Modern Turkey was founded in 1923 from the 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 radical 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 Democrat Party and the peaceful transfer of power. Since then, Turkish political parties have multiplied, but democracy has been fractured by periods of instability and military coups (1960, 1971, 1980), which in each case eventually resulted in a return of formal 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. A coup attempt was made in July 2016 by a faction of the Turkish Armed Forces.
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), a US-designated terrorist organization, has long dominated the attention of Turkish security forces and claimed more than 40,000 lives. In 2013, the Turkish Government and the PKK conducted negotiations aimed at ending the violence, however intense 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 talks with the EU in 2005. Over the past decade, economic reforms, coupled with some political reforms, have contributed to a growing economy, although economic growth slowed in recent years.
From 2015 and continuing through 2016, Turkey witnessed an uptick in terrorist violence, including major attacks in Ankara, Istanbul, and throughout the predominantly Kurdish southeastern region of Turkey. On 15 July 2016, elements of the Turkish Armed forces attempted a coup that ultimately failed following widespread popular resistance. More than 240 people were killed and over 2,000 injured when Turkish citizens took to the streets en masse to confront the coup forces. In response, Turkish Government authorities arrested, suspended, or dismissed more than 100,000 security personnel, journalists, judges, academics, and civil servants due to their alleged connection with the attempted coup. The government accused followers of an Islamic transnational religious and social movement for allegedly instigating the failed coup and designates the followers as terrorists. Following the failed coup, the Turkish Government instituted a State of Emergency in July 2016 that has been extended to July 2017. The Turkish Government conducted a referendum on 16 April 2017 that will, when implemented, change Turkey from a parliamentary to a presidential system.
Source: The CIA World Factbook - Turkey
Following a strong recovery in 2017 and turbulence in spring 2018, economic growth is set to slow but to stay around 5% in 2018 and 2019. The uncertainties surrounding the early elections in June, as well as persisting regional geopolitical tensions, create risks. The exchange rate remains highly volatile, with the lira depreciating substantially recently despite a significant increase in the policy interest rate, and consumer price inflation is far above target. Disinflation is projected to be slow.
A credible macroeconomic framework is of utmost importance to uphold confidence in this sensitive environment. The Medium-Term Economic Programme provides a prudent fiscal framework, and recent monetary tightening should be backed with stronger institutional credibility of monetary policy. Structural reforms to align the business environment with international good practices should be stepped up as soon as possible to rebalance growth and make it more inclusive.
Source: OECD - Economic Forecast
|Gross domestic product, constant prices|
|Gross domestic product, current prices|
U.S. dollars (Billions)
|Gross domestic product per capita, current prices|
U.S. dollars (Units)
|Inflation, average consumer prices|
|Volume of imports of goods and services|
|Volume of exports of goods and services|
Percent of total labor force
|Current account balance|
U.S. dollars (Billions)
|Current account balance|
Percent of GDP
Source: IMF Statistics - Turkey
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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.
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Embassy of the Grand Duchy of Luxembourg in Turkey
Ambassador in Ankara: Mr Georges FABER
Honorary Consul with jurisdiction in Istanbul and the Marmara region:
Mrs Suzan SABANCI Dincer
Yeniköy-cad Köybasi No. 173
Tel.: (+90) 212 279 39 35
Fax: (+90) 212 278 18 37
Honorary Consul with jurisdiction over the Provinces of the Aegean Region (Izmir, Manisa, Kutahya, Usak, Afyonkarahisar, Denizli, Aydin, Mugla) and Eskisehir Province:
Mrs Emine Feyhan YASAR
Bintur Turizum ve Catering Hizmetleri A.S.
Bati I?hani n°10 Kat.4
Alsancak / Izmir 35210
Tel.: (+90) 232 482 22 00
Fax: (+90) 232 484 37 80
E-mail: feyhan.yasar(at)yasar.com.fr / ayse.morgan(at)yasar.com.tr
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.