Turkey Business Profile

Economy: Turkey is self-sufficient in basic foodstuffs including maize, sugar, wheat and barley. Cotton, tobacco, fruit, vegetables and nuts are grown for both domestic consumption and export. A variety of livestock is reared. The agricultural sector still accounts for 15 per cent of total economic output and is a major employer, especially of women in the workforce, 60 per cent of whom work on the land. There is a sizeable mining industry producing copper, chromium, borax and, to a lesser extent, bauxite and coal. Manufacturing has grown significantly during the last 20 years with textiles, food-processing, oil-refining, chemicals and the production of iron and steel having emerged as the most important industries.

Tourism dominates the service sector after a phase of rapid expansion and serves as a key source of foreign exchange, although it has suffered from the worldwide downturn following from terrorist attacks (to which Turkey has proven especially vulnerable). In 2002, Turkey received almost 11 million visitors, contributing more than US$11 billion to the economy.
Economic performance between 1998 and 2002 was poor with negative GDP growth during most of the period (9 per cent during 2001), while inflation was between 40 and 65 per cent. There was some improvement in 2003: inflation was cut to near 20 per cent and positive growth of 2.5 per cent was recorded. Unemployment was steady at over 10 per cent. Relations with the international financial community have been difficult. Successive governments have agreed reform programmes based on the usual diet of deregulation and privatisation. However, political instability has undermined government attempts to sell utilities and key industries (including banking and food-processing). Turkey has long harboured an aspiration to join the European Union, having lodged its original application in 1963. Poor economic management, the unresolved situation in Cyprus, perennial disputes with Greece and a bad human-rights record have combined to thwart any prospect of EU membership. Nonetheless Europe has increasing influence over the country; Turkish trade patterns have shifted from the Middle East in favour of Europe, and hundreds of thousands of Turkish workers are employed across the EU. Provided that the 2004 expansion of the EU from 15 to 25 countries (including Cyprus) proceeds smoothly, Turkey may harbour a realistic expectation of joining along with Bulgaria and Romania in 2007.
Germany, Italy, France and the UK are now Turkey's principal trading partners. Outside Europe, the USA and Saudi Arabia are also important; to the east, Turkey has built up significant economic links with the former Soviet Republics of Central Asia.

Business: A formal suit or jacket and tie should always be worn for business. English is widely spoken in business circles, although an effort by the visitor to speak a little Turkish is appreciated. The majority of people in business value punctuality and visiting cards are widely used. Office hours: Mon-Fri 0830-1200 and 1330-1730. Summer: In the Aegean and Mediterranean regions of Turkey, government offices and many other establishments are closed during the afternoon in the summer months. The summer hours are fixed each year by the provincial governors.

Commercial Information: The following organisation can offer advice: Union of Chambers of Commerce, Industry, Maritime Commerce and Commodity Exchanges of Turkey (UCCET), Atatürk Bulvar 149, Bakanliklar 06640, Ankara (tel: (312) 413 8000; fax: (312) 418 3268; e-mail: info@tobb.org.tr; website: www.tobb.org.tr).

Conferences/Conventions: Istanbul and Antalya are the most popular venues, followed by Ankara, Marmaris and Bodrum. There are many 4- and 5-star hotels, which provide facilities and can host conferences and meetings to international standards. Contact UKTAS, International Congress Centre Inc, Harbiye 80230, Istanbul (tel: (212) 296 3055; fax: (212) 224 0878; website: www.icec.org). The Crowne Plaza Istanbul has a conference centre with facilities for up to 1000 people (tel: (212) 560 8110; fax; (212) 560 8158).