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COUNTRYPROFILE TURKEY

CONTENTS<<COUNTRY>>

IMD World Competitiveness Yearbook, Talent & Digital 2020: summaries

WORLD COMPETITIVENESSRANKING 2020

All data are available from theWorld Competitiveness Online.

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BASIC FACTSCapital

Land area (square km '000) 7852019

Exchange Rate (per $) 5.6742019

Population - market size (millions) 83.152019 10

Gross Domestic Product (GDP) (US$ billions) 754.42019 19

GDP (PPP) per capita (US$) 28,4022019 44

Real GDP growth (%) 0.92019 52

Consumer price inflation (%) 15.182019 61

Unemployment rate (%) 13.732019 59

Labor force (millions) 32.552019 13

Current account balance (% of GDP) 1.062019 30

Direct investment stocks inward ($bn) 134.52018 38

Direct investment flows inward (% of GDP) 1.122019 49

PEER GROUPS RANKINGSEUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS > 20 MILLION (29 countries)

COMPETITIVENESS TRENDS - OVERALL

TURKEYOVERALL PERFORMANCE (63 countries) Rank

Ankara

CHALLENGES IN 2020Global recession due to Covid-19.

Macroeconomic imbalances.

TUSIAD, Turkish Industry and Business Association, Economic

Research Department

COMPETITIVENESS LANDSCAPE

38 47 46 51 46

2016 2017 2018 2019 2020

56

14

42

61

3641

36

57

37

58

35 35

46

2732 33

50

3846 47

Dom

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Eco

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Inte

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iona

l Tra

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Inte

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ent

Empl

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Pric

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Publ

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Tax

Polic

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Inst

itutio

nal F

ram

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k

Busi

ness

Leg

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tion

Soci

etal

Fra

mew

ork

Prod

uctiv

ity &

Effi

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Labo

r M

arke

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Fina

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Man

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ent

Prac

tices

Att

itude

s an

d V

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Basi

c In

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Tech

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Scie

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Hea

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Educ

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Economic Performance Government Efficiency Business Efficiency Infrastructure

25 31 31 34 30

2016 2017 2018 2019 2020

16 21 20 22 20

2016 2017 2018 2019 2020

• Global recession due to Covid-19.• Macroeconomic imbalances.• Geopolitical risks.• Political uncertainty.• Uncertainty in legal framework.

Provided by:TUSIAD, Turkish Industry and Business Association, Economic Research Department

IMPROVEMENTSWCY 2019

WCY 2020 DECLINES

WCY 2019

1.2.02 Current account balance -3.63 1.06 1.1.18 Gross fixed capital formation - real growth -1.73

2.3.02 Cost of capital 2.00 4.44 1.1.15 Real GDP growth per capita 1.07

1.2.13 Exports of commercial services (%) 5.10 8.49 1.4.04 Employment - long-term growth 4.99

3.3.16 Credit 3.63 6.04 1.1.14 Real GDP growth 2.6

2.5.01 Justice 2.53 4.11 3.2.14 Labor force long-term growth 6.23

3.2.21 Brain drain 2.93 4.69 1.4.08 Long-term unemployment 2.45

3.5.02 Image abroad or branding 2.93 4.55 2.1.02 Government budget surplus/deficit (%) -3.63

2.3.09 Legal and regulatory framework 2.78 4.30 1.4.07 Unemployment rate 10.96

2.3.11 Transparency 2.22 3.42 1.4.09 Youth unemployment 20.30

2.5.05 Social cohesion 3.67 5.53 4.3.16 Patent applications per capita 13.79

1.2.12 Exports of commercial services ($bn) 43.39 64.07 2.4.04 Foreign investors 8.30

3.3.19 Corporate debt 3.59 5.22 4.5.04 Total public exp. on education per student 1,657

3.3.17 Venture capital 3.48 5.05 1.1.09 Gross fixed capital formation (%) 29.7

3.5.05 Need for economic and social reforms 4.52 6.47 2.4.05 Capital markets 7.56

2.3.10 Adaptability of government policy 3.59 5.13 4.1.20 Electricity costs for industrial clients 0.084

COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS

TURKEYCOMPETITIVENESS EVOLUTION

-12.44

3.85

3.23

-4.56

13.73

25.41

11.41

6.73

The criteria below highlight the 15 biggest Improvements and the 15 biggest Declines in the overall performance of the economy. They are

determined by the largest percentage changes in the value of each criterion from one yearbook to the next.

