Turkey ranks in the top 25 countries worldwide where international business executives are likely to direct foreign investment, according to a recent independent report.
The 2014 Kearney Foreign Direct Investment Confidence Index lists Turkey as 24th, and shows an increase in confidence in the country’s investment outlook compared to 2013.
The report said that “Turkey’s economy continues on its growth track for the 19th consecutive quarter, expanding by 2.1 per cent in the second quarter of 2014, over the same period of 2013, according to the Turkish Statistical Institute (TurkStat).” Following the 4.7 per cent growth in the first quarter, the country’s first half growth rate for the year stood at 3.3 per cent. The country’s GDP has expanded more than threefold in the last decade, reaching $820 billion in 2013 figures.
The Kearney index painted a positive picture overall, saying: “Based on this year’s FDI Confidence Index, we can affirm that foreign direct investment appears once again to be ready for take-off.”
According to Turkey’s Ministry of Economy Foreign,direct investment in the country reached $7.9billion in the first seven months of 2014. This represents a 9.4 per cent increase from the $7.23billion invested in the same period last year. The Ministry’s report also showed that FDI net inflow was $1billion in July. Capital inflow, one element of FDI, was $632million in July, with a large portion, reaching $280million, attributed to Asian countries compared to the EU-based capital inflow of $176 million.
Investors in real estate in Istanbul and wider Turkey will be comforted by this news, as it shows continued confidence in owning Turkish assets and the country’s status as a place to grow a business. Attracting the international business community should have positive knock-on effects for the Turkish property market.