FDI into Turkey rises by 28 percent in second quarter

ANKARA – Anadolu Agency

Turkey's Economy Minister Nihat Zeybekci. REUTERS Photo

Foreign direct investment (FDI) into Turkey has reached $6.76 billion in the first half of 2014, marking a 28 percent rise from last year, the Turkish Economy Ministry has announced.

Turkey’s economy minister, Nihat Zeybekci, said in a statement the $6.7 billion received in FDI in the first half of the year shows Turkey continues to be an attractive country for foreign investors.

“Turkey is on course to develop [economically] despite all of the [negative] speculation since the beginning of the year,” Zeybekci said.

The service sector benefited the most from foreign capital by receiving $2.3 billion, while the manufacturing sector followed with $1.9 billion, according to data released on Aug. 20.

The ministry’s data also shows how 68.1 percent of FDI, which amounts to $3.6 billion, came from the European Union.

Meanwhile, Turkey’s electricity, gas and water received $900 million-worth in FDI for the first six months of 2014, compared to 2013 where the country’s energy sector had emerged as the largest recipient of international capital, receiving $2.55 billion.

Energy-hungry Turkey wants to increase its energy output for its ever-growing economy and needs substantial amounts of investment into its energy sector, on which the country is reliant on for its inflow of foreign capital.