Economy of Istanbul covers the issues related to the economy of the city of Istanbul, Turkey.
Economy of Istanbul covers the issues related to the economy of the city of Istanbul, Turkey.
Historically, Istanbul has been the center of the country's economic life because of its location as an international junction of land and sea trade routes. In 2012 the City of Istanbul had a GDP of $245.2 billion. [1]
In 2008, companies based in Istanbul made exports worth $41,397,000,000 and imports worth $69,883,000,000; which corresponded to 56.6% and 60.2% of Turkey's exports and imports, respectively, in that year. [2] In 2006 Turkey's exports grew a further +16.1% while imports grew +17.6% because of a rising demand of energy resources and raw materials by the industrial manufacturers in the country. [3]
According to Forbes magazine, Istanbul had a total of 37 billionaires in 2013, ranking 5th in the world behind Moscow (84 billionaires), New York City (62 billionaires), Hong Kong (43 billionaires) and London (43 billionaires). [4]
Income distribution is not evenly distributed in Istanbul, such that 20% of the highest income group uses 64% of the resources and 20% of the lowest income group uses 4% of the resources (based on 1994 statistics). [5]
The change in Istanbul's living standards is a direct reflection of the nation's statistics as the 27.5% share of the total consumption in Turkey is performed by the population of Istanbul.
In the late 1990s, the economy of Turkey, and Istanbul in particular, suffered several major depressions. The Asian financial crisis between July 1997 and the beginning of 1998, as well as the crisis in Russia between August 1998 and the middle of 1999 had negative effects in all areas of the economy, particularly on exports. Following this setback, a slow reorganization of the economy of Istanbul was observed in 1999.
The major earthquake which was epicentered in nearby Kocaeli on 17 August 1999, triggered one of the largest economic shocks for the city. Apart from the capital and human losses caused by the disaster, a decrease in GDP of approximately two percent occurred. Despite these downturns, Istanbul's economy has strongly improved and recovered in following years.
Istanbul was hit hard by the 2018 Turkish currency and debt crisis. As of August 2018, almost one-third of office space in Turkey's commercial capital of Istanbul lies vacant, and office rental prices across all segments have fallen sharply. [6]
Istanbul has always been the "financial capital" of Turkey, even after Ankara became the new political capital in 1923. The opening of specific markets in the city during the 1980s further strengthened this status. Inaugurated at the beginning of 1986, the Istanbul Stock Exchange (ISE) is the sole securities market of Turkey, established to provide trading in equities, right coupons, Government bonds, Treasury bills, revenue sharing certificates, bonds issued by the Privatization Administration and corporate bonds, and to carry out overnight transactions. [8]
In 1993 the ISE decided on gold market liberalization, and in 1995 the Istanbul Gold Exchange was established, which ended the gold bullion imports monopoly of the Turkish Central Bank and transferred it to the private sector members of the gold exchange. [9]
Levent, Maslak and Şişli financial districts are home to the headquarters of Turkey's largest companies and banks, as well as the local headquarters of global giants of the financial sector such as Citibank, Merrill Lynch, J. P. Morgan, HSBC, ABN Amro, Fortis, ING Bank, BNP Paribas, Société Générale, Banca di Roma, UniCredit, WestLB, Deutsche Bank, Commerzbank, Milli Reasürans, VHV Reasürans and many others. Both Levent and Maslak have a constantly growing and changing dynamic skyline with several new skyscraper projects being proposed, approved and initiated every year.
