Chamber of Commerce Country Factsheet Last update: 10.08.2017
Your advisors at the Chamber of Commerce
- Edith Stein+352423939482
- Daniel Sahr+352423939313
Modern Turkey was founded in 1923 from the Anatolian remnants of the defeated Ottoman Empire by national hero Mustafa KEMAL, who was later honored with the title Ataturk or "Father of the Turks." Under his leadership, the country adopted wide-ranging social, legal, and political reforms. After a period of one-party rule, an experiment with multi-party politics led to the 1950 election victory of the opposition Democratic Party and the peaceful transfer of power. Since then, Turkish political parties have multiplied, but democracy has been fractured by periods of instability and intermittent military coups (1960, 1971, 1980), which in each case eventually resulted in a return of political power to civilians. In 1997, the military again helped engineer the ouster - popularly dubbed a "post-modern coup" - of the then Islamic-oriented government. Turkey intervened militarily on Cyprus in 1974 to prevent a Greek takeover of the island and has since acted as patron state to the "Turkish Republic of Northern Cyprus," which only Turkey recognizes. A separatist insurgency begun in 1984 by the Kurdistan Workers' Party (PKK) - now known as the Kurdistan People's Congress or Kongra-Gel (KGK) - dominated the Turkish military's attention and claimed more than 30,000 lives. After the capture of the group's leader in 1999, the insurgents largely withdrew from Turkey mainly to northern Iraq. In 2013, the PKK and the Turkish Government agreed to a cease-fire, but fighting resumed in 2015. Turkey joined the UN in 1945 and in 1952 it became a member of NATO. In 1963, Turkey became an associate member of the European Community; it began accession membership talks with the EU in 2005. Over the past decade, economic reforms have contributed to a quickly growing economy.
Source: The CIA World Factbook - Turkey
Economic growth is projected to edge up to around 3½ per cent in 2017 and 2018. Consumer price inflation is back in double digits and disinflation is projected to be slow.
Fiscal and other measures, supported by a pick-up in export demand, have stimulated private consumption and investment. Their impact on public finances and the quality of credit allocation should be monitored. Faced with sharp exchange rate depreciation and rising inflation expectations, the monetary stance has been tightened, but explicit increases in the main policy rate are warranted.
Increasing net exports through further integration in global and European value chains is crucial for job creation in the face of a high unemployment rate, without further increasing the current account deficit. To this effect, the long-planned, though now uncertain, deepening of the customs union agreement with the European Union and its extension to agriculture and service sectors is key. To make the most of the resulting opportunities, up-skilling programmes should be implemented not only for young workers but also for entrepreneurs and low-skilled workers.
Source: OECD - Economic Forecast
Subject descriptor 2014 2015 2016 2017 2018 Gross domestic product, constant prices 3.020 3.985 3.281 2.977 3.215 Gross domestic product, current prices 798.700 717.932 735.716 769.474 811.927 Gross domestic product per capita, current prices 10,329.263 9,186.353 9,316.755 9,646.758 10,079.783 Inflation, average consumer prices 8.855 7.671 8.403 8.221 6.792 Volume of imports of goods and services -0.502 0.183 0.806 1.766 2.393 Volume of exports of goods and services 4.613 -2.800 -0.108 4.686 4.450 Unemployment rate 9.915 10.280 10.171 10.171 10.009 Current account balance -43.552 -32.241 -32.121 -43.135 -45.705 Current account balance -5.453 -4.491 -4.366 -5.606 -5.629
Source: IMF Statistics - Turkey
Luxembourg and the country
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 09.06.2003 (A Memorial, no. 8.6.2004 84)
- Effective as of 18.01.2005 (Memorial 2005, A, no. 34, p. 651)
- Protocol amendment and Exchange of letters from 30.09.2009
- Act from 31.3.2010 (Memorial 2010, A, no. 51, p. 830)
- Effective as of 14.07.2011 (Memorial 2011, A, no. 168, p. 2896)
Air Services agreement
- Agreement from 12.10.1988 (Memorial 1991, A, p. 719)
- Effective as of 09.10.1991 (Memorial 1991, A, p. 1380)
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Turkey
Embassy of the Grand Duchy of Luxembourg in Turkey
Ambassador: Georges FABER
Resit Galip Caddesi 70/2
Economic and Commercial Attachés (AWEX):
Caddesi 39 34443 Taksim Istanbul Turkey
Tel: +90 0 2122939350/+90 0 212 2939353
Fax: +90 0 2122435074
Honorary Consul with jurisdiction in Istanbul and the Marmara region: Suzan SABANCI Dincer
Yeniköy-cad Köybasi No. 173
Tel: +90 212 279 39 35
Fax: +90 212 278 18 37
Honoray Consul with jurisdiction in Izmir, Manisa, Afyon, Aydin, Kütahya, Eskisehir, Denizli, Mugla: Feyhan Emine YASAR
Gaziosmanpasa Bulv. No. 10/4
Tel: +90 232 482 22 00
Fax: +90 232 484 37 80
Email: feyhan.yasar(at)yasar.com.tr - luxembourgizmircc(at)gmail.com
Honoray Consul with jurisdiction Antalya, Burdur, Isparta, Konya: Halit BOZABALI
Fener Mahallesi 1996 sokak Antalya
Evleri Sitesi B7 blok n3 Muratpasa
Tel : +90.242.3247422
Fax : +90.242.3247423
GSM (Urgent) : +90.530.1146212
E-mail : info(at)luxantkonsolosluk.com
Country risk as defined by Office du Ducroire for Turkey
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Luxembourg for Business market entry guide to Turkey: Market entry guides are brochure series published by the Ministry of the Economy and Foreign. The series focuses on worldwide markets, industries and business environments, providing comprehensive and in-depth analysis and guidelines. The brochures cover all aspects relating to a market entry including the economic, financial and legal frameworks. The brochures are a vast knowledge pool, compiled into a practice oriented document with many tips and important addresses.
Other useful links
- CIA World factbook on Turkey
- Foreign Economic Relations Board: DEiK
- Turkey-Luxembourg Business Club
- Chambre de Commerce belgo-luxembourgeoise en Turquie
- Invest in Turkey
- Invest in Istanbul
- Turkey on Global Edge
- La Turquie sur France Monde Express
- Economic Freedom Index - Turkey
- Deloitte-DEiK: How to do business in Turkey
- Doing Business in Turkey
- Das ist die Türkei
The Chamber of Commerce and the country
- 13.10.2015 - 16.10.2015
- 10.02.2015 - 13.02.2015