Economy Of Turkey

Turkey’s integration into European economic and political structures has been a gradual process marked by several key milestones. In 1950, Turkey became one of the early members of the Council of Europe, an organization dedicated to promoting human rights, democracy, and the rule of law across the continent. This membership laid the groundwork for Turkey’s deeper economic ties with Europe, culminating in its association with the European Economic Community (EEC) in 1963 as an associate member. This association was a significant step toward economic integration, facilitating trade and cooperation between Turkey and the EEC countries. Later, in 1995, Turkey joined the European Union Customs Union, which established a free trade area between Turkey and the EU, thereby eliminating tariffs on industrial goods and enhancing bilateral trade and investment flows. The relationship further evolved when Turkey commenced full membership negotiations with the European Union in 2005, reflecting its long-standing ambition to become a full EU member state. The Turkish economy is characterized as an emerging free-market economy, demonstrating a dynamic and diverse economic structure. By 2025, Turkey ranked as the 16th-largest economy globally and the 7th-largest in Europe by nominal Gross Domestic Product (GDP), underscoring its significant role in the regional and global economic landscape. When measured by purchasing power parity (PPP), which accounts for differences in price levels between countries, Turkey’s economy ranked even higher, standing as the 12th-largest worldwide and the 5th-largest in Europe in 2025. This dual ranking highlights Turkey’s substantial domestic market size and its growing economic influence. The country’s economic trajectory has been marked by periods of rapid growth, particularly from the early 2000s onward, although this expansion was interrupted by a severe economic crisis beginning in 2018. Following this downturn, the economy began to recover in 2021, signaling resilience and adaptability in the face of financial challenges. Turkey’s nominal GDP per capita in U.S. dollars and GDP per capita by PPP both reached their all-time peak values in 2024, reflecting improvements in average income levels and living standards. These peaks indicate the culmination of years of economic development and structural reforms aimed at boosting productivity and investment. Turkey’s commitment to international economic cooperation is further evidenced by its status as a founding member of the Organisation for Economic Co-operation and Development (OECD), an organization that promotes policies to improve the economic and social well-being of people worldwide. Additionally, Turkey is a founding member of the G20 group of major economies, which brings together the world’s largest advanced and emerging economies to discuss and coordinate economic policy. The ratification of the European Union–Turkey Customs Union in 1995 was a pivotal moment for Turkey’s economy. This agreement created a free trade area between Turkey and the EU, significantly increasing bilateral foreign trade, investment, and economic activity. The Customs Union facilitated the elimination of tariffs on industrial goods and harmonized Turkey’s trade policies with those of the EU, fostering a more competitive and export-oriented economy. As a result, Turkish exports to the EU expanded substantially, and foreign direct investment inflows increased, contributing to economic modernization and integration with global markets. Tourism has emerged as a major sector within Turkey’s economy, leveraging the country’s rich historical heritage, diverse landscapes, and cultural attractions. By 2023, Turkey ranked as the fifth most visited destination worldwide, attracting millions of international tourists annually. The tourism sector accounted for approximately 12% of Turkey’s total GDP in 2023, highlighting its importance as a source of foreign exchange earnings, employment, and regional development. Key tourist destinations include Istanbul, Cappadocia, the Mediterranean and Aegean coasts, and historic sites such as Ephesus and Troy, which collectively contribute to the sector’s robust performance. Since the year 2000, Turkish universities have played a pioneering role in the development of technoparks, specialized zones designed to foster research and development (R&D) activities and innovation. These technoparks have grown to host over 1,600 R&D centers, attracting investments from both domestic and international corporations. This expansion of R&D infrastructure has been instrumental in advancing Turkey’s technological capabilities and supporting the growth of high-tech industries. The collaboration between academia and industry within these technoparks has facilitated technology transfer, startup incubation, and the commercialization of research outputs. Turkey is recognized as one of the world’s leading producers in several industrial sectors, including motor vehicles, consumer electronics, home appliances, and defense products. The automotive industry, in particular, is a major contributor to manufacturing output and exports, with numerous international carmakers operating production facilities in the country. The consumer electronics and home appliance sectors have also experienced significant growth, driven by both domestic demand and export opportunities. In the defense sector, Turkey has developed a robust manufacturing base producing a wide range of military equipment and technology, contributing to both national security and export revenues. In 2021, Turkey achieved a global ranking of eighth in the technology category of the Economic Complexity Index (ECI), a measure that assesses the diversity and sophistication of a country’s export structure. This ranking reflects Turkey’s progress in developing a more complex and technologically advanced economy capable of producing and exporting a wide array of sophisticated products. The ECI ranking underscores Turkey’s transition from a primarily resource-based economy to one increasingly driven by knowledge-intensive industries. Between 2002 and 2013, Turkey experienced a period of strong economic growth, with the exception of 2009, when the global financial crisis of 2008 caused a temporary slowdown. During this time, Turkey’s GDP expanded rapidly, supported by macroeconomic reforms, increased foreign investment, and rising domestic consumption. The country’s economic resilience during the global downturn was notable, as it managed to avoid a deep recession and quickly resumed growth thereafter. However, from 2014 to 2020, Turkey’s nominal GDP figures expressed in U.S. dollars showed signs of stagnation and recession, particularly during the 2018 Turkish currency and debt crisis. This crisis was characterized by a sharp depreciation of the Turkish lira, rising inflation, and increased borrowing costs, which collectively undermined economic stability. Despite these challenges, GDP measured by purchasing power parity and nominal GDP calculated in Turkish lira continued to grow, reflecting underlying economic expansion when adjusted for currency fluctuations and price differences. Since 2021, Turkey’s nominal GDP in U.S. dollars and GDP by PPP have demonstrated a steady recovery and rapid growth, reaching all-time high values in 2023 and 2024. This rebound has been driven by a combination of factors, including improved export performance, increased domestic demand, and policy adjustments aimed at stabilizing the economy. The recovery has helped restore investor confidence and supported broader economic development goals. The period following 2018 saw the implementation of growth-focused and populist financial policies, often referred to as Erdoganomics, named after President Recep Tayyip Erdoğan. A key feature of these policies was the preference for maintaining very low interest rates despite rising inflation pressures. This approach aimed to stimulate economic growth and credit expansion but contributed to one of the world’s highest inflation rates starting in 2018. The resulting inflationary environment eroded purchasing power and created economic uncertainty, prompting calls for a shift toward more orthodox monetary policies. Following the Turkish parliamentary and presidential elections held on May 14 and 28, 2023, respectively, and the subsequent appointment of Mehmet Şimşek as Minister of Treasury and Finance on June 4, 2023, Turkey adopted a more orthodox monetary policy stance concerning interest rates. This policy shift involved raising interest rates to curb inflation and stabilize the currency. As a result of these measures, inflation in Turkey decreased gradually from a peak of 85.5% in late 2022 to 42.1% in early 2025, signaling progress toward restoring price stability and economic confidence. The Turkish economy is anchored by several key institutional and monetary components. The Turkish lira serves as the national currency, with the Central Bank of the Republic of Turkey acting as the primary monetary authority responsible for implementing monetary policy, managing inflation, and ensuring financial stability. The Central Bank’s decisions on interest rates and currency interventions play a critical role in shaping economic conditions and investor perceptions. The Istanbul Stock Exchange (ISE) functions as Turkey’s main stock exchange, providing a platform for the trading of securities and hosting numerous companies listed across various sectors. The ISE facilitates capital formation, investment opportunities, and market liquidity, contributing to the overall development of Turkey’s financial markets. Turkey’s economic landscape is also shaped by several major infrastructure and economic projects that have strategic importance. The Baku–Tbilisi–Ceyhan pipeline, for example, is a key oil pipeline that transports crude oil from the Caspian Sea to the Mediterranean, enhancing Turkey’s role as an energy transit hub. The European Union–Turkey Customs Union, as previously noted, has been instrumental in integrating Turkey’s economy with European markets. The Nabucco pipeline project, although ultimately not realized, was conceived as a means to diversify natural gas supplies to Europe via Turkey. The Southeastern Anatolia Project represents a comprehensive regional development initiative focused on irrigation, hydroelectric power, and agricultural modernization. Issues related to land ownership continue to influence economic development, particularly in rural areas and agricultural sectors. Turkey’s economy is interconnected with a range of related economic and social topics that further define its complexity and development trajectory. Energy policy and resources are critical to sustaining industrial growth and meeting domestic demand. The country’s geography, straddling Europe and Asia, provides strategic advantages for trade and logistics. Labor market factors, including the minimum wage, influence income distribution and social equity. Advances in science and technology underpin innovation and competitiveness, while telecommunications infrastructure supports connectivity and digital transformation. The tourism and transport sectors are vital for economic diversification and regional integration, collectively shaping Turkey’s ongoing economic evolution.

The economic data for Turkey from 1913 to 2018 illustrates significant fluctuations in per capita GDP when adjusted for inflation to 2011 International dollars, revealing the country’s evolving economic landscape over more than a century. Alongside these GDP figures, comparative analyses of Turkey’s carbon dioxide (CO2) emissions growth relative to its GDP growth provide insight into the environmental impact of economic development. Additionally, general government net debt as a percentage of GDP is presented for selected European countries, offering a broader context for Turkey’s fiscal position within the region and highlighting the interplay between economic growth, environmental concerns, and public finance management. Detailed economic indicators for Turkey spanning from 1980 to 2024 are available, with projections from the International Monetary Fund (IMF) staff extending through 2029. These indicators include nominal and purchasing power parity (PPP) GDP values, GDP per capita, real GDP growth rates, inflation rates, and unemployment figures. Notably, inflation rates below 10% are accentuated in green within the data, emphasizing periods of relative price stability amidst a history of inflationary pressures. In 1980, Turkey’s economy was characterized by a GDP of 159.2 billion US dollars in PPP terms, with a GDP per capita of 3,516.3 US dollars PPP. The nominal GDP stood at 96.6 billion US dollars, and the nominal GDP per capita was 2,133.7 US dollars. The real GDP growth rate was slightly negative at -0.8%, reflecting economic contraction during that year. Inflation was extraordinarily high at 110.6%, indicative of severe price instability, while unemployment was recorded at 7.2%, signaling moderate labor market challenges amid economic turbulence. Between 1981 and 1987, Turkey experienced considerable volatility in inflation rates, which fluctuated between 31.1% and 48.4%. This period saw GDP growth rates varying widely, from a low of 3.4% to a robust 10.0%, reflecting alternating phases of economic expansion and slowdown. Unemployment rates during these years remained relatively stable, oscillating between 6.9% and 8.1%, suggesting persistent but contained labor market pressures despite macroeconomic instability. The years 1988 and 1989 marked a peak in inflation, with rates soaring to 73.7% and 63.3%, respectively. This surge in inflation coincided with a deceleration in GDP growth, which slowed to 2.1% in 1988 and further to 0.3% in 1989. Unemployment also rose during this period, reaching 8.7% in 1988 and slightly decreasing to 8.6% in 1989, reflecting the economic strain imposed by inflationary pressures and sluggish growth. Entering the early 1990s, Turkey’s GDP growth rebounded significantly, achieving a remarkable 9.3% increase in 1990. However, inflation remained persistently high, fluctuating between 60.3% and 70.1%, which undermined economic stability. Unemployment rates during this period hovered around 7.7% to 8.4%, indicating ongoing challenges in the labor market despite the growth momentum. The economic crisis of 1994 had a pronounced impact on Turkey’s economy, resulting in a sharp GDP contraction of -5.5%. Inflation surged dramatically to 104.5%, reflecting a severe loss of price stability. Unemployment was recorded at 8.0%, underscoring the social consequences of the economic downturn and the difficulties faced by the labor market during this turbulent period. From 1995 to 1998, Turkey’s economy showed signs of recovery. GDP growth rates ranged between 3.1% and 7.5%, demonstrating a return to positive economic expansion. Nonetheless, inflation remained elevated, fluctuating between 80.2% and 89.6%, indicating that price stability was still elusive. Unemployment rates improved somewhat, declining to between 6.1% and 6.4%, suggesting gradual labor market recovery alongside economic growth. The years 1999 and 2001 were marked by renewed economic difficulties. Turkey faced GDP contractions of -3.3% in 1999 and a more severe -5.8% in 2001, reflecting recessions triggered by both domestic and external shocks. Inflation rates, though lower than in previous decades, remained high at 64.9% in 1999 and 54.2% in 2001. Unemployment increased during this period, rising to 7.2% in 1999 and 7.8% in 2001, highlighting the adverse effects of economic instability on the labor market. Between 2002 and 2007, Turkey experienced a period of robust economic growth. GDP growth rates ranged from 4.8% to 9.8%, signaling strong expansion and recovery. Inflation rates improved markedly during these years, falling below 10% from 2004 onwards, which reflected successful efforts to stabilize prices. Unemployment rates fluctuated between 8.7% and 9.9%, indicating persistent, though manageable, labor market challenges amid economic growth. The global financial crisis of 2008-2009 had a significant impact on Turkey’s economy. GDP growth slowed dramatically to 0.8% in 2008 and contracted by -4.8% in 2009, reflecting the global economic downturn’s effects on Turkey. Inflation moderated to 10.4% in 2008 and further to 6.3% in 2009, suggesting some easing of price pressures during the crisis. Unemployment increased substantially, rising to 9.8% in 2008 and peaking at 13.0% in 2009, demonstrating the severe labor market disruptions caused by the recession. The recovery phase from 2010 to 2013 saw Turkey’s GDP growth rebound strongly, ranging between 5.8% and 11.2%. Inflation rates during this period were mostly below 10%, indicating improved price stability. Unemployment stabilized around 8.3% to 9.9%, reflecting a gradual normalization of the labor market conditions following the crisis-induced disruptions. From 2014 to 2017, Turkey maintained moderate GDP growth rates between 3.3% and 7.5%, sustaining economic expansion albeit at a slower pace compared to the early 2010s. Inflation fluctuated between 7.7% and 11.1%, showing some volatility but generally remaining within a moderate range. Unemployment hovered near 10.9%, indicating persistent labor market challenges despite continued economic growth. The years 2018 and 2019 witnessed a slowdown in Turkey’s economic growth, with GDP growth rates declining to 3.0% in 2018 and further to 0.8% in 2019. Inflation surged sharply during this period, reaching 16.3% in 2018 and 15.2% in 2019, reflecting renewed price instability. Unemployment increased significantly to 10.9% in 2018 and 13.7% in 2019, underscoring the deteriorating labor market conditions amid economic uncertainty. During the COVID-19 pandemic period of 2020-2021, Turkey’s economy showed mixed performance. GDP growth was modest at 1.9% in 2020, reflecting the global economic contraction, but rebounded strongly to 11.4% in 2021 as recovery efforts took hold. Inflation rose from 12.3% in 2020 to 19.6% in 2021, indicating rising price pressures during the recovery phase. Unemployment decreased slightly from 13.1% in 2020 to 12.0% in 2021, suggesting some labor market stabilization despite ongoing challenges. In 2022, Turkey’s economy expanded with a GDP of 3,009.8 billion US dollars in PPP terms and a GDP per capita of 35,293.4 US dollars PPP. The nominal GDP reached 905.8 billion US dollars, with a nominal GDP per capita of 10,621.4 US dollars. Real GDP growth was recorded at 5.5%, demonstrating continued economic expansion. However, inflation spiked dramatically to 72.3%, reflecting severe price instability, while unemployment stood at 10.8%, indicating persistent labor market difficulties. IMF projections for the period 2023 to 2029 suggest steady GDP growth for Turkey, beginning at 5.1% in 2023 and gradually moderating to 3.8% by 2029. Inflation rates are expected to decline from a high of 53.8% in 2023 to 15.0% by 2028 and 2029, indicating anticipated improvements in price stability. Unemployment is projected to stabilize at 10.4%, reflecting ongoing labor market challenges but relative steadiness compared to prior decades. By 2029, Turkey’s GDP is forecasted to reach 4,471.8 billion US dollars in PPP terms, with a GDP per capita of 50,917.766 US dollars PPP. The nominal GDP is expected to rise to 1,764.2 billion US dollars, and the nominal GDP per capita to 20,088.2 US dollars. Real GDP growth is projected at 3.8%, accompanied by an inflation rate of 15.0%, while unemployment is anticipated to remain steady at 10.4%. These projections reflect a trajectory of moderate economic expansion coupled with gradual improvements in inflation control and labor market conditions. Overall, the data encapsulates Turkey’s economic volatility over the decades, characterized by periods of high inflation and recession followed by phases of recovery and growth. This history underscores the persistent challenges Turkey has faced in managing inflation and unemployment, as well as the broader complexities of sustaining stable economic development amid domestic and global economic fluctuations.

As of November 2023, Turkey’s economy featured a total of 1,086,670 registered companies, reflecting the diverse and dynamic nature of its business environment. This extensive network of enterprises spans various sectors, each contributing uniquely to the country’s economic fabric. Among these, the manufacturing sector emerged as the largest in terms of company registrations, with 241,362 firms actively engaged in producing a wide range of goods. This dominance underscores the sector’s critical role in Turkey’s industrial base, encompassing industries such as automotive, textiles, machinery, and electronics, which have historically driven export growth and employment. Following manufacturing, the wholesale trading sector held the position of the second largest in company registrations, with 197,476 companies operating within this domain. Wholesale trade serves as a vital intermediary stage in the supply chain, facilitating the distribution of products from manufacturers to retailers and other businesses. The substantial number of companies in this sector highlights Turkey’s strategic importance as a commercial hub bridging Europe, Asia, and the Middle East. The sector’s growth is also indicative of the expanding domestic market and the increasing complexity of supply networks required to meet consumer and industrial demands. The services sector ranked third in terms of registered companies, with 187,325 firms providing a broad array of services across the country. This sector encompasses a wide spectrum of activities, including finance, tourism, education, healthcare, and information technology, reflecting Turkey’s ongoing economic diversification and modernization. The prominence of services companies signals a shift towards a more service-oriented economy, aligning with global trends where knowledge-based and customer-focused industries gain increasing significance. The sector’s expansion has been supported by government initiatives aimed at enhancing infrastructure, digital transformation, and human capital development. Together, these three sectors—manufacturing, wholesale trade, and services—account for the vast majority of registered companies in Turkey, illustrating the multifaceted nature of the Turkish economy. The concentration of firms in manufacturing highlights the country’s industrial capabilities and export potential, while the robust wholesale trade sector emphasizes Turkey’s role in regional commerce. Meanwhile, the growing services sector reflects broader economic shifts and the country’s efforts to integrate into the global economy through innovation and improved service delivery. This distribution of companies also provides insight into employment patterns, investment priorities, and the structural composition of Turkey’s economy as it navigates the challenges and opportunities of the 21st century.

