Official Name: Republic of Turkey
Internet Domain: .tr
International Dialing Code: +90
|Location and Size||Credit and Collections|
|Legal System||Business Climate|
|Interesting Facts||Business Protocol|
|Economy||Other Sources of Info|
|Comparative Economic Indicators|
Turkey is located in Southeastern Europe and Southwestern Asia. It borders the Black Sea, between Bulgaria and Georgia, and the Aegean and the Mediterranean Seas, between Greece and Syria. Its total area is 783,562 sq km, which is slightly larger than Texas. Turkey is a secular state often viewed as a bridge between East and West.
Turkey’s Government is a republican parliamentary democracy with 81 provinces.
- Chief of State: President Abdullah GUL
- Head of government: Prime Minister Recep Tayyip ERDOGAN
- Cabinet: Council of Ministers appointed by the president; nominated by the prime minister
- Unicameral Grand National Assembly of Turkey (550 seats; members elected by popular vote to serve four-year terms)
- Constitutional Court
- High Court of Appeals
- Council of State
- Court of Accounts
- Military High Court of Appeals
- Military High Administrative Court
- Turkey is one of the ten most visited countries in the world.
- Istanbul is the only city in the world located on two continents.
- The oldest known human settlement is in Catalhoyuk, Turkey (7500 BC).
- Turks introduced coffee to Europe and gave the Dutch tulips.
- St. Nicholas, who became popular as Father Christmas, was born in Demre on Turkey's Mediterranean Coast.
- The last meal on Noah's Ark, a pudding with nearly 20 ingredients, is still served throughout Turkey.
- The famous Grand Bazaar, a 540-year-old covered shopping mall of 64 streets, 4000 shops, 22 entrances and 25,000 workers, is located in Istanbul.
- More interesting facts
Turkey's economy is increasingly driven by its industry and service sectors, although its traditional agriculture sector still accounts for about 25% of employment. Turkey remains dependent on often volatile, short-term investment to finance its large current account deficit. The stock value of Foreign Direct Investment (FDI) reached nearly $195 billion at year-end 2013, reflecting Turkey's robust growth even in the face of economic turmoil in Europe, the source of much of Turkey's FDI. Turkey's relatively high current account deficit, domestic political uncertainty, and turmoil within Turkey's neighborhood leave the economy vulnerable to destabilizing shifts in investor confidence.
Leading Markets (2013): Germany 9.6%, France 6.1%, UK 5.8%, Italy 5.8%, Iraq 5%
Leading Exports-commodities: apparel, foodstuffs, textiles, metal manufactures, transport equipment
Leading Suppliers (2013): Russia 14%, Germany 10%, China 9%, US 6.1%, Italy 5.4%, France 5%
Leading Imports-commodities: machinery, chemicals, semi-finished goods, fuels, transport equipment
Top Industries: textiles, food processing, autos, electronics, mining (coal, chromate, copper, boron), steel, petroleum, construction, lumber, paper
Top Agricultural Products: tobacco, cotton, grain, olives, sugar beets, hazelnuts, pulse, citrus; livestock
|Population growth rate*(%)||1.2||-0.8||-0.3||1.5||1.3||1.0|
|Age Structure (%)
(15 to 64 years old)
|Age Structure (%)
(65+ years old)
|Unemployment Rate (%)||12.4||9.2||8.2||10.8||10.8||9.7|
|Population below the poverty line||17.1||21.8||25.0||NA||25.0||12.0|
|GDP** (USD billions)||958.3||92.2||253.3||622.5||4,046.0||14,720.0|
|GDP real growth rate (%)||7.3||0.3||-1.9||3.8||8.3||2.7|
|GDP per capita** (USD)||12,300.0||12,800.0||11,500.0||24,200.0||3,400.0||47,400.0|
|Public debt (% of GDP)||48.1||16.2||34.8||16.7||55.9||58.9|
|Exports (USD billions)||117.4||19.3||51.9||235.3||201.0||1,270.0|
|Imports (USD billions)||166.3||22.8||59.8||99.2||327.0||1,903.0|
|Reserves of foreign exchange and gold (USD billions)||78.0||17.3||50.5||456.2||284.1||NA|
|Exchange rates (per USD) 05/06/2014||1.5||1.3||2.8||3.7||45.0||NA|
|Exchange rates (per EUR) 05/06/2014||2.3||2.0||4.1||5.5||66.4||1.5|
|Ranking in 2013 Corruption Perceptions Index***||4.4||3.6||3.7||4.7||3.3||7.1|
|Ranking in 2014 Index of Economic Freedom****||64.2||64.9||64.7||66.2||54.6||77.8|
Economic Data from CIA World Factbook
* July, 2013 estimates
** PPP - Purchasing Power Parity
*** 2013 Corruptions Index: 10=Very Clean; 0=Highly Corrupt
**** 2014 Index of Economic Freedom: 100-80=Free; 49.9-0=Repressed
Turkey's legal system includes provisions for enforcing property and contractual rights. However, the court system is overloaded, which results in slow decisions. Under certain circumstances, judgments of foreign courts need to be accepted by local courts before they are enforced. Monetary judgments are usually made in the local currency, but there are provisions for incorporating exchange rate differentials in claims.