Istanbul is the "industrial center" of Turkey. It employs approximately 20% of Turkey's industrial labor and contributes 38% of Turkey's industrial workspace. In addition, the city generates 55% of Turkey's trade and 45% of the country's wholesale trade, and generates 21.2% of Turkey's gross national product. Istanbul contributes 40% of all taxes collected in Turkey and produces 27.5% of Turkey's national product.[ citation needed ]
Many of Turkey's major manufacturing plants are located in the city. Istanbul and its surrounding province produce cotton, fruit, olive oil, silk, and tobacco. Food processing, textile production, oil products, rubber, metal ware, leather, chemicals, electronics, glass, machinery, paper and paper products, and alcoholic drinks are among the city's major industrial products. The city also has plants that assemble automobiles and trucks. Difficulties in the proximity of some of these varied business have been encountered in the past, such as the 2008 Istanbul fireworks explosion which was exacerbated by the close proximity of a paint factory.[ citation needed ]
To give enhancement to the textile industry the Istanbul Exporters Union, and textiles and clothing (ITKIB) was created in 1986, by the Secretariat for Foreign Trade, to facilitate the expansion and streamlining of export of textiles from Istanbul. In fact, the Union comprises four independent union representatives that are included in the Board ITKIB:[ citation needed ]
Pharmaceutical industry started in 1952 with the establishment of "Eczacıbaşı Pharmaceuticals Factory" in Levent, Istanbul. [13] Today, 134 companies operate in the Turkish pharmaceutical industry, a significant part of which is based within or near Istanbul. [14]
Istanbul is one of the most important tourism spots of Turkey. There are thousands of hotels and other tourist oriented industries in the city, catering to both vacationers and visiting professionals. In 2006 a total of 23,148,669 tourists visited Turkey, most of whom entered the country through the airports and seaports of Istanbul and Antalya. [15] The total number of tourists who entered Turkey through Atatürk International Airport and Sabiha Gökçen International Airport in Istanbul reached 5,346,658, rising from 4,849,353 in 2005. [16] This number increased to 10.5 Million in 2011 with the booming Turkish tourism. In 2011, Istanbul's two international airports handled more than 50 Million passengers. [17]
Istanbul is also one of the world's major conference destinations and is an increasingly popular choice for the world's leading international associations. [18] Istanbul's conference appeal developed with three separate conference and exhibition areas: The "Conference Valley" (Istanbul Convention & Exhibition Center, Istanbul Hilton Convention & Exhibition Center, the Military Museum Cultural Center and the Cemal Reşit Rey Concert Hall); The Airport & Exhibition District (150,000 m2 (1.6 m sq ft) of exhibition space around the CNR International Expo Center); and the Business & Financial District (with many distributed centers). These cluster areas feature a combination of accommodations, meeting facilities, and exhibition space. They can be used individually, or collectively through transportation with the Istanbul metro, and are linked together for accommodating events with 10,000 or more participants.
The economy of Germany is a highly developed social market economy. It has the largest national economy in Europe, the third-largest by nominal GDP in the world, and fifth by GDP (PPP). Due to a volatile currency exchange rate, Germany's GDP as measured in dollars fluctuates sharply. In 2017, the country accounted for 28% of the euro area economy according to the International Monetary Fund (IMF). Germany is a founding member of the European Union and the Eurozone.
The economy of Israel is a highly developed free-market economy. The prosperity of Israel's advanced economy allows the country to have a sophisticated welfare state, a powerful modern military said to possess a nuclear-weapons capability with a full nuclear triad, modern infrastructure rivaling many Western countries, and a high-technology sector competitively on par with Silicon Valley. It has the second-largest number of startup companies in the world after the United States, and the third-largest number of NASDAQ-listed companies after the U.S. and China. American companies, such as Intel, Microsoft, and Apple, built their first overseas research and development facilities in Israel. More than 400 high-tech multi-national corporations, such as IBM, Google, Hewlett-Packard, Cisco Systems, Facebook and Motorola have opened R&D centers throughout the country.
The economy of Paraguay is a market economy that is highly dependent on agriculture products. In recent years, Paraguay's economy has grown as a result of increased agricultural exports, especially soybeans. Paraguay has the economic advantages of a young population and vast hydroelectric power. Its disadvantages include the few available mineral resources, and political instability. The government welcomes foreign investment.
The economy of Switzerland is one of the world's most advanced and a highly-developed free market economy. The economy of Switzerland has ranked first in the world since 2015 on the Global Innovation Index and third in the 2020 Global Competitiveness Report. According to United Nations data for 2016, Switzerland is the third richest landlocked country in the world after Liechtenstein and Luxembourg. Together with the latter and Norway, they are the only three countries in the world with a GDP per capita (nominal) above US$90,000 that are neither island nations nor ministates.
Turkey is a founding member of the OECD and G20. The country's economy ranked as the 17th-largest in the world and 7th-largest in Europe by nominal GDP in 2023. It also ranked as the 11th-largest in the world and 5th-largest in Europe by PPP in 2023. According to the IMF, as of 2022, Turkey had an upper-middle income, mixed-market, emerging economy. Turkey has often been defined as a newly industrialized country since the turn of the 21st century. The country is the fourth most visited destination in the world, and has over 1,500 R&D centres established both by multinational and national firms. Turkey is among the world's leading producers of agricultural products, textiles, motor vehicles, transportation equipment, construction materials, consumer electronics, and home appliances.
The economy of Bangladesh is a major developing market economy. As the second-largest economy in South Asia, Bangladesh's economy is the 33rd largest in the world in nominal terms, and 25th largest by purchasing power parity. Bangladesh is seen by various financial institutions as one of the Next Eleven. It has been transitioning from being a frontier market into an emerging market. Bangladesh is a member of the South Asian Free Trade Area and the World Trade Organization. In fiscal year 2021–2022, Bangladesh registered a GDP growth rate of 7.2% after the global pandemic. Bangladesh is one of the fastest growing economies in the world.
Işık University is a private university located in Istanbul, Turkey. The university is a part of the Feyziye Schools Foundation's Işık Schools, which was established by the Feyz-i Sıbyan School in the city of Salonica on 14 December 1885.