WCY 2020

0.091

KEY ATTRACTIVENESS INDICATORSFrom a list of 15 indicators, respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key

attractiveness factors of their economy. The chart shows the percentage of responses per indicator from the highest number of responses

to the lowest.

-0.52

-0.12

0.9

7.16

1,447

26.1

7.3%7.3%9.1%12.7%16.4%18.2%23.6%25.5%27.3%29.1%36.4%40.0%54.5%63.6%69.1%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Competency of governmentStrong R&D culture

Policy stability & predictabilityCompetitive tax regime

Effective legal environmentQuality of corporate governance

Effective labor relationsBusiness-friendly environment

High educational levelAccess to financing

Open and positive attitudesReliable infrastructure

Dynamism of the economySkilled workforce

Cost competitiveness

WORLD COMPETITIVENESSDIGITAL RANKING 2020

All data are available from theWorld Competitiveness Online.

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Alpha AlphaLabelBeta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

6.5 4 4 2 28.5 4 4 2 211 4 4 2 2

2016 2017 2018 2019 2020

50 52 52 52 44

58 60 59 60 56

48 49 45 48 42

42 40 42 41 34

OVERALL

Future readiness

PEER GROUPS RANKINGS

EUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS > 20 MILLION (29 countries)

COMPETITIVENESS & DIGITAL RANKINGS

Technology

DIGITAL TRENDS - OVERALL

TURKEY

OVERALL PERFORMANCE (63 countries)

OVERALL & FACTORS - 5 years

Knowledge

50 52 52 5244

38 47 4651

46

2016 2017 2018 2019 2020

Digital

Competitiveness

36 36 37 3731

2016 2017 2018 2019 2020

18 22 21 21 18

2016 2017 2018 2019 2020

56 38 62 45

42 34 51 5144

34 32 20 42

Knowledge Talent Training & education Scientific concentration

Technology Regulatory framework Capital Technological framework

Future readiness Adaptive attitudes Business agility IT integrationThe direction of the triangle indicates the performance change from the last year: improved or stabledeclined

Overall Factors Sub-Factors

N.B. This graph provides only a comparison of the country’s performance in the two rankings.

u Overall top strengths

w Overall top weaknesses

Subfactors 2016 2017 2018 2019 202036 49 49 52 38

61 63 62 63 62

52 48 48 43 45

Talent Rank Rank Rank

Educational assessment PISA - Math 39 42 40 International experience 28 38 41 Foreign highly-skilled personnel 48 46 30 Management of cities 37 w 58 u 12 Digital/Technological skills 31 50 45 Net flow of international students 29 50 w 57 28

Subfactors 2016 2017 2018 2019 202040 40 37 38 34

46 47 41 56 51

51 51 51 50 51

Regulatory framework Rank Rank Rank

Starting a business 36 28 40 Enforcing contracts 21 42 u 12 Immigration laws 31 31 55 Development & application of tech. 34 w 58 49 Scientific research legislation 35 37 w 58 Intellectual property rights 49 49 w 59

Subfactors 2016 2017 2018 2019 202035 36 42 38 32

41 39 42 44 20

52 51 50 48 42

Adaptive attitudes Rank Rank Rank

E-Participation 22 u 8 46 Internet retailing 41 20 36 Tablet possession 43 u 12 35 Smartphone possession 39 42 48 Attitudes toward globalization 30 36 u 5

Training & education Scientific concentration

Talent

Robots in Education and R&D

IT integration

Business agility IT integration

Scientific concentration

Capital Technological framework

FACTORS BREAKDOWN - STRENGTHS AND WEAKNESSES

TURKEY

FUTURE READINESS

TECHNOLOGY

Technological framework

Opportunities and threats E-GovernmentWorld robots distribution Public-private partnerships

