Turkey: International Trade and Economic Development

Topics: European Union, Macroeconomics, Economics Pages: 15 (5279 words) Published: April 5, 2012
International Trade and Economic Development

The 2011 population of Turkey is 78.8 million with an annual growth rate of approximately 1.2% and an average age of 28.5 years. The country ranks as the 17th most populous in the world, following Germany. Approximately 70% of the population is urban with Istanbul representing the largest of the urban centers, followed by the country’s capital of Ankara. Turks are the largest ethnic group, representing approximately 75% of the total population, followed by Kurds which represent 18%, and the remaining 7% belonging to multiple minority groups. Almost the entire population is Muslim with less than 0.2% of the population representing other religions. Turkey’s overall unemployment rate is 12% with approximately 25% of the total labor force ages 15-24 being unemployed. 17.1% of the population lives below the national poverty line. 87.4% of the population is literate.[i]

Turkey’s 2010 Gross Domestic Product (GDP) was $735.3 billion. This amount represents approximately 1.2% of the World’s GDP and 6% of the Euro Area’s GDP, as defined by the World Bank. Taking into consideration purchasing power parity (PPP) and converting the country’s Gross National Income (GNI) to international dollars, Turkey’s GDP (PPP) is $1,116 billion.[ii] Turkey’s GDP growth is 8.95% increase for 2010, or an increase of approximately $120.71 billion, from 2009. Turkey’s 2010 GDP growth outpaced the growth rate of the World and the Euro Area. The World GDP growth for 2010 is 4.22%, or an increase of approximately $4,965.7 billion, from 2009. Turkey’s 2010 rate of inflation of 6.49% outpaced the World and the Euro Area. The World’s rate of inflation for 2010 is 4.75%. The Euro Area’s rate of inflation 2010 is 0.99%.[iii]

The 2010 GNI per capital for Turkey is $9,890. This amount represents an increase of $20 from 2009, or 0.2%. The 2010 World GNI is $9,116, or a 4.37% increase from the prior year. The 2010 Euro Area GNI is $38,571 or a 0.32% increase from the prior year. [iv] Turkey’s GNI per capita based on PPP is $15,180.[v]

Turkey has been a member of the World Trade Organization (WTO) since March 26, 1995. The country ranks 33rd and 21st in world trade merchandise exports and imports, respectively. In terms of commercial service exports and imports, Turkey ranks 28th and 24th, respectively. Turkey’s Share in the total world merchandise exports is 0.75%. It’s percentage in world total merchandise imports is 1.2%. Turkey’s share in total world commercial exports is 0.91%. It’s percentage in total world commercial imports is 0.52%. Turkey’s contribution to the 2011 WTO budget is 0.95%. The country’s 2010 current account balance is a deficit of -$48, 445[vi]. Turkey’s 2010 balance of payment is $9.28 billion dollars or 2.8% of the Europe Area’s balance of total trade of $329.9 billion.[vii]

Exports as a percentage of GDP were 23.18% for 2010, a 0.06% point decrease from 2009. Turkey’s percentage of exports to GDP was performing 13.1% points below the Euro Area. In 2009, Turkey’s exports as a percentage of GDP were 23.24%. The World’s imports as a percentage of GDP were 24.86%. Agricultural products (10.9%), fuels and mining products (8.2%) and manufactures (77.6%) represent approximately 97% of Turkey’s merchandise exports. Turkey’s major exporting partners are the European Union (47.1%), Iraq (5.3%), Russian Federation (4.1%), United States (3.3%) and United Arab Emirates (2.9%). Turkey’s principal commercial services exports are transportation (25.1%), travel (63.5%) and other commercial services (11.4%). Merchandise exports represent approximately $114 billion, a 12% increase, and commercial services exports represent approximately $33 billion, a 2% increase.[viii]

Imports as a percentage of GDP was 26.21% for 2010, a 1.79% point increase from 2009. Turkey’s percentage of imports to GDP was more aligned to the World statistic, performing 8.6% points below the Euro Area....
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