The Atatürk Dam stands as the largest among the 22 dams constructed as part of the Southeastern Anatolia Project (GAP), a vast regional development initiative aimed at boosting economic growth and improving living standards in southeastern Turkey. This ambitious project encompasses not only the construction of 22 dams but also the establishment of 19 hydraulic power plants, which collectively contribute significantly to the region’s energy supply. A critical component of the GAP is the irrigation of approximately 1.82 million hectares of agricultural land, an effort designed to transform the predominantly arid and semi-arid landscape into fertile farmland capable of supporting diverse crop production. The total estimated cost of the Southeastern Anatolia Project reached an impressive $32 billion, reflecting the scale and complexity of this multifaceted endeavor. By harnessing the waters of the Euphrates and Tigris rivers, the Atatürk Dam and its associated infrastructure have played a pivotal role in increasing agricultural productivity, generating hydroelectric power, and fostering regional development. Agriculture continues to hold a prominent position within Turkey’s economy, underscoring the country’s status as one of the world’s leading agricultural producers. Despite rapid industrialization and urbanization in recent decades, the agricultural sector remains a cornerstone of Turkey’s economic structure, contributing substantially to both employment and national output. Turkey ranks among the top ten agricultural producers globally, a distinction attributable to its diverse climatic zones, fertile soils, and the extensive area dedicated to farming activities. This diversity allows for the cultivation of a wide range of crops and the rearing of various livestock species, supporting both domestic food security and export markets. The sector’s resilience and adaptability have enabled it to maintain its importance even as the economy has diversified into manufacturing and services. Among the major agricultural products cultivated in Turkey, wheat holds a central place, serving as a staple food and a key raw material for various food industries. Sugar beet is another significant crop, cultivated extensively for sugar production, which supports both domestic consumption and export. Dairy production, particularly milk, forms an essential part of the livestock sector, complemented by poultry farming that supplies a substantial proportion of the country’s meat and eggs. Cotton cultivation remains vital for the textile industry, which is a major contributor to Turkey’s manufacturing exports. In addition to these staples, Turkey produces a wide array of vegetables and fruits, benefiting from its varied climate and geography that allow for year-round production of many crops. This agricultural diversity not only meets domestic demand but also positions Turkey as a competitive player in international markets. Turkey holds the unique distinction of being the world’s largest producer of several key agricultural commodities, notably hazelnuts, apricots, and oregano. The country’s Black Sea region is particularly renowned for hazelnut cultivation, supplying approximately 70% of the global market. This dominance has significant economic implications, as hazelnuts represent a major export product and a source of income for thousands of farmers. Apricot production is concentrated in the Malatya region, where climate and soil conditions favor the growth of high-quality fruit that is exported widely. Oregano, a herb extensively used in culinary and medicinal applications, is also produced in large quantities, with Turkey leading global production. These specialized crops contribute to Turkey’s agricultural identity and enhance its export portfolio, underscoring the sector’s role in supporting rural livelihoods and national trade balances. Approximately half of Turkey’s total land area is dedicated to agricultural use, reflecting the sector’s extensive spatial footprint. This vast expanse includes arable land, permanent crops, and pasture, supporting a wide range of farming activities. Despite the large area under cultivation, the agricultural workforce comprises fewer than half a million farmers, which represents about 15% of the national workforce. This relatively small number of farmers indicates a trend toward increased mechanization and consolidation of farming operations, as well as a shift in the rural labor market. The demographic profile of the agricultural workforce also points to challenges such as aging farmers and rural-urban migration, which have implications for the sector’s future sustainability and productivity. Nevertheless, agriculture remains a critical source of employment, especially in rural areas where alternative economic opportunities may be limited. The agricultural sector contributes approximately 10% to Turkey’s exports, highlighting its importance as a source of foreign exchange earnings. This export share reflects the international demand for Turkish agricultural products, including fresh and processed fruits and vegetables, nuts, and other commodities. In terms of its contribution to the gross domestic product (GDP), agriculture accounts for over 5%, a figure that, while lower than in previous decades, still signifies the sector’s substantial role in the overall economy. The dual contribution to exports and GDP underscores agriculture’s multifaceted importance, supporting both domestic consumption and external trade. The sector’s performance is closely monitored by policymakers, given its implications for rural development, food security, and economic diversification. For the fiscal year 2024, the Turkish government allocated a budget exceeding 380 billion lira in agricultural subsidies, demonstrating a strong commitment to supporting the sector. These subsidies encompass a range of financial assistance programs aimed at enhancing productivity, encouraging sustainable practices, and stabilizing farmer incomes. The allocation reflects the government’s recognition of agriculture’s strategic importance and the need to address challenges such as fluctuating commodity prices, climate variability, and input costs. Subsidies are directed toward various inputs, including seeds, fertilizers, machinery, and irrigation infrastructure, as well as direct payments to farmers. This substantial investment seeks to promote competitiveness, innovation, and resilience within the agricultural sector. Despite its significant capacity for food production, Turkey remains a net importer of wheat, relying heavily on imports from Russia and Ukraine to meet domestic demand. This reliance is partly due to the country’s consumption patterns, population growth, and the need to maintain strategic reserves. The importation of wheat from these neighboring countries underscores the interconnectedness of regional agricultural markets and the vulnerabilities associated with geopolitical and climatic disruptions. Efforts to increase domestic wheat production have been ongoing, but factors such as land availability, water resources, and yield variability continue to influence the balance between production and imports. The wheat trade is a critical component of Turkey’s food security strategy and agricultural policy planning. Within the European Union’s agricultural trade framework, Turkey ranks as the fourth largest supplier of vegetables and the seventh largest supplier of fruit. This prominent position reflects Turkey’s competitive advantages in producing a wide variety of horticultural products that meet EU quality standards and consumer preferences. The country’s proximity to European markets, combined with favorable climatic conditions and efficient logistics, facilitates the export of fresh produce throughout the year. Turkish vegetables and fruits contribute significantly to the diversity and availability of agricultural products within the EU, supporting consumer demand and agricultural supply chains. This trade relationship also highlights the importance of maintaining regulatory alignment and market access conditions. In pursuit of deeper economic integration with the European Union, Turkey aims to extend the existing EU Customs Union Agreement to encompass agricultural products. Currently, the Customs Union facilitates tariff-free trade in industrial goods between Turkey and the EU, but agricultural goods remain subject to tariffs and other trade barriers. Expanding the agreement to include agriculture would enhance trade flows, reduce costs for exporters and importers, and strengthen Turkey’s position as a key supplier to the EU market. This objective aligns with broader efforts to harmonize standards, improve regulatory cooperation, and foster mutual economic benefits. Negotiations and policy discussions continue to address the complexities inherent in agricultural trade liberalization, including concerns related to domestic producers and market competition. Approximately half of the agricultural sector’s greenhouse gas emissions in Turkey are attributed to cattle farming, highlighting the environmental impact of livestock production. Methane emissions from enteric fermentation, manure management, and associated land use changes contribute significantly to the sector’s carbon footprint. This environmental challenge has prompted attention to sustainable livestock practices, improved feed efficiency, and waste management strategies aimed at reducing emissions. The prominence of cattle farming in the emission profile reflects the importance of the livestock sector in Turkey’s agriculture, both economically and culturally. Addressing these emissions is integral to Turkey’s broader commitments to climate change mitigation and sustainable development goals. The World Bank has recommended that Turkey’s agricultural sector increase its adaptation to climate change and implement technical improvements to enhance sustainability. Given the sector’s vulnerability to shifting weather patterns, droughts, and extreme events, adaptation measures are critical for maintaining productivity and food security. These recommendations emphasize the adoption of climate-resilient crop varieties, improved water management techniques, and the integration of technology to optimize input use and reduce environmental impact. Technical improvements also include the modernization of irrigation systems, precision agriculture, and enhanced extension services to disseminate knowledge among farmers. The World Bank’s guidance aligns with global efforts to promote sustainable agriculture and support countries in meeting environmental and economic challenges. Strategic planning for Turkey’s agricultural sector is overseen by the Ministry of Agriculture and Forestry, which is responsible for formulating policies, coordinating programs, and implementing development initiatives. However, as of the current period, no strategic plan for the years following 2024 has been published, leaving a gap in the formal roadmap for the sector’s future direction. The absence of an updated strategic plan may affect long-term policy coherence, investment decisions, and the alignment of sectoral goals with national development priorities. The ministry continues to engage in sectoral assessments and policy discussions, but the publication of a comprehensive strategic document remains pending. Such a plan would be expected to address emerging challenges, set targets for productivity and sustainability, and outline mechanisms for stakeholder engagement. Nearly all seeds used in Turkish agriculture are produced domestically, ensuring a high degree of self-sufficiency in seed supply. This domestic seed production capacity supports crop diversity, reduces dependence on imports, and enhances the resilience of the agricultural sector. Seed production involves both public and private sector entities, with research institutions playing a key role in developing improved varieties adapted to local conditions. The availability of locally produced seeds facilitates timely planting and contributes to yield stability. This self-reliance in seed production is a strategic asset, particularly in the context of global supply chain disruptions and the need for food security.

As of April 2019, the industrial sector within the Turkish economy has undergone significant changes that necessitate an update to reflect recent developments and newly available information. The industrial landscape in Turkey has been evolving rapidly due to shifts in global economic patterns, regulatory environments, and energy markets. These transformations have influenced the strategic decisions of multinational corporations and domestic enterprises alike, particularly in the realm of heavy industry, which encompasses sectors such as steel production, machinery manufacturing, and chemical processing. One of the most notable trends observed in recent years is the relocation of heavy industry from the European Union to Turkey. This movement has been largely motivated by Turkey’s comparatively more lenient pollution regulations, which present fewer compliance challenges and lower operational costs for industries with significant environmental footprints. While the EU has progressively tightened its environmental standards to address climate change and pollution concerns, Turkey’s regulatory framework has remained relatively less restrictive, thereby creating a more attractive environment for industries seeking to minimize regulatory burdens. This regulatory differential has acted as a substantial pull factor, encouraging companies to shift production facilities and heavy industrial operations to Turkish territory. In addition to regulatory considerations, the availability of cheaper energy costs in Turkey compared to the European Union has played a critical role in attracting heavy industry. Energy expenses constitute a major component of operational costs in sectors such as metal smelting, chemical manufacturing, and large-scale machinery production. Turkey benefits from a diversified energy mix that includes domestic coal, natural gas imports, hydroelectric power, and an increasing share of renewable energy sources, which collectively contribute to relatively lower energy prices. This cost advantage has been particularly appealing to energy-intensive industries, enabling them to maintain competitive pricing and improve profit margins. The disparity in energy costs between Turkey and the EU has therefore been a decisive factor in the strategic relocation of heavy industrial activities. The convergence of these factors—laxer pollution regulations and cheaper energy—has led to a notable reconfiguration of the industrial sector in Turkey. This shift has implications not only for Turkey’s economic growth and employment but also for environmental policy and regional industrial dynamics. The influx of heavy industry has stimulated investment in infrastructure, technology, and human capital, contributing to the sector’s expansion and diversification. However, it has also raised concerns regarding environmental sustainability and the need for Turkey to balance industrial growth with ecological stewardship. As such, the ongoing developments in Turkey’s industrial sector reflect a complex interplay between economic opportunity and regulatory frameworks, underscoring the importance of continuous monitoring and analysis to capture the full scope of these changes.

In 2006, Vestel, a prominent Turkish electronics manufacturer, achieved the distinction of being the largest television producer in Europe. The company was responsible for manufacturing and selling approximately 25% of all television sets on the continent, a remarkable feat that underscored Turkey’s growing influence in the consumer electronics sector. Vestel’s success was attributed to its extensive production capacity, advanced manufacturing technologies, and strategic partnerships that enabled it to meet the high demand for televisions across diverse European markets. This achievement positioned Vestel not only as a key player within Turkey’s economy but also as a dominant force in the European consumer electronics industry, reflecting the country’s expanding industrial capabilities and export potential. Prior to this milestone, by January 2005, the combined production output of Vestel and its domestic competitor Beko had already surpassed a significant threshold, accounting for more than 50% of all television sets manufactured in Europe. Beko, another leading Turkish brand specializing in electronics and white goods, contributed substantially to this combined market share through its robust manufacturing operations and widespread distribution networks. The collaboration of these two companies effectively controlled over half of the European television manufacturing market, highlighting Turkey’s strategic role as a major hub for consumer electronics production. This dominance was indicative of the competitive advantages held by Turkish manufacturers, including cost-effective labor, proximity to key European markets, and investments in research and development that enhanced product quality and innovation. In addition to Vestel and Beko, Profilo Telra emerged as a significant contender within the European television manufacturing landscape. In 2005, Profilo Telra was recognized as Europe’s third-largest television producer, further consolidating Turkey’s position as a leading supplier of consumer electronics in the region. The brand’s success was driven by its focus on delivering a diverse range of television products that catered to varying consumer preferences and price points. Profilo Telra’s prominence alongside Vestel and Beko illustrated the depth and breadth of Turkey’s electronics manufacturing sector, which was characterized by multiple competitive firms capable of producing high volumes of televisions for both domestic consumption and export. Together, these three Turkish companies reshaped the European television market, contributing significantly to the continent’s supply chain and reinforcing Turkey’s reputation as a vital manufacturing center in the consumer electronics and home appliances industry.

The Turkish textile industry holds a prominent position in the global market, ranking as the world’s fifth largest exporter within the sector. This status reflects the country’s long-standing tradition and expertise in textile manufacturing, which has evolved through decades of industrial development and strategic economic planning. The sector’s significance is underscored by its substantial contribution to the national economy; in 2018, the textile and clothing industry accounted for 10% of Turkey’s Gross Domestic Product (GDP), highlighting its role as a cornerstone of the country’s manufacturing base and export economy. This considerable share of GDP illustrates the industry’s capacity to generate value and sustain economic growth through both domestic production and international trade. Employment figures further emphasize the industry’s critical role in Turkey’s labor market. In 2018, approximately 750,000 individuals were employed within the textile and clothing sector, making it one of the largest sources of industrial employment in the country. This workforce encompasses a wide range of skills and occupations, from raw material processing and yarn production to garment manufacturing and quality control. The sector’s labor-intensive nature has historically provided significant employment opportunities, particularly for women and workers in urban and semi-urban areas, thereby contributing to social stability and economic inclusion. The export performance of Turkish textile companies has demonstrated consistent growth over the years, with notable milestones marking the industry’s expansion into global markets. In 2006, Turkish companies exported clothing worth $13.98 billion, a figure that reflects both the scale and competitiveness of Turkey’s textile exports during that period. This export volume was achieved through a combination of factors, including Turkey’s advantageous geographic location bridging Europe and Asia, its well-developed infrastructure, and the ability to produce high-quality textiles and garments at competitive prices. The export strategy also involved diversifying product lines and targeting various market segments to meet the demands of international consumers. A significant portion of Turkey’s clothing exports in 2006 was directed towards the European Union, which served as the primary market for Turkish textile products. Out of the total clothing exports valued at $13.98 billion, more than $10.67 billion, equivalent to 76.33%, were exported to EU countries. This heavy reliance on the European market underscores the close economic ties between Turkey and the EU, facilitated by customs union agreements and preferential trade arrangements that have reduced tariffs and eased market access. The EU’s demand for Turkish textiles was driven by factors such as proximity, rapid delivery times, and compliance with European quality and safety standards. Consequently, the European Union emerged as a critical partner in sustaining and expanding Turkey’s textile export sector, shaping the industry’s production priorities and market orientation.

In 2022, Turkey’s automotive industry produced a total of 1,352,648 motor vehicles, positioning the country as the 13th largest vehicle producer in the world. This ranking matched the position Turkey held during its peak production year of 2017, when the industry manufactured 1,695,731 vehicles. Although the total output in 2022 was lower than the peak in 2017, Turkey maintained its global standing among the leading automotive producers, reflecting the sustained importance and competitiveness of the sector within the international market. The production figures underscore the industry’s resilience despite fluctuations in global demand and economic challenges. Several Turkish automotive companies have gained international recognition for their specialization in commercial vehicles, particularly vans, buses, and trucks. Notably, TEMSA, Otokar, and BMC stand out as some of the world’s largest manufacturers in these segments. TEMSA, established in 1968, has developed a strong reputation for producing buses and coaches that are exported worldwide. Otokar, founded in 1963, is known for its extensive range of military and commercial vehicles, including buses and trucks, and has expanded its footprint through exports and partnerships. BMC, which began operations in 1964, is a key player in the production of heavy-duty trucks and military vehicles, contributing significantly to Turkey’s automotive exports and defense industry. These companies have leveraged Turkey’s strategic geographic location and skilled workforce to become prominent global suppliers in their respective markets. The establishment of Togg (Turkey’s Automobile Joint Venture Group Inc.) in 2018 marked a significant milestone in Turkey’s automotive history as the country’s first all-electric vehicle manufacturer. Togg’s factory is located in Gemlik, within the Bursa Province, a region already known for its automotive production facilities. The inauguration of this factory on 29 October 2022 was symbolically timed to coincide with the 99th anniversary of the founding of the Turkish Republic, highlighting the project’s national significance. Togg aims to develop and produce fully electric vehicles tailored to both domestic and international markets, representing Turkey’s strategic move towards sustainable and innovative automotive technologies. The company’s emergence reflects broader global trends in electrification and Turkey’s ambition to become a competitive player in the electric vehicle sector. The automotive industry has played a vital role in the Turkish economy since the late 1960s, evolving from a nascent sector into one of the country’s most important industrial pillars. The majority of automotive companies in Turkey have concentrated their operations in the Marmara Region, which includes industrial hubs such as Istanbul, Bursa, and Kocaeli. This region’s developed infrastructure, proximity to major ports, and access to a skilled labor force have facilitated the growth of automotive manufacturing and related industries. Over the decades, the sector has attracted significant domestic and foreign investment, fostering technological advancement and employment opportunities. The sustained development of the automotive industry has contributed to Turkey’s industrial diversification and export growth. Turkey’s automotive sector has developed a robust industrial cluster comprising car manufacturers and an extensive network of parts suppliers. This cluster has become deeply integrated into the global production network, enabling the country to export not only complete motor vehicles but also a wide range of automotive components. In 2008, the value of Turkey’s exports of motor vehicles and components exceeded $22.94 billion, reflecting the sector’s significant contribution to the country’s trade balance. The presence of numerous suppliers alongside vehicle assemblers has created synergies that enhance production efficiency and innovation. This integration has also allowed Turkey to become a critical link in the global automotive supply chain, supplying parts and vehicles to markets across Europe, the Middle East, and beyond. Several major global car manufacturers have established production plants in Turkey, leveraging the country’s strategic location, competitive costs, and skilled workforce. Among the most prominent are Fiat/Tofaş, Oyak-Renault, Hyundai, Toyota, Honda, and Ford/Otosan. Fiat’s joint venture with Tofaş, founded in 1968, has been a cornerstone of Turkey’s automotive production, manufacturing a variety of passenger cars and light commercial vehicles. Oyak-Renault, a partnership between the Turkish Armed Forces Pension Fund and Renault, operates a large plant in Bursa, producing popular models for domestic and export markets. Hyundai and Toyota have also expanded their manufacturing footprint in Turkey, producing models tailored for both local consumption and export. Honda and Ford, through their joint ventures with local partners, have contributed to the diversification and modernization of Turkey’s automotive production capabilities. The presence of these multinational companies has facilitated technology transfer and enhanced Turkey’s competitiveness in the global automotive industry. Turkey’s automotive exports, including trucks and buses, surpassed the milestone of one million units for the first time in 2016. This achievement was primarily driven by increased investments from foreign automakers in new vehicle models and a recovery in demand from the European market, which is Turkey’s largest export destination. The expansion of export volumes reflected the sector’s capacity to respond to global market trends and the effectiveness of Turkey’s production infrastructure. The export growth also highlighted the country’s role as a major supplier of vehicles to Europe and other regions, reinforcing its position in the international automotive trade network. According to data from the Automotive Manufacturers Association (OSD), Turkey-based car plants exported 1.14 million units in 2016, representing a 15% increase compared to the previous year. This export volume set a record high for the fourth consecutive year, demonstrating sustained growth and increasing global demand for Turkish-made vehicles. The OSD’s statistics underscore the sector’s export-oriented nature and its ability to capitalize on favorable market conditions. The continuous rise in exports also reflected improvements in production capacity, quality standards, and the introduction of new models tailored to international markets. In 2016, Turkey’s automotive production grew by 9% year-on-year, reaching 1.48 million units and establishing a new production record for the second consecutive year. This growth was driven by both domestic demand and export opportunities, supported by investments in modern manufacturing technologies and expanded production lines. The increase in output reinforced Turkey’s status as a significant automotive manufacturing hub and contributed to job creation and economic growth. The record production levels also indicated the sector’s resilience amidst global economic uncertainties and competitive pressures. Approximately 80% of the vehicles produced in Turkey are exported, highlighting the export-oriented nature of the automotive sector. This high export ratio reflects the industry’s integration into global supply chains and its focus on meeting the demands of international markets. The predominance of exports underscores the importance of foreign trade for the sector’s profitability and growth. It also illustrates Turkey’s role as a key player in the global automotive industry, supplying vehicles to a diverse range of countries, particularly in Europe, where demand for Turkish-made vehicles remains strong. The export-driven model has encouraged continuous improvements in quality, efficiency, and innovation within the Turkish automotive industry.

The Istanbul Metro’s M8 line stands out as a pioneering example of advanced urban rail technology in Turkey, featuring fully automated driverless trains that operate without the need for onboard personnel. These trains are equipped with platform screen doors, which serve as a critical safety measure by preventing accidental falls onto the tracks and reducing the risk of unauthorized access to the rail area. The integration of platform screen doors not only enhances passenger safety but also contributes to improved climate control within stations by minimizing air exchange between platforms and tunnels. The M8 line’s adoption of driverless technology reflects a broader trend in metropolitan transit systems worldwide, aiming to increase operational efficiency, reduce human error, and provide more reliable service frequencies. TÜLOMSAŞ (Türkiye Lokomotif ve Motor Sanayii A.Ş.), established in 1894, holds a distinguished position as one of Turkey’s oldest and most significant producers of railway rolling stock, including multiple unit trains, locomotives, and wagons. Over its long history, TÜLOMSAŞ has evolved from a maintenance and repair workshop into a comprehensive manufacturing facility capable of producing a wide range of rail vehicles. Among its notable products are high-speed electric multiple units (EMUs) and diesel multiple units (DMUs), which have been instrumental in modernizing Turkey’s rail infrastructure. TÜLOMSAŞ has contributed to both domestic rail projects and export markets, reflecting its capacity to meet diverse technical requirements and standards. Its production capabilities encompass the design, engineering, and assembly of advanced propulsion systems, signaling integration, and passenger comfort features, positioning TÜLOMSAŞ as a cornerstone of Turkey’s railway industry. Founded in 1951, TÜVASAŞ (Türkiye Vagon Sanayi A.Ş.) has similarly played a pivotal role in the development of Turkey’s railway manufacturing sector, focusing on the production of multiple unit trains, locomotives, and wagons. TÜVASAŞ has specialized in delivering various models of high-speed EMUs and DMUs, contributing significantly to the expansion and modernization of Turkey’s passenger rail services. The company’s facilities are equipped to handle the entire production cycle, from initial design and prototyping to final assembly and testing, ensuring that its products meet stringent safety and performance standards. TÜVASAŞ has also been involved in the refurbishment and upgrading of existing rolling stock, extending the operational life of Turkey’s rail vehicles while incorporating modern technologies. Its strategic importance is underscored by its collaboration with international partners and its role in supporting national transportation policies aimed at increasing rail connectivity and sustainability. Established in 2006, EUROTEM represents a more recent but highly influential addition to Turkey’s rolling stock manufacturing landscape. The company was formed as a joint venture to leverage both domestic expertise and international technological advancements in the production of multiple unit trains, locomotives, and wagons. EUROTEM’s product portfolio includes high-speed EMUs and DMUs, designed to meet the growing demand for efficient and reliable rail transport across Turkey’s expanding network. By incorporating cutting-edge engineering practices and adhering to international quality standards, EUROTEM has contributed to elevating the technological capabilities of Turkey’s rail industry. Its manufacturing processes emphasize modular design and energy efficiency, aligning with global trends toward sustainable transportation solutions. EUROTEM’s presence has also fostered increased competition and innovation within the sector, supporting Turkey’s ambitions to become a regional hub for rolling stock production. Bozankaya, headquartered in Ankara, has established itself as a versatile manufacturer within Turkey’s urban transit vehicle market, producing metro trains, trams, and trolleybuses that cater to the needs of growing metropolitan areas. The company’s focus on light rail and electric urban transit vehicles reflects the increasing demand for environmentally friendly and efficient public transportation options in Turkish cities. Bozankaya’s product range includes modern metro cars equipped with the latest propulsion and control technologies, as well as trams designed for integration into existing urban infrastructure. The company has also developed trolleybuses that offer zero-emission operation, contributing to improved air quality and reduced urban noise pollution. By combining local manufacturing capabilities with innovative design, Bozankaya supports the modernization of Turkey’s urban transit systems and enhances the accessibility and sustainability of public transportation. Its role in the domestic market is complemented by efforts to expand into international markets, showcasing Turkey’s growing expertise in the production of specialized rolling stock for urban environments.

