Turkey profile

Demography and Health

Turkey’s population sits around 85.5 million in 2024 (population 85,518,661; rank 18 by size globally), signaling a large and potentially dynamic domestic market. The country continues to experience a relatively high birth rate in the historical sense, with a crude birth rate of 11.2 per 1,000 people in 2023, alongside a crude death rate of 6.2 per 1,000, and a life expectancy at birth of 77.2 years in 2023. These indicators suggest a country in transition: a sizable working-age cohort remains, but aging dynamics will gradually intensify as mortality and longevity rise. Under-5 mortality stands at 12.8 per 1,000 live births (2023), reflecting ongoing improvements in child health, yet leaving room for continued targeted health interventions to push mortality down further. The net migration balance in 2024 shows outflows of 275,952 people, a signal that migration can affect the domestic labor supply and consumer dynamics even with a large population overall. The unemployment rate sits at 9.39% (2023), indicating a labor market that has pockets of slack even as the economy creates jobs in some sectors. Poverty at national poverty lines is 13.9% (2022), with undernourishment at 2.5% (2022), suggesting that social protections and nutrition remain critical for a portion of the population. Health capacity shows a mixed picture: physicians per 1,000 people are 2.17 (2021), while current health expenditure is 3.7% of GDP (2022) and domestic government health expenditure per capita at PPP is 1,042 international US$ (2022). These figures point to a health system that has achieved broad access but faces challenges in funding and service delivery scales. Life expectancy, at 77.2 years (2023), aligns with many middle-income countries, while internet penetration is high at 87.3% (2024), offering a platform for digital health, telemedicine, and public health outreach. Innovation activity is visible through 8,234 patent applications by residents in 2021 and R&D spending of 1.32% of GDP in 2022, indicating a growing but still developing science and technology base that can support health advances and productivity gains. The suicide mortality rate is relatively low at 2.69 per 100,000 population (2021), which, alongside broad internet use, suggests potential for targeted mental health initiatives and digital health resources. Overall, demographic momentum, improving health indicators, and rising digital connectivity position Turkey to capitalize on its size and skills base, even as economic and governance headwinds shape health outcomes and service affordability.

Economy

Turkey’s macro profile blends a sizable per-person income with high inflation and a diversified export base. GDP per capita on current US$ is 15,473 in 2024, while GDP per capita in purchasing power parity terms is 43,932 (2024), reflecting a standard of living that is comfortable in PPP terms but lower in market-exchange terms. The inflation surge is stark: 2024 consumer prices rose by 58.5%, underscoring macroeconomic volatility and its impact on households, businesses, and savings. The unemployment rate is 9.39% (2023), signaling labor market gaps that require structural policies to create employment across sectors. The economy exhibits openness, with exports of goods and services constituting 28.0% of GDP (2024) and imports at 27.8% of GDP (2024), signaling strong trade integration and a reliance on global supply chains. The current account balance showed a modest deficit of 0.754% of GDP in 2024, indicating a delicate external position that could worsen with higher energy costs or a stronger import bill. Foreign direct investment net inflows are 0.851% of GDP (2024), suggesting ongoing but not spectacular investor interest; political and policy stability will influence the trajectory of inward investment. On the innovation front, high-technology exports total 9.9 billion USD (2024), with 8,234 resident patent applications in 2021 and R&D expenditure at 1.32% of GDP (2022), signaling progress toward higher value-added production but room to accelerate knowledge-based growth. The economy also benefits from a robust logistics framework, with a logistics performance index score of 3.4 (2022) on a 1–5 scale, and a rank of 12 for quality of trade and transport-related infrastructure, indicating relatively efficient supply chains and trade facilitation. Taken together, Turkey’s economy sits at a crossroads: sizable domestic demand and export potential paired with inflation and governance challenges that must be stabilized to unlock durable, inclusive growth.

