Turkey has a developed market economy, with a rich history of private enterprise. With a GDP of $ 729 billion and a purchasing power parity per capita at $ 12465, Turkey ranks among the biggest 20 economies of the world. GDP growth has averaged 4,9 % per year since 2002. The local market is the hot-spot for global companies Istanbul Stock Exchange index has tripled. U.S. has classed Turkey as one of its 10 Big Emerging Markets. Additionally Turkey is Europe's seventh largest trading partner, while Europe is Turkey's main partner, accounting for around half its trade.
Thanks to a strong entrepreneurial spirit and a supply of high quality and cost-effective labor force Turkish exports has exceeded $100 billion in 2010. Large and growing domestic market has enabled a record in imports with $140 billion. It is a full member of European Union (EU) Customs Union since 1996.
Turkey offers a dynamic and challenging business environment in a rapidly changing marketplace. The country is enjoying a capitalist boom since 2001. In recent years, Turkey's market reforms, strong growth and economic and political stability have attracted greater amounts of Foreign Direct Investment. 2003 was a banner year for FDI reaching $ 72 billion.
The existence of more than 24 thousand foreign capital companies ensure a stable and reliable investment environment in Turkey. Many foreign investors have a strong and leading position in the market.The Turkish financial sector is well developed in both technology and legal procedures. Turkish finance is primarily built upon universal banking system and related areas like insurance, leasing, factoring and stock brokerage.
Turkey offers a competitive tax system. Due to the liberal and secure investment environment major multinationals are the key players in the local economy. An increasing number of global companies are re-allocating their Eurasia business units in Istanbul.
General Electric, 3M, P&G, Toyota, Pfizer, Johnson and Johnson, Microsoft, Kraft are only a fraction of leading global companies who have invested in Turkey and are key players in local market.
With continued commitment to EU membership Turkish business environment is expected to benefit the EU. It is an important factor in ensuring that Turkey continues on the path of economic reform, market liberalization and growth.