PESTLE Analysis of Turkey

Pestle analysis of Turkey. The Republic of Turkey is a transcontinental country situated in Western Asia and Southeastern Europe. The country shares the border with the Aegean Sea, Mediterranean Sea, Syria, Iraq, Iran, Azerbaijan, Armenia, Georgia, Black Sea, Bulgaria, and Greece. The capital of Turkey is Ankara.

Modern-day Turkey has a long history dating back to 12000 years, and various civilizations inhabited the region. The Ottomans Empire started emerging and expanding in the 13th century and began declining in the 18th century onward. Ottoman Empire lost during WWI, and allied countries portioned the empire. Turkish War of Independence started after WWI and laid the foundation of the Republic of Turkey in 1922.

Turkey’s total area is 302,455 square miles, and it’s the 36th largest country in the world. Approximately more than 83,614,362 people are populating the county, and it’s the 36th largest country worldwide in terms of population.

Today, we’ll study the pestle analysis of Turkey. It would analyze the macro-environmental factors that are impacting the growth and progress of the transcontinental country. Here’s the pestle analysis of Turkey as follows;

Political factors impacting Turkey

Government System

Turkey used to follow the parliamentary democratic system from its foundation to 2017. Now, she follows the presidential democratic system, and it came to follow through a referendum. Turkey is a unitary secular country, and the state’s head is the president.

Diplomatic Alliances

Turkey has a significant geographical location, and the country has established diplomatic alliances with organizations like G20, NATO, EEC, OIC, OECD, World Bank, IMF, and UN. However, she has had excellent relations with the USA. Ever since she bought the S-400 fighter jet from Russia, the weapon deal has strained her relationship with the US.

Military Coup

Turkey has been facing issues of military coups from time to time. The last failed coup attempt happened in 2016. Such attempts create an atmosphere of political uncertainty in the country. On the other hand, some critics say that the Turkish Constitution allows the military to take over the government when any political government exploits the religion and prolongs its stay. Recep Tayyip Erdogan is currently doing the same thing, and he has been in power for the past 20 years.

Security Issues

The environment of wars and terror attacks in the neighboring countries impacts the reputation of Turkey. It also puts a question on the country’s influence and power in the region. However, Turkey is a safe and secure country for businesses and tourists. In fact, the Commonwealth Office and the UK have removed all the traveling bans and restrictions from traveling to Turkey.

Conflict with EU

Turkey has grand ambitions to become a permanent member of the EU; it would allow Turkish people to move and trade freely without any documentation and visa requirements. It’s a very lengthy process, and it’s underway. The General Affairs Council of the EU said in 2018 that Turkey has been moving from becoming part of the EU.

Economical Factors Affecting Turkey


According to an estimate, Turkey’s annual nominal GDP in 2020 was 649.436 billion dollars, and it’s the 20th world’s highest. Out of which, the country’s per capita earning was 7715 dollars, and it’s 73rd highest. However, Turkey falls under the category of upper-middle-income countries with earned revenue. A slight fall in the country’s GDP is due to the lockdown and pandemic crisis.

Exports & Imports

Turkey’s main exports are jewelry, spare parts of vehicles, delivery trucks, gold, cars, buses, refined petroleum, wheat flour, raw iron bars, and knit T-shirts. She exports her products to Germany and other countries.

Turkey’s main imports are coal briquettes, broadcasting equipment, scrap iron, spare parts for vehicles, and cars, refined petroleum, and gold. A majority of the products she imports are from China. However, Turkey has established an imports and exports trade alliance with the EU, and it’s the 5th largest trade partner.


Turkey’s strategic location has made the country the most attractive place for FDI (foreign direct investment) all over Europe. Some of the top investing areas are biotechnology, electronics, shipbuilding, telecommunication, public transport, education, health, textile, and Technology. However, Turkish companies and investment firms also invest their resources in Eastern European countries like Serbia, Romania, Hungary, and Poland.

Tax Rate

Turkey has a variable personal income tax rate, and it ranges from 15% to 40%, depending on the income level. On the other hand, the country has a lower corporate tax rate of 22%, and the government plans to reduce it to 20% to provide relief to businesses.

Social factors affecting Turkey


Approximately more than 83 million people are populating the country. In other words, Turkey is home to 1.08% of the total population of the world. The official language of the country is Turkish, while some people also speak Kurdish. However, the average life of men and women is 72 and 79 years old.

Optimistic Potential

Turkey is in between East and West, and it has a unique mixed culture influenced by both civilizations. Her people are amicable, and the country has a multicultural society. However, Europe is dealing with the issue of decreasing population and increased aging people. The country has enormous growth potential because of its young people. The international investors would find a plethora of talent in the country.


There are hundreds of private TV channels and radio stations in Turkey. Her people are a sports-loving nation, and the most popular game is football. Some of the other popular games are handball, volleyball, wrestling, and basketball. The country is sitting between both continents, and it has created a globalized mindset among people.


Turkey is facing some social challenges like increasing the unemployment rate, social exclusion, and poverty. According to an estimate, the country has an unemployment rate of 14.622%. The government plans to reduce it to 12.449% by the end of 2021. Most importantly, the liberal and modernism that developed Turkey are declining. The growth of radicalism and extremism is taking over the country.

Technological Factors Impacting Turkey

Tech Growth

The Turkish tech industry has spread across the country, both in rural and urban areas. It’s because of the heavy investment of the government in Technology. It has made her people tech-minded, and consumption of tech products and services has been increasing. Online mobile banking, software, computers, mobile networking, fixed broadband, and e-commerce are among the top-growing industries. They have a great interest in businesses and investors.

Future Targets

Turkey plans to fall under the category of the world’s top 10 tech-developed countries by the end of 2023. It requires a robust tech infrastructure from the government in order to achieve the goal. The government and the private must be on the same page if the country wants to become a digital economy.

Legal Factors Affecting Turkey


The Constitution of 1982 is active in Turkey, and it implements the equal treatment of all people, both locals and foreigners. The country’s judicial system is independent of all external influences. However, Turkish law prohibits discrimination of all kinds in terms of political views, gender, language, race, and religion. A working week legally comprises 45 hours, and the overtime work falls under the category of overtime.

Employees have a right to annual holidays. The duration of the holidays varies in length depending on the service experience of the employee. For instance, a new employee having experience of 1 to 5 years can have a minimum holiday of 14 days of paid vacation.

Environmental factors affecting Turkey 


New industrial development and economic growth have presented a lot of environmental challenges to Turkey. Some of those challenges are the degradation of nature, scarcity of water, deforestation, climate change, marine pollution, and air pollution. Now, the government realizes the environmental challenges, and it’s planning to lower the pollution rate.

Tourism Industry

Before the economic crisis, the Turkish tourism industry brought annual revenue of 34.5 billion dollars in 2019. It declined to 12.06 billion dollars in 2020 due to the lockdown, shutdown, and air ban. However, Turkey falls under the category of the world’s most visited country. Some of the attractive places are the world’s heritage sites, synagogues, churches, mosques, historical sites, picturesque fishing villages, beaches, crystal clear water, food, and lovely people.

Conclusion: Turkey PESTLE Analysis Example Country

After an in-depth study of the pestle analysis of Turkey, we’ve concluded that Turkey is indeed the world’s leading developing economy. Environmental challenges, higher unemployment, and declining modernism are some of the top challenges countries. Turkey should promote the tourism industry and attract foreign investors to address these issues; while paying heed to the external political, economical, social, technological, legal, and environmental factors impacting the country.

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