Soft landing and a gradual rebalancing

C3

SENSITIVE RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Last updated in July 2024.

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GDP USD906bn (World ranking 19, World Bank 2022)
Population 85mn (World ranking 18, World Bank 2022)
Form of state Presidential Republic
Head of government Recep Tayyip ERDOGAN (President)
Next elections 2028, presidential and legislative
  • Important geostrategic position (that has historically always ensured aid when needed)
  • Adequate business environment (though deteriorating)
  • Potential as regional hub between Europe, MENA and Asia
  • Exchange rate vulnerability to domestic and external shocks
  • Economic policy responsiveness
  • History of persistently large current account deficits
  • Very high short-term external debt burden, especially in the private sector
  • Low foreign exchange reserves (compared to imports or short-term external debt)
  • Geopolitical risks

Trade structure by destination/origin

(% of total, 2022)

Exports Rank Imports
Germany 8.3%
1
16.2% Russian Federation
United States 6.6%
2
11.4% China
Iraq 5.4%
3
6.6% Germany
United Kingdom 5.1%
4
4.2% Switzerland
Italy 4.9%
5
4.2% United States

Trade structure by product

(% of total, 2022)

Exports Rank Imports
Road vehicles 10.1%
1
5.6% Gold, non-monetary (excluding gold ores and concentrates)
Articles of apparel & clothing accessories 7.8%
2
5.5% Iron and steel
Iron and steel 6.7%
3
5.5% Petroleum, petroleum products and related materials
Petroleum, petroleum products and related materials 5.9%
4
4.8% Road vehicles
Miscellaneous manufactured articles, n.e.s. 5.8%
5
4.3% Non-ferrous metals

Trade structure by destination/origin

(% of total, 2021)

Exports Rank Imports
Germany 8.6%
1
11.9% China
United States 6.5%
2
10.7% Russian Federation
United Kingdom 6.1%
3
8.0% Germany
Italy 5.1%
4
4.8% United States
Iraq 4.9%
5
4.3% Italy

Trade structure by product

(% of total, 2021)

Exports Rank Imports
Road vehicles 10.8%
1
6.4% Iron and steel
Iron and steel 8.4%
2
5.6% Road vehicles
Articles of apparel & clothing accessories 8.3%
3
5.3% Metalliferous ores and metal scrap
Textile yarn and related products 6.7%
4
5.2% Plastics in primary forms
Electrical machinery, apparatus and appliances, n.e.s. 5.9%
5
4.8% Non-ferrous metals