h in 1992.
Chronic high inflation is Turkey's most serious economic problem, leading to
high interest rates and the rapid depreciation of the Turkish lira. The huge
public sector deficit - about 12% of GDP - and the Treasury's heavy reliance
on Central Bank financing of the deficit are the major causes of Turkish
inflation. Meanwhile, wage increases in both the public and private sector
have outpaced productivity gains, limited the government's ability to reduce
current expenditures, and hindered the return to profitability of many
private companies. Agriculture remains an important economic sector,
employing about half of the work force, contributing 18% to GDP, and
accounting for about 20% of exports. The government has launched a
multibillion-dollar development program in the southeastern region, which
includes the building of a dozen dams on the Tigris and Euphrates Rivers to
generate electric power and irrigate large tracts of farmland. The Turkish
economy will probably continue to grow faster than the West European average
in 1993, but the shaky coalition government of Prime Minister DEMIREL -
which has seen its parliamentary majority shrink from 36 to 11 seats during
its first year in power - is unlikely to risk further erosion of its support
by implementing the belt-tightening measures necessary to substantially
reduce inflation.
National product:
GDP - purchasing power equivalent - $219 billion (1992)
National product real growth rate:
5.9% (1992)
National product per capita:
$3,670 (1992)
Inflation rate (consumer prices):
70% (1992)
Unemployment rate:
11.1% (1992 est.)
Budget:
revenues $40.5 billion; expenditures $46.8 billion, including capital
expenditures of $5.5 billion (1993)
Exports:
$13.7 billion (f.o.b., 1991)
commodities:
manufactured goods 69%, foodstuffs 22%, fuels 2%
partners:
EC countries 51%, US 7%, Iran 5%, former USSR 5%
Imports:
$21.1 billion (c.i.f., 1991)
commodities:
manufactured goods 61%, foodstuffs 8%, fuels 21%
partners: EC countries 44%, US 12%, former USSR 5%
External debt:
$48.7 billion (1991)
Industrial production:
growth rate 3.2% (1991 est.); accounts for 28% of GDP
Electricity:
14,400,000 kW capacity; 44,000 million kWh produced, 750 kWh per capita
(1991)
Industries:
textiles, food processing, mining (coal, chromite, copper, boron minerals),
steel, petroleum, construction, lumber, pape