Turkey is a member of the International Center for the Settlement of Investment Disputes (ICSID), and is a signatory of the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards.
Coface Country Rating: A4 – average risk
Coface Business Climate Rating: A4 – average risk
Payments behavior is expected to remain satisfactory in 2014. Some sectors may, however, suffer from the exchange-rate volatility, including not only automotives, construction, and related sectors (plastics, cement, electric equipment) but also retail, paper, chemicals, and textile/clothing.
Ducroire/Delcredere Political Risk Rating: 3 – relatively low risk (1 lowest risk; 7 highest risk)
Ducroire/Delcredere Commercial Risk Rating: C – high risk (A low risk; B moderate risk; C high risk)
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The Turkish business environment has gradually become more streamlined and efficient. The country has a strong and rapidly growing private sector. Still, the state remains dominant in basic industry, banking, transport, and communication.
Further economic and judicial reforms and prospective EU membership are expected to boost Turkey's attractiveness to foreign investors. However, Turkey's relatively high current account deficit, uncertainty related to policy-making, and fiscal imbalances leave the economy vulnerable to destabilizing shifts in investor confidence.
Economic Freedom: Turkey’s economic freedom score is 64.9, making its economy the 64th freest in the 2014 Index of Economic Freedom. Turkey is ranked 30th out of 43 countries in the European region, and its overall score is higher than the world average.
Conversion and Transfer Policies: Turkish law guarantees the free transfer of profits, fees, and royalties, and repatriation of capital.
Regulatory System: The government of Turkey has adopted policies and laws that should foster competition and transparency. However, foreign companies in several sectors claim that regulations are sometimes applied in a non-transparent manner.
Intellectual Property Rights: The intellectual property rights regime has improved, but protection of confidential pharmaceutical test data is insufficient. Piracy and counterfeiting of copyrighted and trademarked materials remain high. Turkey was upgraded to the U.S. Special 301 Watch List from the Priority Watch List in 2008 in recognition of its efforts to improve its IPR regime and remains on the Watch List in 2014.
Corruption: Foreign investors and companies continue to cite corruption as one of the major impediments for business growth in Turkey. Despite many positive developments, corruption in Turkey remains rampant and enforcement of anti-corruption policies remains weak, as suggested by several sources. Turkey ranks 53rd out of 177 countries in terms of corruption perception according to Transparency International’s 2013 Corruption Perceptions Index. The country’s actual score was 50 which puts it at the midway mark between Very Clean (100) and Highly Corrupt (0).
Turks prefer to do business with those they know and respect, therefore foreign business people should spend time establishing a personal relationship. Discussions may start slowly, with many questions that may seem irrelevant to the purpose of your visit. It is extremely rude to insist that your colleagues get to the point. Once a relationship has been established, however, communication will be direct.
Business dress is conservative. You will be expected to wear a suit and tie. Similarly, women should wear smart professional outfits. In the summer, and especially in the cities of Istanbul, Izmir and Ankara, the weather is very hot and humid. At that time, it is acceptable for men to wear a shirt with trousers and no tie.
Although Turks do not practice time keeping and punctuality perfectly, they will expect you to do so.
When addressing a Turk, the most common method is to call a man by his first name followed by 'bey' [pronounced bay]. So, Ertan Gonca would be Ertan Bey. Similarly, a woman's first name would be followed by 'hanim' [pronounced ha-num]. Where professional titles exist, such as Doctor or Professor, always use them either on their own or before the first name.
More information on Business Protocol:
Embassy of the United States in Ankara, Turkey
This information is provided by ABC-Amega Inc. Providing international receivable management and debt collection services for exporters to more than 150 countries including Turkey. For further information, contact firstname.lastname@example.org.
This report represents a compilation of information from a wide variety of reputable sources.
Comparative Economic Indicators: CIA World Factbook
Exchange Rates: OANDA.com The Currency Site.
Other information is provided by sites including FITA.