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| • EXCH RATES |
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Baht/$ 33.51/56
Bid/Ask
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GOLD |
14,350
+ 350
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ASIA FOCUS
Turkey bridges and closes the gap between Asia and Europe. It has a population of 68 million people, more than 50% of whom are below age 25. Its largest city, Istanbul is home to more than 10 million inhabitants. As many as 98% of the country's population is Muslim but the government has remained resolutely secular.
To promote foreign investment and expand international trade, in 1980 the country began making huge adjustments. The fixed exchange rate became flexible, restrictions on imports were eased and safeguard measures gradually declined. Foreign-exchange transactions were liberalised and investment procedures simplified. With all these developments, the country has seen growth in several areas.
Between 1990 and 2000, the country's gross national product (GNP) averaged 4% annual growth and rose to 6% in 2006. The services sector played a significant role, contributing 65.2% of overall GNP, followed by the industrial sector at 25.6%. Agricultural products constituted only 9.2% of GNP.
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| Two women browse the display at a gold shop in the old city of Kayseri in Turkey. Jewellery is among the country's key exports to Thailand. |
Currently, 99.7% of all businesses in Turkey are considered small and medium-sized enterprises. Its corporate tax rate is a low 20% (compared with 30% in Thailand) while personal income tax rates are also modest, ranging between 15% and 30%.
Exports: From 1980 to 1995, Turkey's export figures increased by an average of 15.3% annually. Export value of just $2.9 billion rose to $85.5 billion in 2006.
Before 1980, about two-thirds of the country's total exports were agricultural products. However, it has been gradually shifting to industrial products and by 2006 they accounted for 81% of all exports against just 10% for agricultural goods.
Key exports were machinery and transport equipment ($26.4 billion in 2006), followed by clothing ($12 billion), automotive products ($11.7 billion), other machinery ($11.5 billion) and food ($7.9 billion).
Imports: Turkey's import figures have gradually risen as a result of more trade liberalisation. In 1980, imports were worth $7.9 billion but by 2006 the figure had reached $138.5 billion.
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| A worker at a currency-exchange shop counts Turkish lira in Istanbul. — Bloomberg news |
Manufactured products contributed the largest import volume at 64%, followed by mining products at 27% and agricultural products at 5.2%. Key imported products included machinery and transport equipment ($42.7 billion in 2006), followed by fuel ($28.6 billion), other machinery and transport equipment ($22.3 billion), chemicals ($18.3 billion) and iron and steel ($8.1 billion).
Foreign direct investment: To encourage greater foreign investment inflows, the new Foreign Direct Investment Law was enacted in 2003. It allows more freedom to invest within the country with looser regulations. Significant structural reforms have taken place as well in major sectors including agriculture, banking, telecommunications and energy, while privatisation has also been promoted. The cut in corporate income tax from 30% to 20% took effect in 2006.
Between 1975 and 2006, Turkey attracted $49.4 billion worth of direct foreign capital investments. Of the total, investments in the services sector accounted for more than 90% while the remainder went to manufacturing.
Tourism: Tourism has increasingly become an important industry for Turkey. In this decade, many regional plans and infrastructure projects have been established with an aim to stimulate this key sector. In 2006, the number of foreign tourists visiting Turkey totalled 19.8 million, an increase of 6% from the previous year. Tourism revenue reached $16.9 billion.
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