Turkey WT/TPR/S/192 
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I. ECONOMIC ENVIRONMENT 
(1) MAJOR FEATURES OF THE ECONOMY  
1. The Republic of Turkey has a landmass, including lakes, of 814,578 km2 (about 30% is 
arable); around 68% of its 73 million people live in  urban areas. The most populated cities are 
Istanbul (almost 11.6 million), and the capital Anka ra (around 4.4 million); annual population growth 
was 1.3% in 2006 (down from 1.6% in 2001). Over 4 million Turkish people live abroad, more than 
half of them in Europe, particularly Germany. Turkey has a young population (25.5% are in the 0-14 age group, and 67.7% are between 15-64 years).
1 In 2006, Turkey ranked 92nd out of 177 countries 
in terms of Human Development Indicators.2 
2. Turkey's location between Europe and Asia, a nd along the Mediterranean, Aegean, and Black 
seas constitutes a major advantage.3  Its ambitious reforms, supporte d by its Stand-By Arrangements 
(SBAs) with the IMF4, have been successful in stabilizing its economy, and contributing to high 
economic growth, rapid disinflation, and declining p ublic and external debt burdens. Recent reforms 
have also been aimed at bringing Turkey closer to its goal of EC accession.  At present, Turkey is an 
upper middle-income country, with a GNP per capita of US$5,477 in 2006 (up from US$2,598 in 
2002).5  Nonetheless, some structural problems remain:  notably the widening current account deficit 
makes the economy vulnerable to ex ternal shocks;  unemployment re mains high;  and key industries 
are still dominated by public companies (Chapter III(4)(ii)). The steps taken to address these problems 
have resulted in, inter alia , the ongoing shift in production patterns towards higher-value/more 
capital-intensive products, e.g. in the textile  and clothing industry (Chapter IV(4)(iii)(a)). 
3. Services constitute the most important sector in terms of contribution to real GDP (about 
58%), and employment (over 50% of Turkey's labour fo rce).  The sector is led by tourism (a major net 
foreign exchange earner), and financial services.   Manufacturing (with high domestic content for 
agri-industries, and high import content for the others6), contributes around 25% to real GDP and over 
80% to the total value of merchandise exports.  Agri culture remains an important sector of the Turkish 
economy, despite the decline in its contribution to real GDP to about 11%; it employs  almost  30% 
of the population.  The mining, quarrying, and ener gy sector is being developed; Turkey is among the 
fastest growing energy markets in the world. 
4. The national currency is the Turkish lira (TL). On 1 January 2005, the TL was 
redenominated, dropping six zeros7: all amounts in Turkish currency in this report are expressed in 
new TL (YTL), unless otherwise specified. On 22 Ma rch 1990, Turkey accepted the obligations of 
                                                      
1 World Bank (2007). 
2 UNDP (2006). 
3 Turkey has borders with Armeni a, Azerbaijan, Bulgaria, Georgia,  Greece, Iran, Iraq, and Syria. 
4 Turkey has signed 19 SBAs with the IMF since 1961. The current SBA is due to end in May 2008 
(OECD, 2006b). 
5 Turkstat online information. Viewed at: http://nkg.die.tr/en/son10.asp. 
6 According to Turkey's Treasury, certain industri es have a high import content, such as boilers, 
machinery and mechanical a ppliances (57.8%); motor vehicles (69.1%); iron and steel (75.2%); and electrical 
machinery and apparatus (78.6%). 
7 One new TL is equivalent to 1,000,000 old TL. The redenomination of the TL was aimed at, inter 
alia, simplifying monetary transactions; it marked the en d of the inflationary cycl e, and the start of price 
stability. WT/TPR/S/192 Trade Policy Review 
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Article VIII of the IMF Articles of Agreement, a nd moved from a crawling peg to a floating exchange 
rate system on 22 February 2001.8  
(2) RECENT ECONOMIC DEVELOPMENTS  
5. At the time of its previous TPR, Turkey  was recovering from the 2001 economic crisis.9 Since 
then, the key elements of its economic reform programme have been: maintaining the floating 
exchange-rate regime; introducing in flation targeting in January 200610; further strengthening the 
banking system; fiscal discipline to foster medium-term debt sustainability; addressing redundancy problems in public-sector employment; improving the investment climate to attract larger foreign direct investment (FDI) inflows; speeding up the privatization of public enterprises; and social 
security and tax reforms. 
