Swedish companies have for decades conducted a wide range of business activities in Turkey and invested in new factories and R&D facilities, while also acquiring local companies.
As shown in our Business Climate Survey, Swedish companies are active in manufacturing, retail and wholesale, automotive and heating, ventilation and air conditioning (HVAC), to mention just a few of the leading sectors.
While Turkey is increasingly positioning itself as a manufacturing and distribution hub – with many exciting business opportunities – there are challenges that both Turkey continues to face and that Swedish companies need to navigate to be successful.
As one of the few OECD countries that experienced positive growth in Europe, Turkey's GDP grew by 1.8 per cent in 2020. But signs of an early economic recovery from the pandemic came at a price. Turkey experienced a record drop in the lira, inflation has risen and unemployment has become widespread. Despite the severe challenges of 2020, Swedish companies still managed to maintain profitable business.
In fact, 75% of our survey respondents stated that 2020 was a profitable year for their operations. In addition, Swedish companies in Turkey are more optimistic today than a year ago during the onset of the pandemic – more than half (58%) are expecting an increase in turnover in 2021. And the growth forecast for the Turkish economy has been revised upwards to 6 per cent.
Download the report to explore the opportunities and challenges of the Turkish market from the viewpoint of Swedish companies on the ground.