Thilo Pahl, President of the German-Turkish Chamber of Commerce and Industry: Turkey’s economic policy is unpredictable
Thilo Pahl, President of the German-Turkish Chamber of Commerce and Industry, evaluated the commercial and economic relations between Turkey and Germany.
Thilo Pahl noted that mutual economic relations are basically “very stable” and said: “More than 7,500 German companies have facilities in Turkey, the largest of which are Bosch, Mercedes-Benz and Hugo Boss, while Siemens has been represented here since 1850. And as a recent survey among our 364 member companies shows, “Despite the economic crisis, the situation is better than expected.” said.
Pahl, “Import relations are also developing well, German products such as machines and cars are in great demand in Turkey, there is a 22 percent increase in goods in the first nine months, German goods are very popular here, but this puts an undue strain on the German-Turkish economic relationship for the companies here.” “It is also true that there are risks.” he added.
“IT AFFECTS ALL GERMAN COMPANIES”
“Turkey’s economic policy is unpredictable” Pahl said, “Since the Turkish President can make laws by decree without parliamentary consultations and votes, as in Germany, completely new conditions can be imposed on companies here overnight. This uncertainty in Turkey is poison for companies. For example, at the beginning of 2022, 25 percent of all export revenues will be local “It was decided that it should be converted into the Turkish lira. This affects almost all German companies that produce here and then export.” he said.
“Are export companies being used to support the Turkish lira?” Pahl answered the question: “Fiscal measures in Turkey affect not only German companies but the entire economy, but it is clear that this is not a predictable economic policy. Unfortunately, Turkey cannot realize its economic potential. For this reason, many companies operating here believe that the economic policy should be readjusted towards lower inflation and more predictability.” “Hopefully it will be sustained consistently.” said.
“PURCHASING POWER IS A PROBLEM IN TURKEY”
Pahl noted the following regarding the Turkish economy:
“Economic growth is still at a relatively high level and inflation is a problem for local purchasing power, but not for export companies. Turkey offers a great infrastructure, a young and dynamic growing society, and the wage level is relatively low compared to other EU countries, but productivity is high, This is attractive, for example, for the production of clothing and white goods.Although Germany and Turkey have a similar population of 83 million, the average age of the population in Turkey is much younger: for every eight million students in general education schools in Germany, there are two that in Turkey. “There are more than twice as many students (20 million). Turkey has an ideal location between Europe and Asia.”
“Erdogan calls Israel a “terrorist state” and trivializes the crimes of Hamas. Can’t German companies ignore such statements?” Pahl answered the question: “They don’t do that either. That’s why some German companies in Turkey have had to deal with boycott calls. All this creates uncertainty and discourages investors. In this respect, today we hope not only to make clear political statements, but also to bring calm to Turkey’s economic policy.” “I hope that it will be encouraged to continue following a path. After all, trust in Turkey as a business center is the most important value Turkey has in economic terms, and this trust is what we feel we lack the most right now.” he replied.