6. Turkey's reform programme has resulted in impressive economic performance in the past few 
years. The economy rebounded strongly and GNP growth averaged 7.4% per year during 2002-06 (compared with -1.6% over 1998-01), led largely by priv ate investment and consumption, fuelled, in 
turn, by large capital inflows, declining interest ra tes, and credit expansion. Total factor productivity 
growth also played an important role, having in creased from an annual average of 24.5% during 1996-
00 to 42% over 2001-05. Due to the robust economic  growth, the unemployment rate decreased from 
10.3% in 2002 to 9.9% in 2006 (Table I.1).
11 Economic growth of 5% is expected for 2007, partly 
driven by strong domestic demand.12 
7. The inflation-targeting framework used by the Central Bank of the Republic of Turkey 
(CBRT) proved effective in reducing consumer price inflation from 29.7% in 2002 to single digit 
rates in 2004-06.13 Tight fiscal policies, structural reforms, and high productivity growth also 
contributed to the disinflation process. However, the inflation rate climbed from 7.7% in 2005 to 9.6% 
in 2006 mainly due to high world oil prices and the strength of domestic demand. The CBRT expects 
the inflation rate to drop to between 5.1% and 6. 9% by the end of 2007, partly due to its tight 
monetary policy stance, including relatively high interest rates.14 During 2002-05, as a result of record 
high capital inflows, the TL appreciated steadily.15 At the end of 2006, however, interest rate hikes in 
                                                      
8 The move from a crawling peg to a floating exchange rate system resulted in an immediate 
depreciation of the TL (see WTO, 2003). 
9 In 2001, real GNP contracted by  9.5%, largely as a result of exchange rate shocks caused by the 
adoption of the floating exchange rate system (see WTO, 2003). 
10 End-year inflation target of 5% for 2006 (with an uncertainty band of 2%) was announced at the 
beginning of that year (OECD, 2006b). 
11 The high unemployment rate among the young and educated population continues to be one of the 
most important problems in Turkey's labour market. State Planning Organization (2006), Ninth Development 
Plan 2007-13 , Ankara. 
12 IMF (2007b). 
13 The institutional framework for monetary policy was strengthened by amending the Central Bank 
Law in April 2001, granting the CBRT autonomy to pursu e its primary mandate of maintaining price stability 
(WTO, 2003). 
14 CBRT online information. Viewed at: http://www.tcmb.gov.tr/yeni/eng/ [July 2007]. 
15 In 2005, for example, the real exchange rate appreciated by almost 20% , well above historical 
averages. This real appreciation of the TL was driven ma inly by ample global liquidity conditions, and Turkey's 
positive economic performance (IMF, 2006). Turkey WT/TPR/S/192 
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major industrial countries prompted a real depreciation of the YTL estimated by the CBRT at 6.6%.16 
More recently the exchange ra te has recovered somewhat. 
Table I.1 
Main economic indicators, 2002-06 
 2002 2003 2004 2005 2006 
Miscellaneous     
GNP (US$ billion) 182. 7 238.5 301.5 360.9 399.7 
GDP (US$ billion) 184. 5 240.5 300.6 361.5 400.0 
GNP per capita (US$) 2,598 3,383 4,172 5,008 5,477 
Real GNP (annual percentage change) 7.9  5.9 9.9 7.6 6.0 
Unemployment rate (per cent) 10.3 10.3 10.3 10.2 9.9 
Consumer price index (end of period;  percentage change) 29.7 18.4 9.3 7.7 9.6 
Real effective exchange rate (CPI-based; end of period) a 7.8 12.1 1.8 19.7 -6.6 
Monetary sector   
Money supply (M2 = broad m oney; percentage change) b 25.4 13.0 22.1 29.5 24.7 
Average nominal treasury bill interest rate (per cent) 64. 6 45.1 24.7 16.2 18.1 
Share of real GNP  (per cent) 
Agriculture 13.7 12.6 11.7 11.5 11.2 
Mining and quarrying 1.2 1.1 1.1 1.1 1.1 
Industry 29.3 29.9 29.7 29.4 29.8 
 - Manufacturing 24.7 25.3 25.3 25.0 25.3 
Services, including construction and utilities 55.8 56. 4 57.5 58.0 57.9 
Government finance   (percentage of GNP) 
Primary balance 5.1  6.2 7.2 6.8 6.6 
Overall balance -12.5 -9.1 -4.6 -1.2 -0.8 
Net debt of public sector 78.4 70.3 64.0 55.3 44.8 
National accounts  (percentage of GDP) 
Private consumption 66.3 66.5 66.0 67.3 67.9 
Public consumption 14.0 13.6 13.2 13.1 13.1 
Gross fixed capital formation 16.6 15.5 17.8 19.6 21.0 
Change in inventories 4.7 7.3 7.9 5.2 2.9 
Exports of goods and non-factor services 29.2 27.4 28.9 27.4 28.2 
Imports of goods and non-factor services 30.7 30.7 34.7 34.0 35.9 
Memorandum      
Current account balance (percentage of GNP) -0.8 -3.4 -5.2 -6.3 -8.2 
Gross external debt (percentage of GN P; end of period) 71.7 56.4 50.1 46.8 51.9 
Official foreign reserves (US$  billion) 28.1 35. 2 37.6 52.4 63.3 
Official foreign reserves (months of  total imports) 7.1 6.5 5.0 5.7 5.7 
Import cover (ratio of exports to imports) 84.6 78.5 73.7 69.7 69.0 
Trade in goods and services (percentage of GNP) 60.5 58.5 63.8 61.5 64.1 
Terms of trade (percentage cha nge) -0.6 -0.1 1.0 -1.3 -4.5 
a A positive sign indicates real appr eciation of the Turkish lira.  
