Posted on 18 August 2011
We have long known that volatility in the global economy, combined with the eurozone debt crisis and sluggish growth in most established markets was driving growth in investment to Turkey and other emerging markets. But few would have believed it would be driving quite as much growth as we now know.
According to the latest data from the Central Bank of the Republic of Turkey (CBRT), Foreign Direct Investment in the first half of this year increased by 325% compared to the same period last year. With the Eurozone debt crisis only getting worse, and even the US once again causing global instability, one can only foresee continued growth in investment to Turkey.
The rise was fuelled by a 388% growth in investments from European nations, a 140% increase in investment from North America, and a 329% growth in investment from the far east, all of which more than made up for the disappointing 43.3% drop in investments from near and middle eastern nations — this is hardly surprising given the effects of the Arab Spring, but disappointing none the less.
Of the total $6.9 billion in investment, $5.7 billion was invested in the services sector, and the other $1.1 billion went to the manufacturing sector.
In other news Turkstat revealed a further drop in unemployment, which fell 1.6 points in May compared to last year, leaving the total unemployment figure at 9.4%.