Turkish Confederation of Employer Associations Publishes OECD Türkiye 2025 Review Report

OECD Turkey Economic Report 2025: Key Findings & Recommendations

Turkey's Economic Growth: A Standout Among OECD Nations

In recent years, Turkey has emerged as one of the fastest-growing economies among OECD nations. Positive developments in the labor market and advancements in social indicators play a key role in the country’s economic transformation process. The OECD emphasizes the necessity of structural reforms to support sustainable growth. This report, focusing on the OECD's key findings, dives deep into Turkey's economic outlook.

Key Recommendations for Turkey's Economy from the OECD

The OECD report outlines four primary areas of recommendations to make Turkey’s economy more resilient and support future growth:

1. Macroeconomic Policies

   • To ensure long-term fiscal stability, Turkey should increase efficiency in indirect taxation, broaden the income tax base, and expand social assistance programs. Focus on fiscal policy is critical.

   • The current economic policies are seen as supportive of sustainable growth, and continuation of these policies is recommended.

2. Women’s Employment

   • Turkey’s female labor force participation rate remains lower than the OECD average. Addressing women's employment is crucial.

   • The report recommends expanding early childhood education and childcare services, promoting equitable parental leave policies, and strengthening gender equality policies.

3. Green Transition and Climate Policies

   • Although Turkey’s greenhouse gas emissions remain relatively low, they are increasing rapidly. The importance of climate policy cannot be overstated.

   • The report calls for effective emission pricing mechanisms, coal phase-out strategies, and stronger adaptation policies to combat the rising risks of wildfires due to climate change.

4. Labor Productivity and Innovation

   • Turkey’s per capita potential growth rate is lower than that of other OECD countries. Boosting labor productivity is essential.

   • The report recommends investments to boost productivity in the services sector, enhancing workforce skills, supporting the innovation ecosystem, and reducing regulatory constraints on businesses.

Turkey’s Economic Situation and Future Prospects

Over the past decade, Turkey has achieved an average annual growth rate of 4.9%, increasing living standards fourfold.

• Labor force participation has risen from 50% in 2005 to 60% in 2023, while poverty rates have halved.

• Progress in renewable energy, water consumption management, and waste disposal has reinforced both economic and environmental sustainability.

However, structural challenges remain:

📌 The income gap between Turkey and OECD countries remains significant.
📌 Income inequalities and low female labor force participation persist.
📌 Integration of migrants and the aging population into the economy remains below expectations.
📌 High emigration rates among skilled workers negatively impact productivity in the industrial and service sectors.

OECD’s Policy Recommendations for Turkey

The OECD highlights that accelerating structural reforms is essential to sustaining Turkey’s economic growth. Policy recommendations focus on long-term sustainable development.

• Reliable and stable macroeconomic policies will attract investments and enhance labor mobility, allowing the country to fully realize its potential.

• The report also emphasizes the need to accelerate the green transition, support environmental sustainability, and increase technological and digital adaptation across the workforce.

How to Access the OECD Turkey 2025 Report?

The OECD Turkey 2025 Review Report, compiled by TİSK, is available on TİSK’s official website. To read the full report and obtain detailed information, visit www.tisk.org.tr.

For those interested in Turkey’s economic development, labor market reforms, and long-term sustainable growth strategies, the report’s key findings provide valuable insights. This OECD report on Turkey is essential reading.