The Turkish defense industry has made significant strides in the development and deployment of advanced military technologies, exemplified by the maiden flights of cutting-edge aerial platforms in recent years. On February 21, 2024, the Turkish Aerospace Industries (TAI) successfully completed the maiden flight of the TAI TF Kaan, a twin-engine fifth-generation air superiority fighter. This aircraft represents a major milestone for Turkey’s indigenous fighter jet program, designed to meet modern air combat requirements with stealth features, advanced avionics, and superior maneuverability. The TF Kaan project underscores Turkey’s commitment to achieving self-reliance in high-technology defense sectors and reducing dependency on foreign suppliers for critical military hardware. Just prior to this, on December 28, 2023, TAI also conducted the maiden flight of the TAI Anka-3, a flying wing type stealth unmanned combat aerial vehicle (UCAV). The Anka-3 is a significant evolution of Turkey’s unmanned aerial vehicle capabilities, featuring stealth characteristics and a flying wing design that enhances its low-observability profile. This platform is intended to perform a variety of combat and reconnaissance missions with minimal risk to personnel, reflecting the global trend toward increased utilization of unmanned systems in modern warfare. The Anka-3’s successful flight demonstrated Turkey’s growing expertise in the design and manufacture of sophisticated UCAVs capable of operating in contested environments. In the naval domain, the TCG Anadolu (L-400) has emerged as a flagship vessel symbolizing Turkey’s expanding maritime defense capabilities. This multipurpose amphibious assault ship was prominently showcased during the naval parade commemorating the centennial of the Turkish Republic on October 29, 2023. The TCG Anadolu serves as a platform for power projection and amphibious operations, capable of deploying a variety of aircraft and landing forces. Its design incorporates a flight deck and hangar facilities to support fixed-wing and rotary-wing aircraft, enhancing Turkey’s naval aviation and expeditionary warfare capabilities. The public display of the TCG Anadolu during such a significant national celebration highlighted its strategic importance to Turkey’s naval modernization efforts. Supporting the operational capabilities of the TCG Anadolu are two indigenous unmanned combat aerial vehicles designed specifically for shipborne deployment: the Baykar Bayraktar TB3 and the Baykar MIUS Kızılelma. The Bayraktar TB3 is a rotary-wing UCAV optimized for carrier operations, featuring folding wings and advanced avionics to facilitate maritime deployment. Meanwhile, the MIUS Kızılelma is a jet-powered, low-observable UCAV that incorporates stealth technologies and supersonic capabilities, representing a leap forward in Turkey’s unmanned combat aviation technology. Both platforms are intended to operate from the TCG Anadolu, providing reconnaissance, strike, and force multiplier capabilities that enhance the ship’s overall combat effectiveness. Further expanding Turkey’s naval ambitions, the construction of the country’s first MUGEM-class aircraft carrier began on January 2, 2025. This project marks a significant step in Turkey’s efforts to develop a blue-water navy with enhanced power projection capabilities. The MUGEM-class carrier is expected to serve as a central asset for naval aviation and amphibious operations, integrating advanced command and control systems, and supporting a diverse air wing including manned and unmanned aircraft. The commencement of construction reflects Turkey’s strategic vision to establish a modern naval fleet capable of safeguarding its maritime interests and contributing to regional security. Turkey’s defense industry hosts numerous modern armament manufacturers that have contributed to the country’s growing defense exports, which reached $1.6 billion annually by 2014. This figure underscores the substantial progress Turkey has made in transforming itself from a defense importer to an exporter of indigenous military technologies. The expansion of the defense industrial base has been supported by government policies aimed at fostering research and development, encouraging public-private partnerships, and integrating Turkey into global defense supply chains. Among the major Turkish defense manufacturers are several prominent companies that have become pillars of the national defense sector. Mechanical and Chemical Industry Corporation (MKEK) is a state-owned enterprise specializing in the production of small arms, ammunition, and artillery systems. Turkish Aerospace Industries (TAI) plays a central role in aerospace and aviation projects, including the development of fighter jets, UAVs, and helicopters. Aselsan is a leading electronics and defense systems company, focusing on communication, radar, and electronic warfare technologies. Roketsan specializes in missile and rocket systems, contributing advanced precision-guided munitions to the Turkish arsenal. Other key players include FNSS, which manufactures armored vehicles; Nurol Makina, known for armored personnel carriers; Otokar, a producer of tactical vehicles; and Havelsan, which develops command and control systems and simulation technologies. Collectively, these companies form a comprehensive industrial ecosystem that supports Turkey’s defense modernization goals. Turkey’s involvement in international defense programs has also been notable, particularly its strategic participation in the F-35 Joint Strike Fighter (JSF) development program. On July 11, 2002, Turkey attained Level 3 partnership status within the F-35 program, reflecting its significant contribution to the development and production of one of the world’s most advanced multirole fighter jets. This partnership allowed Turkish industries to participate in the manufacturing of various F-35 components, as well as to gain access to cutting-edge technologies and training. Although geopolitical developments have since affected Turkey’s role in the program, the initial involvement demonstrated the country’s ambitions to integrate into global high-technology defense projects and to enhance its air force capabilities. Within its domestic aerospace production, Turkish Aerospace Industries (TAI) manufactures various aircraft models, including the F-16 Fighting Falcon, which remains a cornerstone of the Turkish Air Force’s combat fleet. TAI’s production lines have supported both the assembly and modernization of F-16s, ensuring that Turkey maintains a capable and technologically current fighter force. The company’s expertise extends beyond manned aircraft to include a growing portfolio of unmanned aerial vehicles, reflecting the diversification of Turkish aerospace capabilities. Turkey has also achieved significant milestones in space-based military and intelligence capabilities through the launch of domestically built satellites. Notably, Project Göktürk-1 resulted in the deployment of a reconnaissance satellite equipped with 0.8-meter resolution imaging capabilities, dedicated to supporting the Turkish Armed Forces. This high-resolution satellite provides critical intelligence, surveillance, and reconnaissance (ISR) data, enhancing situational awareness and operational planning. Complementing this, Project Göktürk-2 produced a reconnaissance satellite with 2-meter resolution, primarily serving the Turkish National Intelligence Organization. These projects underscore Turkey’s growing proficiency in space technologies and its commitment to developing indigenous assets that support national security objectives. The range of key Turkish defense products encompasses a wide array of advanced military technologies across multiple domains. The TAI TF Kaan fighter jet represents a leap in indigenous air combat capability, while the TF2000-class destroyer and Milgem-class corvette exemplify Turkey’s naval modernization efforts. The TF2000-class destroyer is designed to provide air defense, anti-submarine warfare, and surface combat capabilities, featuring advanced radar and missile systems. Meanwhile, the Milgem-class corvette is a multipurpose surface combatant optimized for littoral and open-sea operations, equipped with modern sensors and weaponry. Together, these platforms contribute to a balanced and technologically sophisticated military force. Unmanned aerial vehicles form a particularly dynamic segment of Turkey’s defense industry, with several notable models in active service or development. The Baykar MIUS Kızılelma UCAV is a jet-powered, stealthy platform designed for carrier operations, while the Baykar Akıncı represents a high-altitude long-endurance (HALE) UCAV capable of extended surveillance and strike missions. The Baykar Bayraktar TB2, a medium-altitude long-endurance (MALE) UCAV, has gained international attention for its operational success in various conflict zones. Additionally, TAI produces the Aksungur MALE UCAV and the Anka MALE UAV/UCAV, both of which contribute to Turkey’s comprehensive unmanned aerial capabilities. These UAVs provide reconnaissance, strike, and electronic warfare functions, enhancing the Turkish Armed Forces’ operational flexibility and reach. Ground and artillery systems produced in Turkey further illustrate the breadth of the country’s defense manufacturing capabilities. The Aselsan İzci unmanned ground vehicle (UGV) is designed for reconnaissance and combat support roles, incorporating remote operation and sensor technologies. The Altay main battle tank represents Turkey’s indigenous armored warfare platform, featuring advanced armor, fire control systems, and a powerful main gun. Artillery systems such as the T-155 Fırtına self-propelled howitzer and the Panter howitzer provide mobile, long-range fire support, while the TOROS artillery rocket system offers precision rocket artillery capabilities. These systems collectively enhance the Turkish Army’s firepower, mobility, and battlefield effectiveness. Turkey’s missile and rocket systems have also seen significant development, with several indigenous products entering service. The J-600T missile is a long-range surface-to-surface missile designed for precision strikes against strategic targets. Roketsan’s UMTAS anti-tank missile provides a versatile and effective solution for armored vehicle engagement, featuring laser guidance and extended range. The Roketsan Cirit is a laser-guided rocket that can be launched from multiple platforms, offering precision strike capabilities against various targets. Additionally, the SOM cruise missile is a stand-off weapon capable of engaging high-value targets with precision, enhancing Turkey’s strategic strike options. In the realm of rotary-wing and transport aviation, Turkey’s defense industry portfolio includes the T-129 attack helicopter and the A400M transport aircraft. The T-129 is an indigenous attack helicopter developed in collaboration with international partners, equipped with advanced avionics, weapons systems, and survivability features tailored for modern combat scenarios. The A400M, a European-origin strategic airlifter, is operated by the Turkish Air Force and supports tactical and strategic airlift missions, including the transport of troops, equipment, and humanitarian aid. These aircraft contribute to Turkey’s operational mobility and combat support capabilities. Armored vehicle production in Turkey encompasses a diverse range of platforms designed for troop transport, reconnaissance, and combat support. The ACV-300 is a tracked armored personnel carrier providing protection and mobility for infantry units. Otokar produces the Cobra and Akrep vehicles, which are wheeled armored vehicles optimized for reconnaissance and rapid deployment. BMC manufactures the Kirpi, a mine-resistant ambush-protected (MRAP) vehicle designed to enhance troop survivability in asymmetric warfare environments. FNSS produces the Pars series of 6×6 and 8×8 armored personnel carriers, offering modularity and adaptability for various mission profiles. Nurol Makina’s Ejder 6×6 APC provides additional options for protected mobility. These vehicles collectively enhance the Turkish Land Forces’ ability to conduct mechanized operations with increased protection and versatility. Additional Turkish defense technologies include smaller unmanned systems and targeting pods that augment situational awareness and precision engagement. The Bayraktar Mini UAV is a lightweight, portable unmanned aerial vehicle designed for tactical reconnaissance and surveillance missions at the squad or platoon level. ASELPOD targeting and reconnaissance pod systems, developed by Aselsan, are integrated onto various aircraft to provide laser designation, targeting, and reconnaissance capabilities, improving the effectiveness of air-to-ground operations. These technologies reflect Turkey’s comprehensive approach to modernizing its military forces across multiple domains and scales of operation.

Turkey holds a prominent position in the global steel industry, ranking eighth worldwide in steel production. This ranking underscores the country’s significant role as a major steel producer on the international stage, reflecting both its industrial capacity and the strategic importance of steel manufacturing within its economy. Turkey’s steel sector has experienced considerable growth over recent decades, driven by increasing domestic demand and expanding export markets. The country’s geographic location, bridging Europe and Asia, further enhances its competitive advantage in steel production and distribution. In 2013, Turkey’s total steel production reached 35.134 million tonnes, demonstrating sustained high output levels that solidified its standing among the world’s leading steel producers. This volume of production indicated not only the robustness of Turkey’s steel industry but also its ability to maintain consistent growth despite fluctuations in global steel demand and economic challenges. The steady output was supported by a combination of state-of-the-art production facilities, investments in modern technology, and a skilled workforce, all contributing to the sector’s resilience and efficiency. The year 2011 marked a significant milestone for Turkey’s steel industry, as the country achieved a record high crude steel production of 34.1 million tonnes. This peak represented the culmination of years of industrial expansion and capacity enhancement, positioning Turkey as one of the fastest-growing steel producers during that period. The surge in production was fueled by increased investments in steelmaking infrastructure, favorable economic conditions, and rising demand from key sectors such as construction, automotive, and manufacturing. This record output also reflected the effectiveness of Turkey’s integrated steel production approach, which combines raw material extraction, processing, and finished product manufacturing. Several major Turkish steel producers have played critical roles in driving the country’s steel output, each surpassing the threshold of 2 million tonnes in annual production and securing notable ranks among the world’s top steel companies. Among these, Erdemir stands out as the largest producer, with an output of 7.1 million tonnes of steel. This production volume positioned Erdemir as the 47th largest steel producer globally. It is important to note that this figure accounts solely for Erdemir’s operations within Turkey and excludes the output of its Romanian subsidiary, which contributes additional capacity to the company’s overall production portfolio. Erdemir’s prominence in the Turkish steel industry is supported by its integrated facilities, which encompass everything from raw material processing to finished steel products, enabling it to meet both domestic and international demand efficiently. Habaş is another key player in Turkey’s steel sector, producing 4.4 million tonnes of steel and securing the 72nd position among global steel producers. The company has developed a strong market presence through its focus on quality and diversification of steel products, catering to various industrial applications. Habaş’s strategic investments in production technology and capacity expansion have allowed it to maintain competitive output levels and contribute significantly to Turkey’s overall steel production figures. İçdaş, with a steel production volume of 3.6 million tonnes, ranked 76th in the international steel producer rankings. İçdaş has built its reputation on producing a wide range of steel products, including long and flat steel, which are essential for construction and manufacturing sectors. The company’s growth has been supported by continuous modernization of its facilities and adherence to environmental and quality standards, reflecting the broader trend of technological advancement within Turkey’s steel industry. Diler produced 2.3 million tonnes of steel, earning it the 108th rank worldwide. Despite being smaller than some of its Turkish counterparts, Diler has demonstrated steady growth and specialization in certain steel product segments. Its production capacity has enabled it to serve both domestic markets and export destinations, contributing to the diversification and resilience of Turkey’s steel sector. Çolakoğlu, with an output of 2.1 million tonnes, ranked 110th among the top steel-producing companies globally. The company has focused on producing high-quality steel products, including reinforcing bars and wire rods, which are integral to the construction industry. Çolakoğlu’s consistent production levels and strategic positioning have allowed it to maintain a competitive edge in both local and international markets. Collectively, these major producers—Erdemir, Habaş, İçdaş, Diler, and Çolakoğlu—form the backbone of Turkey’s steel industry, accounting for a substantial portion of the country’s total steel output. Their combined production not only supports Turkey’s domestic industrial needs but also enhances its export capacity, contributing to the country’s trade balance and economic growth. The presence of multiple large-scale steel producers within Turkey reflects the sector’s maturity and the country’s ability to compete effectively in the global steel market. Investments in technology, infrastructure, and workforce development continue to drive the industry forward, ensuring that Turkey remains a key player in global steel production.

Turkey hosts a robust network of over 80 technoparks, which serve as dedicated zones for research and development (R&D) activities. These technoparks provide infrastructure and support for approximately 6,000 national and multinational companies engaged in scientific innovation and technological advancement. By fostering collaboration between academia, industry, and government, these technoparks have become critical hubs for the commercialization of new technologies and the enhancement of Turkey’s competitive edge in various sectors. The concentration of R&D efforts within these specialized zones has contributed significantly to the country’s growing emphasis on knowledge-based economic development. Central to Turkey’s science and technology ecosystem is TÜBİTAK (The Scientific and Technological Research Council of Turkey), which functions as the principal governmental body responsible for the formulation and implementation of policies related to science, technology, and innovation. Established in 1963, TÜBİTAK plays a pivotal role in coordinating scientific research, supporting technological development projects, and promoting innovation across multiple disciplines. It administers numerous research grants, funds academic and industrial projects, and facilitates international scientific cooperation. TÜBİTAK’s strategic initiatives aim to elevate Turkey’s scientific capacity and integrate it more effectively into the global research community. Complementing TÜBİTAK’s efforts, the Turkish Academy of Sciences operates as an autonomous scholarly society dedicated to advancing scientific activities throughout the country. Founded in 1993, the Academy serves as a prestigious institution that recognizes distinguished scientists and promotes high-quality research across diverse fields. It provides expert advice to policymakers, encourages interdisciplinary collaboration, and fosters public understanding of science. By maintaining independence from government influence, the Turkish Academy of Sciences ensures that scientific inquiry remains objective and driven by academic merit, thereby strengthening the integrity and impact of Turkey’s scientific endeavors. In the realm of nuclear energy, the Turkish Atomic Energy Authority (TAEK) stands as the official institution overseeing the country’s nuclear research and development activities. Established in 1956, TAEK’s mission encompasses conducting academic research in nuclear science, developing peaceful nuclear technologies, and ensuring the safe and secure use of nuclear energy within Turkey. The authority is responsible for regulatory oversight, nuclear safety, radiation protection, and the promotion of nuclear applications in medicine, agriculture, and industry. TAEK’s initiatives have included collaborations with international organizations and participation in global nuclear research programs, reflecting Turkey’s commitment to harnessing nuclear technology for peaceful and sustainable purposes. Turkey’s defense sector features several prominent government-affiliated companies specializing in the research and development of military technologies. Turkish Aerospace Industries (TAI), ASELSAN, HAVELSAN, ROKETSAN, and the Mechanical and Chemical Industry Corporation (MKE) are among the leading entities contributing to the modernization and indigenization of Turkey’s defense capabilities. Turkish Aerospace Industries focuses on the design, development, and production of aircraft, unmanned aerial vehicles, and satellite systems, playing a critical role in advancing Turkey’s aerospace technology. ASELSAN specializes in electronic systems, including communication, radar, and electronic warfare equipment, while HAVELSAN develops software solutions and command and control systems. ROKETSAN is dedicated to the development of rocket and missile technologies, and MKE produces a wide range of conventional weapons and ammunition. Together, these organizations underpin Turkey’s strategic objective of achieving self-sufficiency in defense technology and reducing reliance on foreign suppliers. The Turkish Satellite Assembly, Integration and Test Center (USET) represents a key facility in Turkey’s space technology infrastructure. Owned by the Ministry of National Defence and operated by Turkish Aerospace Industries, USET is responsible for the production, assembly, integration, and testing of spacecraft. This center ensures that satellites meet stringent technical and operational requirements before deployment, supporting Turkey’s ambitions in satellite technology and space exploration. The facility’s capabilities include environmental testing, vibration and thermal vacuum testing, and electromagnetic compatibility assessments, which are essential for verifying satellite performance under the harsh conditions of space. USET’s establishment has marked a significant step forward in Turkey’s ability to independently develop and manage sophisticated space systems. The Turkish Space Launch System constitutes an ambitious ongoing project aimed at developing the country’s indigenous satellite launch capabilities. This comprehensive program includes the construction of a dedicated spaceport, the development of satellite launch vehicles, and the establishment of remote earth stations to support satellite operations and data acquisition. By creating a domestic launch infrastructure, Turkey seeks to reduce its dependence on foreign launch services and enhance national security and technological sovereignty in space activities. The project integrates research and development efforts across multiple institutions and industries, reflecting a coordinated national strategy to position Turkey as a competitive actor in the global space sector. The successful realization of the Turkish Space Launch System is expected to facilitate the deployment of a wide range of satellites for communication, earth observation, and scientific research, thereby contributing to the country’s broader economic and technological development goals.

The Turkish construction and contracting industry encompasses a vast network of businesses that are actively engaged in a wide range of projects both within Turkey and internationally. These enterprises vary in size and specialization but collectively contribute significantly to the national economy and Turkey’s global economic footprint. The sector’s dynamism is reflected in its ability to undertake complex infrastructural, residential, commercial, and industrial projects, often positioning Turkish firms as competitive players on the international stage. This international engagement has been a hallmark of the industry for several decades, with Turkish contractors expanding their reach well beyond domestic borders to participate in construction activities across multiple continents. In 2016, the prominence of Turkish firms in the global construction arena was underscored by the inclusion of 39 Turkish construction and contracting companies in the Top 250 International Contractors List. This list is compiled annually by the Engineering News-Record (ENR), a respected publication that ranks international contractors based on their revenue generated from projects outside their home countries. The presence of nearly forty Turkish companies on this list highlighted the sector’s robust international activity and competitiveness. It also reflected the strategic expansion of Turkish contractors into diverse markets, ranging from the Middle East and Africa to Central Asia and Europe, where they have leveraged their expertise to secure significant contracts. The international footprint of Turkish contractors has been steadily growing since the early 1970s. From that period through the end of 2022, Turkish contractors completed over 11,605 projects in 133 countries, demonstrating a remarkable breadth of experience and adaptability to various regional conditions and regulatory environments. This extensive project portfolio includes infrastructure developments such as highways, bridges, airports, and power plants, as well as urban development and housing projects. The ability to operate successfully in such a wide array of countries attests to the sector’s technical proficiency, project management capabilities, and competitive pricing strategies. Moreover, it reflects the strategic importance of construction and contracting as a vehicle for Turkey’s economic diplomacy and international trade relations. By 2022, the total business volume of Turkish contractors operating abroad had reached an impressive 472 billion US dollars. This figure represents the cumulative value of contracts undertaken by Turkish firms outside the country and underscores the substantial economic impact of the sector on Turkey’s balance of payments and employment. The growth in international contracting revenues over the decades has been driven by both the expansion into new markets and the increasing scale and complexity of projects undertaken. This financial milestone also illustrates the sector’s resilience amid global economic fluctuations and geopolitical challenges, as Turkish contractors have continued to secure and execute projects in diverse and sometimes volatile regions. Turkey’s geographical location along active seismic zones has made the issue of building safety particularly critical. The country is highly susceptible to strong earthquakes, which have historically caused significant loss of life and property damage. This seismic vulnerability has necessitated the development and enforcement of stringent building codes and safety regulations, especially following the devastating 1999 Marmara earthquake. Structures erected prior to the introduction of these post-1999 safety standards often do not meet current seismic resilience requirements, raising concerns about their ability to withstand future earthquakes. Consequently, the safety of older buildings remains a pressing issue, prompting both government and private sector initiatives aimed at risk mitigation and structural reinforcement. In response to these concerns, numerous urban redevelopment and reconstruction projects have been initiated, particularly in major Turkish cities such as Istanbul, Ankara, and Izmir. These projects focus on replacing or retrofitting older, potentially unsafe buildings with modern, earthquake-resistant structures designed to meet current safety codes. Urban transformation efforts often involve large-scale demolition and reconstruction, accompanied by improvements in infrastructure and public spaces. These initiatives are not only aimed at enhancing public safety but also at revitalizing urban areas to accommodate growing populations and evolving economic activities. The scope and scale of these projects highlight the government’s commitment to addressing seismic risks while fostering urban development. In 2019, the Turkish government introduced an amnesty plan designed to register illegally constructed buildings, a significant issue given the prevalence of unauthorized construction in many urban and rural areas. This plan allowed property owners to legalize their buildings by paying a fee, which in turn generated approximately 3.1 billion US dollars in additional tax revenues for the state. While the amnesty plan was effective in increasing government revenues and bringing many unregistered properties into the official registry, it faced criticism from various quarters. Critics argued that the plan neglected critical concerns related to building safety, as many of the legalized structures did not necessarily comply with current earthquake-resistant standards. This raised fears that the amnesty could inadvertently legitimize unsafe buildings, thereby increasing vulnerability to seismic disasters. The vulnerability of the construction sector to enforcement challenges and quality control issues was tragically underscored by the two major earthquakes that struck southern Turkey on February 6, 2023. These earthquakes caused widespread devastation and loss of life, and investigations revealed that some of the buildings that collapsed had been recently constructed yet failed to comply with the latest safety regulations. This exposed ongoing problems within the construction industry related to regulatory enforcement, oversight, and adherence to building codes. The failure to ensure compliance with safety standards has been attributed to a combination of factors, including inadequate inspections, corruption, and the use of substandard materials. The 2023 earthquakes thus highlighted the critical need for stronger regulatory frameworks, more rigorous enforcement mechanisms, and greater accountability within the construction sector to prevent future tragedies and enhance public safety.

