TURKEY ATTRACTS US$ 13.2 BILLION FOREIGN DIRECT INVESTMENT IN 2018
It is reported that Turkey attracted FDI (foreign direct investment) worth of US$ 13.2 billion in 2018 during which time investments in whole world was observed to decline. This figure corresponded to an increase of 14 percent as compared to previous year. Experts comment this as a positive signal indicating the economy is destined to get on the right track again after a tough time due to challenges such as inflation and rising dollar.
It is also reported that a major part of FDI comes from European countries and this figure was calculated at 65 percent in 2018. European-owned companies are recorded to have invested in Turkey about US$ 201billion between 2003 and 2018.
Experts note that the geographical location of Turkey offers great advantages to companies that would like to operate in other countries in the region as well.
Turkey and Europe are considered to be two important strategic partners. The young and growing population of Turkey has made this country a key market for European exporters. It goes without saying that the Customs Union Agreement in force since 1996 provides Turkey with the opportunity to conduct trade activities with European Union countries without custom duties.
Global investments had made peak with US$ 2 trillion in 2007. However, due to the economic crisis incurred in 2008 and 2009 this figure went down to US$ 1.2 trillion. Global Investments which enjoyed a substantial increase thereafter went down again to US$ 1.2 trillion due to the political developments experienced in 2018, pointing to a crisis once more.
Turkey, thanks to its unique characteristics, has been able to leave behind this period with right measures. On the other hand, Turkey is not content with and FDI figure of US$ 14 billion which corresponds to 1 percent of the global total and targets to increase this figure to 1.5 percent soonest and 2 percent in the long term.
Therefore Turkey identifies its needs in the field of investment and also strategic sectors and develops promotional strategies accordingly.