b M2 = Currency in circulation + demand deposits + time deposits .  As of December 2005, the m onetary liabilities of participati on 
 banks and investment and development banks have been added to M2. 
Source:  IMF, International Financial Statistics , various issues;  and information provided by the CBRT.  
8. Turkey has continued to improve its fiscal position over the last few years, a central plank of 
its economic programme. The public sector primary ba lance went from a surplus of 5.1% of GNP in 
                                                      
16 Turkey was not the only country hit by the increase in world interest rates but it was the most 
affected among the group of emergi ng market economies. The OECD estimated the real depreciation of the 
YTL at 17% in 2006 (OECD, 2006b).  WT/TPR/S/192 Trade Policy Review 
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2002 to 6.6% in 2006 (the target being 6.5%), while the overall fiscal deficit was reduced to 0.8% of 
GNP (from 12.5% in 2002). Similarly, net public sect or debt declined from 78.4% of GNP in 2002 to 
44.8% in 2006. Revenues have been buoyant mainly on account of the positive economic 
performance and an improved tax administration.17 The introduction of expenditure targets at all 
layers of general government, combating tax fraud (estimated at almost 0.5% of GNP in 2005), 
together with  further simplification of the tax code and br oadening of the tax base, are expected to 
safeguard Turkey's medium-term fiscal position. Furthermore, a new law on pensions and social 
security is due to come into force in 2008. For 2007,  the public sector primary surplus target is 6.7% 
of GNP.18 
9. Turkey's gross total external debt dropped from 71.7% of GNP in 2002 to 46.8% in 2005, 
while the nature of external financing shifted to, inter alia , larger FDI inflows (section (3)(ii) below). 
Nevertheless, gross total external debt increased some five percentage points of GNP in 2006 (to 
51.9%) mainly as a result of the YTL depreciation that year and debt financing of the external current account.
19 For 2007, gross total external debt as pe rcentage of GNP is estimated at 52.8%.20 
Moreover, gross financing requirements went fro m US$43.6 billion in 2003 to US$102.4 billion in 
2007, making Turkey very vulnerable to a sudden stop in capital inflows.21 
(3) TRADE PERFORMANCE AND INVESTMENT  
(i) Trade in goods and services 
10. Turkey's balance of payments moved fro m an annual average deficit of about 
US$2,340 million during 2002-05 to a surplus of US $2,395 million in 2006, when the financial 
account surplus offset the widening external current  account deficit (Table I.2). In line with the 
country's strong economic performance, and the apprecia tion of the real effective exchange rate up to 
2005 (Table I.1), the external current account defic it, as a percentage of GNP, went from 0.8% in 
2002 to 6.3% in 2005, and reached 8.2% in 2006.  For 2007, the current account is expected to benefit from the slowdown in investment
22, and the softening in domestic demand. Further strengthening of 
Turkey's fiscal policy is deemed necessary to reduce its  external current account deficit. It  is expected 
by the authorities to remain at 8.2% of GNP in 2007.23 
11. A continuous increase in Turkey's merchandise trad e deficit has been registered since its last 
TPR, in line with the significant appreciation of the lira throughout most of the period. In 2006, the deficit peaked at US$41.2 billion despite the real de preciation of the YTL, Turkey being a price taker 
in international trade (for both imports and exports ). Turkey's trade (exports and imports) in goods 
and services as a percentage of GNP rose from 60.5% in  2002 to 64.1% in 2006 (Table I.1). In 2005, 
Turkey ranked 22
nd among world merchandise exporters (consider ing the countries of the EC together 
                                                      
17 The revenue administration has been reorganized, and a new autonomous Tax Collection Agency has 
been established in the Ministry of Finance. 
