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Turkey
Chamber of Commerce Country Factsheet Last update: 10.08.2017

Your advisors at the Chamber of Commerce

  • Edith Stein
    +352423939482
  • Daniel Sahr
    +352423939313
Contact us: europe@cc.lu

Key Indicators

Area
738,562 km2
Population
80,274,604 (July 2016 est.)
Government type
republican parliamentary democracy
Languages
Turkish (official), Kurdish, other minority languages
GDP
$1.698 trillion (2016 est.)
Growth rate
2.9% (2016 est.)
HDI
72
Capital
Ankara

 

Introduction

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

 

Macroeconomic indicators

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

IMF Statistics: 

Subject descriptor20142015201620172018
Gross domestic product, constant prices
Percent change
3.0203.9853.2812.9773.215
Gross domestic product, current prices
U.S. dollars (Billions)
798.700717.932735.716769.474811.927
Gross domestic product per capita, current prices
U.S. dollars (Units)
10,329.2639,186.3539,316.7559,646.75810,079.783
Inflation, average consumer prices
Percent change
8.8557.6718.4038.2216.792
Volume of imports of goods and services
Percent change
-0.5020.1830.8061.7662.393
Volume of exports of goods and services
Percent change
4.613-2.800-0.1084.6864.450
Unemployment rate
Percent of total labor force
9.91510.28010.17110.17110.009
Current account balance
U.S. dollars (Billions)
-43.552-32.241-32.121-43.135-45.705
Current account balance
Percent of GDP
-5.453-4.491-4.366-5.606-5.629
Colored cells are estimates
  

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)

Source: Administration des contributions directes

 

 

 

Further information

Foreign Trade

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
06700 Gaziomanpasa
Ankara

Tel: +90 312 45 91 400
Fax: +90 312 43 65 055
Email: ankara.amb(at)mae.etat.lu  
http://ankara.mae.lu/en

Economic and Commercial Attachés (AWEX): 

Eric BLETARD
Caddesi 39 34443 Taksim Istanbul Turkey
Tel: +90 0 2122939350/+90 0 212 2939353
Fax: +90 0 2122435074
E-mail: info(at)awex-istanbul.com 

Honorary consuls

Honorary Consul with jurisdiction in Istanbul and the Marmara region: Suzan SABANCI Dincer

Yeniköy-cad Köybasi No. 173
Istanbul
Tel: +90 212 279 39 35
Fax: +90 212 278 18 37
Email: Suzan.Sabanci(at)akbank.com  

Honoray Consul with jurisdiction in Izmir, Manisa, Afyon, Aydin, Kütahya, Eskisehir, Denizli, Mugla: Feyhan Emine YASAR

Gaziosmanpasa Bulv. No. 10/4
35210 Izmir
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
07160 Antalya

Tel       : +90.242.3247422
Fax      : +90.242.3247423
GSM (Urgent) : +90.530.1146212
E-mail : info(at)luxantkonsolosluk.com

Web: www.halitbozabali.com.tr

 

Source: Ministry of Foreign Affairs of Luxembourg 
Source: www.awex.be

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.

Link: Ducroire Office - Country Risk for Turkey

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.

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