According to a survey conducted in autumn 2021 by the German Chamber of Commerce Abroad (AHK), the majority of German companies in Turkey consider the country a favorable investment location. There is a lot of potential for Turkey and Germany to benefit from each other as economic partners, but political developments are hindering the realization of this potential.
Risk factors from the perspective of German companies
Turkey is currently struggling with a steadily increasing inflation rate and a constantly depreciating currency. However, Turkey also boasts a high growth rate and high exports. A total of 7,000 German companies are active in Turkey, 327 of which are members of AHK. Of these members, 77 German companies participated in the AHK survey.
With regard to short-term developments, German companies are rather skeptical about economic developments in Turkey. While 34 percent expect the economy to become worse, 40 percent of the companies surveyed expect the economy to remain unchanged. Only 26 percent of respondents expects economic conditions to improve in the coming months.