Economic Status of Turkey
Area of Concern
Although the unemployment rate of 14.6% is a concern, I believe that Turkey’s economic growth is a greater area of concern. The three-year drought has significantly affected both the agriculture and industrial sectors, which I believe will affect their ability to provide the same number of exports as they have in the past. According to the CIA Factbook, Turkey’s exports consist of apparel, foodstuffs, textiles, metal manufactures, transport equipment, natural gas, electricity and oil. However, the textiles and apparel exports make up a large portion of the exports and according to the CIA Factbook, and may be harmful to Turkey’s economy (www.cia.gov).
Two of Turkey’s export partners include Germany and France both of which have also experienced decline in their GDP growth from 2008 to 2009. France has experienced a 2.1% decline in their GDP growth rate from 2008 to 2009 and Germany has experienced a 5% decline in their GDP growth rate from 2008 to 2009. Net exports are a factor when calculating the GDP of a country (GDP = Consumption + Investment + Government Spending + Net EXports). If France and Germany continue to experience a decline in their GDP growth, then they will decrease their demand for Turkey’s exports, which will prove to be harmful for Turkey’s GDP growth.
Two of Turkey’s export partners include Germany and France both of which have also experienced decline in their GDP growth from 2008 to 2009. France has experienced a 2.1% decline in their GDP growth rate from 2008 to 2009 and Germany has experienced a 5% decline in their GDP growth rate from 2008 to 2009. Net exports are a factor when calculating the GDP of a country (GDP = Consumption + Investment + Government Spending + Net EXports). If France and Germany continue to experience a decline in their GDP growth, then they will decrease their demand for Turkey’s exports, which will prove to be harmful for Turkey’s GDP growth.
