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UpDate : 7 September 2008 Pazar
Basket Tourism New Logo
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ball ECONOMY

Turkey's economy has enjoyed positive growth (5.5 per cent in 1995) in recent years, but it is still considered to need structural adjustment. The current government promises additional reforms, including more rapid privatization . However, problems associated with the reforms, including an annual average inflation rate of 66 per cent and a rising unemployment rate, are causing hardships for a growing number of people. Urban residents enjoy far higher incomes than rural people or migrants . Each year, large numbers of migrants from rural areas add to the unemployment rates and to the swelling urban population, especially in Istanbul: this affects not only urban infrastructure and the economy, but political stability as well. Agriculture is the traditional backbone of the economy, and once provided the bulk of all exports . Today it still employs about 44 per cent of labor force (1993) (most of the rural labor force ). The manufacturing sector employs just 15 per cent of labor force (1993) but accounts for nearly 71 per cent of exports (1992). Its success is therefore vital to the economy. Chief agricultural products include cotton, tobacco, fruit, cereals, nuts, and opium (for medicine). Textiles , food processing, and mining are the largest industries . Services now account for about 50 per cent (1991) of the gross domestic product (GDP) , with tourism an increasingly important source of foreign exchange . The economy is one of the 30 largest in the world, but in terms of GDP per capita (US$ 2,627 (1991)) Turkey ranks only about 70th in the world. The currency is the Turkish lira.



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