Economic overview
Turkey learned from its severe fiscal crisis in 2001. Since then, the country’s fiscal and free-market overhauls have ushered in nearly uninterrupted expansion while lowering debt. The reforms, combined with foreign investment, pushed gross domestic product growth to a peak of 9.2% in 2010. In 2011, growth was 8.2%, and in 2012, it registered a much more modest 3%.
Traditional agriculture still is a major driver of the Turkish economy, providing employment to about a quarter of the country’s workers. Yet the economy has diversified greatly over the past decade. Textiles and clothing remain important sectors, but automotive, construction and electronics industries are increasingly important. Oil and gas transport is also a key area of growth.
Business travel industry insight
The government has spent billions over the past decade on enormous infrastructure projects designed to make it easier to travel to, from and around Turkey. A €22 billion airport—expected to become one of the largest in the world—is scheduled to break ground in 2017. Investment from abroad, exports and imports drive international corporate travel. Turkey is a member of the EU’s Common Market, and the EU is Turkey’s top import and export partner. Imports traveling from Turkey to the United States rose 72% from 2000 to 2010, while U.S. exports to the country jumped 292% during that same period.
Opportunities
- Roughly €292 billion in international investment has flowed into the country since 2003.
- Turkey’s economy is bolstered by enormous, government-backed infrastructure projects, including the recently opened 47-mile undersea tunnel that connects the Asian and European sides of Istanbul.
- Economic gains have increased wealth for an emerging middle class, and entrepreneurs from those ranks are helping to further diversify the economy.
Challenges
- Political turmoil in Syria and other nearby countries has the potential to create instability in Turkey.
- There’s significant potential for more protests like this year’s massive demonstrations against the government’s large infrastructure projects. Protestors called for protections for the country’s environment and heritage.
- Unemployment has been rising and now stands at 9.3%. About 17% of Turks live below the poverty line.
When your business expands into new markets, BCD Travel can get your travelers where they need to be. Talk to your account manager about how we can support your company’s growth across the globe.