Gross National Product (GNP): $167bn

Exchange rates against the US$ over the last year: 1.418m Turkish lira (1.586m)

SCORE CARD

World GNP ranking: 24th GNP per capita: $2530 Balance of payments: –$1.79bn Inflation: 45% Unemployment: 9%

Strengths

Liberalized economy: strong growth in the 1990s. Near self-sufficiency in agriculture. Textiles, manufacturing, and construction sectors competitive in world markets. Tourism industry. Dynamic private sector economy. Skilled labor force. Customs union with EU.

Weaknesses

Persistently high inflation. Unsound public finances. Large government bureaucracy. Uneven privatization program. Ailing banking sector. Influence of organized crime. High cost of military action against Kurds.

Profile

Turkey has one of the oldest and most advanced of the emerging market economies. In the 1990s it grew strongly, but continued to suffer from high inflation. Despite structural reforms the economy reached crisis point in early 2001, with a collapse of the banking system and the loss of over 500,000 jobs. This was compounded by the effect of the September 11 attack on the US. Three IMF rescue packages were agreed in the course of the year in return for the privatization of debt-laden state companies and banking reform, and growth returned in 2002.

EXPORTS

IMPORTS

ECONOMIC PERFORMANCE INDICATOR

From "The Financial Times World Desk Reference" © Dorling Kindersley 2004