The Turkish economy posted record growth and climbed from 18th place to 11th globally from 2003 to 2021.

Türkiye has outpaced rival European economies in terms of growth rate with an annual average GDP growth of 5.4% between 2002 and 2022.2 It is forecasted that Türkiye’s high growth momentum will continue in the coming years.

Adhering to prudent fiscal discipline, Türkiye drastically diminished the public debt stock from above 70 percent in 2002 down to around 38 percent in 2021. In 2021, Türkiye exhibited a better performance in terms of the budget balance as a percentage of GDP compared to the average of the 27 EU member states.³

With an eye-catching 10.3 percent average annual growth in exports, Türkiye has outpaced the world performance and increased its export volume from USD 36 billion to USD 254 billion over the past 20 years. In line with its remarkable performance, Türkiye’s share in global exports has increased from less than 0.6 percent in 2002 to around 1 percent in 2021.⁴

Türkiye successfully generated approximately 28.8 million new jobs during the 2003-2021 period.⁵

1. IMF WEO, October 2022 Based on GDP, Purchasing Power Parity
2. IMF WEO
3. Eurostat, Ministry of Treasury and Finance, IMF WEO
4. TurkStat, International Trade Centre (ITC)
5. OECD

Türkiye’s performance in economic development saw its income per capita increase from USD 3,581 in 2002 to USD 10,655 in 2022.¹

Türkiye, with its 85 million population, is the 11th largest economy in terms of GDP per capita among countries with population over 50 million.²

Türkiye’s stock of 14.4 million passenger cars indicates a large and growing middle class with increasing purchasing power.³

More than 24 urban centers, each with populations of over 1 million, support Türkiye’s thriving domestic market through their production of goods and services. In terms of population, Istanbul is the largest city in Europe.⁴

Türkiye has access to 1 billion consumers worldwide. With the current Customs Union agreement with the EU, it has direct access to the 456 million-strong EU market.⁵

1. TurkStat
2. IMF WEO
3. TurkStat
4. TurkStat
5. Eurostat, World Bank; population as of 2022, Ministry of Trade, TurkStat

Türkiye offers easy access to 1.3 billion people and a combined market worth of USD 28 trillion GDP in Europe, MENA, and Central Asia within a 4-hour flight radius.

Türkiye’s strategic location enables easy reach to markets across 16 different time zones, from Tokyo to New York.

Türkiye has the capability to swiftly deliver its products to target markets through its extensive network of ports opening to the Black Sea, Aegean Sea, and the Mediterranean Sea, facilitating efficient maritime transportation. Additionally, Turkish Airlines, with one of the world’s largest networks, operates flights to 339 destinations in 129 countries.

Global companies increasingly prefer Türkiye as a hub for production, export, and management. For instance, Nestle utilizes Türkiye as a production base for the Middle East and North Africa region, Hugo Boss operates its largest production facility worldwide in Türkiye, and the BSH Group manages 89 countries from Türkiye.

Türkiye, with half of its population under the age of 33.5 in 2022, has the largest youth population among the EU member countries.¹

Over the past decade, Türkiye’s age-dependency ratio has maintained its downward trend, allowing more flexibility in government expenditure on healthcare, social security, and education.²

Türkiye’s overall labor force is around 34.3 million people, which makes the country the 2nd largest labor force in Europe. Türkiye has posted the largest labor force growth among the EU countries.³

In surveys measuring the availability of skilled workforce, Türkiye, with a score of 4.48, is in a better position compared to similar economies like Brazil (3.72) and Hungary (3.42).⁴

In surveys measuring the presence of competent senior executives, Türkiye, with a score of 4.53, is in a better position compared to similar economies like Brazil (3.77) and Hungary (3.57).⁵

1. TurkStat
2. TurkStat
3. OECD, World Bank, TurkStat
4. IMD, IMD World Competitiveness Executive Opinion Survey based on an index from 0 to 10, 2022
5. IMD, IMD World Competitiveness Executive Opinion Survey based on an index from 0 to 10, 2022

The Turkish government has always prioritized reforms for a qualified workforce, innovative production, sustainable growth, a sustainable environment, and international cooperation for development. A sweeping reform process was initiated back in the early 2000s and is continuing even today.

In 2002, the average number of days required to set up a company was 38, which was reduced to 7 as a result of the reform process. Türkiye is advantaged compared to similar economies like South Africa and Poland, where the same average is 40 and 37 days, respectively.¹

Thanks to comprehensive reforms implemented over the past 18 years, Türkiye currently ranks much lower in terms of the number of restrictions applied to international investors, with a score of 0.059, compared to similar countries like Mexico (0.188) and India (0.207), as well as well below the OECD average.²

As a result of recent developments in business regulations, Türkiye has shown significant improvement in the World Bank’s Ease of Doing Business Index, rising to 33rd place out of 190 countries.³

1. World Bank
2. OECD, FDI Restrictiveness Index 2020 (1= Closed to FDI; 0= Open to FDI)
3. World Bank

Türkiye’s investment legislation is simple and complies with international standards while offering equal treatment for all investors.

Bilateral Agreements for the Promotion and Protection of Investments have been signed from 1962 onwards with countries that show the potential to improve bilateral investment relations. Türkiye currently has 86 Bilateral Investment Treaties in effect.

Türkiye has signed Double Taxation Prevention Treaties with 86 countries. This enables tax paid in one of two countries to be offset against tax payable in the other, thus preventing double taxation.

Türkiye has signed Social Security Agreements with 34 countries. These agreements make it easier for expatriates to move between countries.

Türkiye’s investment environment has significantly improved in recent years, with a reduction in the tax burden through the implementation of a competitive tax system at the international level. With a total tax and contribution rate of 42.3%, Türkiye is more competitive compared to similar countries like Brazil (65.1%) and Mexico (55.1%).¹

1. World Bank

The Turkish government has set the target of increasing the share of R&D investments within the overall public budget to 2%. As of 2020, this figure has already increased above 1 percent – with the expectation to reach 2 percent over the next several years.

Extensive R&D incentives in Türkiye are further supported by well-educated and highly qualified labor force, competitive cost advantages, and several global companies that are active in the market. All together these form a dynamic ecosystem in Türkiye.

According to 2022 data, a total of 272,638 individuals worked as R&D personnel in Türkiye in terms of full-time equivalent (FTE). Compared to countries like Poland, Romania, and Hungary based on 2017 data, Türkiye has a significantly higher number of researchers.¹

Based on 2017 data, Türkiye conducts significantly higher Gross Domestic Spending on R&D compared to countries like Poland, Romania, and Hungary.²

Today, more than 100 leading global companies benefit from competitive R&D incentives and the developing ecosystem in Turkey. Companies like Ford, Bosch, Fiat, and Huawei serve as examples of these global firms.

1. OECD, EuroStat, TurkStat
2. OECD, EuroStat, TurkStat