Will foreign investment in Turkey return to pre-crisis levels?
Foreign direct investment is rising in Turkey and expected to reach $16 billion by the end of the year and eventually the pre-2008 crisis level of $20 billion.
As Europe recovers from the impact of the 2008 economic crisis, so does Turkey. The recovery is visible in many aspects, including the increase in exports and the stock market’s rise to pre-crisis levels. Another major indicator of the Turkish economy’s growing output strength is the accelerated inflow of foreign direct investment (FDI).
In contrast to foreign funds that go to short-term bond and stock market investments before moving out at first opportunity, foreign direct investors put money in manufacturing and services, making a lasting positive impact on the host country’s economy by building factories and creating new jobs. Hence, FDI is the most desirable form of investment and has been on the rise in Turkey this year. The statistics point to a trend that may eventually reach the pre-crisis level of $20 billion.