Levent is a neighbourhood in the municipality and district of Beşiktaş, Istanbul Province, Turkey. Its population is 2,911 (2022). It is one of the main business districts of Istanbul located on the European side of the city. It is situated to the north of the Golden Horn, at the western shore of the Bosphorus strait.
Maslak is a neighbourhood in Sarıyer, Istanbul Province, in Turkey. Its population is 12,260 (2022). It is one of the main business districts of Istanbul, located on the European side of the city. It was formerly an exclave of the municipality of Şişli, though being far north and actually closer to the municipalities of Sarıyer and Beşiktaş. In 2012, the jurisdiction of the Maslak district was shifted from Şişli to Sarıyer.
Istanbul Beykent University is a foundation university in Istanbul, Turkey, teaching in English, Russian combined and Turkish with 30.000 students.
Trade is a key factor of the economy of China. In the three decades following the dump of the Communist Chinese state in 1949, China's trade institutions at first developed into a partially modern but somewhat inefficient system. The drive to modernize the economy that began in 1978 required a sharp acceleration in commodity flows and greatly improved efficiency in economic transactions. In the ensuing years economic reforms were adopted by the government to develop a socialist market economy. This type of economy combined central planning with market mechanisms. The changes resulted in the decentralization and expansion of domestic and foreign trade institutions, as well as a greatly enlarged role for free market in the distribution of goods, and a prominent role for foreign trade and investment in economic development.
The Istanbul Mineral and Metals Exporters' Association (IMMIB) is a professional body which deals with all of the export activities at the export density regions of Istanbul. It is affiliated with the Undersecretariat for Foreign Trade of the office of the Prime Minister of Turkey. As of 2008 IMMIB's 25,300 members represented one third of Turkey's total exports.
Izmir Atatürk organized industrial zone (IAOIZ) is one of the largest and most modern organized industrial zones in Turkey. It started operating in 1990. The Zone is located to the northwest of İzmir, in Cigli district. It is located in the city metropolis, 25 km from the city government complex, 35 km from Adnan Menderes Airport and 20 km from Alsancak Harbor.
MMTC Ltd. is one of the two highest earners of foreign exchange for India and India's largest public sector trading body. Not only handling the export and import of primary products such as coal, iron ore, agro and industrial products, MMTC also exports and imports important commodities such as ferrous and nonferrous metals for industry, and agricultural fertilizers. MMTC's diverse trade activities cover third country trade, joint ventures and link deals and all modern forms of international trading. The company has a vast international trade network, spanning almost in all countries in Asia, Europe, Africa, Oceania, and in the United States and also includes a wholly owned international subsidiary in Singapore, MTPL. It is one of the Miniratnas companies.
The Manufacturers’ Association of Israel (MAI) is the umbrella organization and representative body of all industrial sectors in Israel including the private, public, kibbutz, and government industries. With a membership of over 1,800 organizations responsible for more than 90% of the industrial output, the Manufacturers’ Association of Israel is the largest and most influential economic organization in the country. Dr. Ron Tomer has led the organization as President since January 30, 2020. Headquartered in Tel Aviv, the Manufacturers’ Association of Israel has three other regional branches. The Northern branch, located in the city of Haifa, serves over 600 different member organizations which are responsible for around one third of all the industrial manpower in Israel. The Jerusalem branch, located in the city of Jerusalem, serves over 130 different member organizations. The Southern branch, located near the city of Be’er Sheva, serves over 350 different member organizations.
The economy of the Western Cape in South Africa is dominated by the city of Cape Town, which accounted for 72% of the Western Cape's economic activity in 2016. The single largest contributor to the region's economy is the financial and business services sector, followed by manufacturing. Close to 30% of the gross regional product comes from foreign trade with agricultural products and wine dominating exports. High-tech industries, international call centres, fashion design, advertising and TV production are niche industries rapidly gaining in importance.
Pakistan has bilateral and multilateral trade agreements with many nations and international organizations. It is a member of the World Trade Organization, part of the South Asian Free Trade Area agreement and the China–Pakistan Free Trade Agreement. Fluctuating world demand for its exports, domestic political uncertainty, and the impact of occasional droughts on its agricultural production have all contributed to variability in Pakistan's trade deficit. The trade deficit for the fiscal year 2013/14 is $7.743 billion, exports are $10.367 billion in July–November 2013 and imports are $18.110 billion.
Foreign trade in India includes all imports and exports to and from India. At the level of Central Government it is administered by the Ministry of Commerce and Industry. Foreign trade accounted for 48.8% of India's GDP in 2018.
The share of the industry of Colombia in the country's gross domestic product (GDP) has shifted significantly in the last few decades. Data from the World Bank show that between 1965 and 1989 the share of industry—including construction, manufacturing, and mining—increased from 27 percent to 38 percent of GDP. However, since then the share has fallen considerably, down to approximately 29 percent of GDP in 2007. This pattern is about the average for middle-income countries.
