More and more western companies are moving their operations to the country due to the geographical advantages it offers amid challenges posed by global crises, such as the Ukraine conflict.
Türkiye has become a prominent hub of opportunity for many German companies amid challenges posed by fragile supply chains, Thilo Pahl, general manager of the overseas Turkish Chamber of Commerce told German newspaper Handelsblatt.
“The global crisis of the supply chain surprisingly makes Türkiye a favourite place for German importers and exporters,” Pahl said in the report, published on Tuesday.
He emphasised that Türkiye, due to its favourable geographical location next to EU member countries, is becoming more and more important for the logistics sector.
The ongoing Russia-Ukraine conflict has recently compelled some companies to move their operations to the country, said Pahl.
“There is a potential to create an expanded trade corridor from Asia to Europe via Türkiye.”
Tobias Bartz, CEO of German shipping company Rhenus, also said that western companies want to move their operations from Asia to regions near Europe.
“Türkiye, with its very young and well-educated population, is the ideal place for production and trade,” Bartz told Handelsblatt.
READ MORE: How Russia’s war on Ukraine impacts Türkiye
Türkiye’s exports volume on the rise
Many companies now prefer running their operations from locations where deliveries via train or trucks are possible in case of an emergency, the report added.
The Turkish economy has responded quickly to this new emerging need.
The report also noted that Turkish entrepreneurs have successfully filled the gaps in the global supply chain with Turkish products despite the challenges posed by the Covid-19 pandemic.
Export volume in Türkiye has increased significantly in recent years despite the crises in the world and persistent inflation.
The volume of foreign direct investments stood at $464 million before the Ukraine war started in February.
This figure reached $1.7 billion last June, according to the Central Bank of Türkiye.
Size of Türkiye’s economy grew 11% to $802.7B in 2021
Source: TRTWorld and agencies