Downward pressure on Europe’s economies continues to bypass Turkey, after the economy there recorded an encouraging 9.8 per cent year-on-year rise in foreign direct investment (FDI) in the first eight months of 2014.
According to Ministry of Economy data, FDI in Turkey reached $8.6billion for the January-August period, which saw the manufacturing sector attract the highest portion of investment with $2.1 billion. The financial intermediation sector was the second highest, drawing $1.1 billion, and overall, 63 per cent of investments originated from the EU. Turkey’s FDI for the whole of 2013 was $12.9 billion.
During the same period, foreign investors set up 2,850 companies, taking the total number of foreign owned or partnered companies in Turkey to 40,506.
In more good news, Turkey’s exports for October increased 6.7 per cent year-on-year, hitting a historical level of $12.5 billion – the highest level ever recorded for the month of October.
Data from the Turkish Exporters Assembly (TIM) confirmed that Turkey’s total exports in the first 10 months of 2014 rose by 5.6 per cent year-on-year to surpass $131 billion, while exports in the last 12 months (October 2013– October 2014) hit $158.5 billion. Turkey’s forecast for export revenue for 2014 is $160.5 billion.
Attracting more foreign money and strengthening exports should have a positive knock-on effect for Turkey’s real estate market, in particular in Istanbul, which is becoming an international commercial hub. Property in Istanbul continues to see annual rises with on-going demand, in particular from the Middle East.