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| ABOUT THE ECONOMY | |
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Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector
that still accounts 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.
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.
The economy is turning around with the implementation of economic reforms, and 2004 GDP growth reached 9%, followed by roughly 5% annual growth
from 2005-07. Inflation fell to 7.7% in 2005 - a 30-year low - but climbed back to 8.5% in 2007. Despite the strong economic gains from 2002-07,
which were largely due to renewed investor interest in emerging markets, IMF backing, and tighter fiscal policy, the economy is still burdened
by a high current account deficit and high external debt. Further economic and judicial reforms and prospective EU membership are expected
to boost foreign direct investment. The stock value of FDI currently stands at about $85 billion. Privatization sales are currently approaching $21 billion.
Oil began to flow through the Baku-Tblisi-Ceyhan pipeline in May 2006, marking a major milestone that will bring up to 1 million barrels per day
from the Caspian to market. In 2007, Turkish financial markets weathered significant domestic political turmoil, including turbulence sparked
by controversy over the selection of former Foreign Minister Abdullah GUL as Turkey's 11th president. Economic fundamentals are sound,
marked by strong economic growth and foreign direct investment. Turkey's high current account deficit leaves the economy vulnerable
to destabilizing shifts in investor confidence, however.
While the majority of Turkey’s land mass is part of the Middle East, its economy leans more closely towards Europe and the West.
Turkey is a member of a number of Western organisations, such as the Organization for Security and Co-operation in Europe (OSCE),
the North Atlantic Treaty Organisation (NATO) and the Council of Europe.
Historically, Istanbul has always been the centre of the Turkey’s economy due of its strategic location at an important junction of land
and sea trade routes. Today the city is the lynchpin of the country’s success: Istanbul employs 20% of Turkey's industrial labour
and contributes 38% of Turkey's industrial workspace; it generates 55% of Turkey's trade, it contributes 40% of all taxes collected
in Turkey and produces around 25% of Turkey's GDP.
Istanbul is very much the industrial centre of Turkey. Many of Turkey's major manufacturing centres are located in the city
and its surrounding metropolis, and produce ranging from silk, olive oil and tobacco to textiles, chemicals, electronics
and automobiles are produced there.
The city also benefits from tourism, due to its favourable geographical location and unique intersection of cultures.
The monetary unit is the Turkish lira (TL). Turkish banks operate in line with international rules and practices and have accepted
European Union practices on capital adequacy. Credit cards have been widely issued since 1988. International cards have a dominant share
in the total credit card market. The rapid spread of Automatic Teller Machines (ATMs) and Poit of Sale (POS) terminals has made
electronic banking convenient. The most accepted credit cards are Visa, MasterCard, American Express, and Diner's Club.
Banks perform the usual operations: change money, send money overseas, and offer efficient online and telephone banking services.
Personal banking is characterized by the system of deposit and withdrawal by account numbers, instead of the checkbook system used in the West.
Traveler's and Euro checks are rarely accepted.
Banks are open weekdays from 8:30 AM until noon or 12:30 PM, depending on the bank, and from 13:30 to 17.00. Some banks do, however,
continue to serve during lunch hours.
Exchange offices are generally open until midnight in tourist areas.
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