The Turkish Central Bank, along with prominent state-owned banks such as Ziraat Bank, VakıfBank, and Halkbank, have consolidated their headquarters within the Istanbul Financial Center (IFC), a modern financial hub situated in the Ataşehir district of Istanbul. This strategic relocation reflects Turkey’s ongoing efforts to centralize and modernize its financial infrastructure, positioning the IFC as a focal point for the country’s banking and financial activities. The establishment of these headquarters in the IFC underscores the government’s commitment to fostering a competitive and integrated financial environment that aligns with global standards, while also facilitating closer coordination among major financial institutions. Historically, Istanbul’s role as the financial nucleus of the Ottoman Empire was epitomized by Bankalar Caddesi, or Banks Street, which emerged as the empire’s primary financial district during the 19th and early 20th centuries. This street housed the headquarters of the Ottoman Bank, originally founded in 1856 as the Bank-ı Osmanî. The bank underwent a significant reorganization in 1863, becoming the Bank-ı Osmanî-i Şahane, which translated to the Imperial Ottoman Bank, reflecting its elevated status and expanded functions within the empire. Alongside the Ottoman Bank, the Ottoman Stock Exchange was established in 1866, further cementing Bankalar Caddesi’s position as the epicenter of financial activity. This exchange facilitated the trading of securities and government bonds, playing a crucial role in the economic development of the empire by providing a structured marketplace for capital. Bankalar Caddesi maintained its prominence as Istanbul’s primary financial district well into the 20th century, continuing to serve as the headquarters for many of Turkey’s banking institutions up until the 1990s. However, with the evolution of Istanbul’s urban landscape and the emergence of new business districts, most Turkish banks gradually relocated their headquarters to the modern central business districts of Levent and Maslak. These areas offered more contemporary office spaces and infrastructure better suited to the needs of a rapidly modernizing banking sector. The shift from Bankalar Caddesi to Levent and Maslak marked a significant transition in Istanbul’s financial geography, reflecting broader economic and urban development trends in Turkey during the late 20th century. The Istanbul Stock Exchange (ISE), originally established as the Ottoman Stock Exchange under the name Dersaadet Tahvilat Borsası in 1866, underwent a comprehensive reorganization at the beginning of 1986, resulting in its current institutional structure. As the sole securities market in Turkey, the ISE plays a pivotal role in the country’s capital markets by providing a regulated platform for the trading of equities, bonds, and other financial instruments. The reorganization aimed to modernize the exchange’s operations, enhance transparency, and align it with international standards to attract both domestic and foreign investors. This transformation was crucial for fostering a more dynamic and efficient financial market in Turkey. In 1995, the Istanbul Stock Exchange relocated to its current premises in the Istinye quarter, a move that coincided with the establishment of the Istanbul Gold Exchange in the same year. The new location offered state-of-the-art facilities designed to support the increasing volume and complexity of trading activities. The Istanbul Gold Exchange was created to provide a formal marketplace for gold trading, an important commodity in Turkey’s economy, thereby complementing the functions of the stock exchange and broadening the scope of financial services available within the country. Together, these institutions have contributed to the diversification and sophistication of Turkey’s financial markets. The Central Bank of the Republic of Turkey (Türkiye Cumhuriyet Merkez Bankası, CBRT) was founded in 1930 as a privileged joint-stock company, marking a significant milestone in the establishment of modern monetary institutions in the country. The CBRT was granted the exclusive right to issue banknotes, a function that centralized monetary control and replaced a previously fragmented system of currency issuance. Beyond its note-issuing authority, the bank was tasked with addressing the monetary needs of state agricultural and commercial enterprises, reflecting the economic priorities of the early Republic period. This role positioned the CBRT as a key actor in supporting government-led economic development initiatives and stabilizing the national currency. The introduction of the “New Turkish lira” (TRY) on 1 January 2005 represented a major currency reform aimed at simplifying financial transactions and restoring confidence in the national currency following a period of high inflation and currency devaluation. This reform involved the removal of six zeros from the previous lira, effectively redenominating the currency to facilitate easier accounting and pricing. Subsequently, on 1 January 2009, the currency was renamed back to the “Turkish lira” with the issuance of new banknotes and coins, signaling a return to a more stable monetary environment. These changes were part of broader economic reforms designed to enhance the credibility of Turkey’s financial system and integrate it more closely with global markets. The global financial crisis of 2008 exerted considerable stress on Turkey’s banking sector beginning in October of that year. The crisis, which originated in the United States and rapidly spread worldwide, prompted Turkish banking authorities to take precautionary measures to safeguard the stability of the domestic financial system. Among these measures was a caution directed at state-run banks to refrain from withdrawing loans from larger financial sectors, thereby preventing a potential credit crunch that could exacerbate economic instability. This prudent approach helped Turkey’s banking sector navigate the turbulent period with relative resilience compared to many other countries affected by the crisis. The Söğütözü business district in Ankara, Turkey’s capital and second-largest city, has emerged as a notable financial hub alongside Istanbul’s established centers. This district hosts a concentration of financial institutions, corporate headquarters, and service providers, contributing to Ankara’s growing importance in the national economy. The development of Söğütözü as a financial center reflects the broader decentralization and regional diversification of Turkey’s economic activities, providing an alternative locus of financial services beyond the traditional dominance of Istanbul. Turkey’s economy experienced a period of robust growth from 2009 to 2013, driven by a combination of domestic demand, structural reforms, and favorable global economic conditions. However, this growth was followed by a phase of stagnation and recession between 2014 and 2020, characterized by political uncertainties, currency volatility, and external economic pressures. Despite these challenges, the economy resumed recovery and growth from 2020 to 2024, supported by policy adjustments, increased investment, and a rebound in global trade. These economic cycles have had a direct impact on the banking and finance sectors, influencing credit availability, asset quality, and overall financial stability. By 2020, the total assets of Turkey’s banking sector had exceeded $800 billion, reflecting the sector’s significant scale and its critical role in the country’s economy. This asset base includes loans, securities, and other financial instruments held by banks, underscoring their capacity to mobilize resources and support economic activities across various sectors. The growth in banking assets over the years has been indicative of expanding financial intermediation and the increasing complexity of Turkey’s financial markets. As of January 2021, Turkey had 48 banks operating domestically, supported by an extensive network of 9,880 branches throughout the country. This widespread presence facilitates access to banking services for a broad segment of the population and businesses. In addition to its domestic footprint, Turkish banks maintained 71 branches abroad, highlighting their international reach and the globalization of Turkey’s banking industry. The overseas branches serve to support trade, investment, and financial transactions involving Turkish and foreign entities. By October 2021, foreign currency deposits held by citizens and residents in Turkish banks amounted to $234 billion, representing approximately half of all deposits within the banking system. This substantial proportion of foreign currency deposits reflects both the demand for currency diversification among depositors and concerns related to exchange rate volatility. The prevalence of foreign currency holdings has important implications for monetary policy and financial stability, as fluctuations in exchange rates can affect the balance sheets of banks and the broader economy. As of October 2024, the Turkish Central Bank’s foreign currency reserves stood at $85 billion, while gold reserves amounted to $67.4 billion, bringing total official reserve assets to $159.8 billion. These reserves serve as a critical buffer to support the national currency, manage exchange rate fluctuations, and meet external payment obligations. The composition and size of these reserves reflect the Central Bank’s strategic management of Turkey’s external financial position and its efforts to maintain confidence in the country’s monetary system.

Turkish Airlines, as the national flag carrier of Turkey, achieved significant recognition in the early 2010s, being selected by Skytrax as Europe’s best airline for five consecutive years, from 2011 through 2015. This consistent accolade reflected the airline’s commitment to quality service, extensive route network, and operational excellence within the competitive European aviation market. By 2024, Turkish Airlines had expanded its global reach substantially, serving destinations across 129 countries worldwide. This extensive network positioned it as the largest airline globally in terms of the number of countries served, underscoring its role as a major player in international air transport and connecting Turkey to diverse markets across multiple continents. Istanbul Airport functions as the primary international gateway for the city of Istanbul and the broader Turkish airspace, establishing itself as a critical hub in global aviation. Its strategic geographical location bridging Europe and Asia has contributed to its emergence as a major aviation center, facilitating both passenger and cargo traffic on a large scale. The airport’s development was part of a broader national strategy to enhance Turkey’s connectivity and capacity in air transport. In 2013, Turkey’s airport infrastructure comprised a total of ninety-eight airports, of which twenty-two were designated as international airports. This network supported the country’s growing demand for air travel and international connectivity, reflecting Turkey’s increasing integration into global transport systems. Prior to the opening of the new Istanbul Airport, Istanbul Atatürk Airport was one of the busiest airports worldwide. As of 2015, it was ranked as the 11th busiest airport globally, a status supported by passenger traffic data from Airports Council International indicating that it served 31,833,324 passengers between January and July 2014 alone. This high volume of passenger traffic demonstrated the airport’s critical role in both domestic and international air travel. The new Istanbul Airport, often referred to as the third international airport in Istanbul, was planned with ambitions to surpass existing facilities in scale and capacity. Once fully operational, it was projected to become the largest airport in the world, with a design capacity to serve 150 million passengers annually. This ambitious infrastructure project aimed to position Istanbul as a premier global aviation hub, capable of handling unprecedented passenger volumes and reinforcing Turkey’s strategic importance in international air transport corridors. In addition to air transport, Turkey’s infrastructure includes significant developments in road and bridge construction. The 1915 Çanakkale Bridge, spanning the Dardanelles Strait and connecting the European and Asian sides of Turkey, holds the distinction of being the longest suspension bridge in the world. This engineering feat not only symbolizes Turkey’s infrastructural modernization but also enhances connectivity between the two continents, facilitating trade and travel. The bridge plays a pivotal role in reducing transit times and improving the efficiency of overland transport routes that are critical for both domestic mobility and international logistics. Rail transport in Turkey is managed primarily by the Turkish State Railways (TCDD), a state-owned enterprise responsible for the operation and maintenance of the national railway network. As of the latest data, TCDD operated a railway network totaling 12,740 kilometers, placing Turkey’s rail infrastructure as the 23rd longest network globally. Since 2003, the Turkish State Railways has made substantial investments in developing high-speed rail lines, reflecting a strategic shift towards modernizing rail transport and enhancing intercity connectivity. The high-speed rail network, extending 2,175 kilometers (1,353 miles), ranks as the ninth longest in the world, underscoring Turkey’s commitment to adopting advanced rail technologies and improving travel times between major urban centers. Turkey’s roadway network also represents a critical component of its transport infrastructure. As of 2010, the total length of Turkey’s roads extended to 426,951 kilometers, encompassing various classifications of roadways. Among these, expressways accounted for 2,080 kilometers, while divided highways made up 16,784 kilometers. This extensive network supports the country’s internal mobility and facilitates the movement of goods and people across diverse regions. The development and maintenance of road infrastructure have been essential in supporting Turkey’s economic growth, connecting urban and rural areas, and integrating the country into regional and international transport corridors. Maritime transport is another vital element of Turkey’s transport economy, supported by its strategic location along key waterways. The Turkish merchant marine fleet consisted of 1,199 ships as of 2010, with 604 vessels registered domestically. This sizable fleet ranked Turkey seventh worldwide in terms of merchant marine size, reflecting the country’s active participation in global maritime trade. Turkey’s coastline includes approximately 1,200 kilometers of navigable waterways, which facilitate maritime transport and contribute significantly to trade, especially in the transportation of bulk goods and raw materials. The country’s access to the Mediterranean, Aegean, and Black Seas enhances its role as a maritime crossroads between Europe, Asia, and the Middle East. Energy infrastructure also intersects with transport networks in Turkey. In 2008, the country’s territory was traversed by 7,555 kilometers (4,694 miles) of natural gas pipelines and 3,636 kilometers (2,259 miles) of petroleum pipelines. These pipelines form a critical part of Turkey’s energy distribution system, ensuring the reliable delivery of fuel resources necessary for both industrial and domestic consumption. The extensive pipeline network supports Turkey’s position as an energy transit country, linking producers and consumers across regions while underpinning the broader economic infrastructure that includes transport and logistics sectors.

As of 2008, Turkey possessed a substantial telecommunications infrastructure, with 17,502,000 operational landline telephones, positioning the country as the 18th largest user of landline telephony worldwide. This figure reflected the continued importance of fixed-line communication in Turkey’s economy and society, despite the global trend toward mobile telephony. In the same year, the number of registered mobile phones in Turkey reached 65,824,000, ranking it 15th globally in mobile phone registrations. This significant disparity between landline and mobile phone usage underscored the rapid adoption of mobile technology by the Turkish population, driven by increasing affordability and network coverage. Türk Telekom emerged as the dominant player in the landline telephone sector, serving as the largest operator in this domain. The company also expanded its influence into the internet service market through its ownership of TTNET, which stood as Turkey’s largest internet service provider. This vertical integration allowed Türk Telekom to offer bundled services and leverage its extensive infrastructure to maintain a leading position in the country’s telecommunications landscape. Alongside Türk Telekom, the mobile telephony sector was characterized by the presence of several major operators, including Turkcell, Vodafone Turkey, Avea, and TTNET Mobil. These companies competed vigorously to capture market share in a rapidly growing mobile subscriber base, fostering innovation and service diversification. The liberalization of Turkey’s telecommunications sector commenced in 2004 with the establishment of the Telecommunication Authority (now known as the Information and Communication Technologies Authority, or ICTA). This regulatory body was tasked with overseeing the sector’s transition from a state monopoly to a competitive market environment. The liberalization process remained ongoing, gradually dismantling barriers to entry and encouraging private sector participation in mobile telephony, long-distance telephony, and internet access services. This shift stimulated investment and technological advancement, enabling a more dynamic and consumer-oriented telecommunications market. Concurrently, the expansion of digital exchanges played a critical role in facilitating the rapid increase in telecommunications subscribers across Turkey. The modernization of switching equipment and the deployment of digital technology enhanced network capacity, reliability, and service quality. This infrastructure upgrade was essential in accommodating the surge in demand for both voice and data services. To further improve connectivity between urban centers, Turkey undertook the development of a network of technologically advanced intercity trunk lines. These lines employed fiber-optic cable and digital microwave radio relay systems, providing high-capacity, low-latency communication channels that supported economic integration and regional development. Recognizing the challenges of providing telecommunications services to remote and less accessible areas, Turkey implemented a domestic satellite system to extend communication coverage. This satellite network enabled reliable service delivery in regions where terrestrial infrastructure was impractical or cost-prohibitive. The satellite system complemented the terrestrial network, ensuring nationwide access to telephony and data services. The number of subscribers to mobile-cellular telephone services continued to grow rapidly, reflecting the increasing penetration of mobile technology into all segments of Turkish society. This trend was driven by expanding network coverage, competitive pricing, and the proliferation of mobile devices. Internationally, Turkey’s main line telephone service was connected through the SEA-ME-WE 3 submarine communications cable, a major fiber-optic link that spanned the Mediterranean and extended into the Middle East and Southeast Asia. Additional submarine fiber-optic cables in the Mediterranean and Black Seas linked Turkey with neighboring countries such as Italy, Greece, Israel, Bulgaria, Romania, and Russia. These undersea cables formed the backbone of Turkey’s international telecommunications, facilitating high-speed data transmission and voice communication with Europe, Asia, and beyond. In 2002, Turkey operated 12 Intelsat satellite earth stations, which served as critical nodes for global satellite communication. The country also maintained 328 mobile satellite terminals connected to the Inmarsat and Eutelsat systems, providing mobile satellite communication capabilities for maritime, aviation, and remote land-based applications. These satellite services complemented terrestrial networks, enhancing Turkey’s overall communication resilience and reach. Türksat A.Ş. functioned as Turkey’s primary communications satellite operator, managing the Turksat series of satellites. These satellites provided a range of services including direct-to-home television broadcasting, broadband internet access, and corporate data transmission. The Turksat satellites played a vital role in expanding Turkey’s telecommunications infrastructure, particularly in rural and underserved areas. Turkey also developed a series of earth observation satellites used for reconnaissance and scientific purposes. The Göktürk series—Göktürk-1, Göktürk-2, and Göktürk-3—were operated by the Turkish Ministry of National Defense, providing high-resolution imagery for military and intelligence applications. These satellites enhanced Turkey’s capabilities in national security and surveillance. In the realm of scientific observation, the TÜBİTAK Space Technologies Research Institute operated the BILSAT-1 and RASAT satellites. TÜBİTAK collaborated closely with Turkish Aerospace Industries and Aselsan in the production and development of these satellites, reflecting a growing domestic aerospace industry. These scientific satellites contributed to environmental monitoring, disaster management, and technological research. As of 2001, Turkey’s radio broadcasting infrastructure included 16 AM radio stations, 107 FM radio stations, and 6 shortwave radio stations, although these figures were noted as needing updates to reflect subsequent developments. Radio remained an important medium for information dissemination and entertainment, reaching diverse audiences across the country. By 2015, the number of internet users in Turkey had risen dramatically to 42,275,017, placing the country 15th in the world in terms of internet user population. This growth was fueled by expanding broadband infrastructure, increased affordability of internet-enabled devices, and government initiatives to promote digital inclusion. As of 2012, Turkey had 7,093,000 internet hosts, ranking 16th globally in the number of internet hosts. This indicated a robust and expanding internet presence, supporting a wide range of online services, e-commerce, and digital communication platforms.

In 2023, Turkey emerged as the fifth most visited destination globally, drawing an impressive total of 55.2 million foreign tourists. This notable achievement reflected the country’s growing appeal as a major hub for international travel, underscoring its ability to attract a diverse array of visitors from across the world. The influx of tourists contributed substantially to the national economy, bolstering sectors such as hospitality, transportation, and cultural heritage preservation. This milestone also indicated a recovery and growth trajectory following the global disruptions caused by the COVID-19 pandemic, which had previously affected international travel patterns. Looking back to 2019, Turkey ranked sixth worldwide in terms of international tourist arrivals, welcoming 51.2 million foreign visitors that year. This figure positioned Turkey among the top global destinations, highlighting its longstanding popularity and the steady expansion of its tourism infrastructure. The 2019 data served as a benchmark for the country’s tourism industry, illustrating a consistent upward trend in visitor numbers prior to the pandemic. The steady increase in tourist arrivals during this period was driven by a combination of factors, including Turkey’s rich historical sites, diverse natural landscapes, and improved connectivity through international airports and airlines. Over the years, Turkey has increasingly become a favored tourist destination for many Europeans, who constitute a significant portion of the country’s international visitors. The geographical proximity of Turkey to Europe, coupled with its cultural ties and historical connections, has made it an accessible and attractive choice for European travelers. Additionally, the relatively affordable travel costs, combined with a wide range of tourism offerings—from beach resorts to cultural excursions—have further enhanced its appeal. European tourists are drawn to Turkey not only for leisure but also for cultural and historical exploration, as the country boasts numerous UNESCO World Heritage sites and ancient landmarks. Turkey’s tourism sector operates in a competitive environment alongside other prominent Mediterranean destinations such as Greece, Italy, and Spain. These countries share similar climatic conditions, coastal attractions, and rich cultural heritages, making the Mediterranean region one of the most sought-after tourist areas globally. Turkey distinguishes itself through its unique blend of Eastern and Western influences, diverse landscapes ranging from pristine beaches to mountainous regions, and a rich tapestry of historical civilizations including the Byzantine, Roman, and Ottoman empires. The competition with Greece, Italy, and Spain has encouraged Turkey to continuously enhance its tourism services, infrastructure, and marketing strategies to capture a larger share of the Mediterranean tourism market. Among the most popular tourist resorts in Turkey are those located in the provinces of Antalya and Muğla, both situated along the Turkish Riviera, a stretch of coastline renowned for its natural beauty and favorable climate. Antalya, often referred to as the gateway to the Turkish Riviera, is famous for its turquoise waters, sandy beaches, and well-preserved historical sites such as Hadrian’s Gate and the ancient city of Perge. The province has developed into a major center for luxury resorts, golf courses, and marinas, attracting visitors seeking both relaxation and cultural experiences. Muğla, on the other hand, encompasses several renowned resort towns including Bodrum, Marmaris, and Fethiye, each offering a unique blend of seaside charm, vibrant nightlife, and opportunities for outdoor activities such as sailing and hiking. The resorts in Antalya and Muğla have gained significant popularity among international tourists, contributing greatly to Turkey’s overall tourism revenue. These destinations are favored for their combination of natural beauty, modern amenities, and accessibility, with well-established transportation links including international airports and highways. The growth of these resorts has been supported by substantial investments in hospitality infrastructure, including five-star hotels, boutique accommodations, and extensive recreational facilities. Their popularity is also enhanced by the diverse range of experiences available, from exploring ancient ruins and traditional bazaars to enjoying water sports and wellness tourism. As a result, Antalya and Muğla continue to serve as flagship destinations within Turkey’s tourism portfolio, drawing millions of visitors annually and reinforcing the country’s status as a leading Mediterranean tourist hotspot.

Başakşehir Çam and Sakura City Hospital, situated in Istanbul, stands as one of Turkey’s most prominent medical institutions, playing a pivotal role in the country’s healthcare landscape. This hospital, characterized by its modern infrastructure and comprehensive range of medical services, exemplifies the advanced capabilities of Turkey’s healthcare system. Its establishment marked a significant development in Istanbul’s medical sector, attracting both domestic and international patients due to its state-of-the-art facilities and specialized treatment options. The hospital’s strategic location in a major metropolitan area further enhances its accessibility, making it a central hub for medical care and contributing to Turkey’s reputation as a destination for high-quality healthcare services. Turkey’s healthcare sector includes a substantial number of private hospitals, which have been instrumental in the expansion of medical tourism over recent years. These private institutions often feature cutting-edge technology, internationally accredited standards, and a diverse array of specialized treatments that appeal to foreign patients seeking affordable yet high-standard medical care. The proliferation of private hospitals has complemented public healthcare offerings, creating a competitive environment that fosters innovation and quality improvement. This dynamic has not only elevated the overall healthcare infrastructure but also positioned Turkey as a competitive player in the global medical tourism market, attracting patients from Europe, the Middle East, and beyond. The economic impact of health tourism in Turkey became particularly evident in 2019, when the sector generated revenues totaling approximately $1 billion. This substantial figure underscores the growing importance of medical tourism as a contributor to the national economy, reflecting both the volume of international patients and the range of medical services sought. The revenue generated from health tourism includes payments for surgical procedures, diagnostic services, hospital stays, and ancillary healthcare-related expenditures such as accommodation and transportation. This influx of foreign currency has provided a valuable boost to Turkey’s economy, supporting job creation in healthcare and related industries, and encouraging further investment in medical infrastructure and services. In that same year, a total of 662,087 patients received treatment at Turkish hospitals under the umbrella of health tourism, highlighting the scale and reach of the sector. This large patient volume demonstrates Turkey’s capacity to serve a diverse international clientele, encompassing a wide spectrum of medical needs ranging from elective surgeries to complex therapeutic interventions. The country’s ability to attract such a significant number of medical tourists is attributable to factors including competitive pricing, the availability of highly qualified medical professionals, and the integration of tourism amenities with healthcare services. The demographic composition of these patients often includes individuals from neighboring countries as well as from Europe, Russia, and the Middle East, reflecting Turkey’s geographic and cultural accessibility. A notable characteristic of Turkey’s health tourism revenue in 2019 was that approximately 60% of the income was generated through plastic surgeries. This dominant share indicates the strong demand for cosmetic and reconstructive procedures among international patients who seek Turkey’s combination of affordability, expertise, and quality outcomes. Plastic surgery clinics in Turkey have gained international recognition for their advanced techniques and patient care standards, attracting individuals interested in procedures such as rhinoplasty, breast augmentation, liposuction, and facial rejuvenation. The prominence of plastic surgery within the health tourism sector also reflects broader global trends in medical travel, where elective aesthetic procedures constitute a significant portion of cross-border healthcare services. This specialization has contributed to Turkey’s positioning as a leading destination for cosmetic surgery, further enhancing the country’s medical tourism profile and economic benefits derived from the sector.

