Normalization with Russia to contribute over $10B to Turkey's trade volume
by Daily Sabah
ISTANBULJul 12, 2016 - 12:00 am GMT+3
by Daily Sabah
Jul 12, 2016 12:00 am
According to the Geopolitical Risk report, which was prepared by Turkish financial institution Ata Invest and focuses on Turkish-Russian relations, the ending of tension between the two countries will contribute over $10 billion to Turkey's trade and tourism volume over the next two years. The report says that Turkey, located in one of the world's riskiest regions geopolitically, has not had a calm period since the 1990 Gulf war.
Explaining that the most recent, unexpected geopolitical risk for Turkey was its downing of a Russian military jet in November, the report says that Russia is Turkey's second-largest commercial partner after Germany. The report also points out that the harm the economies of both countries would face due to Russia's policies following Turkey's downing of its jet will soon be replaced by mutual profits after the problem is overcome.
According to the report, considering decreased trade, tourism and shuttle trade revenues, the dropping trend in relations in 2015 will bring $4.5 billion to $5 billion to the Turkish economy annually along with the recovery of relations. This means that rapidly recovering commercial, economic and tourism operations will contribute nearly $10 billion to the Turkish economy over the next two years. Improving Turkish-Russian relations will also make contributions to the economy in terms of the current account deficit.