Trade and Investment

Trade and investment dynamics reveal a country deeply integrated into global value chains while facing macro volatility. Exports account for 28.0% of GDP in 2024, with imports at 27.8% of GDP in the same year, illustrating a fairly balanced external orientation and a reliance on both foreign demand and foreign inputs. The current account deficit remains modest at 0.754% of GDP (2024), indicating that financing risks are contained for now but could broaden if energy prices spike or import needs surge. Foreign direct investment, net inflows, stand at 0.851% of GDP (2024), reflecting continued but cautious investor engagement that may depend on inflation stabilization and policy credibility. Turkey’s strong logistics capabilities—logistics performance index of 3.4 (2022) with a rank of 12 in quality of trade- and transport-related infrastructure—support efficient movement of goods and reduce trade costs, reinforcing Turkey’s role as a regional hub for manufacturing and distribution. The presence of 9.9 billion USD in high-technology exports (2024) and 8,234 resident patent applications (2021) alongside 1.32% of GDP directed to research and development (2022) signals ongoing shifts toward higher value-added activities, though the absolute scale of R&D investment remains modest by global standards. Overall, Turkey’s trade and investment profile combines openness and strategic infrastructure with vulnerabilities from macro instability and governance constraints, suggesting that policy steadiness and continued investment in innovation could enhance competitiveness and resilience in regional trade networks.

Governance and Institutions

Turkey’s governance indicators present a cautious portrait of institutional capacity and rule-of-law dynamics. Political stability and absence of violence/terrorism yields a score of -1.01 in 2023, with a relatively low rank of 170, implying ongoing concerns about security and political continuity that can influence investor confidence and policy continuity. Regulatory quality stands at -0.23 (2023) with rank 108, and rule of law at -0.512 (2023) with rank 135, pointing to substantial room for strengthening legal predictability, contract enforcement, and the protection of property rights. Control of corruption is -0.502 (2023) with rank 124, indicating persistent governance challenges that may affect public service delivery and business environments. Government effectiveness is -0.248 (2023) with rank 112, suggesting limited public sector performance in implementing reforms and delivering services efficiently. Taken together, these figures imply that while Turkey has formal institutions and policy frameworks in place, real-world governance performance lags in several dimensions. For policymakers, the challenge lies in enhancing judicial independence, anti-corruption efforts, regulatory quality, and public-sector effectiveness to improve business confidence, attract investment, and deliver social programs more efficiently. The data underscore the link between political economy stability and long-term growth potential, particularly in inflationary contexts where credible governance can anchor macro policy and investor expectations.

Infrastructure and Technology

Turkey’s infrastructure and technology profile combines broad digital access with solid transport logistics and a growing but still developing innovation ecosystem. Internet adoption is high, with 87.3% of the population online in 2024, ranking 8 in terms of internet usage, which supports digital services, e-commerce, and public-participation platforms. The logistics performance index is 3.4 (2022), with a rank of 12 for quality of trade- and transport-related infrastructure, signaling that physical connectivity and logistics efficiency underpin export-oriented manufacturing and regional supply chains. Innovation activity is evident in 8,234 resident patent applications in 2021 and 1.32% of GDP invested in R&D (2022), indicating ongoing efforts to boost technological capabilities even as spend remains below the leading global innovators. High-technology exports total 9.9 billion USD (2024), reflecting meaningful activity in advanced manufacturing sectors, albeit from a relatively small base on a global scale. Renewable energy consumption accounts for 12% of total final energy consumption (2021), suggesting room to accelerate the energy transition alongside a continued push for cleaner technologies. Health and knowledge infrastructure also show progress: physicians per 1,000 people stand at 2.17 (2021), and domestic health expenditure per capita, PPP, is 1,042 international dollars (2022), with current health expenditure at 3.7% of GDP (2022). Taken together, Turkey’s infrastructure and technology landscape reveals a connected, logistics-intensive economy with rising innovation activity and digital readiness, but with opportunities to deepen R&D investment, boost renewables, and accelerate the transition toward higher-tech, knowledge-based growth.

Environment and Sustainability

Environmental and sustainability indicators show a country balancing growth with resource and climate challenges. Total greenhouse gas emissions per capita excluding LULUCF are about 7.11 tCO2e per person in 2023, placing Turkey in the moderate-to-high range for a middle-income economy and underscoring the need for ongoing decarbonization efforts across industry, energy, and transport. Water resources face stress, with freshwater withdrawal at 43.4% of available resources in 2021, signaling significant pressure on water supplies that can affect agriculture, industry, and urban use. Renewable energy makes up 12% of total final energy consumption in 2021, indicating that there is still substantial scope to expand clean power generation and reduce dependency on fossil fuels. On the social front, the prevalence of undernourishment is relatively low at 2.5% (2022), while poverty remains a concern for about 13.9% of the population (2022), highlighting the uneven distribution of resource benefits and the importance of inclusive environmental and social policies. Collectively, these environmental and sustainability metrics point to a country with growing needs for climate resilience, energy transition, water management, and equitable access to environmental and health services as it pursues higher growth amid volatility.