The economic crises occurred in the 2008 has affected all countries’ economy including Turkish economy. The Turkish economy had already a fluctuating growth rate but with the economic crisis the effects of this situation became more noticeable. For instance, the growth rate was 5.80% in 2004 and then increased in 2005 to 8.20%. After year 2005, the growth rate of the economy began to decrease. In 2006, it was dropped to 7.40% and then in 2007 to 5.30%. While Turkish economy growth about 4.50% in first quarter of 2008, it showed about 3.6% decreases in third quarter of 2008 due to economic crises. Therefore, while its rank was 23 in 2005, it has been dropped to 172 in the end of 2008.
The current economic crisis has hit Turkey hard. GDP growth of Turkey in the beginning of crisis was 1.10%.After two quarters, it became worse and it has been dropped to -6.20%. Moreover, the growth rate continued to fall further to -14.30% in the first quarter of 2009 and, despite signs of the recession in the first three quarters of 2009, the Turkish economy is expected to grow by more than 3.70% in fourth quarter of 2009 or in 2010.
Manufacturing industry forms 25% of the GDP so it has a crucial role in Turkish economy. Due to economic crisis, the growth rate of manufacturing production 8.80% in the first quarter of 2008 declined to %5 in the second quarter, 0.9% in the third quarter and -9.60% in the last quarter. Furthermore, it was dropped to -17.60% in the first quarter of 2009 and it was recorded as a huge decline. Due to significance of manufacturing industry in Turkish economy, the rate of the manufacturing industry being affected from crisis has impacts on Turkish economy.
GDP was also affected by agriculture and services. The growth rate of agriculture has getting narrow since 2005 but in 2007, it dropped by the highest rate of -10.2% and continued to decline in 2009. Moreover, the growth rate of services fluctuated until the crisis has been started in 2008. It...