Foreign direct investment slows in 2008
Posted by meb at April 15th, 2008
Foreign direct investment (FDI), which had been growing since Turkey started negotiations with the EU in 2005, saw a significant slowdown in the first two months of 2008.
FDI in the January-February period of 2007 amounted to $7.4 billion, while it decreased to $1.6 billion in the same period of 2008, the ANKA news agency reported yesterday, citing data from the Central Bank of Turkey.
The annual total of foreign direct investment, realized through purchases as part of privatizations and mergers, was equal to $622 million in 2002 and $745 million in 2003. This figure increased to $1.2 billion in 2004, $8.5 billion in 2005 and $17.6 billion in 2006. It hit a record level in 2007 of $19.2 billion.The services sector had the largest share in FDI with $622 million in the January-February period of 2008. Out of the total, $258 million was invested in financial intermediary companies, while $235 million went to real estate, rentals and certain sub-sectors. The mining and quarrying sector, which has only recently attracted significant foreign investment, followed the services sector with $457 million. Manufacturing, food and beverages, and plastics and rubber saw $427 million, $147 million and $101 million of investment, respectively. EU countries contributed the most in FDI, with $568 million in the January-February period of 2008; the Netherlands topped the EU member states with $295 million. Holland had made a record level of direct (annual) investment in 2006 and 2007 with $5.69 billion and $5.67 billion, respectively. Asian countries, the Americas and African countries invested $290 million, $199 million and $8 million, respectively, in the January-February period of 2008.
source: Today’s Zaman
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