In 2024, ten publicly traded Turkish companies were recognized on the Forbes Global 2000 list, an annual ranking that identifies the top 2000 public companies worldwide. This list employs a composite score based on four key financial metrics: revenue, profits, assets, and market value, providing a comprehensive measure of corporate size and financial strength. The inclusion of these Turkish firms reflects their significant roles in both the domestic economy and the global marketplace, highlighting Turkey’s diverse industrial base and the international competitiveness of its largest enterprises. Among these Turkish companies, the banking sector was the most prominently represented, with four institutions securing positions on the list. İş Bankası, Akbank, VakıfBank, and Halkbank each demonstrated substantial financial performance, underscoring the importance of banking within Turkey’s economic landscape. İş Bankası, the largest private bank in Turkey, achieved a global rank of 525, reporting revenues of $17.6 billion and profits amounting to $3.03 billion. Its asset base was notably substantial at $100.05 billion, complemented by a market value of $11.49 billion, reflecting its strong capital position and investor confidence. Akbank, ranked 666 globally, generated $14.7 billion in revenue and $2.57 billion in profits, with assets totaling $64.06 billion and a market valuation of $10.15 billion. VakıfBank, another major player in the banking sector, held the 759th position worldwide, with revenues of $16.34 billion and profits of $1.33 billion. Its assets were valued at $96.81 billion, while its market capitalization stood at $6.59 billion. Halkbank, ranked 957, reported revenues of $15.81 billion and profits of $0.65 billion, supported by assets amounting to $77.98 billion and a market value of $3.9 billion. Collectively, these banks illustrate the depth and resilience of Turkey’s financial institutions, which play a critical role in supporting economic activity and facilitating investment. Beyond banking, Turkish companies on the Forbes Global 2000 list represented a variety of other key industries, reflecting the country’s economic diversification. Turkish Airlines, the national flag carrier, was the sole representative of the airline industry, achieving a global rank of 539. The airline reported revenues of $21.17 billion and profits of $6.84 billion, with assets valued at $35.55 billion and a market capitalization of $13.81 billion. Its inclusion highlights the strategic importance of air transport in Turkey’s connectivity and tourism sectors, as well as the airline’s competitive position on the global stage. In the automotive sector, Ford Otosan, a joint venture between Ford Motor Company and Turkey’s Koç Holding, secured the 893rd position worldwide. The company generated $17.29 billion in revenue and $2.06 billion in profits, supported by assets totaling $7.35 billion and a market value of $13.15 billion. This reflects the strength of Turkey’s automotive manufacturing industry, which serves both domestic and export markets. Retail was represented by BIM, a prominent discount retailer, which ranked 1446 globally. BIM reported revenues of $13.79 billion and profits of $0.64 billion, with assets of $5.02 billion and a market capitalization of $9.02 billion. Its presence on the list underscores the growing consumer market in Turkey and the expanding role of organized retail chains in meeting domestic demand. Three major Turkish conglomerates also featured on the 2024 Forbes Global 2000 list, demonstrating the significant influence of diversified holding companies in the country’s economy. Koç Holding, the largest among them, was ranked highest among Turkish companies at 309 globally. The conglomerate reported revenues of $67.36 billion, profits of $3.03 billion, assets totaling $96.8 billion, and a market value of $19.27 billion. Koç Holding’s extensive portfolio spans automotive, consumer durables, energy, finance, and other sectors, making it a cornerstone of Turkey’s industrial and commercial landscape. Sabancı Holding, ranked 878 worldwide, generated $23.13 billion in revenue and $0.64 billion in profits, with assets of $74.23 billion and a market value of $6.64 billion. As one of Turkey’s leading family-owned conglomerates, Sabancı Holding operates in sectors including banking, energy, cement, and retail, contributing significantly to the country’s economic development. Anadolu Grubu, ranked 1384 globally, reported revenues of $15.77 billion and profits of $0.82 billion, with assets totaling $13.27 billion and a market capitalization of $2.78 billion. Anadolu Grubu’s activities encompass beverages, automotive, and retail, among other industries, reflecting the diversified nature of Turkey’s corporate sector. The financial metrics of these companies illustrate their scale and operational scope within both domestic and international contexts. Koç Holding’s leading position among Turkish firms is attributable to its extensive asset base and diversified operations, which have enabled it to maintain robust revenue streams and profitability despite global economic fluctuations. İş Bankası’s substantial asset holdings and profitability underscore its role as a pillar of the Turkish banking system, while Turkish Airlines’ significant revenues and profits highlight its status as a major global carrier. Ford Otosan’s strong financial performance reflects the competitiveness of Turkey’s automotive sector, which benefits from strategic partnerships and integration into global supply chains. The presence of BIM on the list as the sole retailer emphasizes the expanding consumer market and the increasing importance of organized retail formats in Turkey’s economy. Overall, the representation of Turkish companies on the Forbes Global 2000 list in 2024 demonstrates the country’s economic diversity and the global reach of its largest enterprises. The dominance of the banking sector among these firms reflects the critical role of financial services in supporting economic growth and investment, while the inclusion of companies from aviation, automotive, retail, and diversified conglomerates illustrates the multifaceted nature of Turkey’s corporate landscape. These companies not only contribute substantially to the national economy but also engage actively in international markets, reinforcing Turkey’s position as an emerging economic power.

In February 2022, the Organisation for Economic Co-operation and Development (OECD) released comprehensive long-term GDP projections for the world’s 16 largest economies, measured by Purchasing Power Parity (PPP) exchange rates. These projections spanned a thirty-year period from 2030 to 2060, offering a detailed forecast of economic growth trajectories and shifts in global economic rankings. The analysis employed GDP figures expressed in constant 2010 US dollars, allowing for the comparison of economic size over time while controlling for inflation and exchange rate fluctuations. This dataset provided a valuable framework for understanding how the relative economic standings of major nations might evolve over the coming decades. In 2021, China held the position as the largest economy globally when measured by GDP at 2010 constant PPP, with a total output of 26,656 billion US dollars. This figure significantly surpassed that of the United States, which ranked second with a GDP of 22,675 billion US dollars. India occupied the third position with a GDP of 10,181 billion US dollars, reflecting its rapid economic expansion in recent years. These figures underscored the dominance of Asia’s largest economies in the global economic landscape, with China and India collectively accounting for a substantial share of global economic activity, while the United States remained a formidable economic power. By 2030, the OECD projected that China would maintain its lead as the world’s largest economy, with its GDP expected to reach 36,977 billion US dollars. India was forecasted to continue its rapid growth trajectory, climbing to 16,603 billion US dollars and solidifying its position as the second-largest economy by PPP. The United States was projected to remain in third place, with a GDP of 24,302 billion US dollars. This forecast highlighted the sustained economic momentum of China and India, driven by factors such as demographic growth, urbanization, and technological advancement, while the United States was anticipated to continue its steady expansion amid evolving global economic dynamics. Looking further ahead to 2040, China’s GDP was forecasted to reach 47,306 billion US dollars, further extending its economic lead. India was expected to achieve a GDP of 25,083 billion US dollars, maintaining its position as the second-largest economy. The United States was projected to grow to 28,063 billion US dollars, remaining third in the global ranking. Notably, Indonesia was anticipated to rise significantly, entering the top four with a GDP of 7,507 billion US dollars. This marked a substantial leap for Indonesia, reflecting its demographic advantages, economic reforms, and increasing integration into global trade networks. The emergence of Indonesia in the top tier of economies signaled a broader shift toward the growing influence of Southeast Asian nations. By 2050, the projections indicated a pivotal change in the global economic hierarchy, with India surpassing the United States to become the world’s second-largest economy. India’s GDP was forecasted to reach 33,363 billion US dollars, edging past the United States, which was expected to have a GDP of 32,119 billion US dollars. China was projected to remain the largest economy by a wide margin, with a GDP of 54,765 billion US dollars. Indonesia and Turkey were also expected to show remarkable growth, with their GDPs reaching 9,846 billion US dollars and 5,934 billion US dollars, respectively. Turkey’s ascent into the upper ranks of the global economy reflected its strategic geographic position, expanding industrial base, and demographic trends, positioning it as a significant emerging market by mid-century. In 2060, China’s GDP was projected to reach 62,140 billion US dollars, solidifying its position as the largest economy globally. India was expected to continue its rapid expansion, with a GDP of 42,204 billion US dollars, maintaining its status as the second-largest economy. The United States was forecasted to have a GDP of 36,527 billion US dollars, remaining third. Indonesia was projected to further increase its economic output to 12,320 billion US dollars, while Turkey was expected to enter the top six economies with a GDP of 7,068 billion US dollars. This forecast underscored the sustained economic rise of emerging markets, particularly in Asia and parts of Eurasia, as they gained prominence relative to traditional Western economic powers. Turkey’s economic trajectory within this framework showed a steady and significant growth pattern. In 2021, Turkey’s GDP was 2,749 billion US dollars, ranking it as the 11th largest economy globally. The OECD projections anticipated Turkey’s GDP to increase to 3,653 billion US dollars by 2030, reflecting ongoing industrialization and economic diversification. By 2040, Turkey’s GDP was expected to reach 4,776 billion US dollars, further consolidating its position among the world’s leading economies. The upward trend was projected to continue, with GDP reaching 5,934 billion US dollars by 2050 and 7,068 billion US dollars by 2060. This growth trajectory highlighted Turkey’s potential to leverage its demographic advantages, strategic location bridging Europe and Asia, and expanding manufacturing and service sectors. Japan’s economic outlook, in contrast, showed more modest growth over the same period. In 2021, Japan’s GDP was 5,585 billion US dollars. The projections indicated a slight increase to 5,632 billion US dollars by 2030, followed by gradual growth to 5,908 billion US dollars in 2040, 6,060 billion US dollars in 2050, and 6,333 billion US dollars in 2060. This relatively slow expansion reflected Japan’s demographic challenges, including an aging population and low birth rates, as well as structural economic factors that have constrained rapid growth. Despite these challenges, Japan was expected to maintain its position as one of the world’s largest economies. Germany’s GDP in 2021 was 4,743 billion US dollars, placing it among the leading global economies. The OECD projections suggested a slight decline to 4,566 billion US dollars by 2030, possibly reflecting demographic shifts and economic restructuring. However, Germany’s economy was forecasted to rebound somewhat in subsequent decades, with GDP increasing to 4,914 billion US dollars in 2040, 5,362 billion US dollars in 2050, and 5,891 billion US dollars in 2060. These projections indicated that while Germany might face near-term challenges, its strong industrial base, technological innovation, and integration within the European Union would support moderate growth over the longer term. Russia’s economic projections showed a more gradual growth pattern. In 2021, Russia’s GDP was 4,328 billion US dollars. The OECD forecast anticipated a slight decrease to 4,233 billion US dollars by 2030, followed by incremental increases to 4,624 billion US dollars in 2040, 4,882 billion US dollars in 2050, and 5,340 billion US dollars in 2060. This trajectory suggested that Russia’s economy would face near-term stagnation or contraction, potentially due to structural economic issues and geopolitical factors, but could experience modest recovery and growth in the longer term. Indonesia’s economic growth prospects were notably robust. With a GDP of 3,507 billion US dollars in 2021, Indonesia was forecasted to expand rapidly, reaching 5,309 billion US dollars by 2030. Its GDP was expected to grow further to 7,507 billion US dollars in 2040, 9,846 billion US dollars in 2050, and 12,320 billion US dollars by 2060. This rapid expansion reflected Indonesia’s large and youthful population, ongoing economic reforms, and increasing integration into global supply chains, positioning it as a major emerging market and a key player in the global economy. Brazil’s GDP in 2021 stood at 3,328 billion US dollars. The projections indicated steady but moderate growth, with GDP rising to 3,759 billion US dollars by 2030, 4,492 billion US dollars in 2040, 5,168 billion US dollars in 2050, and 5,746 billion US dollars in 2060. Brazil’s growth was expected to be supported by its abundant natural resources, expanding domestic market, and ongoing efforts to improve economic governance, although challenges such as political instability and infrastructure deficits could temper growth rates. France’s economy, with a GDP of 3,231 billion US dollars in 2021, was projected to experience gradual growth. Its GDP was expected to increase to 3,267 billion US dollars by 2030, then to 3,679 billion US dollars in 2040, 4,148 billion US dollars in 2050, and 4,736 billion US dollars in 2060. This steady expansion reflected France’s diversified economy, strong industrial and service sectors, and continued integration within the European Union, which provided a stable environment for growth. The United Kingdom’s GDP was 3,174 billion US dollars in 2021. The OECD forecast anticipated growth to 3,375 billion US dollars by 2030, followed by increases to 3,800 billion US dollars in 2040, 4,249 billion US dollars in 2050, and 4,768 billion US dollars in 2060. The projections suggested that despite challenges such as Brexit and shifting global trade dynamics, the UK economy would continue to expand moderately, supported by its financial services sector and innovation-driven industries. Mexico’s GDP was 2,613 billion US dollars in 2021. The projections indicated a steady upward trajectory, with GDP expected to reach 3,073 billion US dollars by 2030, 3,832 billion US dollars in 2040, 4,620 billion US dollars in 2050, and 5,407 billion US dollars in 2060. Mexico’s growth prospects were underpinned by its young population, manufacturing base, and proximity to the United States, which facilitated trade and investment flows. Italy’s GDP in 2021 was 2,610 billion US dollars. The OECD projections suggested a slight decline to 2,499 billion US dollars by 2030, followed by a gradual recovery to 2,692 billion US dollars in 2040, 2,959 billion US dollars in 2050, and 3,366 billion US dollars in 2060. Italy’s economic challenges, including demographic decline and structural inefficiencies, were expected to constrain growth, but ongoing reforms and integration within the European Union could support a modest rebound. South Korea’s GDP was 2,436 billion US dollars in 2021. The projections forecasted growth to 2,675 billion US dollars by 2030, 2,866 billion US dollars in 2040, with a plateauing trend at 2,880 billion US dollars in 2050, and a slight increase to 3,104 billion US dollars by 2060. South Korea’s advanced technological base and export-oriented economy were expected to sustain growth, although demographic challenges and global competition could limit acceleration. Canada’s GDP in 2021 was 2,027 billion US dollars. The OECD forecast anticipated modest growth to 2,062 billion US dollars by 2030, followed by increases to 2,370 billion US dollars in 2040, 2,694 billion US dollars in 2050, and 3,046 billion US dollars in 2060. Canada’s resource wealth, stable institutions, and diversified economy were projected to support steady expansion over the long term. Spain’s GDP was 1,959 billion US dollars in 2021. The projections indicated growth to 2,094 billion US dollars by 2030, but Spain was not forecasted to remain within the top 16 economies by PPP beyond that year. This suggested that while Spain would experience some growth, it might be outpaced by faster-growing emerging economies, leading to a relative decline in its global economic ranking. Saudi Arabia was projected to enter the top 16 economies by 2040, with a GDP of 2,362 billion US dollars. Its economic output was expected to increase to 2,698 billion US dollars in 2050 and 3,066 billion US dollars in 2060. This anticipated rise reflected Saudi Arabia’s efforts to diversify its economy beyond oil dependence, investing in sectors such as tourism, technology, and renewable energy, which were expected to drive sustained growth. Overall, the OECD’s long-term GDP projections reflected significant shifts in the global economic landscape over the thirty-year period. Emerging economies such as India, Indonesia, and Turkey were forecasted to rise substantially in prominence relative to traditional economic powers like Japan, Germany, and the United Kingdom. These changes underscored the dynamic nature of global economic development, driven by demographic trends, technological innovation, policy reforms, and evolving patterns of trade and investment. The data highlighted the growing importance of Asia and parts of Eurasia as centers of economic activity, while also illustrating the challenges and opportunities facing established economies in adapting to a rapidly changing global environment.

As of 2016, Turkey’s principal trading partners encompassed a diverse group of countries, prominently including the European Union, Russia, the United Kingdom, the United Arab Emirates (UAE), Iraq, and China. These nations consistently ranked among the top destinations for Turkish exports as well as sources of imports, reflecting Turkey’s multifaceted trade relationships across different regions. The European Union, in particular, stood out as Turkey’s largest trading bloc, accounting for a substantial share of both inbound and outbound trade flows. Russia and China also played critical roles, especially in energy and raw material exchanges, while the United Kingdom, UAE, and Iraq contributed significantly through various industrial and consumer goods transactions. This diversified portfolio of trading partners underscored Turkey’s strategic position as a bridge between Europe and Asia, facilitating extensive economic linkages across continents. Turkey’s trade dynamics were significantly influenced by the customs union agreement it signed with the European Union in 1995. This agreement effectively integrated Turkey into the EU’s single market for industrial goods, eliminating tariffs and harmonizing trade regulations between the two parties. As a result, Turkey was able to substantially boost its industrial production, particularly targeting export markets within the EU. The customs union also encouraged the inflow of foreign direct investment (FDI) from European companies seeking to capitalize on Turkey’s competitive labor costs and strategic location. This symbiotic relationship fostered industrial modernization and export diversification, enabling Turkish manufacturers to access a vast consumer base while attracting capital, technology, and expertise from European investors. Over time, the customs union became a cornerstone of Turkey’s external trade policy, facilitating deeper economic integration with Europe. In addition to the customs union with the European Union, the Turkish government actively pursued the expansion of its trade network through the establishment of free-trade agreements (FTAs) with 22 other countries. These agreements aimed to reduce trade barriers, enhance market access, and promote bilateral economic cooperation beyond the EU framework. By negotiating FTAs with countries across different regions, including the Middle East, North Africa, and Central Asia, Turkey sought to diversify its export markets and reduce dependency on any single trading partner. This strategic approach allowed Turkish exporters to benefit from preferential tariff rates and simplified customs procedures, thereby increasing the competitiveness of Turkish goods in foreign markets. The cumulative effect of these FTAs was to strengthen Turkey’s position as a regional trade hub and to facilitate the growth of its export-oriented industries. The automotive industry emerged as a particularly significant sector within Turkey’s external trade profile. According to data classified under the 1992 revision of the Harmonized System (HS), cars represented Turkey’s top export commodity, with a total value of $13.2 billion. This prominence reflected the country’s well-developed automotive manufacturing base, which included both domestic producers and international firms operating joint ventures or wholly owned subsidiaries in Turkey. The automotive sector benefited from the customs union with the EU, enabling manufacturers to export vehicles tariff-free to European markets. Moreover, the industry’s integration into global supply chains facilitated the export of related components and parts, further enhancing Turkey’s trade performance. The automotive sector’s contribution to exports underscored its role as a key driver of industrial growth and employment within the Turkish economy. Beyond automobiles, Turkey’s export portfolio included several other major commodities that contributed substantially to its trade revenues. Gold stood out as a significant export item, valued at $6.96 billion under the 1992 HS classification, reflecting Turkey’s role as both a producer and a trading hub for precious metals. Delivery trucks were another important export category, with a value of $5.04 billion, illustrating the strength of Turkey’s commercial vehicle manufacturing capabilities. Vehicle parts, valued at $4.64 billion, complemented the automotive sector’s exports, highlighting the country’s specialization in producing components for both domestic assembly and international markets. Additionally, jewelry exports, amounting to $3.39 billion, demonstrated Turkey’s longstanding tradition in precious metal craftsmanship and its ability to serve niche markets in luxury goods. Collectively, these export categories showcased the diversity and sophistication of Turkey’s manufacturing and artisanal sectors. Turkey’s import patterns mirrored many of its export categories, reflecting the complexity of its trade relationships and industrial needs. Gold imports were particularly notable, with a value of $17.1 billion, exceeding the export figures and indicating Turkey’s role as a major refining and trading center for precious metals. Refined petroleum products constituted another substantial import category, valued at $9.8 billion, underscoring Turkey’s dependence on energy imports to meet domestic consumption and industrial demand. Cars were also significant among imports, with a value of $8.78 billion, highlighting the demand for foreign-made vehicles alongside domestically produced automobiles. Vehicle parts imports, totaling $6.34 billion, supported both the automotive manufacturing sector and the aftermarket supply chain. Scrap iron imports, valued at $5.84 billion, were critical for Turkey’s steel industry, providing essential raw materials for domestic production. This pattern of importing and exporting similar categories reflected Turkey’s integration into global value chains, where intermediate goods and raw materials flowed in and finished products flowed out. Several prominent Turkish construction and contracting companies played pivotal roles in the country’s economic development and external trade activities. Firms such as Enka, Rönesans Holding, and Tekfen emerged as major players in the construction sector, both domestically and internationally. These companies engaged in large-scale infrastructure projects, including highways, bridges, airports, and energy facilities, contributing significantly to Turkey’s economic growth and export of services. Their operations extended beyond Turkey’s borders, with numerous projects in the Middle East, Central Asia, and Africa, thereby enhancing Turkey’s economic influence and fostering bilateral trade relations. The success of these contractors not only reflected the dynamism of Turkey’s construction industry but also illustrated the country’s capacity to compete in global markets for engineering and project management services. In anticipation of evolving environmental regulations within the European Union, Turkish exporters began adapting their strategies starting in 2024 to address the forthcoming EU Carbon Border Adjustment Mechanism (CBAM). This mechanism, scheduled to require payment from 2026, aims to impose carbon pricing on imports to the EU to prevent carbon leakage and encourage greener production practices. To hedge against the financial impact of CBAM, Turkish exporters proactively purchased EU Allowances, which represent the right to emit a certain amount of carbon dioxide, thereby preparing for the additional costs associated with carbon emissions embedded in their products. This strategic move reflected Turkey’s responsiveness to international environmental policies and its efforts to maintain competitiveness in the EU market amid tightening climate regulations. The adoption of such measures signaled a growing awareness within the Turkish export community of the importance of sustainability and carbon management in global trade. Turkey’s business environment experienced notable improvements as evidenced by its performance in the World Bank’s Ease of Doing Business Index. Between 2017 and 2020, Turkey advanced significantly, moving from the 68th position to the 33rd. This upward trajectory was attributed to reforms aimed at streamlining business regulations, enhancing access to credit, simplifying tax procedures, and improving the legal framework for investors. By 2021, Turkey’s ranking surpassed that of several advanced economies, including the Netherlands and Belgium, indicating a more favorable climate for entrepreneurship and investment. These improvements helped attract both domestic and foreign investors, fostering economic growth and facilitating the expansion of trade-related activities. The enhanced ease of doing business also contributed to Turkey’s integration into global value chains by reducing operational barriers for companies engaged in import and export. Trade statistics for Turkey revealed a consistent and substantial increase in the value of goods exports over several decades. In 1975, Turkish goods exports stood at $1.5 billion, reflecting a relatively modest export base. However, by 2023, this figure had surged to $251.0 billion, demonstrating the country’s successful efforts to expand its manufacturing capacity, diversify its export products, and penetrate new markets. This growth was driven by structural economic reforms, increased industrialization, and the strategic leveraging of trade agreements such as the customs union with the EU and various free-trade agreements. The expansion of export volumes and values underscored Turkey’s transformation into a major global trading nation, capable of competing in a wide range of sectors from automotive to textiles and electronics. Similarly, the value of goods imports into Turkey rose dramatically over the same period. Starting from $4.5 billion in 1975, imports increased to $337.3 billion by 2023. This growth reflected Turkey’s expanding domestic market, rising consumer demand, and the needs of its industrial sectors for raw materials, intermediate goods, and capital equipment. The increase in imports also highlighted Turkey’s integration into global supply chains, where it both sourced inputs for its manufacturing industries and supplied finished products to international markets. The substantial import volumes were indicative of Turkey’s role as a dynamic economy with complex trade linkages, balancing the inflow of goods necessary for production and consumption with its export activities. Despite the impressive growth in both exports and imports, Turkey consistently maintained a negative net trade balance throughout the years. In 1975, the trade deficit was recorded at −$3.0 billion, reflecting higher import values relative to exports. By 2023, this deficit had widened significantly to −$86.3 billion, underscoring the persistent gap between the country’s import and export volumes. The sustained trade deficits were influenced by factors such as Turkey’s reliance on energy imports, the import intensity of its industrial sectors, and fluctuations in global commodity prices. While the growing export base helped to mitigate the trade imbalance to some extent, the overall negative net trade balance remained a structural feature of Turkey’s external economic relations, necessitating complementary measures such as attracting foreign investment and managing external financing to support economic stability.

