Republican leap in Turkey’s economy
Posted by meb at October 29th, 2008
Despite the several economic crises it has encountered, the Turkish Republic’s economy has grown 46.5-fold in the 85 years since its inception.
Turkey’s gross domestic product, or GDP, was $16.8 billion, in today’s money, when the Republic was founded in 1923. By the end of this year it is expected to reach $779.4 billion.
In 1923, per capita national income was $45.3, which would amount to $1,344 today. The figure is now likely to reach $10,913, an increase in over 800 percent in 85 years.
Over the period, the country’s population rose more than five-fold, from nearly 12.5 million to more than 71.4 million people. The average growth rate over this time was 4.62 percent.
Growth scenarios
If Turkey’s population had average growth of 5 percent annually over this period, its economy would have grown 63.5-fold. The national income would amount to more than $1.06 trillion, while per capita national income would be $14,854.
If the population had grown at 6 percent, Turkey would have grown 141.58-fold since its foundation. Per capita national income would amount to $33,250 while GDP would reach $2.375 trillion. In this scenario, Turkey would meet the average of the European Union, or EU.
If Turkey had achieved 7 percent growth, its per capita national income would have reached an astronomical figure of $73,859, making it the world’s fourth richest, following Luxembourg ($110,000), Norway ($84,000), and Qatar ($80,000). With a GDP of $5.275 trillion, Turkey would be the world’s second largest economy just after the United States. The country’s economy would have grown 3,314 percent in 85 years, according to this hypothetical scenario.
Exports, imports
Compared to 1923, Turkey witnessed an enormous increase in export figures; however, its imports did not slow down either.
Turkey’s exports, which stood at $50.8 million in the first year of the Republic, reached $107.2 billion in 2007. Year-on-year exports reached $132.7 billion as of September this year. Since 1923, exports have increased 2,612 fold.
The country’s imports, which stood at $86.9 million as the nation began, has increased 2,398-fold since then. The year-on-year import figure rose to $208.4 billion as of August.
Expansion of roads
When the Republic was founded, Turkey had a railway network of 3,756 kilometers. Since then the network has grown to 10,984 kilometers, including a main line of 8,697 kilometers and 2,287 kilometers of secondary lines.
The country had 18,350 kilometers of roads in 1923. However, the existing road network is 63,899 kilometers, including 1,987 kilometers of highway, 31,330 kilometers of state highway and 30,579 kilometers of city highways. Furthermore, there are 300,000 kilometers of village roads. All included, the total road network in Turkey is 363,899 kilometers.
Highlights of the Republican period include the Economic Congress in İzmir, the campaign for railways, the establishment of the Central Bank, Wealth Tax, the foundation of the State Planning Organization, or DPT, value added tax, or VAT, convertibility, the Southeastern Anatolia Project, or GAP, the European Union, or EU, and Customs Union, the foundation of the Capital Markets Board, or SPK, and the Istanbul Stock Exchange, or IMKB.
source: Turkish Daily News
Related posts:
