Turkey's dynamic and vibrant economy is a complex combination of modern industry and commerce along with a traditional agriculture sector which makes up approximately 30% of employment.  Since the economic crisis of 2001 and the reforms established by the then finance minister, inflation has fallen and in turn has boosted investor confidence and foreign investment has increased.

Consequently a rapidly growing private sector emerged, thus diminishing the state’s participation in basic industry, banking, transport, and communication. The diminishing of the state’s role and the increase of foreign investment in the country has only been possible due to Turkey's privatisation program.

The economy is becoming increasingly reliant on industry in major cities especially in the western province of the country with less emphasis given to agriculture even though it is still a major support for the Turkish economy. In addition, the tourism sector experience rapid growth throughout the past two decades contributing $22 billion to its revenue in 2007.

Even though the largest industrial sector is textiles and clothing, which accounts for one-third of industrial employment, the automotive and electronics industries are rising in importance and have surpassed textiles within Turkey's export mix. The textile sector thus faces firm competition in international markets with the end of the global quota system.

Due to global economic conditions, GDP fell to a 0.9% annual rate in 2008, and decreased by about 6% in 2009. Despite the strong economic gains from 2002-07, the economy has been burdened by a high current account deficit and high external debt. Further economic and judicial reforms and prospective EU membership are expected to continue enhancing foreign direct investment. Turkey's financial markets and banking system also weathered the 2009 global financial crisis and did not suffer significant declines due to banking and structural reforms implemented during the country's own financial crisis in 2001.

Sector of Opportunity

Turkey has a diverse culture which is a product of efforts to become a modern western state simultaneously maintaining its traditional religious and historical values. The dynamic economy of Turkey which is supported by a young growing population would create a strong entrepreneurial culture, a prospect of economic convergence, and markets with an essential regional positioning. There are new and competing distribution channels which are likely to increase the opportunities in relation to Western markets.