18 IMF information notice No. 07/66 of 12 June 2007. 
19 Each 10% of lira depreciation adds approximately 6 percentage points to the gross external debt ratio 
(IMF, 2006). 
20 IMF information notice No. 07/66 of 12 June 2007. 
21 Near-term public and external financing requirements represent 30% and 27% of GNP, respectively 
(IMF, 2007a). 
22 A slowdown in investment may result in a slowdown in imports of equipment and inputs required by 
industries (mainly non-agricultural industries with high import content). 
23 The IMF expects Turkey's external  current account deficit to decline to 7.3% of GNP in 2007 (IMF, 
2007b). Turkey WT/TPR/S/192 
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and excluding intra-EC trade), and 16th among importers;  for trade in services, it ranked 14th among 
exporters and 24th among importers.24 
Table I.2 
Balance of payments, 2002-06  
(US$ billion) 
 2002 2003 2004 2005 2006 
Overall balance -0.1 -4.9 -2.2 -2.1 2.4 
Current account  -1.5 -8.0 -15.6 -22.6 -32.8 
  Merchandise trade account -7.3 -14.0 -23. 9 -33.5 -41.2 
    Exports 40.1 51.2 67.1 76.9 91.9 
    Imports  -47.4 -65.2 -90.9 -110.5 -133.2 
  Services (net) 7.9 10.5 12.8 15.3 13.4 
    Credit 14.0 18.0 22.9 26.6 24.5 
    Debit -6.1 -7.4 -10.1 -11.4 -11.1 
    Transportation (net) 0.9 -0.5 -1.1 0.0 0.0 
    Travel (net) 6.6 11.1 13.4 15.3 14.1 
    Construction services (net) 0.8 0.7 0.7 0.9 0.9 
    Financial services (net) -0.4 0.0 0.0 0.0 -0.2 
    Other business services (net) 0.0 0.0 0.1 -0.2 -0.4 
    Government services (net) -0.6 -0.7 -0.7 -0.9 -0.7 
    Other services (net) 0.6 0.0 0.5 0.2 -0.1 
  Income (net) -4.6 -5.6 -5.6 -5.8 -6.6 
   Credit 2.5 2.2 2.7 3.7 4.5 
   Debit -7.0 -7.8 -8.3 -9.5 -11.1 
  Current transfers 2.4 1.0 1.1 1.5 1.7 
    Workers remittances  1.9 0.7 0.8 0.9 1.1 
    Official transfers (net) 0.5 0.3 0.3 0.6 0.6 
Financial account 1.4 3.1 13.4 20.5 35.2 
  Direct investment (net) 1.0 1.3 2.0 8.7 19.1 
  Portfolio investment  -0.6 2.5 8.0 13.4 7.4 
    Assets -2.1 -1.4 -1.4 -1.2 -4.0 
    Liabilities 1.5 3.9 9.4 14.7 11.4 
  Other investment 7.2 3.4 4.2 16.2 14.8 
    Assets -0.8 -1.0 -7.0 0.3 -12.4 
    Liabilities  8. 0 4.4 11.1 15.9 27.2 
   Reserve assets -6.2 -4.0 -0.8 -17.8 -6.1 
Source: CBRT online information. Viewed at : http://www.tcmb.gov.tr/; and info rmation provided by the Turkish 
 authorities.  
12. Turkey's merchandise exports have more than doubled since 2002, with manufactured goods 
contributing over 80%, followed by agriculture, and mining products (Table AI.1 and Chart I.1). 
Machinery and transport equipment, automotive produ cts, textiles, food, iron and steel, and chemicals 
are the main exports. In particular, the share of  automotive goods in total merchandise exports has 
risen substantially over the last few years, while that  of textile and clothing products has declined.  
13. More than half of Turkey's exports still go to the EC; Germany remains the single major 
export market, followed by the United Kingdom, Italy, the United States, and France (Table AI.2 and 
Chart I.2). Turkey's goods exports to the United States and some Asian countries have decreased 
during the last few years, whereas exports to Middle East countries, notably Iraq, have risen 
continuously since 2003. 
