Turkey forms a bridge between Europe and Asia, with the division between the two running from the Black Sea to the north down along the Bosporus strait through the Sea of Marmara and the Dardanelles strait to the Aegean Sea and the larger Mediterranean Sea to the south. The Anatolian peninsula consists of a high central plateau with narrow coastal plains, in between the Pontus range to the north and the Taurus Mountains[?] to the south. To the east is found a more mountainous landscape, home to the sources of rivers such as the Euphrates, Tigris and the Araks[?], as well as Lake Van and Mount Ararat[?], Turkey's highest point at 5,166 m.
Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that in 2001 still accounted for 40% of employment. It has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication. The most important industry - and largest export - is textiles and clothing, which is almost entirely in private hands.
In recent years the economic situation has been marked by erratic economic growth and serious imbalances. Real GNP growth has exceeded 6% in many years, but this strong expansion has been interrupted by sharp declines in output in 1994, 1999, and 2001. Meanwhile the public sector fiscal deficit has regularly exceeded 10% of GDP - due in large part to the huge burden of interest payments, which in 2001 accounted for more than 50% of central government spending - while inflation has remained in the high double digit range.
Perhaps because of these problems, foreign direct investment in Turkey remains low - less than USD 1 billion annually. In late 2000 and early 2001 a growing trade deficit and serious weaknesses in the banking sector plunged the economy into crisis - forcing Ankara to float the lira and pushing the country into recession. Results in 2002 were much better, because of strong financial support from the IMF and tighter fiscal policy. Continued slow global growth and serious political tensions in the Middle East cast a shadow over growth prospects in the future.
The majority of the Turkish population (around 80%) is of Turkic ethnicity, who speak the only official language of the country, Turkish. The most significant minority is that of the Kurds, who constitute up to 20% of the population (including groups such as the Zaza), and who are found predominantly in the east in Kurdistan and in major Turkish cities. Other smaller minorities include Arabs, Laz[?], Greeks, and Armenians.
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