Turkey is Europe’s 5th and the World’s 12th largest economy (PPP adjusted, current $, 2023). As of 2023, Turkey’s GDP stands at 1,130 billion (current $).
Turkish economy has grown more than fourfold over the past 21 years and is capable of more growth in future with its strong macroeconomic fundamentals that are built upon fiscal discipline that keeps EU defined government debt stock to GDP ratio under Maastricht criteria (26.1% as of second quarter of 2024 vs. 60% of GDP). Even if Turkey’s increased budget deficit to GDP ratio mainly due to earthquake related spending, there has been sustained fiscal discipline throughout the years (as of second quarter of 2024 : -4.7% vs. EU: -2.8%)
Turkey has favorable demographics with its young and skilled workforce which is the second largest workforce in Europe with 35.9 million people. Young population play a prominent role in the growth of the workforce. When Turkey’s population is compared to EU countries Turkey has the youngest population, fifty two percent of the population is under age 34 and the number of young adults who have attained a tertiary education has more than quadrupled in the last 21 years. Currently, approximately 7 million students are enrolled in higher education and over 900,000 students graduate from university each year.
Moreover, Turkey’s convenient and strategic location enables Turkey to benefit from important export markets like EU, MENA and Central Asia market with increasing variety of products and markets. 42% of the US$ 193 billion merchandise exports have been made to EU countries as of third quarter of 2024. Together with Turkey’s robust domestic market and diversified and business oriented private sector, this strategic location helps Turkey to tap investment and export opportunities. Finally yet importantly, Turkey has applied comprehensive reforms in many areas and is willing to continue doing so in order to maintain its proven resilience.
Source: www.invest.gov.tr, www.hmb.gov.tr, www.worldbank.org, www.yok.gov.tr, www.ticaret.gov.tr, www.tuik.gov.tr.