 
                                                      
24 WTO (2006). WT/TPR/S/192 Trade Policy Review 
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0%20%40%60%80%100%
1995 2000 2001 2002 2003 2004 2005
0%10%20%30%40%50%60%70%80%90%100%
1995 2000 2001 2002 2003 2004 2005Chart I.1
Structure of merchandise trade, 1995 and 2000-05
(a) Exports
(b) Imports
Source: WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3).Transport equipment ChemicalsAgriculture Other semi-manufactures Textiles
Mining Clothing Non-electrical machinery
Iron and steel Other Electrical machines
Transport equipment ChemicalsAgriculture Other semi-manufactures Textiles
Mining Other Non-electrical machinery
Iron and steel Electrical machines
 
 Turkey WT/TPR/S/192 
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%1995200020012002200320042005Chart I.2
Direction of merchandise trade, 1995 and 2000-05
0% 20% 40% 60% 80% 100%1995200020012002200320042005(a) Exports
(b) Imports
Source: WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3).Percent
United Kingdom United States Spain Middle East Other Europe
France Germany Africa Other EC(25) OtherOther America The Nethelands Italy Russian Federation Asia
United KingdomUnited States Spain
Middle East Other EuropeFrance
GermanyAfrica Other EC(25)
OtherOther AmericaItaly Russian Federation
AsiaChina
 
 WT/TPR/S/192 Trade Policy Review 
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14. Turkey's merchandise imports have also more  than doubled since 2002, with manufactured 
goods representing about two thirds of  total merchandise imports, followed by mining, and agriculture 
products (Table AI.3). Machinery and transport equi pment, chemicals, automotive products constitute 
the main imports (Chart I.1). Despite the increase in  oil prices, the share of fuels in total merchandise 
imports has remained relatively stable over the last few years. 
15. About half of Turkey's goods imports originate in  Europe, mostly in the EC:  Germany is still 
the leading source of Turkey's imports, followed by Russian Federation, Italy, China, and the United 
States (Table AI.4 and Chart I.2). Goods impor ts from the Russian Federation and some Asian 
countries have increased significantly over the last  few years, whereas some African and Middle East 
countries have maintained their shares. 
16. Balance-of-payments data indicate that Turkey c ontinues to be a net exporter of services, with 
a surplus of US$13.4 billion in 2006 (up from US$7.9 billion in 2002). Total exports of services rose 
from US$14 billion (equivalent to 7.8% of GNP) in  2002 to US$24.5 billion (6.1% of GNP) in 2006, 
while total imports of services increased from US$6. 1 billion to US$11.1 billion. Travel services (net) 
more than doubled to US$14.1 billion in 2006, afte r peaking at US$15.3 billion in 2005 (Table I.2). 
(ii) Foreign direct investment 
17. Turkey's annual FDI inflows rose from an average of US$791 million during 1990-00 to 
US$3,852 million over 2002-05 (Table I.3). This wa s largely the result of the successful programme 
of economic stabilization, and the implementation of its privatizati on programme (Chapter III(4)(ii)). 
Moreover, according to the authorities, FDI inflow s reached US$20,070 million in 2006. However, as 
a percentage of GNP, the stock of inward FDI fe ll from 15.3% in 2002 (US$27,900 million) to 11.6% 
in 2005 (US$42,170 million). On the basis of UNC TAD's Inward FDI Performance Index, Turkey 
ranked 95th out of 141 economies in 2005 (124th in 2000).25 Turkey's annual FDI outflows averaged 
US$709 million over 2002-06 (US$227 million during 1990-00). According to UNCTAD's Outward 
FDI Performance Index, Turkey ranked 67th out of 141 economies in 2005 (77th in 2000).26 
Table I.3 
Foreign direct investment, 2002-05 
(US$ million) 
 2002 2003 2004 2005 
FDI inflows 1,137 1,752 2,837 9,681 
FDI inward stock 27,900 29,652 32,489 42,170 
FDI inward stock (% of GNP) 15.3 12.5 10.8 11.6 
FDI outflows 175 499 859 1,078 
FDI outward stock 5,702 6,201 7,060 8,138 
FDI outward stock (% of GNP) 3.1 2.6 2.3 2.2 
Source:  UNCTAD (2006), World Investment Report , Geneva.  
