Azerbaijan’s oilfields under the Caspian Sea, estimated to hold 3.8 billion barrels of crude oil, to be transported via a pipeline to a Turkish Mediterranean port. In 2002 an agreement was signed with neighbouring Greece to build a 285 km (177 mi) pipeline to supply Greece with gas. In July 2006 the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, the second longest in the world stretching from the Caspian to the Mediterranean, was formally opened at a ceremony in Turkey.

E.

Currency and Banking

The monetary unit of Turkey is the New Turkish lira of 100 kuruş (1.44 lire equalled US$1; early 2007), which replaced the Turkish lira from January 2005. The Central Bank of the Republic of Turkey, founded in 1930, is the bank of issue. The country also has a number of state banks concerned with economic development, such as the Agriculture Bank of the Republic of Turkey, founded in 1863, as well as several commercial banks. Turkey’s principal stock exchange is in İstanbul.

F.

Commerce and Trade

The cost of Turkey’s yearly imports is usually much higher than earnings from exports; in 2003 imports totalled about US$69,340 million, and exports, US$47,253 million. The principal imports are oil, machinery, chemicals and pharmaceuticals, fertilizer, iron and steel, and transport equipment; the main exports are textiles, clothing, other manufactured goods, fruits and vegetables, cotton, chemicals, metals, tobacco, and wheat.

Considerable income is derived from expenditures of tourists in Turkey; in 2005 over 20.3 million foreigners spent US$2,872 million in the country. Turkey’s chief trade partners include Germany, Italy, France, the United Kingdom, Saudi Arabia, the Commonwealth of Independent States, and the United States. In March 1995 the EU agreed to accept Turkey into a customs union.

G.

Labour

The domestic Turkish workforce included in 2005 about 26.6 million employed, with overall unemployment at 10.3 per cent. About 30 per cent were employed in agriculture, forestry, and fishing; about 46 per cent held jobs in service industries; and 25 per cent worked in industry. In addition, some 1.3 million Turkish citizens are employed abroad, especially in Germany and Saudi Arabia; annual remittances from emigrant workers exceeded US$2.6 million in 1994. The main labour organization was the Confederation of Turkish Trade Unions, with more than 1.7 million members.

H.

Transport

Turkey has about 8,697 km (5,404 mi) of railway track, all operated by the Turkish Republic State Railways. The country is also served by some 354,421 km (220,227 mi) of roads. About 3 million passenger cars, 688,000 lorries, and 87,000 buses were in use in the early 1990s. In 2003 there was a ratio of 90 vehicles per 1,000 people. The leading ports of Turkey are İstanbul and İzmir; other important ports include Trabzon, Giresun, Samsun, and Zonguldak, on the Black Sea, and İskenderun and Mersin in the south. The national airline, Turkish Airlines, provides domestic and foreign service; major international airports serve İstanbul (Atatürk), Ankara (Esenboga), Adana, Antalya, and İzmir (Adnan Menderes).

I.

Communications

In 1998 Turkey had 720 daily newspapers, with a combined circulation of 7 million. Larger dailies include Cumhuriyet, Sabah, Hürriyet, Milliyet, and Türkiye—all published in İstanbul. The country is also served by many weekly and monthly publications. The government monopoly on broadcasting ended in 1993. There are four state-run national radio networks; there are also 84 privately- and state-owned television stations. Kurdish-language television programming commenced in 2004. About 37 million radios and 30 million televisions were in use in 2000. In 2005 there were about 263 telephones per 1,000 people in Turkey.