This report by JETRO analyzes Turkey's latest economic trends and detailed trade and investment data for the 2025 edition.
Turkey's economy grew at 3.2% in 2024, down from 5.1% in 2023. While inflation remains high at 44.4%, it has improved significantly from 64.8% in the previous year. The unemployment rate stands at 8.7%, with per capita GDP at ,463. The new Finance Minister continues monetary tightening policies to control inflation.
On the trade front, exports reached .8 billion (up 2.4% year-on-year) while imports declined to .0 billion (down 5.0%), narrowing the trade deficit by 22.7% to .2 billion. Key export sectors include automotive and parts (12.4% of total exports, up 5.2%), general machinery, mineral fuels, and electrical equipment. The EU remains the largest export destination at 41.4% of total exports (up 4.0%), while exports to the US grew 9.9% and to the UK surged 22.7%.
Foreign direct investment saw positive growth with inward FDI reaching .69 billion (up 14.1%) and outward FDI at .59 billion (up 16.2%). Major investors include the Netherlands, Germany, and the United States, with increasing interest in technology and strategic investments. The government continues efforts to expand trade agreements and improve the investment environment, aiming for deeper integration with European markets.
The report concludes that Turkey's economy shows signs of improvement through reduced trade deficits and increased foreign investment while managing inflation and structural reforms, leveraging its strategic position between the Middle East and Europe for economic development.