Economic Aspect

As of 2023, Turkey's economy is the 17th-largest in the world, and 7th-

largest in Europe by nominal GDP. It is also the 11th-largest in the world, and 5th-
largest in Europe by Purchasing power parity (PPP) is a measure of the price of
specific goods in different countries and is used to compare the absolute
purchasing power of the countries' currencies.

According to the IMF, Turkey has an upper-middle income, mixed-

market, emerging economy. The country is the fourth most visited destination in the
world, and has over 1,500 R&D centers established both by multinational and national
firms. Turkey is among the world's leading producers of agricultural products, textiles,
motor vehicles, transportation equipment, construction materials, consumer electronics,
and home appliances.

Industrial Sectors
Its major industries are Automotive, Chemical, Construction, Technology & Electronics,
Food Processing, Furniture & Decoration, Iron & Steel & Metallurgy, Textile & Apparel &
Ready Wear, Packaging & Logistics, Defense, Energy & Natural Resources, Industrial
Machinery & White Goods, Gold & Jewellery process.

Agricultural Sectors
Turkey’s agricultural economy is among the top ten in the world, with half of the country
consisting of agricultural land and nearly a quarter of the population employed in
agriculture. Turkey is a major producer of wheat, sugar beets, milk, poultry, cotton,
tomatoes, and other fruits and vegetables, and is the top producer in the world for
apricots and hazelnuts.

GDP (Gross domestic product ) Report

Turkey's nominal GDP peaked at $1.154 trillion in 2023, and its nominal GDP per
capita peaked at $13,383 in the same year. Turkey's GDP (PPP) resulted to $3.613
trillion in 2023, and its GDP (PPP) per capita increased to $41,887 in the same year.

GNP (Gross National Product) Report

 Turkey Gross National Product (GNP) was reported at 897.467 USD bn in Dec
2022.
 This records an increase from the previous number of 808.355 USD bn for Dec
2021.
  Turkey Gross National Product (GNP) data is updated yearly, averaging 171.896
USD bn from Dec 1967 to 2022, with 56 observations.
 The data reached an all-time high of 949.181 USD bn in 2013 and a record low
of 15.509 USD bn in 1967.

Balance of Trade
Overview In July 2023 Turkey exported $18.2B and imported $29.7B, resulting in
a negative trade balance of $11.5B. Between July 2022 and July 2023 the exports of
Turkey have increased by $1.27B (7.5%) from $16.9B to $18.2B, while imports
increased by $3.08B (11.6%) from $26.6B to $29.7B.

Turkey's tourism revenue hit a record $46.3 billion in 2022 even as its trade deficit
swelled to more than $109 billion, as a fallout from war in nearby Ukraine brought a
surge of Russian arrivals but also drove up energy-import costs.

Balance of Payment
The crisis was caused by the Turkish economy's excessive current account deficit and
large amounts of private foreign-currency denominated debt, in combination with
President Recep Tayyip Erdoğan's increasing authoritarianism and his unorthodox
ideas about interest rate policy.

Entrepreneurial and Business Status

Turkey’s rank for entrepreneurship and opportunity is estimated at 52nd in the world.
A diverse industry base, a wide talent pool, a strong domestic market, and underserved
neighbor markets add to the advantages of doing business in Turkey. Additionally,
unlike some other countries, especially more established financial powerhouses, it only
takes about six days to start a business in Turkey. Yet given these factors and the
country’s high level of development, only about six out of one hundred people are
classified as an entrepreneur, which is considered to be quite a low rate.

Employment Rate
Employment Rate in Turkey increased to 48.40 percent in July from 47.90 percent in
June of 2023.

Unemployment Rate
The unemployment rate in Turkey fell to 9.2 percent in August 2023, the lowest since
January 2014, from a 9.4 percent in the previous month. The number of unemployed
decreased by 56 thousand to 3,223 million people
Business Laws/Requirements

Required Documents for Registering a Company in Turkey

 A title of company and Articles of Association (AoA),

  Personal information and passport copies of the shareholders and
directors,
 Proof of address for the shareholders and directors,
 Proof of the capital amount, its source and existence,
 Tax Identification Numbers (TIN) for the shareholders and directors,
 A Registration and Commercial Activity Certificate.

Business Practices
The Turkish generally only want to do business with those they feel comfortable enough
with to trust. If you are too impersonal or guarded, they may view you with suspicion
and be reluctant to follow through with you. Consider that negotiations often have the
goal of a long business relationship in mind.

Foreign Exchange Rate

Inflation rate
Turkey's Central Bank Sees Inflation Heading Higher Again

But the second-biggest depreciation in emerging markets this year is still feeding
through to the economy and amplifying the impact on prices of recent tax hikes
announced by the government to finance a widening budget deficit.

Disposable income
In 2022, the average annual disposable income per household in Turkey amounted to
98.4 thousand Turkish lira. In the same year, the disposable income of the poorest 20
percent of households stood at 30 thousand Turkish lira, whereas the richest 20 percent
had an average income of nearly 172 thousand Turkish lira.

Interest rates
On September 21st, the Central Bank of Turkey hiked its benchmark one-week repo
rate by 500 basis points to 30 percent, as predicted, increasing borrowing rates to their
highest level since September 2003. It was the central bank's fourth consecutive raise
under Governor Hafize Gaye Erkan's watch to combat almost 60% inflation. The
decision to raise rates is intended to continue the monetary tightening process in order
to achieve disinflation as soon as feasible, anchor inflation expectations, and manage
the worsening in pricing behavior, according to policymakers.
The central bank also stated that monetary tightening will be gradually increased as and
when needed until a meaningful improvement in the inflation outlook is realized. The
policy rate will be set to establish monetary and financial circumstances that will lower
the main trend of inflation and allow it to approach the 5% objective in the medium term.
Economic growth patterns
Türkiye is the 19th largest economy in the world, with a GDP of roughly $906 billion. It is
a member of the OECD and the G20, and an increasingly important donor of official
development assistance (ODA).

The economy increased at a 5.6% annual rate in 2022, extending the robust COVID-19
pandemic recovery. However, the economy has been losing steam as a result of a
deteriorating external environment and unconventional monetary policies. On February
6, 2023, two terrible earthquakes struck: beyond the human sorrow, physical
devastation in 11 provinces accounting for 16.4% of Turkey's population and 9.4% of its
economy. Direct damages are expected to be $34.2 billion, but reconstruction
requirements might be quadruple that amount. The disasters exacerbated an already
precarious macroeconomic situation. Growth is predicted to be 3.2% in 2023 and 4.3%
in 2024, thanks to pre-election expenditure and restoration activities.