Streamlined Türkiye Systematic Country Diagnostic - The Path Towards High-Income

Jul 19, 2026

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Streamlined Türkiye Systematic Country Diagnostic (SCD) assesses Türkiye’s progress toward becoming a high-income country and proposes policy directions to accelerate development. It reviews achievements in economic growth, inclusion, environmental and climate resilience, and institutional progress; analyzes opportunities alongside emerging risks; and concludes with development priorities and recommendations. The diagnostic highlights drivers of inclusive growth, poverty reduction, labor-market expansion, and improvements in education access and key learning inputs.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages17

Reading Time43 min

Streamlined Türkiye Systematic Country Diagnostic

Part 1: Progress – Türkiye’s achievements

Part 2: Opportunities and risks

Part 3: Development priorities and policy recommendations

Public Disclosure Authorized Public Disclosure Authorized Streamlined Türkiye Systematic Country Diagnostic: The path towards high-income World Bank, June 2024 Streamlined Türkiye Systematic Country Diagnostic Türkiye has made significant progress towards its aim of becoming a high-income country. Despite strong global headwinds the country has performed well in developing a prosperous economy, its people, and its social and physical infrastructure, although it is planning for further progress to meet several remaining development challenges. This streamlined Systematic Country Diagnostic (SCD) offers analysis and policy proposals to support the acceleration ofTürkiye’s development aims. There are three main parts. Part 1 underlines the advances the economy has made towards achieving highincome-country status in terms of economic growth, inclusion, environmental and climate resilience, and institutional progress. Part 2 shows that these advances, have generated further opportunities to accelerate economic, social and environmental development but also attendant risks. Part 3 concludes with a series of development priorities and policy recommendations to both manage these risks, and harness opportunities to accelerate the transitions towards higher standards of living in Türkiye. Part 1: Progress – Türkiye’s achievements Türkiye has achieved remarkable economic development since the early-2000s. Real GDP growth, measured in constant Purchasing Power Parity (PPP) (2017 international dollars), averaged 5.4 percent per annum between 2002 and 2022 making Türkiye the 25th fastest growing country in the world (of 178 economies with available data).i Therefore, income per capita more than doubled in constant PPP terms since 2001, as income convergence accelerated. In 2001, income per capita was $14,137 in constant PPP terms (2017 international dollars), doubling by 2018 and reaching $33,150 by 2022 (Figure 1) . Türkiye outperformed other economies with respect to income growth and income levels. Per capita GDP growth in Türkiye averaged 3.8 percent annually between 2016 and 2022 in constant PPP terms, compared to 3.2 percent in other upper-middle-income economies and 1.4 percent in OECD economies.ii As a result, income convergence, measured as GDP per capita relative to the United States, outpaced peer groups. This rapid growth induced a significant reduction of poverty rates. According to World Bank estimates, poverty rates–defined as household per capita incomes below a US$ 6.85 poverty line–declined from around 20 percent in 2010 to 9.9 percent in 2016, a halving of the poverty rate that involved 6.5 million people left poverty in those years mainly due to rapid labor income growth for workers.iii This was also accompanied by a similar reduction in chronic poverty. While 13 percent of households were poor every year between 2006 and 2009, only 6 percent were poor every year between 2016 and 2019.iv Between 2016 and 2020 (and through 2022) the poverty rate has hovered around 10 percent, which is the result of social policies (such as transfers and pensions) that prevented potential reversal of this trend due to headwinds (the 2020 global pandemic) . A key driver of this inclusive growth has been the Turkish labor market which generated more than 11 million jobs over the last 15 years, as the labor market developed a more equal representation of men and women, with better educated workers, in more modern economic sectors. Nearly half of these jobs (45 percent) have been taken by women and about 6 million of the new workers have tertiary education.v Informal employment (defined as persons who are not registered to asocial security institution due to their main job) declined by 0 .636 million workers between 2014 and 2023, while formal employment grew by 6.494 million workers for the same period. The majority of new employment has been created in the services sector, while employment in agriculture has declined

FAQs

What is the purpose of the Streamlined Türkiye Systematic Country Diagnostic (SCD)?

It provides analysis and policy proposals to accelerate Türkiye’s development goals toward high-income country status.

What does Part 1 focus on in the diagnostic?

Part 1 highlights Türkiye’s advances related to economic growth, inclusion, environmental and climate resilience, and institutional progress.

How does the diagnostic address both opportunities and risks?

Part 2 explains how progress creates additional opportunities to accelerate development while also generating attendant risks that must be managed.

Jul 19, 2026

Upload by Hazel