The Turkish economy and provides an economic background including some comparisons with other middle-income countries. There follows a section on the early foundations of econ- omic development during the period 1923–29, state-led industrializa- tion (étatism) in the 1930s, economic aspects of the development strategies adopted during the Second World War and postwar years (1939–50), and the experience of liberalism under the Democrats (1950–61). The inward-oriented phase of development is then exam- ined and the performance of the economy is covered in the 1962–79 period of national planning under the inﬂuence of étatism. The next section introduces the 1980 reform package and evaluates the perform- ance of the 1980s policy of market orientation and export-led growth (ELG).
Now Turkey’s economic freedom score is 64.4, making its economy the 71st freest in the 2020 Index.
The Turkish economy has been moderately free for more than a decade. GDP growth had been robust until 2018, when a currency and debt crisis pushed the economy into recession.
The resilience of Turkey’s economy is due to solid public finances, well-capitalized banks, and a dynamic and diversified private sector. Moving into the mostly free ranks of economic freedom, however, will require reforms to make the labor market more competitive.
The total value of exports and imports of goods and services equals 60.4 percent of GDP. The average applied tariff rate is 3.5 percent, and 335 nontariff measures are in force. Foreign investment is welcome, and the financial system is evolving toward greater transparency and competitiveness.