The top executives of Swedish companies have voiced their trust in the Turkish economy despite recent political and economic uncertainties, pledging to keep making investments both in the short-term and in the medium-term, according to a recent poll.
In the survey carried out by the Swedish Trade Council’s Business Sweden in cooperation with the Swedish Embassy, the executives cited Turkey’s high growth path, large customer base, access to skilled workers, infrastructural investments and geographical location as its main advantages. They cited tough competition, political uncertainties and parity fluctuations as the biggest challenges they have faced doing business in Turkey.
The poll was carried out among 122 senior executives from 79 Swedish companies who represent over 400 brands, and which employ more than 23,000 individuals in Turkey, between July 1 and Aug. 15.
Some 85 executives participated to the survey.
The survey showed that 92 percent of the respondents expect growth in their turnover and 87 percent expect “moderate to very high profitability” in the medium term.
Some 89 percent of the companies surveyed have plans to invest within the next three years.
Confidence in Turkish economy
“Turkey as a member state of G-20 is a market that has great potential and certain difficulties. The country had a difficult summer, but the Turkish people and both local and international investors showed their resoluteness and helped the country’s economy recover. The results produced through this survey by Swedish investors, intensely operating in Turkey under some 400 brands, confirm that companies will stay in Turkey and that they have confidence in the Turkish market,” said Therese Hydén, Sweden’s Consul General in Istanbul, in her welcome speech at the launch meeting.
Among the respondents were many companies with a global turnover greater than 1 billion euros such as H&M, IKEA, Volvo, Spotify, Ericsson, Oriflame, and Tetrapak.
Sweden is the first country to conduct such a study and share its results publicly in Turkey, according to Swedish authorities.
The results show that Swedish companies are in Turkey not only to stay, but also to expand their business, stated Swedish Trade Commissioner Erik Friberg.
Most respondents filled out survey after coup attempt
“Some 81 percent of the poll participants answered the questions after the failed July 15 coup attempt,” Friberg said, noting that this reflected considerable optimism among Swedish companies despite Turkey’s turbulent recent political and economic environment.
“Swedish companies have a practical understanding of Turkey and doing business in Turkey. They believe that the market has potential in the short, medium and long term. Although they are sometimes affected by the tough competition in the market, they believe their respective sectors will continue to grow and they plan to expand their business and to make new investments. In that context, the results of the survey are an indicator of their confidence in the potential of the Turkish market,” said Friberg.
Some 95 percent of the respondents expect their respective sectors to grow in the next three years and some 96 percent have plans to either expand or maintain their operations in Turkey in this medium term.
Friberg noted that some 21 percent of respondents have a production facility in Turkey, adding that almost half of these companies plan to make fresh investments in the next three years.
“Some 14 percent of respondents who do not have a facility in Turkey plan to establish one in the next three years,” he added.
“Sweden has a strong “brand” in Turkey and Swedish companies who are planning to either expand or start a new journey in the country have a beneficial position in the Turkish market and should take advantage of that,” Friberg also said.
