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Turkey sits at the crossroads of Europe and Asia, both geographically and economically. As one of the world’s newly industrialized nations, Turkey has made remarkable progress over the last few decades. However, the country’s economic journey has been anything but smooth.
Turkey’s Economic Standing on the Global Stage
Turkey is classified as a developing country with one of the largest economies in the world. As of 2018, Turkey had the 19th-largest nominal Gross Domestic Product (GDP) and ranked 13th globally in GDP per capita when adjusted for Purchasing Power Parity (PPP). According to data from the World Bank, Turkey’s GDP (PPP) per capita stood at $28,299 in 2018.
The map below illustrates how Turkey’s GDP per capita compares to the rest of the world:
Countries shown in blue have a higher GDP (PPP) per capita than Turkey, meaning they are wealthier on average. In contrast, those in yellow have a lower GDP per capita, indicating they are poorer. Unsurprisingly, most Western European nations, North America, and Australia fall into the wealthier category, while much of Africa, South America, and parts of Asia have a lower GDP per capita.
Turkey’s Economic Strengths and Challenges
Turkey’s economy is highly diversified, with strong sectors in:
Agriculture – Turkey is one of the top global producers of fruits, vegetables, and nuts.
Textiles and Clothing – Turkish textiles are highly regarded for their quality and account for a significant portion of exports.
Construction and Infrastructure – Major infrastructure projects have transformed the country’s landscape in recent years.
Automotive and Electronics – Turkey is a hub for automotive production and home to several global brands’ manufacturing plants.
However, Turkey’s economy has faced considerable headwinds:
Inflation and Currency Devaluation – The Turkish lira has experienced sharp devaluations, which have fueled inflation and eroded purchasing power.
Political and Economic Instability – Political tensions and shifts in economic policy have created uncertainty for businesses and investors.
Trade Deficit – While Turkey’s exports are strong, the country imports a significant amount of energy and raw materials, creating a trade imbalance.
How Does Turkey Compare to Its Neighbors?
To understand Turkey’s economic standing more clearly, it’s helpful to compare it to its neighboring countries. The map below shows how different regions of Turkey compare in GDP size to its neighbors:
Each color on the map represents the GDP size of a neighboring country, reflected in different regions of Turkey. For example:
The eastern regions of Turkey have a GDP size similar to Azerbaijan.
Parts of southern Turkey correspond to the GDP size of Syria and Lebanon.
The GDP size of Cyprus is comparable to that of smaller regions in western Turkey.
This highlights the uneven economic development within Turkey, with some regions economically mirroring wealthier neighbors, while others align more closely with less developed economies.
Turkey’s economic position is complex — it’s not yet a high-income country, but it has one of the most dynamic and promising economies in the developing world. Its strategic location, industrial strength, and youthful population provide a strong foundation for future growth. However, addressing inflation, currency issues, and political stability will be crucial to ensuring long-term success.
What are your thoughts on Turkey’s economic standing? Let me know in the comments below!