Studies have demonstrated that transitioning away from coal-fired power generation toward renewable energy sources in Turkey would result in a net increase in employment opportunities. This shift is attributed to the labor-intensive nature of renewable energy sectors such as solar and wind power, which require substantial workforce involvement in manufacturing, installation, maintenance, and operation. Unlike coal plants, which are capital-intensive and mechanized, renewable energy projects tend to generate more jobs per unit of energy produced. Moreover, the development of renewable infrastructure stimulates ancillary industries, including supply chains and technological innovation, thereby broadening the employment base and contributing to regional economic development. In 2022, Turkey faced a significant energy trade deficit exceeding 80 billion US dollars, which constituted a major component of the country’s overall foreign trade deficit. This substantial shortfall was primarily driven by the country’s heavy reliance on imported fossil fuels, including natural gas, coal, and oil, to meet its domestic energy demands. The import dependency exposed Turkey to fluctuations in global energy prices and exchange rates, exacerbating the trade imbalance. The energy trade deficit underscored the economic vulnerability associated with fossil fuel imports and highlighted the urgency for diversifying energy sources and enhancing domestic renewable energy production to improve trade balance and energy security. The European Union has actively supported Turkey’s efforts to enhance energy efficiency and expand renewable energy capacity through financial mechanisms such as the Mid-size Sustainable Energy Financing Facility (MidSEFF). This €1 billion facility is designed to provide financing for investments in sustainable energy projects, targeting mid-sized enterprises and infrastructure developments that contribute to reducing greenhouse gas emissions and improving energy efficiency. MidSEFF aims to catalyze private sector involvement by offering favorable loan terms and technical assistance, thereby accelerating Turkey’s transition toward a low-carbon energy system. The initiative reflects the EU’s broader strategy to foster regional cooperation on climate change mitigation and sustainable development. In 2021, energy subsidies in Turkey amounted to 200 billion Turkish lira, reflecting the government’s substantial financial commitment to supporting the energy sector and mitigating costs for consumers. These subsidies encompassed various forms, including direct financial support to fossil fuel producers, price controls, and social assistance programs designed to alleviate the burden of energy expenses on vulnerable populations. While subsidies aimed to ensure affordability and social equity, they also posed challenges related to fiscal sustainability and market distortions, potentially hindering the competitiveness of renewable energy sources. The scale of subsidies highlighted the government’s balancing act between economic, social, and environmental objectives within the energy policy framework. As part of its social support measures, the Turkish government provides approximately two million poor families with up to 150 kilowatt-hours of free electricity per month. This program is intended to alleviate energy poverty by ensuring access to basic electricity consumption for low-income households, thereby improving living standards and reducing inequality. The provision of free electricity is administered through social tariffs and targeted assistance schemes, which are integrated into the broader social welfare system. By addressing affordability constraints, the policy contributes to social cohesion and supports the government’s commitment to inclusive energy access. In 2019, Fatih Birol, the Executive Director of the International Energy Agency (IEA), emphasized that Turkey should prioritize maximizing the development of onshore wind power due to rapidly decreasing costs associated with this technology. Birol’s assessment was grounded in the global trend of declining capital and operational expenses for wind energy, which have enhanced its competitiveness relative to conventional fossil fuel sources. He underscored that harnessing Turkey’s considerable wind energy potential would not only reduce greenhouse gas emissions but also improve energy security and create economic opportunities. The IEA’s recommendation aligned with broader international efforts to accelerate the deployment of renewable energy as a critical component of sustainable energy transitions. Economic modeling conducted by Carbon Tracker revealed that, for new power plants in Turkey, both wind and solar energy have already become more cost-effective than coal-fired power generation. This cost advantage arises from technological advancements, economies of scale, and declining prices for solar panels and wind turbines, which have lowered capital expenditures and levelized costs of electricity. The analysis indicated that investing in new renewable energy capacity offers superior economic returns and reduced financial risks compared to coal, which faces increasing regulatory and environmental compliance costs. These findings have significant implications for energy investment decisions and policy formulation in Turkey. Carbon Tracker further projected that by 2023, operating existing coal-fired power plants in Turkey would become more expensive than constructing new solar power plants, and by 2027, coal plants would also be costlier to operate than new wind power plants. This forecast reflects the anticipated continuation of cost declines in renewable technologies coupled with rising operational and maintenance expenses for aging coal infrastructure. The economic tipping point predicted by Carbon Tracker suggests a structural shift in Turkey’s power generation economics, where continued reliance on coal becomes financially unsustainable without subsidies. The projection supports arguments for accelerating the retirement of coal assets and prioritizing renewable energy investments to optimize economic and environmental outcomes. In 2019, the majority of energy-related investment deals in Turkey were concentrated in renewable energy projects, with over 50% of the investment capital originating from foreign sources. This trend demonstrated growing international confidence in Turkey’s renewable energy market, driven by favorable regulatory frameworks, attractive feed-in tariffs, and the country’s strategic geographic location. Foreign direct investment played a critical role in mobilizing the necessary financial resources and technological expertise to expand renewable capacity. The predominance of renewables in investment portfolios marked a shift in Turkey’s energy sector dynamics, reflecting global investor preferences for sustainable and low-carbon energy assets. The external costs associated with fossil fuel consumption in Turkey were estimated to amount to approximately 1.5% of the country’s gross domestic product (GDP) in 2018. These externalities encompass a range of negative impacts, including air pollution-related health expenses, environmental degradation, and climate change-related damages. The quantification of these costs highlighted the broader societal burden imposed by fossil fuel use beyond direct market prices, underscoring the economic rationale for transitioning toward cleaner energy sources. Incorporating external costs into energy policy considerations is essential for achieving sustainable development and aligning economic incentives with environmental protection. The Turkish government has maintained regulatory oversight over residential gas and electricity prices, aiming to balance affordability for consumers with the financial viability of energy providers. As of 2018, the high cost of energy was identified as the most significant challenge facing residential consumers within Turkey’s energy system. Price regulation sought to mitigate the impact of volatile international energy markets and exchange rate fluctuations on household energy bills. However, maintaining artificially low prices often led to subsidy burdens and market distortions, complicating efforts to promote energy efficiency and investment in renewable alternatives. The tension between consumer protection and market liberalization remains a central issue in Turkey’s energy policy discourse. In 2022, Turkey’s energy import bill reached 97 billion US dollars, reflecting the substantial expenditure required to secure fossil fuel supplies from international markets. This figure underscored the country’s ongoing dependency on energy imports to satisfy domestic demand, despite efforts to diversify energy sources and increase indigenous production. The high import costs exerted pressure on Turkey’s balance of payments and fiscal stability, reinforcing the strategic imperative to develop renewable energy infrastructure and improve energy efficiency. The magnitude of the import bill also highlighted vulnerabilities to geopolitical risks and global energy price volatility. Maintaining low consumer energy prices continues to be a political priority in Turkey, driven by concerns over social equity, public acceptance, and economic competitiveness. Policymakers have sought to implement subsidies, price controls, and targeted assistance programs to shield households and industries from rising energy costs. This political emphasis on affordability reflects the sensitivity of energy prices on inflation, cost of living, and industrial productivity. However, the prioritization of low prices often conflicts with environmental objectives and the need to internalize external costs, presenting complex trade-offs for sustainable energy policymaking. A 2024 report by Shura, an energy transition think tank, estimated that the costs associated with transitioning to clean energy in Turkey amount to roughly half the benefits accrued from the shift. The majority of these benefits derive from reductions in air pollution and carbon emissions, which translate into improved public health outcomes, decreased environmental damage, and alignment with international climate commitments. The report’s findings suggest that investments in renewable energy and energy efficiency yield net positive economic and social returns over time. This cost-benefit analysis provides a compelling argument for accelerating Turkey’s clean energy transition as a pathway to sustainable development and climate resilience.

Renewable energy sources supply approximately one quarter of Turkey’s total energy consumption, encompassing both the heat and electricity sectors. This significant contribution reflects the country’s diverse utilization of renewable resources, which range from traditional biomass to modern technologies such as wind and solar power. In the residential sector, renewable energy manifests prominently through the widespread use of rooftop solar water heating systems, which harness solar radiation to provide hot water efficiently for domestic use. Additionally, geothermal heat extracted from underground reservoirs plays a vital role beyond electricity generation; it warms numerous spas and greenhouses across Turkey, supporting both tourism and agricultural productivity. These applications demonstrate the multifaceted integration of renewable energy into everyday life and economic activities. The western regions of Turkey possess notable geothermal potential due to the presence of shallow hot rocks beneath the surface. This geothermal resource is sufficiently accessible to generate both electricity and heat, offering a reliable and sustainable energy source. The utilization of geothermal energy in these areas capitalizes on the country’s unique geological features, where tectonic activity has created favorable conditions for geothermal reservoirs. This potential has attracted investment and development efforts aimed at expanding geothermal power plants and direct-use applications, contributing to the diversification of Turkey’s renewable energy portfolio. Wind energy constitutes a significant component of Turkey’s renewable electricity generation, accounting for about 10% of the total electricity produced. The majority of wind farms are concentrated near western cities and industrial areas, where wind conditions are favorable and proximity to demand centers reduces transmission losses. The development of wind energy infrastructure in these regions has been driven by both government incentives and private sector participation. Wind power’s intermittent nature is managed through integration with other renewable sources and flexible grid operations, enabling it to play a crucial role in Turkey’s transition toward cleaner energy. Hydropower stands as the only fully exploited modern renewable energy resource in Turkey, predominantly generated from dams situated in the eastern part of the country. The extensive river systems and mountainous terrain in eastern Turkey provide ideal conditions for hydropower development, which has been pursued since the mid-20th century. On average, hydropower contributes roughly 20% of Turkey’s electricity production, underscoring its importance in the national energy mix. However, this share experiences significant fluctuations during drought years, when reduced water availability limits generation capacity. Despite these challenges, hydropower remains a cornerstone of Turkey’s renewable energy infrastructure, supported by a network of large and small-scale dams. In addition to hydropower and wind, other renewable sources such as geothermal, solar, and biogas collectively produced nearly 10% of Turkey’s electricity in 2022. This supplementary generation enhances the overall renewable energy contribution and reflects ongoing diversification efforts. Geothermal power plants convert subsurface heat into electricity, while solar photovoltaic installations capture abundant solar radiation to generate clean power. Biogas, derived from organic waste and agricultural residues, contributes to decentralized energy production and waste management. The combined output from these sources complements the more established hydropower and wind sectors, gradually increasing the share of renewables in Turkey’s electricity generation. More than half of Turkey’s installed electricity generation capacity is derived from renewable energy technologies, highlighting the country’s commitment to expanding sustainable energy infrastructure. This capacity includes a mix of hydropower, wind, solar, geothermal, and biomass installations, which together form a substantial portion of the national grid. The growth in renewable capacity has been supported by policy measures, investment incentives, and technological advancements. Despite this progress, challenges remain in optimizing the utilization of installed capacity and integrating variable renewable sources into the electricity system effectively. Turkey’s historical use of renewable energy dates back centuries, with traditional practices such as wood burning for heating and cooking, windmills for mechanical work, and the use of hot springs for bathing and therapeutic purposes. These longstanding traditions reflect a cultural and practical familiarity with renewable resources, predating modern energy technologies. The continued relevance of these practices underscores the deep-rooted connection between Turkish society and its natural environment, providing a foundation for contemporary renewable energy development. The construction of numerous dams from the mid-20th century through the early 21st century significantly expanded Turkey’s hydropower capacity. These large-scale infrastructure projects aimed to harness the country’s abundant water resources to meet growing electricity demand and support economic development. However, the planning and implementation of these projects often faced criticism due to insufficient civil society participation in energy policymaking. This lack of inclusive dialogue contributed to public protests against dam construction, geothermal plant development, and at least one wind farm project, reflecting concerns over environmental impacts, displacement, and local livelihoods. These social dynamics highlight the importance of stakeholder engagement in sustainable energy transitions. Despite Turkey’s abundant solar radiation, solar power remains underdeveloped relative to its potential. Infrastructural limitations, such as grid capacity constraints and insufficient transmission networks, have hindered large-scale solar deployment. Additionally, policy barriers including subsidies favoring fossil fuels and regulatory complexities have slowed the expansion of solar photovoltaic installations. Addressing these challenges is critical to unlocking the vast solar energy resources available, particularly in the country’s southern and central regions where solar irradiance is highest. The existing flexibility of Turkey’s electricity system enables the integration of renewable energy up to a penetration level of approximately 70% without encountering major technical barriers. This flexibility arises from a combination of grid management practices, diverse generation sources, and demand-side response capabilities. It provides a favorable environment for scaling up renewable energy deployment while maintaining grid stability and reliability. Realizing this potential requires continued investment in grid modernization and the adoption of advanced technologies to manage variability and ensure efficient system operation. Accelerated expansion of solar power in Turkey depends on faster improvements to the electricity grid and revisions to energy policy frameworks. Key policy changes include the removal of fossil fuel subsidies, which currently distort market signals and disadvantage renewable energy investments. Enhancing grid infrastructure to accommodate distributed solar generation and implementing supportive regulatory mechanisms are also essential. These measures would facilitate greater solar capacity additions, contributing to a more diversified and sustainable energy mix. Planned developments in Turkey’s renewable energy sector include the construction of numerous hybrid power plants and the integration of battery storage systems. Hybrid plants combine different renewable technologies, such as solar and wind, to optimize energy production and reduce intermittency. Battery storage enhances grid flexibility by storing excess renewable generation for use during periods of low production or high demand. These innovations aim to improve renewable energy utilization, increase system resilience, and support the transition to a low-carbon energy future. Key companies with significant renewable energy portfolios in Turkey include the state electricity generation company, which primarily focuses on hydroelectric power, as well as private sector firms such as Aydem and Kalyon. These companies play pivotal roles in developing, operating, and expanding renewable energy projects across the country. Their activities encompass a range of technologies and scales, from large hydropower dams to wind farms and solar parks. The involvement of both public and private entities reflects a diversified approach to renewable energy development. Achieving a coal phase-out by 2030 through increased renewable energy deployment, rather than adhering strictly to the national net zero greenhouse gas emissions target year of 2053, would yield substantial health benefits and help reduce inflation in Turkey. Early coal phase-out would decrease air pollution, leading to improved public health outcomes and lower healthcare costs. Moreover, reducing reliance on coal imports and fossil fuel subsidies could alleviate inflationary pressures associated with energy prices. This accelerated transition aligns with global trends toward decarbonization and offers economic as well as environmental advantages. As of 2022, renewable energy capacity and generation levels in Turkey remain insufficient to meet the ambitious 2053 net zero emissions target. While significant progress has been made, further expansion and integration of renewable technologies are necessary to close the gap. Achieving net zero emissions will require comprehensive policy reforms, increased investment, and enhanced grid infrastructure to support higher shares of renewables alongside energy efficiency measures and electrification strategies. Turkey is actively manufacturing various electric vehicles, which are expected to utilize increased renewable electricity generation and contribute to reductions in air pollution. The growth of the electric vehicle sector complements renewable energy development by creating demand for clean electricity and reducing emissions from the transportation sector. This synergy supports broader environmental objectives and fosters technological innovation within the country’s automotive and energy industries. The adoption of electric vehicles is anticipated to play a key role in Turkey’s sustainable energy transition and urban air quality improvement efforts.

The drilling vessel Kanuni has played a pivotal role in Turkey’s efforts to explore and develop hydrocarbon resources within its territorial waters, particularly in the Black Sea region. Equipped with advanced offshore drilling technology, Kanuni has conducted extensive drilling operations aimed at identifying and extracting natural gas reserves beneath the seabed. These operations have been part of a broader strategic initiative to reduce Turkey’s dependence on imported energy by tapping into domestic resources, thereby enhancing energy security and fostering economic growth. The vessel’s activities have contributed to the discovery and subsequent development of significant natural gas fields, underscoring the importance of offshore exploration in Turkey’s energy landscape. Natural gas constitutes a substantial portion of Turkey’s overall energy supply, accounting for over 25% of the total energy consumed nationwide. This significant share highlights natural gas as a cornerstone of the country’s energy mix, reflecting its widespread use across various sectors including residential heating, industrial processes, and electricity generation. The prominence of natural gas in Turkey’s energy portfolio is attributable to its relative efficiency, lower emissions compared to other fossil fuels, and the availability of extensive infrastructure to support its distribution and consumption. Over the years, natural gas has increasingly supplanted more polluting energy sources, aligning with Turkey’s objectives to modernize its energy system and meet growing demand. Turkey’s annual natural gas consumption typically ranges between 50 and 60 billion cubic meters, a volume that underscores the country’s substantial reliance on this energy source. Despite the large scale of consumption, nearly the entirety of this natural gas is imported, as domestic production has historically been limited. This heavy dependence on imports has rendered Turkey vulnerable to fluctuations in international markets and geopolitical dynamics, prompting concerted efforts to diversify supply sources and develop indigenous reserves. The imported natural gas primarily arrives via pipeline networks and liquefied natural gas (LNG) shipments, facilitating the steady supply required to meet the country’s energy needs. A landmark development in Turkey’s domestic energy production occurred in 2023 with the commencement of natural gas extraction from a large field located in the Black Sea. This event marked a significant milestone, as it represented one of the first substantial contributions of domestically produced natural gas to the national supply. The discovery and subsequent production from this offshore field have been hailed as a breakthrough in Turkey’s quest for energy self-sufficiency. The field’s output has the potential to alleviate some of the pressure on imports, reduce energy costs, and enhance the country’s geopolitical standing by lessening its dependence on foreign suppliers. The geopolitical landscape surrounding Turkey’s natural gas imports underwent notable changes following the onset of the Russian invasion of Ukraine in 2022. In response to the conflict, several European countries implemented policies to cease purchasing Russian oil and gas, aiming to reduce their economic ties with Russia and limit its revenue streams. In contrast, Turkey maintained strong bilateral relations with Russia and continued to import both oil and natural gas from the country. This decision reflected Turkey’s strategic considerations, balancing economic interests, energy security, and diplomatic relations. The continuation of Russian energy imports underscored the complexities of regional energy politics and the challenges faced by countries seeking to diversify their supply sources amid geopolitical tensions. Russia holds a dominant position as a supplier of natural gas to Turkey, accounting for approximately 50% of the country’s total natural gas imports. This substantial share highlights the deep interdependence between the two nations in the energy sector. Russian natural gas is primarily delivered to Turkey via established pipeline routes, including the TurkStream pipeline, which enhances the reliability and volume of supply. The prominence of Russian gas imports has significant implications for Turkey’s energy policy, influencing pricing, contract negotiations, and strategic planning. While Russia’s role as a supplier offers advantages such as proximity and infrastructure connectivity, it also poses risks related to geopolitical volatility and supply disruptions. As of 2023, wholesale natural gas prices in Turkey have remained elevated, contributing substantially to the country’s overall expenditure on energy imports. The high prices reflect a combination of factors, including global market dynamics, supply constraints, and geopolitical uncertainties. Elevated natural gas costs have had a ripple effect across the Turkish economy, impacting industrial production costs, electricity tariffs, and household energy bills. The government has faced challenges in managing these costs while striving to maintain energy affordability and economic competitiveness. The persistence of high wholesale prices underscores the importance of diversifying supply sources, increasing domestic production, and implementing energy efficiency measures. Households constitute the largest consumer segment of natural gas in Turkey, utilizing the fuel primarily for heating and cooking purposes. Following households, industrial users represent the second-largest category of natural gas consumers, employing the fuel in various manufacturing processes and as a feedstock for chemical production. Power generation facilities also consume significant volumes of natural gas, leveraging its relatively clean-burning characteristics to produce electricity. This consumption pattern reflects the versatility of natural gas and its integral role in supporting Turkey’s economic activities and improving living standards. The distribution of consumption among these sectors informs policy decisions related to infrastructure development, pricing, and subsidy allocation. More than 80% of Turkey’s population has access to natural gas infrastructure, indicating widespread availability and integration of gas networks across urban and suburban areas. This extensive infrastructure facilitates the delivery of natural gas directly to homes, businesses, and industrial sites, enabling efficient and reliable energy supply. Natural gas fulfills about half of the nation’s heating needs, underscoring its critical role in domestic energy consumption, particularly during colder months. The expansion of natural gas infrastructure has been a key component of Turkey’s energy strategy, aimed at enhancing energy access, reducing reliance on traditional biomass and coal for heating, and improving air quality. The state-owned oil and gas wholesaler BOTAŞ exerts considerable influence over Turkey’s natural gas market, controlling approximately 80% of the sector. This dominant position enables the government to implement subsidy programs targeted at both residential and industrial gas consumers, mitigating the impact of high energy prices and supporting economic stability. BOTAŞ’s control over the wholesale market also allows for centralized procurement and distribution, facilitating coordinated policy implementation and market regulation. The company’s role is central to Turkey’s efforts to balance market liberalization with social equity and energy security objectives. While BOTAŞ maintains a dominant market share, there exists a degree of liberalization within Turkey’s natural gas market, particularly for industrial and commercial customers. These consumers, along with households that exceed a specified consumption threshold, have the option to switch their natural gas suppliers, introducing competitive dynamics into the market. This policy aims to encourage efficiency, improve service quality, and foster investment by allowing market forces to influence pricing and supply arrangements. The availability of supplier choice for certain consumer segments represents a gradual shift towards a more open and competitive natural gas market in Turkey, aligning with broader trends in energy sector reform.

