Istanbul has been one of the major trade hubs in the world for more than 3.000 years. Istanbul has its bad and good years, but Istanbul has always been a culturally and historically rich place.
Between 2000-2010 Turkish economy was booming. It was the years that the EU had its own crises. Greek vacation was cheap, and when watching television shows, I could dream of buying a rustic Alaskan House.
Between 2000-2010 Istanbul was one of the wealthiest and fastest-growing cities in Europe.
Yet, those days are gone now. In the recent decade, pandemic and economic crises have hit Istanbul hard. Poverty and high prices have been an issue in Turkey, especially during the last couple of years.
In its current state, Istanbul may sometimes seem poor when compared to European capitals. For foreign nationals, due to Turkish Liras’ lower value, Istanbul may feel cheap. Enjoy the discount in Istanbul, because it will not last forever.
During these crises, the income gap is increasing each day. Today, most people have difficulties making a living for their families.
Yet, Istanbul is the top choice for the extremely rich in Turkey and provides a good place to live in luxury.
For travel tips and hacks about Istanbul click to read Istanbul: All You Need to Know Before Coming.
|Population||15.600.000 (as of Dec 31, 2020)|
|Age Distribution of Population||36% – Young Population (0-24)|
53% – Middle Age (24-65)
11% – Old Age Population (65 Plus)
|Average Person in a Household||3,36 Person|
|annual GDP (total value of goods and services produced)||232 billion dollars|
|GDP per Capita||15.265 USD|
|Number of Tourists Visit||3.430.000 tourists visited Istanbul in 2018.|
|Economic Sectors||%68 Service Sector, %31 Industry, %1 Agriculture|
|Developed Industrial Sectors||Hardware, machinery, automotive, shipbuilding, chemistry, weaving, ready-made food, glass, porcelain, and cement industries|
|Number of Cars/ Car per capita||2.927.974 / 1 car per 5 people (2020)|
Turkish GDP per capita fell from its peak of 12.614 USD (2013) to 8.536 USD in 2020. After the pandemic, it continues to decline.
Istanbul is one of the richest cities in Turkey with an average GDP per capita of 15.265 USD. Yet, when compared to Western capitals Istanbul can also be considered a poor place.
Istanbul is one of the oldest cities in the world and is the most populous city in Europe. The economy of Istanbul is the lifeblood of the Turkish economy.
Istanbul’s economy makes up 31% of the Turkish economy. Istanbul accounts for
- 55% of Turkey’s production
- 45% of Turkey’s International Trade Volume
- 31% of the Gross National Product of Turkey.
- 54% of Turkey’s imports
- 50% of Turkey’s exports.
Istanbul’s population of 15.600.000 accounts for its permanent residents.
This number is higher because Istanbul’s official population does include non-permanent residents (refugees, university students, international & local tourists, and business people visiting the city.)
According to the Istanbul mayor, 2 million refugees are residing in Istanbul. (2021, Source)
Another factor that makes Istanbul’s population more than its official population is the arrival of millions of tourists each year. In 2018, 13 million 430 tourists visited Istanbul.
Additionally, Istanbul has a dynamic professional middle-age population due to heavy migration from other parts of Turkey.
Nearly all of my well-educated friends in Turkey live in Istanbul because Istanbul offers better options for professional white-collar workers.
You can read my article “What Languages are Spoken in Istanbul?” to learn more.
Istanbul has a GDP of 232 billion dollars. The economic outlook is not as bright in Istanbul as it used to be.
According to the latest 2019 Data, The GDP of Istanbul has decreased by 60 billion dollars since 2013. Yet, Istanbul’s economy continues to be massive.
If Istanbul was an independent country, it would still be a major economy.
If you compare Istanbul’s economic size to other countries, Istanbul has a bigger economy than Greece, Finland, Portugal, the Czech Republic, and Egypt.
SUGGESTED READING: Why and When Istanbul became Constantinople? A Local Answers
Tourism in Istanbul
Istanbul is one of the most important cities globally in terms of tourism; As a center of science, culture, and art, it welcomes millions of tourists every year.
Istanbul hosts more than ten million tourists every year. For this reason, one of the biggest income sources of Istanbul is tourism.
In 2018, Istanbul was visited by 13 million 430 thousand tourists. It is estimated that each tourist spent an average of 660 dollars in Istanbul and Istanbul earned 8.6 Billion USD of tourism revenue.
Top 8 Nations that visited Istanbul the most
|Ranking||Nationality||Tourist Visits to Istanbul|
For decades, Turkey has had an inflation rate between 10-%40 per year.
Consumer prices are always rising, and the Turkish Lira is devaluing. Depreciation of the Turkish Lira is the standard norm for Turkey.
Symbols of Economy in Istanbul
Borsa Istanbul, The Grand Bazaar, and The Spice Market are the symbols of Istanbul’s Economy.
Today, you still sense the Turkish economy’s condition with a short walk in the Grand Bazaar or The Spice Bazaar.
Istanbul Stock Exchange or Borsa Istanbul
The first stock market activities in Istanbul date back to the Crimean War of 1854. The stock exchange, established in Istanbul, was named “Dersaadet Tahvilat Borsası,” with a regulation issued in 1873.
The Exchange continues to operate since 1873, but today its name is Borsa Istanbul.
Kapalicarsi (The Grand Bazaar)
Known as the oldest and largest shopping center in the world, the Grand Bazaar is built on an area of 45 thousand square meters.
It is possible to find everything from carpets to bags, from textiles to gold and silver jewelry, from antiques to tiles and souvenirs in the Grand Bazaar.
The Grand Bazaar has around 3,600 shops.
Misir Bazaar (The Spice Bazaar/ The Egyptian Bazaar)
In its first years in the 17th century, The Spice Bazaar was also known as “The New Bazaar” and “Valide Carsisi.”
Yet, the goods sold in the Bazaar were mostly Egyptian goods and spices. For this reason, from the middle of the 18th century, Turkish people started to call this market “The Egyptian Bazaar.”
The Spice Bazaar may not be as important for world trade as it used to be, but Spice Bazaar is still a vital part of Istanbul’s Economy.
Check out my post: Is Istanbul Middle East? to learn the differences between Istanbul and the rest of the Middle East.
Biggest Companies in Istanbul
Koc, Yıldız, and Anadolu are the biggest and most well-known companies in Istanbul.
1) Koc Holding
Koc Holdings’ history goes back to the 1920s. Koc’s is mostly involved in electrical household appliances, automotive, and the food sector.
In 2020, Koc was ranked the 471st largest industrial company globally in the Fortune Global 500 magazine.
According to the Economist magazine, the Koc family is the richest in Turkey. Their annual revenue was approximately 30 billion USD in 2018.
2) Yıldız Holding
Yıldiz was founded in 1944 by Sabri Ulker in Istanbul. Yıldız Holding is best known for its chocolate and biscuit brands.
Yıldız Holdings’ annual revenue is around 8 billion USD.
Yıldız Holding is the third-largest biscuit producer in the world since 2014.
3) Anadolu Group
The group was founded in Istanbul in 1950 by Kamil Yazıcı and İzzet Özilhan.
The group operates beer, soft drinks, automotive, retail, agriculture, real estate, energy, and health sectors.
Anadolu has a portfolio of well-known brands, and their most known brand is Efes.
Anadolu Efes is the 5th largest beer and malt beverage producer in Europe. Anadolu Efes also owns the best basketball team in Europe.
The company’s annual turnover from beer production alone is around 3 billion USD. In addition, the company owns 50.6% of Coca-Cola İçecek’s rights in Turkey.
Anadolu Efes is the 18th company in the Fortune 500 Turkey.