| |
Economy
|
|
Turkey |
(Rate 1 2 3 4 5) |
During most of the country’s republican style history, they have tried to stay with a quasi-statist approach that has very strict governmental control over the private sector with regards to foreign trade and foreign direct investments. In the 1980’s Turkey began reforms that were started by the Prime Minister, they were out forth to shift the economy from a statist insulated system to more of a private sector, a market based model if you will. The reforms did bring about a rapid growth but it was defeated by a recession and a financial crisis in 1994 and 1999 and again in 2001. Because of these recessions it resulted in an average of a 4 percent GDP which is Gross Domestic Product per year from 1981 to 2003.
Because there were no additional reforms planned plus a growing public sector deficits. There was corruption which resulted in a very high inflation and a weak banking industry. Ever since the crisis of 2001 and the reforms the country’s inflation had dropped to single digits. Soon after investor confidence in the country grew again and foreign investments were up while unemployment has taken a turn. The country slowly reopened up its markets via economic reforms. They did this by decreasing government control on all foreign trade and investments.
Turkey’s GDP growth rate for the year 2005 was about 7 percent. This number made Turkey one of the fastest growing economies in the world. Today, Turkey ranks 17 in the world and they are a member of the G20.The G20 is a list of the top 20 countries who have the most industry. The Turkish economy is not just made up of agriculture but they more of an industrialized sector now that does very well. Agriculture still contributes to the GDP but at an 11.9 percent and the industry contributes to 23 percent and the service industry which would include tourism contributes to 64.5 percent.
Tourism has risen among a contributor to the economy in the past 15 years or so. In the year 2005 alone there were over 24,124,504 vacationers and they brought the country an estimated 18.2 billion dollars. The other contributing factors of the economy are construction, automotive, textiles and electronics. Inflation which is normally high has been kept at a minimum. A new currency was released due to lower inflation, it is called New Turkish Lira, and it dropped off 6 zeroes.
Exports in Turkey do very well, it was reported that 73.5 billion USD and the imports were estimated to be 116.8 billions. These figures are in Unites States Dollar amounts. In 2006, the export figures were about 85.8 billion which increased about 16.8 percent from the prior year. The country has also increased in the area of foreign direct investments. The figures on foreign trade were about 8.5 billion in 2005 but the estimates on 2006 were as of yet available. Just as exports and imports increased, 2006 was a good year for the economy in Turkey.
|
Bookmark and share:        |
|
|
|
|
