Turkey Facts and Figures

Geographic and Economic Overview

Turkey, a transcontinental nation bridging Europe and Asia, is uniquely positioned across the Bosphorus Strait, with the majority of its land in Asia and a smaller part in Europe. Key cities like Istanbul, Ankara, and Izmir are central to Turkey’s economic and cultural identity. Over the years, Turkey has joined significant international organizations, such as NATO in 1952, the OECD in 1961, and the G20 in 1999, showcasing its strategic role in global diplomacy and economic affairs. With a population exceeding 85 million, Turkey stands as the world’s 18th largest economy (as of 2023), driven by sectors like manufacturing, services, and agriculture. The country’s young, skilled workforce and its historical position as a bridge between East and West continue to bolster its influence in regional and global markets.

Historical and Transformative Events

Turkey has undergone numerous transformative events that have shaped its modern identity. The foundation of the Republic in 1923 marked a major shift from an empire to a secular, democratic state under the leadership of Mustafa Kemal Atatürk, whose reforms laid the groundwork for Turkey's modernization. Another key period was the military coups between the 1960s and 1980s, which altered Turkey's political structure and ushered in constitutional changes. In recent years, Turkey’s ambition to join the European Union has sparked economic reforms and foreign policy shifts, influencing both domestic policies and its global position.

Demographic

With a population density of 109 people per square kilometer as of 2021, Turkey balances densely populated urban centers with expansive rural regions. Approximately 77.5% of the population lives in urban areas, reflecting a trend of urbanization as people move to cities for better employment opportunities and services.

The working-age population in Turkey, representing individuals between 15 and 64 years old, makes up 68.1% of the total as of 2022. This demographic structure provides a solid base for economic productivity. The median age is relatively young at 32 years (2024), indicating a population that can support sustained growth in both the labor force and consumer base.

Turkey’s life expectancy stands at 78 years as of 2022, indicative of ongoing improvements in healthcare. The infant mortality rate, a key health indicator, is recorded at 8.3 per 1,000 live births, and the crude death rate stands at 5.1 per 1,000 persons. These figures highlight Turkey’s commitment to healthcare and improving quality of life. The fertility rate in Turkey, at 1.9 in 2022, is slightly above that of many other developed nations, supporting moderate population growth.

Economic Landscape

Turkey’s economy is robust, despite inflationary pressures, the GDP growth rate was 5.5% in 2023, demonstrating resilience in sectors like industry and services. Turkey’s strategic location at the crossroads of Europe and Asia bolsters its economic standing and trade relations, fostering a diversified economy.

Turkey has experienced significant inflation, recorded at 53.9% in 2023 and projected to reach 59.5% in 2024. These inflation levels pose challenges to purchasing power and economic stability. However, the unemployment rate has shown improvement, decreasing from 10.5% in 2022 to 9.4% in 2023, reflecting positive shifts in the labor market.

Turkey’s trade balance shows a deficit, with exports totaling $255.8 billion and imports reaching $361.8 billion in 2023, leading to a trade imbalance of $106 billion. Industry, contributing 31.3% of GDP, is a major driver of economic activity, with manufacturing alone making up 22.1% of the economy. The service sector accounts for 51.7% of GDP, underscoring the country’s reliance on tourism, finance, and other services. Agriculture, while less dominant, still contributes 6.5% of GDP and plays a role in rural employment and food security.

Public Finance

Turkey maintains a relatively low level of public debt compared to GDP. In 2022, general government debt was 31.18% of GDP, and central government debt stood at 26.88%, indicating cautious borrowing practices. However, Turkey’s overall fiscal balance, represented by net lending or borrowing, was -5.49% of GDP in 2023, suggesting a budget deficit. The fiscal deficit has widened from -1.12% in 2022, driven by increased government spending to support economic growth and social welfare amidst inflationary pressures.

Military Overview

Turkey maintains a sizable military, with 511,000 active personnel in 2016, constituting around 64.3% of the population. Military spending was recorded at 1.2% of GDP in 2022, a decrease from 1.9% in 2021. Turkey’s military capabilities are strategically positioned to address both domestic and regional security concerns, supported by a well-trained personnel base and a focus on defense industry advancements.

Conclusion

Turkey’s economic resilience, youthful working-age population, and strategic geopolitical location continue to make it a critical player in the global market. While the country faces challenges such as high inflation and a trade deficit, its economic growth and employment improvements point to adaptive economic policies and resourcefulness. A market research agency in Turkey would benefit from these insights to understand the local economic landscape, demographic shifts, and fiscal policies shaping the country. With its significant industrial base, expanding service sector, and a stable labor market, Turkey is poised to harness its diverse strengths in the coming years, making it a market to watch for investment, trade, and innovation.