Oil constitutes a substantial component of Turkey’s energy supply, accounting for over 25% of the country’s total energy consumption. This significant share underscores the critical role oil plays within Turkey’s national energy mix, serving as a primary source for electricity generation, industrial processes, and transportation fuels. Despite this heavy reliance on oil, Turkey’s domestic production capacity remains limited, with the country producing only about 7% of the oil it consumes. This stark disparity between consumption and production necessitates a considerable dependence on imports to satisfy national demand. The limited domestic output means that Turkey must import the vast majority of its oil and oil-derived products, including petrol and diesel. These imported fuels are especially vital for the transportation sector, where petrol and diesel constitute over half of the fuel consumed by road vehicles across the country. The transportation sector’s dependence on imported oil derivatives highlights Turkey’s vulnerability to fluctuations in global oil markets and geopolitical tensions that may affect supply routes or pricing. Furthermore, Turkey’s reliance on imported petroleum products extends beyond conventional fuels, as the country also holds the distinction of being the world’s largest consumer of liquefied petroleum gas (LPG) for road transportation purposes. This unique position reflects both the widespread adoption of LPG as a cost-effective and cleaner alternative to petrol and diesel in Turkey’s vehicle fleet and the country’s strategic efforts to diversify its fuel sources within the transportation sector. The imbalance between Turkey’s low domestic oil production and high consumption levels results in total oil imports exceeding exports by a considerable margin. This trade deficit in oil products presents an ongoing economic challenge, as the country must allocate substantial foreign exchange reserves to finance its oil imports. The persistent need to import large volumes of crude oil and refined petroleum products impacts Turkey’s trade balance and exposes the economy to external shocks, such as price volatility in international oil markets or disruptions in supply chains. Consequently, energy security remains a prominent concern within Turkey’s economic and strategic planning, prompting initiatives aimed at increasing domestic production, diversifying energy sources, and improving energy efficiency. Geopolitical developments have further influenced Turkey’s oil import dynamics in recent years. Following the onset of the 2022 Russian invasion of Ukraine, many European countries imposed sanctions and ceased purchasing Russian oil, petrol, and diesel as part of broader efforts to isolate Russia economically. In contrast, Turkey maintained its imports of oil and petroleum products from Russia, reflecting the strength of its bilateral relations and strategic considerations. This continued reliance on Russian oil imports during a period of significant geopolitical tension underscores Turkey’s complex position as a regional energy hub and its balancing act between Western alliances and its relationships with neighboring powers. Turkey’s geographic location also positions it as a crucial transit route for oil exports from Central Asia to global markets. Tankers navigating the Bosporus Strait, which bisects Istanbul and connects the Black Sea to the Sea of Marmara and onward to the Mediterranean, serve as a vital corridor for transporting oil. This strategic maritime passage facilitates the movement of oil from landlocked Central Asian producers, such as Kazakhstan and Azerbaijan, enabling their crude oil to reach international markets. The Bosporus Strait’s role as a transit route not only contributes to Turkey’s economic activity through transit fees and related services but also enhances its geopolitical significance in global energy supply chains. However, the heavy tanker traffic through this narrow and ecologically sensitive waterway has raised concerns about environmental risks and navigational safety, prompting ongoing discussions about alternative routes and infrastructure investments to mitigate potential hazards. In summary, oil remains a cornerstone of Turkey’s energy landscape, with its substantial share in the energy mix, heavy import dependence, and strategic transit role shaping the country’s economic and geopolitical realities. The interplay between limited domestic production, extensive imports, unique consumption patterns such as high LPG usage, and Turkey’s position as a transit hub through the Bosporus Strait collectively define the complexities of Turkey’s oil sector within its broader economy.

Coal constitutes a significant component of Turkey’s primary energy supply, accounting for approximately one quarter of the total energy consumed in the country. This substantial reliance on coal places Turkey among the largest coal consumers worldwide, reflecting the fuel’s entrenched role in meeting the nation’s energy demands. The Turkish coal industry is heavily subsidized by the government, a policy measure that has bolstered coal’s prominence in the energy sector and supported the operation of numerous coal-fired power plants. These power plants generate over one third of Turkey’s electricity, underscoring coal’s critical contribution to the national electricity grid and energy security. The environmental implications of coal combustion in Turkey are profound, as it contributes roughly one third of the country’s total greenhouse gas emissions. This significant share highlights coal’s role as a major driver of Turkey’s carbon footprint and its impact on climate change. Beyond greenhouse gases, coal usage is a primary source of air pollution throughout the country, adversely affecting public health on a national scale. The detrimental effects are not confined to industrial facilities; coal is also burned extensively in residential settings and urban areas, exacerbating air quality issues and increasing the incidence of respiratory and cardiovascular diseases among the population. The majority of coal combustion in Turkey occurs within power stations, where large-scale burning of coal generates electricity for widespread consumption. Public health studies estimate that if coal-fired power generation were phased out by 2030, rather than the currently projected timelines extending into the 2050s, over 100,000 premature deaths could be prevented. This stark figure illustrates the urgent need for a transition away from coal to mitigate its harmful health consequences. While Turkey has established flue gas emission limits and mandates emissions reporting from coal facilities, the data collected through these regulatory mechanisms is not made publicly accessible. This lack of transparency limits independent assessment of coal’s environmental and health impacts and constrains public discourse on energy policy. Domestically mined coal in Turkey is predominantly lignite, also known as brown coal, which comprises over 90% of the country’s coal production. Lignite is characterized by its lower carbon content and higher moisture levels compared to other coal types, making it more polluting when combusted. The Turkish government’s energy policy actively promotes lignite mining as a strategic measure to fuel coal-fired power plants, aiming to reduce dependence on imported natural gas. This approach reflects a broader energy security strategy that prioritizes the utilization of abundant local lignite reserves to meet growing electricity demand while minimizing the economic vulnerabilities associated with gas imports. Coal’s central role in Turkey’s energy mix is further underscored by its contribution to more than 40% of the nation’s domestic energy production. This substantial share demonstrates coal’s importance not only in electricity generation but also in the overall supply of energy for industrial, residential, and commercial use. Coal consumption in Turkey reached its peak in 2018, marking the highest level of coal burning in the country’s history. Similarly, coal mining activity peaked more recently in 2022, with production reaching approximately 100 million tonnes. This peak in mining output reflects both the scale of domestic lignite exploitation and the ongoing demand for coal as a primary energy source. Despite the considerable volume of lignite produced domestically, Turkey imports the majority of its bituminous coal, which is a higher-grade coal with greater energy content and lower emissions than lignite. The primary source of these imports is Russia, which supplies most of the bituminous coal used in Turkey. This reliance on imported bituminous coal complements the domestic lignite supply and supports industries and power plants that require higher-quality coal for efficient operation. The largest coalfield in Turkey is located in Elbistan, situated in the southeastern part of the country. This coalfield is a significant site for lignite mining and serves as a major source of fuel for nearby coal-fired power stations. The Elbistan coalfield’s extensive reserves have made it a focal point of Turkey’s lignite extraction efforts and energy production infrastructure. Turkey is actively bidding to host the 2026 United Nations Climate Change Conference, a global event that will bring together international leaders to negotiate and advance climate action. A critical issue anticipated to dominate discussions at this conference is the international agreement on coal phase-out. Turkey’s role as host places it at the center of these negotiations, highlighting the tension between its domestic reliance on coal and the global imperative to reduce coal consumption to mitigate climate change. The Turkish Coal Operations Authority (TKİ) is the state-owned enterprise responsible for operating government-owned coal mines across the country. Among the notable mines under its management is the Yeniköy mine located in Milas, which contributes to the supply of lignite for power generation. TKİ’s operations are integral to maintaining coal production levels that support Turkey’s energy needs, particularly in regions where lignite mining is a key economic activity. Through its management of these mines, the Authority plays a central role in the country’s coal industry and its associated economic and environmental dynamics.

In 2019, Turkey solidified its position as a critical player in the global chromium market by ranking as the world’s second largest producer of this essential industrial metal. Chromium, a key component in stainless steel and various alloys, is vital for manufacturing and construction industries worldwide. Turkey’s substantial chromium reserves and efficient mining operations have enabled it to meet a significant portion of global demand, thereby influencing international chromium prices and supply chains. The country’s chromium production reflects a long-standing tradition of mining in regions such as the Elazığ and Guleman districts, where rich chromite deposits have been exploited for decades. Alongside chromium, Turkey demonstrated unparalleled dominance in the production of boron minerals in 2019, holding the position of the largest boron producer worldwide. Boron, used extensively in glass and ceramics manufacturing, agriculture, and detergents, is a strategic mineral for various industrial applications. Turkey’s vast boron reserves, primarily located in the western provinces of Eskişehir, Kütahya, and Balıkesir, account for a significant share of the world’s known boron deposits. The country’s control over this resource has not only supported domestic industries but also positioned Turkey as a key exporter, shaping global boron market dynamics and supply security. In addition to chromium and boron, Turkey ranked as the sixth largest producer of antimony globally in 2019, underscoring its substantial output of this critical mineral. Antimony is primarily used in flame retardants, lead-acid batteries, and various alloys, making it an important mineral for industrial and technological applications. Turkish antimony production is concentrated in regions such as Eskişehir and Balıkesir, where deposits have been developed to support both domestic consumption and export markets. The country’s position in the global antimony market highlights its diversified mineral portfolio and the strategic importance of its mining sector. Turkey’s mineral production also extended to lead, where it ranked ninth globally in 2019, reflecting its significant contribution to the international lead supply. Lead, widely used in batteries, radiation shielding, and construction materials, remains a critical industrial metal. The country’s lead mining activities are often associated with zinc production, given the common geological occurrence of these minerals together. Regions such as Balıkesir and Kastamonu have historically been centers of lead extraction, and Turkey’s consistent production levels have ensured a steady supply to both domestic industries and export markets. Iron ore mining in Turkey also demonstrated notable activity, with the country ranking as the 13th largest producer worldwide in 2019. Iron ore serves as the primary raw material for steel production, a cornerstone of Turkey’s industrial sector. The country’s iron ore deposits are primarily located in the western and central parts of Anatolia, including the Sivas and Balıkesir provinces. Turkish iron ore production supports the robust domestic steel industry, which is a significant contributor to the country’s economy and export portfolio. The ranking reflects Turkey’s ability to maintain substantial iron ore output despite global competition from major producers such as Australia and Brazil. Molybdenum production further diversified Turkey’s mineral portfolio, with the country ranking 11th globally in 2019. Molybdenum is an important alloying element used to enhance the strength, hardness, and corrosion resistance of steel. Turkish molybdenum deposits, primarily found in the eastern Anatolian region, have been developed to supply both local steel producers and international markets. The country’s position in the molybdenum sector illustrates its expanding capabilities in mining and mineral processing, contributing to the broader industrial development agenda. Gypsum extraction in Turkey also reached significant levels, with the country ranking as the fourth largest producer globally in 2019. Gypsum is widely used in construction, particularly in the manufacture of plaster, drywall, and cement. Turkey’s abundant gypsum reserves are distributed across various regions, including Denizli, Muğla, and Afyon, where quarrying operations have been established to meet both domestic demand and export opportunities. The high ranking underscores Turkey’s role as a key supplier of gypsum in the international building materials market. Graphite production in Turkey, while not as dominant as other minerals, still positioned the country as the 15th largest producer worldwide in 2019. Graphite is essential for applications ranging from lubricants and refractories to batteries and pencils. Turkey’s graphite deposits are relatively limited in size but have been developed sufficiently to contribute to the global supply chain. The country’s involvement in graphite mining reflects its broader strategy to diversify mineral extraction and support emerging technologies, particularly in the energy storage sector. Salt production in Turkey also maintained a notable scale, with the country ranking as the 11th largest producer globally in 2019. Salt, a fundamental mineral for chemical industries, food processing, and de-icing, is extracted from both sea salt evaporation and underground mining operations. Coastal regions such as İzmir and Çanakkale host extensive saltworks, while inland salt deposits are exploited in areas like Tuz Gölü (Salt Lake). Turkey’s salt production capacity supports a range of industrial and agricultural applications, contributing to both domestic needs and export markets. In the precious metals sector, Turkey’s gold production was ranked 22nd globally in 2019, reflecting its emerging status within the international gold mining industry. Although not among the top producers worldwide, Turkey’s gold mining activities have been growing steadily, driven by investments in exploration and development. The country’s gold deposits are primarily located in the western and central parts of Anatolia, where geological conditions favor the formation of significant mineralization. This upward trajectory in gold production signals Turkey’s increasing importance as a source of this valuable metal. Within the European context, Turkey stands out as the largest gold producer on the continent, hosting some of Europe’s most substantial gold deposits. This distinction highlights the country’s strategic role in supplying gold to European markets and its comparative advantage over other European nations with smaller or less developed gold mining operations. Turkey’s gold mining industry benefits from favorable geology, modern mining techniques, and supportive regulatory frameworks that encourage exploration and production. In 2020, Turkey produced approximately 42 tonnes of gold, emphasizing its growing production volume and the expanding scale of its gold mining sector. This output reflects ongoing investments in mining infrastructure and exploration activities aimed at increasing resource extraction. The steady increase in gold production also aligns with global trends of rising demand for precious metals, driven by their use in jewelry, electronics, and as financial assets. Among the notable world-class gold deposits in Turkey are the Kisladag Mine and the Copler deposit, which collectively represent some of the largest gold reserves in the country. The Kisladag Mine, operated by a major mining company, contains an estimated 17 million ounces (Moz) of gold, making it one of the largest open-pit gold mines in Europe and a significant contributor to Turkey’s gold output. The Copler deposit, with an estimated 10 million ounces (Moz) of gold, further underscores the country’s potential to expand its gold production in the coming years. These deposits not only enhance Turkey’s mining profile but also attract foreign investment and technological expertise. In addition to metallic minerals, Turkey has a notable presence in the extraction of dimension stones such as marble. The country’s marble quarries are widespread, reflecting a rich geological endowment of high-quality marble varieties. Turkish marble is renowned for its aesthetic qualities and is exported extensively for use in construction, sculpture, and interior design. Although specific details on production volumes or global ranking were not provided, the existence of these quarries indicates Turkey’s active participation in the dimension stone market and its contribution to the global supply of ornamental stones.

Following the onset of the COVID-19 pandemic, governments worldwide implemented extensive economic stimulus measures aimed at mitigating the severe economic downturn caused by lockdowns and disruptions in global supply chains. However, a significant proportion of these stimulus packages proved detrimental to environmental sustainability, as they often prioritized rapid economic recovery over ecological considerations. Among the countries analyzed, Turkey emerged as one of the least environmentally responsible in its post-pandemic recovery efforts, with Russia identified as the only nation performing worse in terms of the environmental impact of its stimulus measures. This assessment reflects the tendency of these countries to channel substantial financial support toward fossil fuel industries, thereby reinforcing carbon-intensive energy systems and undermining global climate goals. In the context of Turkey’s energy economy during the 21st century, fossil fuel subsidies have represented a notable component of government expenditure. These subsidies, which include direct financial transfers, tax exemptions, and other forms of economic support designed to lower the cost of fossil fuel production and consumption, have amounted to approximately 0.2% of Turkey’s Gross Domestic Product (GDP). This figure underscores the persistent role of fossil fuels in Turkey’s energy policy, despite increasing global emphasis on transitioning to renewable energy sources. The subsidy rate, while seemingly modest as a percentage of GDP, translates into substantial absolute monetary support given the size of Turkey’s economy, reflecting the government’s continued commitment to maintaining fossil fuel affordability and accessibility. Between January 2020 and September 2021, Turkey allocated at least US$14 billion in subsidies directed toward fossil fuels. When distributed across the country’s population, this amount corresponds to approximately US$169 per person, highlighting the significant scale of public financial support underpinning fossil fuel consumption. This period coincided with the global COVID-19 pandemic, during which Turkey, like many other nations, sought to stabilize its economy through various fiscal interventions. The considerable allocation of funds toward fossil fuel subsidies during this time illustrates the prioritization of traditional energy sectors in economic recovery strategies, despite mounting concerns about the long-term environmental consequences of continued fossil fuel dependence. A critical aspect of Turkey’s fossil fuel subsidy framework is the lack of transparency regarding the financial support extended by state-owned banks and export credit agencies. Detailed data on the magnitude and nature of such support remain unavailable to the public, hindering comprehensive analysis of the government’s role in perpetuating fossil fuel reliance. State-owned financial institutions and export credit agencies often play pivotal roles in facilitating investments and trade related to energy infrastructure, and their involvement in fossil fuel financing can significantly influence the country’s energy trajectory. The absence of publicly accessible information on these financial flows raises questions about accountability and the potential for reform in aligning Turkey’s financial sector with environmental sustainability objectives. As of 2023, the structure of fossil fuel subsidies in Turkey reveals a notable disparity between support for fossil gas and electricity. Subsidies allocated to fossil gas exceed those provided for electricity, reflecting the government’s emphasis on natural gas as a key component of the country’s energy mix. This imbalance has drawn attention from environmental analysts and policymakers, who identify the equalization of subsidies between fossil gas and electricity as a critical measure that could yield environmental benefits. By adjusting subsidy policies to reduce preferential treatment of fossil gas and promote cleaner electricity generation, Turkey could make strides toward reducing greenhouse gas emissions and advancing its commitments under international climate agreements. Such policy shifts would align with broader efforts to transition to sustainable energy systems and mitigate the environmental impacts associated with fossil fuel consumption.

As of January 1, 2025, the minimum wage in Turkey was officially established at ₺22,104 per month, which corresponded to approximately US$630.36 based on prevailing exchange rates. This wage level represented a critical benchmark for labor income in the country, reflecting ongoing efforts by the government to adjust earnings in line with inflation, cost of living, and economic conditions. The minimum wage served as a foundational floor for workers’ earnings, particularly impacting low-income households and sectors with high labor intensity. Adjustments to the minimum wage were often influenced by negotiations involving government officials, employer representatives, and labor unions, aiming to balance the needs of workers with the broader economic environment. In terms of labor market dynamics, TurkStat, the Turkish Statistical Institute, estimated the national unemployment rate at 9.4% for the year 2023. This figure provided an official gauge of the proportion of the labor force that was actively seeking employment but remained jobless. The unemployment rate was a key indicator of economic health, reflecting both cyclical and structural factors affecting labor demand and supply. While a 9.4% unemployment rate indicated persistent challenges in absorbing the workforce, it also suggested some degree of labor market stabilization compared to previous years marked by higher volatility. The rate encompassed various demographic groups, including youth, women, and rural populations, each facing distinct employment challenges within the Turkish economy. Regional disparities in unemployment rates were pronounced across Turkey’s provinces in 2023, highlighting uneven economic development and labor market conditions. Among all provinces, Hakkari recorded the highest unemployment rate at 23.3%, more than double the national average. This elevated rate underscored the economic difficulties faced by the province, which is located in the southeastern part of the country and has historically grappled with infrastructural deficits, limited industrial activity, and socio-political challenges. High unemployment in Hakkari reflected the scarcity of job opportunities and the need for targeted regional development policies to stimulate economic growth and employment. In contrast, Sinop province exhibited the lowest unemployment rate in 2023, measured at 4.8%. Situated along the Black Sea coast, Sinop benefited from relatively more favorable economic conditions, including a diversified local economy with sectors such as agriculture, fishing, and tourism contributing to employment. The low unemployment rate in Sinop suggested better labor absorption capacity and a relatively healthier job market compared to other regions. This stark contrast between provinces like Hakkari and Sinop illustrated the significant regional imbalances in Turkey’s labor market, necessitating differentiated policy approaches to address localized unemployment challenges. In 2021, Turkish trade unions raised concerns regarding discrepancies between unemployment data reported by different official sources, drawing attention to methodological and definitional differences that complicated accurate labor market assessment. TurkStat data indicated a declining unemployment rate during that period, suggesting improvements in employment conditions. However, figures from the government’s Employment Agency, known as İŞKUR, painted a contrasting picture, showing an increasing trend in unemployment. This divergence highlighted the complexities involved in measuring unemployment, as TurkStat’s data was based on household surveys capturing broad labor force participation, while İŞKUR’s statistics reflected registered job seekers actively using employment services. Trade unions emphasized the need for updating and harmonizing these data sources to provide a clearer and more consistent understanding of employment trends, which was essential for effective policy formulation and labor market interventions. Environmental advocates in Turkey have argued that initiatives aimed at improving ecological sustainability, particularly investments in renewable energy sources such as wind and solar power, could yield dual benefits by enhancing environmental quality and stimulating economic growth through job creation. These advocates highlighted that transitioning to cleaner energy technologies would not only reduce pollution and greenhouse gas emissions but also generate new employment opportunities across various stages of the renewable energy value chain. This included jobs in manufacturing, installation, maintenance, and research and development, thereby contributing to broader socio-economic development objectives. The promotion of renewable energy was thus framed as a strategic approach to align environmental goals with labor market expansion and economic diversification. The renewable energy sectors, notably wind and solar power, in Turkey have increasingly been recognized as competitive alternatives to traditional fossil fuel industries. Advances in technology, declining costs of renewable energy equipment, and supportive government policies enhanced the viability of these sectors within the national energy mix. Their growing competitiveness improved their potential to contribute positively to the labor market by creating sustainable employment opportunities in both urban and rural areas. Moreover, the expansion of renewable energy infrastructure was seen as a means to reduce Turkey’s dependence on imported fossil fuels, improve energy security, and foster innovation-driven economic growth. This shift toward renewables was expected to have multiplier effects on the economy, supporting related industries and promoting regional development through localized energy projects.

