Economy of Turkey - statistics & facts
According to the ranking by gross domestic product, Turkey became the 19th largest economy in the world in 2022 with its GDP amounting to 905 billion U.S. dollars. On the other hand, GDP per capita in the country generally followed a negative trend from 2013 and has increased again since 2020. In 2022, GDP per capita in Turkey totaled around 10,600 U.S. dollars. Turkey is still classified as an emerging and developing economy by the International Monetary Fund (IMF). Additionally, Turkey was one of the founding members of the Organization for Economic Co-operation and Development (OECD) and a member of the G20 from its inception.
After peak inflation was recorded in 2022 for the first time in more than two decades, the economic situation in Turkey is expected to recover slowly. Additionally, the real GDP growth in the country is forecasted to present steady growth in the upcoming years.
High inflation is triggered by the currency crisis
Over the past two decades, there have been significant developments in the Turkish economy and industrialization, with the country experiencing rapid growth. However, since 2018, the country has been facing an economic crisis, which was mainly triggered by a combination of the continuous weakening of Turkish lira, an excessive account deficit, a large external debt, and low interest rates. Accordingly, the inflation rate has not fallen below double digits since 2017 and has been surging since the last months of 2021. Moreover, the prices of many consumer goods and services have skyrocketed, as the consumer price index (CPI) of hotels, cafes, and restaurants, alcoholic beverages, and tobacco and many other commodity groups peaked in 2023.Turkey's trade deficit
Turkey has foreign dependency in many sectors, such as, energy, defense, machinery, and various supplies for agricultural production. Hence, the ratio of exports to imports was 70.6 percent in the country in 2023. The value of exports peaked in 2023, however, amounting to over 255 billion U.S. dollars. The most exported commodities from Turkey in 2023 were vehicles and vehicle parts (excluding railway or tramway rolling stock), with an export value of nearly 29.5 billion U.S. dollars.Labor market and employment in Turkey
Throughout the years between 1999 and 2022, the lowest ratio of unemployment in Turkey was recorded in 2000 at 6.5 percent. Due to inflation and increasing labor costs, together with the recent economic crisis, the unemployment rate has reached 10 percent by 2022. The services sector employed the largest share of people in the labor market, representing 57.6 percent in 2023. Due to the high inflation and soaring living costs, the government had to increase the monthly net minimum wage several times over the years. The minimum wage for 2024 was set to about 17,000 Turkish lira, which is twice as much compared to the previous year. According to a survey conducted in December 2022, when the latest minimum wage was announced, over 59 percent of the respondents did not find this amount sufficient.After peak inflation was recorded in 2022 for the first time in more than two decades, the economic situation in Turkey is expected to recover slowly. Additionally, the real GDP growth in the country is forecasted to present steady growth in the upcoming years.