 
                                                      
25 UNCTAD's Inward FDI Performance Index measures  the extent to which host countries receive 
inward FDI, and ranks countries by the amount of FDI they receive rela tive to their econo mic size. It is 
calculated as the ratio of a country's share in global FDI inflows to its share in global GDP. 
26 UNCTAD (2006). Turkey WT/TPR/S/192 
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18. Turkey 's position in UNCTAD's Inward FDI Po tential Index improved somewhat during the 
review period, moving from 72nd in 2000 to 68th in 2004. 27 Since its last TPR, Turkey has been 
implementing measures to improve the investment climate in the country, including: a major tax 
reform (section (2) above); streamlining the registra tion of companies; a new real estate law which 
liberalized non-resident entry; and privatization of some state-owned enterprises (e.g. Turk Telecom, 
Tupras, and Erdemir). In addition, a new Commercia l Code was submitted to Parliament in November 
2005 but has not yet been adopted (Chapter III(4)(iii)). Nonetheless, FDI in Turkey has been inhibited 
by several factors, notably its relatively short hi story of responsible macroeconomic policies, and 
foreign investors still face restrictions in certain key activities (Chapter II(4)). 
19. During the last few years, the services sector h as attracted the large majority of FDI inflows 
(partly due to the privatizations of several st ate-owned companies in the sector), followed by 
manufacturing, while FDI in agriculture and mining has been very low.  The share of services in total 
FDI increased from 71% in 2002 to 88.3% in 2006, while the share of the manufacturing sector fell 
from 29% to 10.4%.28 The EC (led by the Netherlands, Belgium and Greece) continues to be by far 
the largest investor in Turkey, represen ting 82% of total FDI inflows in 2006.  
20. Manufacturing accounted for 76.7% of Turkey's  FDI outflows in 2006, and the remainder 
went into services: 62.2% went to the EC , led by Germany and the Netherlands.  
(4) OUTLOOK  
21. Turkey is expected to continue its comprehens ive economic reform programme with a view to 
advancing in the negotiation process with the EC; av oiding falling back into the boom-bust cycle of 
the past; and overcoming the deep dualities betwee n the few highly produc tive enterprises and the 
large number of low productivity companies that hinder the country's long-term growth performance. Turkey is taking steps to move to a competitive market economy through an acceleration of structural reforms, including completion of the privatization ag enda and sectoral reforms (e.g. labour, education, 
health).  
22. Under Turkey's ninth development plan, GDP is  expected to increase at an annual average 
rate of 7% during 2007-13, with a projected per capita income of US$10,100 by 2013.
29 The share of 
agriculture in real GDP is to decline to 7.8% in 2013, while the contributions of manufacturing and services are projected to increase to 27.2% and 65%, respectively. Exports of goods and services, as a 
percentage of GDP, are to rise from 28.2% in 2006 to  32.4% in 2013, while imports are to fall from 
35.9% to 35.8%.
30 
23. Turkey's long-term strategy up to 2023 envisag es promoting an export-oriented, technology-
intensive production structure, with emphasi s on high-value-added manufactured products and 
                                                      
27 UNCTAD's Inward FDI Potential Index measures the extent to which host countries receive inward 
FDI, and ranks countries by the amount of FDI they receive relative to their potential. It is calculated on the basis of structural variable s, such as country risk, and trade-related measures. 
28 In 2006, 0.7% of FDI inflows went to mining and quarrying, 0.6% to electricity, gas and water 
supply, and 0.03% to agriculture (Central Bank of Turkey, 2007). 
29 According to the latest IMF projections for 2008, Tu rkey's real GDP growth is expected to reach 6%, 
the inflation rate is anticipated to d ecline to 4.3%, and the external current account deficit is predicted to fall to 
6.8% of GDP (IMF, 2007b). 
30 State Planning Organization (2006). WT/TPR/S/192 Trade Policy Review 
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services.  This is to be achieved at the expense of agriculture, which is projected to fall to 5% of GNP 
by 2023.31 
24. In the long term, the ratio of total investment  expenditures to GNP is expected to increase 
(from about 22% in 2000) to approxima tely 27% in 2023, and the share of the public sector in total 
investments to decrease (from 30%) to 10%.  Public i nvestment is set to be intensified in education, 
health, and R&D;  and to be maintained at current  levels in energy, transport, and communications 
until 2010, after which it w ill be gradually reduced.32  
 
                                                      
31 WTO (2003). 
32 WTO (2003).