Top executives predict that Türkiye’s business environment will remain stable in the near future, with only 10% expecting improvements. According to a report by Şehriban Kıraç from Nefes Gazetesi, foreign company CEOs in Türkiye see inflation as the biggest risk for 2025, with 85% citing it as a major concern.
Currency Volatility and Taxation Among Top Business Risks
The YASED PULSE survey, conducted by the International Investors Association (YASED) with the participation of CEOs from 275 member companies, revealed that 79% of CEOs consider exchange rate uncertainty as the second biggest risk, while taxation ranks third at 60%.
“There Should Be an Adaptation Process”
Despite predicting stability, YASED members believe that if macroeconomic stability and predictability improve, Türkiye could attract an additional $13.5 billion in direct foreign investment in 2025. YASED President Engin Aksoy emphasized that for Türkiye to attract more international investments, greater stability and predictability are essential.
Aksoy stated, “Legal assurances are necessary. Investors need to foresee the next 3-5 years. Regulatory changes should not come as surprises; if changes are to happen, there must be an adaptation process.”
Inflation Control Shows Progress, But Expectations Not Fully Met
Commenting on economic growth projections, Aksoy noted, “CEOs expect slightly lower growth rates for Türkiye in 2025 compared to 2024. Inflation control has improved significantly this year but still falls short of expectations.”
He also pointed out that Türkiye now faces competition from countries like Saudi Arabia and the United Arab Emirates in attracting new investments. “Relying solely on cost advantages to attract foreign direct investment is no longer a viable strategy,” Aksoy concluded.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök