The Republic of Türkiye, with the 17th largest nominal gross domestic product (GDP) and 11th largest GDP based on purchasing power parity (PPP), has long drawn the presence of U.S. corporations across sectors. Türkiye’s young population of over 85 million and highly favorable geostrategic location positively impact its investment climate. However, economic challenges catalyzed by high inflation overshadow this promising market. Steep inflation, the weakening currency and an increase in production costs and localization pressures, complicate Türkiye’s ability to reach its economic goal of becoming a top 10 economy. Nevertheless, more than 1700 U.S. firms, including many of the United States’ largest and most recognized brands, have been active in this emerging and growing market for decades. Given its proximity to markets in Europe, the Middle East, North Africa, and Central Asia, Türkiye is an advantageous regional hub.

According to Government of Türkiye (GoT) statistics, Türkiye’s economy grew 3.2% in 2024. This growth was driven by strong performance in the construction and industrial sectors. The economy also experienced positive contributions from service activities, finance, and insurance sectors. Despite these gains, the economy faced challenges due to high energy prices and continued high inflation.

In October 2022, the annual inflation rate peaked at 85.5%, but after Türkiye’s 2023 presidential election, the government embraced more conservative monetary policies. Beginning in June 2023, the Central Bank of the Republic of Türkiye (CBRT) began a tightening cycle by raising interest from 8.5% in 2022 to 40% in 2023. After reaching a peak of 50% in March 2024, CBRT began a gradual easing cycle in late 2024. During its September 2025 meeting, the central bank opted to decrease the policy rate from 43% to 40.5%.  Inflation continues its gradual decline with the latest available data for August 2025 showing a rate of 32.9%. As of the time of writing, the USD to TL exchange rate stands at around USD 1 = TL 41. 

In 2024, total U.S.–Türkiye trade in goods and services reached approximately $43 billion, marking a notable increase from $39.6 billion in 2023. This growth was driven by a significant rise in the services sector. The trade in goods remained relatively stable, totaling about $32.1 billion in both 2023 and 2024. However, trade in services grew substantially, rising from approximately $7.5 billion in 2023 to $10.9 billion in 2024. Despite shifts within specific categories, the overall economic relationship has expanded, with continued notable activity in sectors such as motor vehicle parts and industrial machinery.

Based on final 2024 trade data, goods from the United States accounted for approximately 4.5% of Türkiye’s total imports. This positioned the U.S. as the country’s fifth-largest source of imports, following Russia, China, Germany, and Switzerland, respectively. Tariffs introduced in 2018 and 2019 on certain U.S. products continue to pose challenges for American exporters, particularly when compared to European competitors that benefit from tariff-free access under Türkiye’s Customs Union with the EU. Despite these trade barriers, U.S. exporters maintain a significant presence, and American brands continue to enjoy strong recognition and favorability among Turkish consumers, supporting robust demand in sectors ranging from aviation and technology to medical equipment and consumer goods.

For several decades, the United States and Türkiye have enjoyed a strong political and military relationship. Both countries partner closely on a range of regional and international concerns. A NATO member since 1952, Türkiye has supported missions around the world, including Afghanistan, Iraq, the Balkans. Notably, Türkiye has received over four-million refugees from Syria, Iraq, Afghanistan, and other countries, making it the world’s largest host for refugees. The robust U.S.-Türkiye economic relationship has continued to serve as a critical foundation despite certain geopolitical divergences.

U.S. firms, many with the assistance of the U.S. Commercial Service in Türkiye (CS Türkiye), continue to pursue energy, aerospace, advanced manufacturing, defense, infrastructure, transportation, healthcare, and ICT projects throughout the country. Often with the assistance of the U.S. Government’s SelectUSA Program, Turkish companies continue to invest heavily in the United States, in part to act as a potential buffer against the weakening Turkish economy. In 2024, U.S. direct investment in Türkiye was $6.6 billion, a decrease from $6.9 billion in 2023. Direct investment from Türkiye in the United States was $2.3 billion, an increase of 3.5% from 2023.

To map out the opportunities and better understand the challenges of doing business in Türkiye, U.S. firms, both large and small, are encouraged to contact CS Türkiye for market information, updates on regulatory issues, major projects, and business developments. With offices in Ankara, Istanbul, and Izmir, we encourage business visitors to meet with our multilingual, sectoral-focused business development teams for individualized market consultations. For more information, visit the CS Türkiye website and the U.S. Embassy in Türkiye website.