Turkey witnessed a notable and sustained reduction in poverty levels beginning in the early 2000s and continuing through the mid-2010s, reflecting a period of steady economic growth and social development. This progress was driven by a combination of structural reforms, increased employment opportunities, and targeted social policies aimed at improving income distribution and access to essential services. The expansion of the formal labor market, along with rising wages and enhanced social protection mechanisms, contributed significantly to elevating living standards across various regions and demographic groups. As a result, the proportion of the population living below the national poverty line declined consistently throughout this period, marking a significant achievement in Turkey’s socioeconomic landscape. By 2022, Turkey’s commitment to social welfare was further underscored by its allocation of resources to social security programs, which accounted for 12.4% of the country’s Gross Domestic Product (GDP). This figure, reported by the Organisation for Economic Co-operation and Development (OECD), highlights the substantial role that social security expenditure plays in the national economy. The social security system in Turkey encompasses a wide range of benefits, including pensions, healthcare, unemployment insurance, and family support, all of which are critical components in mitigating poverty and providing a safety net for vulnerable populations. The allocation of over one-tenth of GDP to social security reflects the government’s prioritization of social protection as a means to sustain and build upon the poverty reduction achievements of previous decades. This level of expenditure also indicates ongoing challenges related to demographic changes, labor market dynamics, and the need to maintain fiscal sustainability while addressing the social needs of an evolving population.

According to Eurostat data from 2018, Turkey’s gross domestic product (GDP) per capita, when adjusted by purchasing power standards (PPS), stood at 64 percent of the European Union (EU) average. This measure accounts for differences in price levels between countries, providing a more accurate comparison of living standards and economic productivity. The figure highlights that, despite Turkey’s status as an emerging economy with significant growth potential, its average income and economic output per person remained substantially below the EU benchmark. This disparity reflects the broader structural challenges Turkey faces in achieving economic convergence with more developed European nations, influenced by factors such as regional inequalities, industrial diversification, and labor market dynamics. Within Turkey, the distribution of economic activity and wealth is markedly uneven, with Istanbul emerging as the city with the largest total GDP. As the country’s most populous metropolis and its primary financial and commercial hub, Istanbul plays a pivotal role in Turkey’s economy. Its strategic location straddling Europe and Asia facilitates extensive trade, investment, and industrial activity, contributing to its dominant economic position. The city’s diverse economy encompasses finance, manufacturing, tourism, and services sectors, which collectively generate a substantial share of national output. Istanbul’s economic prominence underscores the centralization of resources and opportunities in metropolitan centers, which contrasts sharply with the economic conditions in less developed regions. In terms of GDP per capita, the province of Kocaeli holds the highest rank in Turkey, surpassing all other regions. Located in the Marmara Region near Istanbul, Kocaeli benefits from its proximity to the country’s largest economic center and its well-developed industrial infrastructure. The province hosts a concentration of heavy industry, including automotive manufacturing, petrochemicals, and machinery production, which drives its elevated per capita income. Kocaeli’s economic performance exemplifies how industrial specialization and integration with broader economic networks can elevate regional prosperity. This high GDP per capita reflects not only the volume of economic activity but also the relatively higher income levels and employment opportunities available to its residents. Economic wealth in Turkey is predominantly concentrated in the northwest and western regions of the country. These areas, including the Marmara Region and parts of the Aegean and Mediterranean coasts, have historically been centers of industrialization, trade, and urban development. The northwest, in particular, benefits from its proximity to Europe, well-established infrastructure, and a diversified economy encompassing manufacturing, services, and agriculture. Cities such as Istanbul, Bursa, and İzmir serve as economic engines, attracting investment and skilled labor. This concentration of wealth contrasts with the economic landscape in other parts of Turkey, where development has lagged due to geographic, infrastructural, and socio-political factors. In stark contrast, the eastern and southeastern regions of Turkey experience significant poverty, lower levels of economic production, and higher unemployment rates compared to the more prosperous western parts of the country. These regions, which include provinces such as Şanlıurfa, Diyarbakır, and Van, face structural challenges that impede economic development. Factors such as limited industrialization, inadequate infrastructure, lower educational attainment, and ongoing socio-political tensions contribute to persistent economic underperformance. The agricultural sector dominates these areas but often suffers from low productivity and vulnerability to climatic conditions. Consequently, residents in the east and southeast encounter fewer employment opportunities, lower incomes, and reduced access to services, which perpetuates regional disparities and social inequalities. Despite these regional disparities, Turkey experienced rapid GDP growth during the first two decades of the 21st century, which contributed to improved economic standards in parts of Anatolia. Between 2000 and 2020, Turkey’s economy expanded significantly, driven by structural reforms, increased foreign investment, and a growing domestic market. While the country faced brief periods of economic stagnation and recession—such as the global financial crisis of 2008–2009 and domestic economic challenges in the late 2010s—the overall trend was one of robust growth. This expansion facilitated rising incomes, urbanization, and improved infrastructure in many Anatolian cities, which had previously been less developed. The growth helped narrow some regional gaps, although disparities remained pronounced. The cities in Anatolia that experienced notable economic growth and rising standards of living during this period have collectively been referred to as the “Anatolian Tigers.” This term describes a group of rapidly industrializing and economically dynamic urban centers located primarily in central and eastern Anatolia. These cities, including Kayseri, Gaziantep, Denizli, and Konya, distinguished themselves through entrepreneurial activity, export-oriented manufacturing, and investments in infrastructure and education. The Anatolian Tigers leveraged local resources, small and medium-sized enterprises, and regional trade networks to foster economic resilience and diversification. Their development challenged the traditional economic dominance of western Turkey and demonstrated the potential for balanced regional growth within the country’s broader economic framework.

In 2022, Turkey’s gross domestic product (GDP) per capita, measured in purchasing power standards (PPS), stood at €23,800, which corresponded to 67% of the average GDP per capita across the European Union’s 28 member states (EU-28). This figure, derived from Eurostat’s European System of Accounts (ESA) data, provided a comparative measure of economic output adjusted for price level differences, allowing for a more accurate cross-country comparison of living standards and economic productivity. The national average reflected Turkey’s position as an emerging economy with substantial regional disparities in wealth and development. Among Turkey’s NUTS-2 regions, Istanbul emerged as the wealthiest in 2022, with a GDP per capita of €38,700. This level of economic output per inhabitant exceeded the EU-28 average by 9%, reaching 109% of the EU benchmark. Istanbul’s status as a major metropolitan hub, financial center, and port city contributed significantly to its elevated GDP per capita, reflecting its diversified economy encompassing finance, manufacturing, trade, and services. The city’s economic dynamism attracted both domestic and foreign investment, reinforcing its position as Turkey’s economic powerhouse. Following Istanbul, the province of Kocaeli ranked second among the richest NUTS-2 regions with a GDP per capita of €31,500, equivalent to 89% of the EU-28 average. Kocaeli’s economy was heavily influenced by its industrial base, particularly in automotive manufacturing, petrochemicals, and heavy industry, benefiting from its proximity to Istanbul and access to key transportation corridors. This industrial concentration fostered higher productivity and income levels compared to many other Turkish regions. Ankara, the capital city of Turkey, closely trailed Kocaeli with a GDP per capita of €31,100, representing 88% of the EU-28 average. As the administrative and political center of the country, Ankara’s economy was supported by public administration, defense industries, education, and services sectors. The presence of government institutions and universities contributed to a relatively high economic output per capita, positioning Ankara among the top-tier regions in terms of wealth. Tekirdağ recorded a GDP per capita of €29,700 in 2022, amounting to 84% of the EU-28 average. This province, located in the Marmara region, benefited from a combination of agricultural productivity, industrial activities, and its strategic location near Istanbul and the European border. The development of logistics centers and manufacturing industries, including food processing and textiles, played a significant role in elevating Tekirdağ’s economic performance. Izmir, a major port city on the Aegean coast, had a GDP per capita of €29,500 in 2022, corresponding to 83% of the EU-28 average. Izmir’s economy was characterized by a diverse industrial base, including manufacturing, trade, agriculture, and tourism. The city’s port facilitated significant import-export activities, while its cultural and historical attractions supported a vibrant tourism sector. These factors combined to sustain a relatively high level of economic output per capita. Bursa, situated in northwestern Turkey, recorded a GDP per capita of €25,700, which was 73% of the EU-28 average. Known for its automotive industry, textile production, and machinery manufacturing, Bursa’s industrial sector was a key driver of its economic output. The city’s proximity to Istanbul and its well-developed infrastructure further enhanced its economic competitiveness and contributed to its relatively elevated GDP per capita. Antalya, a prominent tourist destination on the Mediterranean coast, had a GDP per capita of €23,900 in 2022, representing 68% of the EU-28 average. The region’s economy was heavily reliant on tourism, which generated significant revenue through hospitality, entertainment, and related services. While tourism provided substantial income, the seasonal nature of the industry and limited industrial diversification influenced Antalya’s overall GDP per capita relative to other regions. Balıkesir’s GDP per capita was €21,600, equal to 61% of the EU-28 average. This province, located in the Marmara region, combined agricultural production with industrial activities such as food processing, chemicals, and machinery manufacturing. Balıkesir’s economic profile reflected a balance between traditional sectors and emerging industries, contributing to its moderate level of wealth. Aydın registered a GDP per capita of €20,900, accounting for 59% of the EU-28 average. The region’s economy was primarily based on agriculture, including fruit and vegetable cultivation, as well as tourism centered around its historical sites and natural attractions. Despite these economic activities, Aydın’s GDP per capita remained below the national average, indicating ongoing challenges in economic development and diversification. Manisa and Adana both reported a GDP per capita of €20,000 in 2022, each representing 56% of the EU-28 average. Manisa’s economy was supported by agriculture, manufacturing, and energy production, including significant industrial zones that fostered exports. Adana, located in southern Turkey, had a diversified economy encompassing agriculture, food processing, textiles, and petrochemicals. Both provinces demonstrated mid-level economic performance relative to the national and European averages. Konya’s GDP per capita was €19,100, which constituted 54% of the EU-28 average. As one of Turkey’s largest provinces by area, Konya’s economy was traditionally based on agriculture, but it had increasingly diversified into manufacturing, automotive parts production, and machinery. The region’s economic transformation contributed to gradual improvements in income levels, although it remained below the national average. Zonguldak recorded a GDP per capita of €18,700, amounting to 53% of the EU-28 average. Historically known for its coal mining industry, Zonguldak’s economy faced structural challenges due to the decline of mining activities. Efforts to diversify into manufacturing and services were ongoing, but the region’s GDP per capita reflected the lingering effects of industrial transition. Kırıkkale had a GDP per capita of €17,700, representing 50% of the EU-28 average. The province’s economy was centered on defense manufacturing, chemical production, and heavy industry. Despite these industrial sectors, Kırıkkale’s economic output per capita remained at half the EU average, highlighting disparities in regional development. Kayseri’s GDP per capita was €17,500, corresponding to 49% of the EU-28 average. Known for its entrepreneurial culture and diverse manufacturing base, including furniture, textiles, and machinery, Kayseri had experienced steady economic growth. However, its GDP per capita still lagged behind more affluent regions, reflecting ongoing developmental challenges. Gaziantep also had a GDP per capita of €17,400, equal to 49% of the EU-28 average. The city was a major industrial and commercial center in southeastern Turkey, with strengths in textiles, food processing, and automotive parts production. Gaziantep’s economic vitality was notable within the region, though its per capita GDP remained below the national mean. Kastamonu’s GDP per capita was €16,700, which represented 47% of the EU-28 average. The province’s economy was predominantly based on forestry, agriculture, and small-scale manufacturing. Limited industrialization and infrastructural constraints contributed to Kastamonu’s relatively low economic output per capita. Hatay recorded a GDP per capita of €15,700, representing 44% of the EU-28 average. Situated near the Syrian border, Hatay’s economy included agriculture, manufacturing, and trade. The region faced socio-economic challenges linked to its geographic location and demographic composition, which influenced its economic performance. Samsun had a GDP per capita of €14,000, amounting to 39% of the EU-28 average. As a Black Sea coastal city, Samsun’s economy was diversified across agriculture, manufacturing, and port activities. Despite its strategic location, the region’s GDP per capita remained significantly below the EU average, indicating developmental disparities. Erzurum’s GDP per capita was €13,900, corresponding to 39% of the EU-28 average. Located in eastern Turkey, Erzurum’s economy was largely based on agriculture, livestock, and public services. Harsh climatic conditions and limited industrial activity contributed to its relatively low economic output per capita. Trabzon recorded a GDP per capita of €13,200, equal to 37% of the EU-28 average. The city, situated on the Black Sea coast, had an economy focused on port services, trade, and agriculture. Despite its historical significance and strategic location, Trabzon’s GDP per capita reflected ongoing economic challenges. Malatya had a GDP per capita of €12,900, representing 37% of the EU-28 average. The province was known for its apricot production and agricultural activities, supplemented by small-scale manufacturing. Economic diversification remained limited, contributing to its low relative GDP per capita. Mardin’s GDP per capita was €12,200, which was 34% of the EU-28 average. Located in southeastern Turkey, Mardin’s economy was based on agriculture, trade, and tourism centered on its rich cultural heritage. However, socio-political issues and infrastructural deficits constrained its economic development. Ağrı had a GDP per capita of €9,800, amounting to 28% of the EU-28 average. This eastern province’s economy was predominantly agricultural, with limited industrialization and infrastructural development. Ağrı’s low GDP per capita highlighted the significant regional disparities within Turkey. Şanlıurfa recorded a GDP per capita of €9,100, representing 26% of the EU-28 average. The province’s economy was largely agricultural, with some industrial activities and a growing services sector. Despite its economic potential, Şanlıurfa remained one of the less affluent regions in Turkey. Van was the poorest NUTS-2 region in Turkey in 2022, with a GDP per capita of €8,600, which equated to only 24% of the EU-28 average. Located in eastern Turkey, Van’s economy was characterized by agriculture, livestock, and limited industrial activity. The region faced significant socio-economic challenges, including infrastructural deficits and limited access to markets, which contributed to its low level of economic output per capita. This stark contrast with wealthier regions such as Istanbul underscored the pronounced regional economic inequalities within Turkey.

In 2022, the gross domestic product (GDP) per capita of Turkey was recorded at €23,800, reflecting approximately 67% of the average GDP per capita among the 28 member states of the European Union (EU-28), as reported by Eurostat under the European System of Accounts (ESA) framework. This figure highlights Turkey’s economic standing relative to the EU, indicating that while the country’s overall economic output per person was below the EU average, it still represented a significant proportion of the European benchmark. The GDP per capita serves as a key indicator of economic performance and living standards, and Turkey’s position at two-thirds of the EU-28 average underscores the ongoing economic development challenges and regional disparities within the country. Among the Nomenclature of Territorial Units for Statistics (NUTS-1) regions in Turkey, Istanbul emerged as the wealthiest in 2022, with a GDP per capita of €38,700. This level of economic output per person exceeded the EU-28 average, reaching 109%, thereby positioning Istanbul not only as the richest region in Turkey but also as a region with economic productivity comparable to or surpassing many European counterparts. Istanbul’s status as the economic hub of Turkey is supported by its strategic location, extensive industrial base, financial services sector, and vibrant commercial activity, which collectively contribute to its high GDP per capita. The city’s economic dynamism attracts both domestic and international investment, fostering a concentration of wealth and economic opportunities that distinguish it from other regions. The East Marmara region followed Istanbul in terms of economic prosperity, with a GDP per capita of €28,600 in 2022, corresponding to 81% of the EU-28 average. This region benefits from its proximity to Istanbul and its role as a significant industrial and manufacturing center, particularly in sectors such as automotive production, machinery, and textiles. The industrial infrastructure and export-oriented economy of East Marmara have been instrumental in elevating its GDP per capita above the national average, reflecting a relatively high level of economic development. The region’s economic profile is characterized by a blend of urban and semi-urban areas, which support a diverse economic base and contribute to its comparatively strong performance within Turkey. West Anatolia recorded a GDP per capita of €27,400 in 2022, representing 77% of the EU-28 average. This region encompasses key urban centers such as Ankara, the capital city of Turkey, which serves as a political, administrative, and economic hub. The presence of government institutions, educational establishments, and a growing service sector has supported West Anatolia’s economic output. Additionally, the region’s agricultural activities, manufacturing industries, and emerging technology sectors have contributed to its GDP per capita, positioning it as one of the more economically advanced regions in Turkey. West Anatolia’s economic structure reflects a balance between traditional industries and modern economic activities, facilitating steady growth and development. West Marmara’s GDP per capita stood at €25,800 in 2022, amounting to 73% of the EU-28 average. This region includes important industrial and agricultural zones, benefiting from its geographical location near the Marmara Sea and its connections to both European and Asian markets. The economic activities in West Marmara are diverse, encompassing manufacturing, logistics, and agriculture, which collectively support its relatively high GDP per capita. The region’s infrastructure development and integration into regional and international trade networks have played a crucial role in sustaining its economic performance. West Marmara’s economic profile reflects the advantages of its strategic location and the diversification of its economic base. The Aegean region recorded a GDP per capita of €24,200 in 2022, which equated to 68% of the EU-28 average. Known for its rich historical heritage and tourism industry, the Aegean region also hosts significant industrial and agricultural sectors. The combination of tourism, manufacturing, and agricultural production has contributed to its economic output, supporting a GDP per capita slightly above the national average. Coastal cities within the region, such as İzmir, serve as important commercial and industrial centers, enhancing the region’s economic standing. The Aegean’s economic landscape is characterized by a mix of modern industries and traditional sectors, which together sustain its relatively robust GDP per capita. In contrast, the Mediterranean region’s GDP per capita was €19,900 in 2022, representing 56% of the EU-28 average. This region, while benefiting from tourism and agriculture, faces economic challenges that limit its GDP per capita relative to more industrialized regions. The Mediterranean’s economy is heavily influenced by seasonal tourism, which can lead to fluctuations in income and employment. Agricultural activities, including the production of citrus fruits, vegetables, and cotton, contribute to the region’s economic base but generally yield lower value-added compared to industrial sectors. The Mediterranean region’s economic profile reflects a reliance on primary sectors and service industries that, while vital, do not generate the same level of economic output per capita as more industrialized or urbanized regions. Central Anatolia had a GDP per capita of €17,600 in 2022, which represented 50% of the EU-28 average. This region, encompassing the capital city Ankara, also includes extensive rural areas where agriculture remains a dominant economic activity. The economic output per person in Central Anatolia is constrained by the relatively lower industrialization and limited diversification in certain rural provinces. Nonetheless, the presence of administrative functions and some industrial development in urban centers contributes to the region’s GDP per capita. Central Anatolia’s economic structure is marked by a combination of public sector employment, agriculture, and emerging industrial activities, which together shape its moderate economic performance. The West Black Sea region recorded a GDP per capita of €15,500 in 2022, amounting to 44% of the EU-28 average. This region’s economy is largely based on forestry, agriculture, and fishing, with limited industrial development compared to western parts of Turkey. The geographic and climatic conditions of the West Black Sea region support the cultivation of hazelnuts, tea, and other agricultural products, which form the backbone of the local economy. However, the relatively low levels of industrialization and urbanization contribute to its lower GDP per capita. Infrastructure challenges and limited access to larger markets also affect the region’s economic growth potential, resulting in a GDP per capita significantly below the national average. East Black Sea’s GDP per capita was €13,200 in 2022, corresponding to 37% of the EU-28 average. This region is characterized by mountainous terrain and a predominantly rural population engaged in small-scale agriculture, forestry, and fishing. Economic activities are often constrained by geographic isolation and limited infrastructure, which hinder industrial development and access to broader markets. The East Black Sea region’s economy relies heavily on traditional sectors with low productivity levels, contributing to its relatively low GDP per capita. Efforts to improve infrastructure and diversify economic activities have been ongoing, but the region continues to lag behind more economically developed areas of Turkey. Southeast Anatolia had a GDP per capita of €12,500 in 2022, amounting to 35% of the EU-28 average. This region, which includes parts of the historically underdeveloped southeastern provinces of Turkey, faces significant economic challenges related to infrastructure, education, and industrialization. Agriculture remains a primary economic activity, with efforts to develop irrigation and improve agricultural productivity ongoing. The region’s economic development has been hampered by social and political factors, as well as limited investment in industrial and service sectors. Consequently, Southeast Anatolia’s GDP per capita remains among the lowest in the country, reflecting persistent regional disparities in economic development. Northeast Anatolia’s GDP per capita was €11,800 in 2022, representing 33% of the EU-28 average. This region is marked by rugged terrain, harsh climatic conditions, and a predominantly rural population engaged in subsistence agriculture and animal husbandry. Industrial activities are minimal, and infrastructure development has been slow, limiting economic growth and diversification. The low levels of economic output per person in Northeast Anatolia highlight the structural challenges faced by the region, including limited access to education, healthcare, and markets. These factors contribute to the region’s position as one of the less economically developed areas within Turkey. The poorest NUTS-1 region in Turkey in 2022 was Central East Anatolia, which recorded a GDP per capita of only €10,500, equating to 30% of the EU-28 average. This region encompasses some of the most economically disadvantaged provinces in Turkey, characterized by low population density, limited industrial activity, and a heavy reliance on agriculture and animal husbandry. The economic underdevelopment of Central East Anatolia is compounded by geographic isolation, inadequate infrastructure, and limited access to education and healthcare services. These factors have constrained economic growth and contributed to persistent poverty and low living standards. The region’s GDP per capita, being the lowest among all NUTS-1 regions in Turkey, illustrates the stark regional economic disparities that persist within the country.