s: PSC 93, Box 5000, APO AE 09823
telephone: [90] (312) 455-5555
FAX: [90] (312) 467-0019
consulate(s) general: Istanbul
consulate(s): Adana; note - there is a Consular Agent in Izmir

Flag description:
red with a vertical white crescent (the closed portion is toward
the hoist side) and white five-pointed star centered just outside
the crescent opening

Economy Turkey

Economy - overview:
Turkey's dynamic economy is a complex mix of modern industry and
commerce along with a traditional agriculture sector that in 2004
still accounted for more than 35% of employment. It has a strong and
rapidly growing private sector, yet the state still plays a major
role in basic industry, banking, transport, and communication. The
largest industrial sector is textiles and clothing, which accounts
for one-third of industrial employment; it faces stiff competition
in international markets with the end of the global quota system.
However, other sectors, notably the automotive and electronics
industries, are rising in importance within Turkey's export mix. In
recent years the economic situation has been marked by erratic
economic growth and serious imbalances. Real GNP growth has exceeded
6% in many years, but this strong expansion has been interrupted by
sharp declines in output in 1994, 1999, and 2001. Inflation, in
recent years in the high double-digit range, fell to 9.3% by 2004 -
a 30-year low. Despite these strong economic gains in 2002-04, which
were largely due to renewed investor interest in emerging markets,
IMF backing, and tighter fiscal policy, the economy is still plagued
with high debt and deficits. The public sector fiscal deficit
exceeds 6% of GDP - due in large part to the huge burden of interest
payments, which accounted for more than 40% of central government
spending in 2004, and to populist spending. Foreign direct
investment (FDI) in Turkey remains low - averaging less than $1
billion annually, but further economic and judicial reforms and
prospective EU membership are expected to boost FDI. A major
political and economic issue over the next decade is whether or not
Turkey will become a member of the EU.

GDP (purchasing power parity):
$508.7 billion (2004 est.)

GDP - real growth rate:
8.2% (2004 est.)

GDP - per capita:
purchasing power parity - $7,400 (2004 est.)

GDP - composition by sector:
agriculture: 11.7%
industry