Turkey (Turkish: Türkiye), officially the Republic of Turkey (Türkiye Cumhuriyeti (help·info)), is a Eurasian country that stretches across the Anatolian peninsula in southwestern Asia and the Balkan region of southeastern Europe. Turkey borders eight countries: Bulgaria to the northwest, Greece to the west, Georgia to the northeast, Armenia, Iran and the Nakhichevan exclave of Azerbaijan to the east, and Iraq and Syria to the southeast. In addition, it borders the Black Sea to the north, the Aegean Sea to the west, and the Mediterranean Sea to the south. Turkey also contains the Sea of Marmara that is used by geographers to mark the border between Europe and Asia, thus making the country transcontinental.

The region comprising modern Turkey has seen the birth of major civilisations including the Byzantine and Ottoman Empires. Owing to its strategic location at the intersect of two continents, Turkey's culture is a unique blend of Eastern and Western tradition, often described as a bridge between the two civilisations. With a powerful regional presence from the Adriatic to China in the Eurasian landbelt between Russia and India, Turkey has come to acquire increasing strategic significance.

Turkey is a democratic, secular, unitary, constitutional republic whose political system was established in 1923 under the leadership of Mustafa Kemal Atatürk following the fall of the Ottoman Empire in the aftermath of World War I. Since then, Turkey has increasingly integrated with the West while continuing to foster relations with the Eastern world. It is a founding member of the United Nations, the Organization of the Islamic Conference, the Organisation for Economic Co-operation and Development and the Organization for Security and Co-operation in Europe, a member state of the Council of Europe since 1949, and of NATO since 1952. Since 2005, Turkey is in accession negotiations with the European Union, having been an associate member since 1963. Turkey is also a member of the G20 which brings together the 20 largest economies of the world.

For most of its republican history, Turkey has adhered to a quasi-statist approach, with strict government controls over private sector participation, foreign trade, and foreign direct investment. However, during the 1980s, Turkey began a series of reforms, initiated by Prime Minister Turgut Özal and designed to shift the economy from a statist, insulated system to a more private-sector, market-based model. The reforms spurred rapid growth, but this growth was punctuated by sharp recessions and financial crises in 1994, 1999 (following the earthquake of that year), and 2001, resulting in an average of 4% GDP growth per annum between 1981 and 2003. Lack of additional reforms, combined with large and growing public sector deficits and widespread corruption resulted in high inflation, a weak banking sector and increased macroeconomic volatility.

Since the economic crisis of 2001 and the reforms initiated by the finance minister of the time, Kemal Dervis, the inflation has fallen to single-digit numbers, investor confidence and foreign investment have soared while unemployment has fallen. Turkey has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment and the privatisation of publicly owned industries and the liberalisation of many sectors to private and foreign participation has continued amid political debate.

The GDP growth rate for 2005 was 7.4%, thus making Turkey one of the fastest growing economies in the world. Turkey's GDP ranks 17th in the world and Turkey is a member of G20 which brings together the 20 most industrialized countries of the globe. Turkey's economy is no longer dominated by traditional agricultural activities in the rural areas, but more so by a highly dynamic industrial complex in the major cities, mostly concentrated in the western provinces of the country, along with a developed services sector. The agricultural sector accounts for 11.9% of GDP, whereas industrial and service sectors make up 23.7% and 64.5%, respectively. The tourism sector has experienced rapid growth in the last twenty years, and constitutes an important part of the economy. In 2005, there were 24,124,501 visitors to the country, who contributed 18.2 billion USD to Turkey's revenues. Other key sectors of the Turkish economy are construction, automotive industry, electronics and textiles.

The currency of Turkey is the New Turkish Lira (Yeni Türk Lirasi - YTL)In recent years, the chronically high inflation has been brought under control and this has led to the launch of a new currency to cement the economic reforms and erase the vestiges of an unstable economy. On January 1, 2005, the Turkish Lira was replaced by the New Turkish Lira by dropping off six zeroes (1 NTL= 1,000,000 TL). As a result of continuing economic reforms, the inflation has dropped to 8.2% in 2005, and the unemployment rate to 10.3%. With a per capita GDP (Nominal) of 5,062 USD, Turkey ranked 64th in the world in 2005. One of the biggest economic problems faced by Turkey is the distribution of wealth among the populace. In 2004, it has been estimated that the wealthiest 20% of the population owned 46.2% of the annual household disposible income while the poorest 20% had access to only 6%.

Turkey's main trading partners are the European Union (52% of exports and 42% of imports as of 2005), United States, Russia and Japan. Turkey has taken advantage of a customs union with the European Union, signed in 1995, to increase its industrial production destined for exports, while at the same time benefiting from EU-origin foreign investment into the country. In 2005, exports amounted to 73.5 billion USD while the imports stood at 116.8 billion USD, with increases of 16.3% and 19.7% compared to 2004, respectively. For 2006, the exports amounted to 85.8 billion USD, representing an increase of 16,8% over 2005.

After years of low levels of foreign direct investment (FDI), Turkey succeeded in attracting 8.5 billion USD in FDI in 2005 and is expected to attract a higher figure in 2006. A series of large privatizations, the stability fostered by the start of Turkey’s EU accession negotiations, strong and stable growth, and structural changes in the banking, retail, and telecommunications sectors have all contributed to a rise in foreign investment.