EAST MEETS WEST
REGIONAL REPORT
The automotive industry is a key sector for Turkey .
Image : Shutterstock . com .
EAST MEETS WEST
We outline economic forecasts , trade opportunities and machinery / metalworking production overviews for Turkey .
Image : Shutterstock . com .
“ Turkey ’ s geographic position has made the country an important manufacturing and distribution hub .”
Turkey is the 19th largest economy in the world , with a GDP of roughly US $ 906 billion . It is a member of the OECD and the G20 , and an increasingly important donor of Official Development Assistance .
Situated at the crossroads of the Balkans , Caucasus , Middle East and eastern Mediterranean , Turkey occupies a unique geographic position ( lying partly in Asia and partly in Europe ). Its geographic position has made the country an important manufacturing and distribution hub . Turkey positions itself in the global value chain by leveraging its logistical advantages , offering lower labour costs and flexible production capabilities .
With a population of circa 84.6 million , it is among the world ’ s leading producers of agricultural products ; textiles ; motor vehicles ; transportation equipment ; construction materials ; metalworking / machine tools ; consumer electronics and home appliances . One of its critical competitive advantages is its proximity to Europe , the Middle East and North Africa which can all be reached within three hours ’ flight time and together encompass 1.5 billion customers . In 1995 , Turkey signed up to the EU ’ s Customs Union .
Economic forecasts
“ The Turkish economy expanded by 5.6 % in 2022 . Real GDP growth rate in the first quarter of 2023 was 4 %. From 2003-2022 , the average annual growth rate in Turkey was 5.6 %,” outlined the Turkish Ministry of Trade in its Economic Outlook .
According to the OECD , economic growth in Turkey is projected to moderate to 3.6 % in 2023 due to weaker exports , while domestic demand will remain the main driver of growth . The devastating earthquakes at the beginning of February brought widespread damage in southern Turkey . However , the boost from reconstruction is expected to largely offset the negative impact from disruption to economic activity . The unemployment rate is expected to stay close to 10 %.
“ The powerful earthquakes in February came with severe human and material cost . The resulting disruption of economic activity will lower GDP growth this year , followed by higher growth supported by reconstruction activity next year ,” added the
International Monetary Fund ( IMF ). “ In an extension of the strong COVID-19 pandemic recovery , the economy grew at 5.6 per cent in 2022 . However , the economy has
Turkey also has a strong industrial base , particularly for metalworking and machine tools
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