Overview:

Today, Turkey is the 17th largest economy in the world with a GNP of about USD 400 billion. As a matter of fact, Turkey has recorded a sustainable growth during the past 6 years. The growth rate was 6.1% in 2006. International Monetary Fund (IMF) predicts a growth of 5% in 2007 and 6% in 2008 respectively.

Turkey is a member of the OECD, a regional power, a bridge between East and West, and a country which successfully recovered from a deep economic crisis in 2001. It is a dynamic emerging-market economy strategically located between Europe and Asia, bordering the Mediterranean, Aegean, and Black Seas. Over 73 percent of its 73 million people live in urban areas.

 Recent Economic Performance

After the 2001 crisis Turkey entered a period of high growth and significant structural transformation. Annual growth averaged 7.5 percent and output increased by more than 40 percent in 2002-2006. This positive performance has been due in great part to the government's sustained commitment to sound economic policies, in combination with a favorable international economic environment. Despite fast growth, unemployment rates have remained around 10 percent during this period, and employment generation remains high on the government's agenda.

Strong fiscal discipline and tight monetary policies helped lower inflation to single digit levels and improve debt sustainability. Net debt as a share of GNP declined to 45 percent by the end of 2006, and its composition also improved. Substantial progress has been made in restructuring the financial sector, improving the business environment, and reforming the public sector. Sound policies, a favorable international environment and the prospects of EU accession have helped Turkey expand its export capacity and attract large capital inflows.

Overall Turkey's development agenda focuses on a vision of Turkey with stable growth, a more equitable income distribution, and increased global competitiveness, as the country transforms into an information society and completes EU harmonization. Development priorities are clustered around improved competitiveness and employment, equitable human and social development, efficient provision of high-quality public services, and energy security and efficiency, with an emphasis on the reduction of regional differences.