GDP, current US$ billion
GDP per capita, current US$
Life Expectancy at Birth, years (2014)
Turkey’s performance since 2000 has been impressive. Macroeconomic and fiscal stability were at the heart of its performance, enabling increased employment and incomes and making Turkey an upper-middle-income country. Poverty incidence more than halved over 2002-15, and extreme poverty fell even faster. During this time, Turkey urbanized dramatically, opened to foreign trade and finance, harmonized many laws and regulations with European Union (EU) standards, and greatly expanded access to public services.
Although Turkey’s growth prospects are reasonably robust, with an expected 4% growth rate for 2017 and for the medium term, it faces challenges to moving into highincome status. Turkey’s macroeconomic achievements are also being challenged. Domestic challenges and a deteriorating geopolitical environment have negatively impacted exports, investment, and growth.
The strong recovery in 2017 mostly depends on a fiscal stimulus that is expected as a short-term measure only. The influx of 3 million Syrian refugees in 2015–16 created new social, economic, and political demands, particularly in urban centers. The Government will need to take strong measures to revitalize private investment, boost growth, and resume Turkey’s convergence with Europe.
Political developments in 2015 and 2016 presented challenges. Elections in June and November 2015, a cabinet reshuffle in May 2016, an attempted coup in July, and the consequent dismissals of public officials have all affected the Government’s reform momentum. At the same time, a series of terrorist attacks weakened tourist arrivals and foreign investment. Private investments were delayed, leading to slower economic growth.
Last Updated: Oct 09, 2017