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German-Turkish economic relations

Deutsche Bank advertisement in Turkish
Deutsche Bank advertisement in Turkish. Photo: flickr/zeitrafferin

Germany is Turkey's single most important economic partner. In 2007 the bilateral trade reached an alltime record with 24.8 billion Euros, compared to 23.6 billion Euros in 2006.

Turkish exports to Germany increased by 5.3 percent to almost 10 billion Euros.

German exports to Turkey rose by almost 5 percent to 15 billion Euros.

German exports to Turkey are dominated by: machines, automobiles, supplier goods and chemical goods. Turkish exports to Germany are highly dominated by textiles (ca. 50 percent) and agricultural products.

(Germany Ministry of Foreign Affairs, Relations between Turkey and Germany, May 2008)

Foreign Direct Investment in Turkey

2006

19 billion USD

2007

22 billion USD

(DEIK, Foreign Economic Relations Board, 25 February 2008)

 

Since 1980 German foreign direct investment surpassed 5.8 billion USD.

Germany's FDI in Turkey over the past years (in million USD)

2003

142

2004

73

2005

391

2006

357

2007

962

(Republic of Turkey, Undersecretariat of Treasury)

 

Top 10 Investments in Turkey from 1980 to 2007 (in USD)

1. Netherlands

12 billion

2. France

8.4 billion

3. USA

8.2 billion

4. Germany

5.8 billion

5. Greece

5.4 billion

6. Belgium

5.2 billion

7. UK

4.0 billion

8. Italy

2.8 billion

9. Switzerland

2.4 billion

10. Austria

1.3 billion

(Sources: Turkey Central Bank, YASED)

 

In 2007, close to 60 percent of the FDI flows, two-thirds of the total originating in the European Union, was recorded in the financial intermediation sector. The manufacturing sector accounted for about 22 percent of FDI flows.

The hard coal fired power plant in Iskenderun is the biggest German investment in Turkey with roughly 1.5 billion USD.

Foreign companies in Turkey (in 2008)

20,189

Foreign Companies in Istanbul

10,967

 

Among foreign companies operating in Istanbul, 3,942 were in mass and retail sale, 2,161 in manufacturing, and 1,568 in real estate and business activities (DEIK, Foreign Economic Relations Board, 14 August 2008).

The number of German companies or Turkish companies with German contribution of capital has risen to currently more than 3,200.

Since 1985 the association of the German Chambers of Industry and Commerce has an office in Turkey. Since 1994 the German-Turkish Chamber of Commerce has an office in Istanbul and since 2004 also in Cologne. 

Turkey's big industrialists' associations TUSIAD and MUSIAD have also opened offices in Germany, both with headquarters in Berlin.

Most tourists visiting Turkey are from Germany: in 2007 more than 4 million German tourists visited Turkey, an increase of 10 percent to 2006.

Tourists in Turkey (in million)

 

2000

2006

2007

Total
From Germany

10.5
2.3

19.8
3.8

23.3
4.2

 (Turkish Statistical Institute, Tourism)

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