Turkiye is strategically located between Europe and Asia, and features an open, liberal trade and investment climate. As a key supply partner to the European Union, Turkiye has attracted significant foreign direct investment from Western Europe. It’s also the largest and most important market for EDC in the Eastern Mediterranean region. The country’s economy is increasingly driven by its industry and service sectors, although its traditional agriculture and textile sectors remain important employment drivers. The business environment has improved, but downside risks persist, including policy unpredictability and banking sector pressure. Public debt could rise over time.