Turkey's Foreign Direct Investment Market

Even political controversies in Turkey cannot stop its growing FDI market

Most economic experts are in agreement that Turkey has been playing an increasingly prominent role in the world economy, redefining itself as an attractive hub for foreign direct investment (FDI). The country is regularly talked about alongside the economically strong BRIC nations and has accentuated its appeal to foreign investors thanks to its resilience during the recent recession.

According to 2012 figures, global FDI inflows declined by 14 percent from 2011 to $1.4trn. High volatility in financial markets, macroeconomic uncertainties, the fiscal gap in the USA and euro crisis have all affected the slump in FDI. In 2012, the FDI projects volume in Europe shrank by 21 percent year-on-year as a result of the global slowdown. By contrast, Turkey expanded its market share and still ranked as one of the top 10 countries in Europe for FDI, with around $12.5bn in 2012 (see Fig.1).

Source: www.worldfinance.com