The European section of Turkey, in the northwest, is Eastern Thrace, and forms the borders of Turkey with Greece and Bulgaria. The Asian part of the country, Anatolia (also called Asia Minor), consists of a high central plateau with narrow coastal plains, in between the Köroğlu and East-Black Sea mountain range to the north and the Taurus Mountains to the south. Eastern Turkey has a more mountainous landscape, and is home to the sources of rivers such as the Euphrates, Tigris and Aras, and contains Lake Van and Mount Ararat, Turkey's highest point at 5,165 metres (16,946 ft).

Turkey is geographically divided into seven regions: Marmara, Aegean, Black Sea, Central Anatolia, Eastern Anatolia, Southeastern Anatolia and the Mediterranean. The uneven north Anatolian terrain running along the Black Sea resembles a long, narrow belt. This region comprises approximately one-sixth of Turkey's total land area. As a general trend, the inland Anatolian plateau becomes increasingly rugged as it progresses eastward.

Mount Ağrı is the highest peak in Turkey at 5,165 m (16,946 ft) and is located in the Iğdır Province in the Eastern Anatolia regionTurkey's varied landscapes are the product of complex earth movements that have shaped the region over thousands of years and still manifest themselves in fairly frequent earthquakes and occasional volcanic eruptions. The Bosporus and the Dardanelles owe their existence to the fault lines running through Turkey that led to the creation of the Black Sea. There is an earthquake fault line across the north of the country from west to east, which caused a major earthquake in 1999.

The climate is a Mediterranean temperate climate, with hot, dry summers and mild, wet and cold winters, though conditions can be much harsher in the more arid interior. Mountains close to the coast prevent Mediterranean influences from extending inland, giving the interior of Turkey a continental climate with distinct seasons. The central Anatolian Plateau is much more subject to extremes than coastal areas. Winters on the plateau are especially severe. Temperatures of −30 °C to −40 °C (−22 °F to -40 °F) can occur in the mountainous areas in the east, and snow may lie on the ground 120 days of the year. In the west, winter temperatures average below 1 °C (34 °F). Summers are hot and dry, with temperatures generally above 30 °C (86 °F) in the day. Annual precipitation averages about 400 millimetres (15 in), with actual amounts determined by elevation. The driest regions are the Konya plain and the Malatya plain, where annual rainfall frequently is less than 300 millimetres (12 in). May is generally the wettest month, whereas July and August are the most dry.

Economy
Main articles: Economy of Turkey and Economic history of Turkey

Levent financial district as seen from the Sporcular Park, IstanbulThe CIA classifies Turkey as a developed country. Turkey is also classified as a newly industrialized country by economists and political scientists worldwide, and is a member of the G-20 which brings together the 20 largest economies of the globe.

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 Derviş, inflation has fallen to single-digit numbers, investor confidence and foreign investment have soared, and 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 newly built Esenboğa International Airport in AnkaraThe GDP growth rate for 2005 was 7.4%, thus making Turkey one of the fastest growing economies in the world. 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.

TCDD high speed trainIn 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 acquisition of the economic reforms and erase the vestiges of an unstable economy. On January 1, 2005, the old Turkish Lira was replaced by the New Turkish Lira by dropping off six zeroes (1 YTL= 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 69th in the world in 2005. In 2004, it was estimated that 46.2% of total disposable income was received by the top 20% income earners, whilst the lowest 20% received 6%.

Turkey's main trading partners are the European Union (59% of exports and 52% of imports as of 2005), the 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.