IT & media stock market capitalization Communications technology

Regulatory framework

Capital

KNOWLEDGE

Entrepreneurial fear of failure

Agility of companies Cyber securityUse of big data and analytics Software piracyKnowledge transfer

Adaptive attitudes

Business agility

Venture capital Internet bandwidth speedInvestment in Telecommunications High-tech exports (%)

Funding for technological development Mobile Broadband subscribersBanking and financial services Wireless broadbandCountry credit rating Internet users

Training & education

Employee training Total expenditure on R&D (%)Total public expenditure on education Total R&D personnel per capitaHigher education achievement Female researchersPupil-teacher ratio (tertiary education) R&D productivity by publicationGraduates in Sciences Scientific and technical employmentWomen with degrees High-tech patent grants

WORLD TALENTRANKING 2020

All data are available from theWorld Competitiveness Online.

Visit our eShop

Alpha AlphaLabel Beta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

Value

4.2 % 39w 1,275 US$ 51 17.18 ratio 43 14.09 ratio 46u 5.60 Survey [0..10] 21 5.60 Survey [0..10] 42w 32.83 % 57u 6.98 Survey [0..10] 27

Value

u 64.50 index 7 6.65 Survey [0..10] 35 5.85 Survey [0..10] 36 4.69 Survey [0..10] 38 5.63 Survey [0..10] 45 4.40 Survey [0..10] 48w 8,368 US$ 54 147,309 US$ 37 20.43 % 39 4.11 Survey [0..10] 48w 21.82 micrograms 50

Value

0.85 % 33u 6.44 Survey [0..10] 20 6.62 Survey [0..10] 27 5.89 Survey [0..10] 28u 6.15 Survey [0..10] 23 5.16 Survey [0..10] 47w 19.44 % 48 5.45 Survey [0..10] 46 6.07 Survey [0..10] 43 5.38 Survey [0..10] 44 1.53 number 42 462 Average 39

Investment & Development 2020 Rank

Health infrastructure meets the needs of society

2020 Rank

Total public expenditure on education Percentage of GDP

ApprenticeshipsEmployee training is a high priority in companies

Readiness 2020 Rank

Educational assessment - PISA PISA survey of 15-year olds

Appeal

Exposure to particle pollution Mean population exposure to PM2.5, Micrograms per cubic metre

Labor force growth Percentage change

Index of a basket of goods & services in the main city, including housing (New York City = 100)

Skilled labor is readily available

Cost-of-living index

Female labor force Percentage of total labor force

Pupil-teacher ratio (secondary education) Ratio of students to teaching staff

are sufficiently implemented

Total public exp. on education per student Spending per enrolled pupil/student, all levels

Pupil-teacher ratio (primary education) Ratio of students to teaching staff

Management education meets the needs of the business community

Language skills are meeting the needs of enterprises

Student mobility inbound Foreign tertiary-level students per 1000 inhabitants

Primary and secondary education meets the needs of a competitive economy

Graduates in Sciences % of graduates in ICT, Engineering, Math & Natural Sciences

University education meets the needs of a competitive economy

Finance skills are readily available

International experience of senior managers is generally significant

Competent senior managers are readily available

Justice is fairly administered

Gross annual income including supplements such as bonuses, US$

Remuneration of management Total base salary plus bonuses and long-term incentives, US$

Effective personal income tax rate Percentage of an income equal to GDP per capita

Attracting and retaining talents is a priority in companies

Worker motivation in companies is high

Brain drain (well-educated and skilled people) does not hinder competitiveness in your economy

Quality of life is high

Foreign highly-skilled personnel are attracted to your country's business environment

Remuneration in services professions

OVERALL PERFORMANCE (63 countries)

IMD World Talent Ranking 2020

TURKEY

46

53

51

58

46

52 52

58 58

46

43

5150

53

46

40

51

48

56

41

2016 2017 2018 2019 2020

Overall

Investment &Development

Appeal

Readiness

46

4646

41

Investment & Development

Appeal

Readiness

The direction of the triangle indicates the performance change from the last year: improved or stabledeclined

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IMD WORLDTALENTRANKING 2020

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