Net foreign direct investments soar by 25 percent in 2 months
ANKARA - Hürriyet Daily NewsNet total foreign direct investment in Turkey during January and February 2012 rose 25 percent, reaching nearly $1.7 billion. This figure is up from $1.35 billion during the same period last year, with manufacturing, health and social work, and real estate renting being the most attractive industries, according to data released by the Ministry of Economy.
Net foreign direct capital investments totaled $1.28 billion, with a 14.7 percent increase from $1.1 billion during the same period in 2011, while foreign investments in local real estates was at $305 million during the first two months of the year.
Foreign investment is a crucial issue for the Turkish economy, as the soaring current account deficit has become a foremost factor casting a shadow on an impressive growth record in last two years.
The Turkish government has laid its hopes on a recently-announced comprehensive incentives scheme to attract more direct investment from abroad, while international rating agencies still hesitate to lift Turkey’s rating to an investment grade.
Foreign investments in Turkey’s manufacturing industry rose by a striking 97.7 percent to $352 million in the January-February period, from $178 million in the same period last year. Food, beverages and tobacco industries attracted a total of $56 million this year, up from $5 million last year. The chemicals manufacturing industry is another star among manufacturing sub-industries, as it witnessed $45 million of foreign direct investments, almost quadrupling the $12 million in the January-February period last year.
Real estate, renting, and business activities also expanded, by almost 120 percent to $202 million from $92 million.
Investments in the “health and social work” industry outshined every other industry or sub-industry as a total of $273 million during this year’s first two months. There were no investments at all in this sub-industry during the same period last year.
‘Health’ a shining star
Foreign investments in the community, social and personal service activities rose from $3 million to $45 million and in the mining and quarrying industry from $5 million to $22 million.
The electricity, gas and water supply industries collectively registered a 73 percent drop in foreign direct investment, falling from $267 million in the January-February period of 2011 to $72 million this year.
Financial intermediation activities were another wounded industry, shrinking by 42 percent from $366 million to $213 million, while the transport, storage and communications industries collectively contracted by 80 percent from $76 million to $15 million. Foreign investment in the local construction industry was $24 million this year, receding by 60 percent from last year.
There are a total of 29,579 foreign businesses currently active in Turkey, according to tentative official data. More than 18,000 European firms dominate these businesses, while firms from near and Middle Eastern countries follow with more than 6,000 firms.