Turkish Businesses Extend Operations to Egypt to Escape Economic Hardships at Home

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Turkish companies are flocking to Egypt to escape the higher production costs, growing inflation, and economic uncertainty in their home country. Last July, Cairo and Ankara chose to mend strained relations, putting an end to a decade of political contention and regional rivalry. Since then, bilateral economic ties have shown consistent signs of growth and collaboration. This positive trajectory in economic relations has been particularly evident as Turkish companies seek new avenues amidst challenges in the domestic economic landscape.  A key concern for these companies has been the prolonged impact of Turkish President Recep Tayipp Erdogan’s low interest rate policies, contributing to a notable surge in inflation, currently standing at 62 percent. The confluence of high fuel costs and uncertainties surrounding central bank interest rate policies has further exacerbated economic challenges. Despite the efforts of Turkey’s newly appointed Finance Minister, Mehmet Simsek, and the recently appointed head of the central bank, Hafize Gaye Erkan, to steer the country towards a more conventional economic policy, stability remains elusive.  Simsek and Erkan have expressed optimism, forecasting a return to stability and single-digit inflation rates by 2025 or 2026. However, this optimistic outlook…

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The post Turkish Businesses Extend Operations to Egypt to Escape Economic Hardships at Home first appeared on Egyptian Streets.

Source: egyptianstreets