Turkey’s FDI fall 45.5 pct in Jan-Jun term
Posted by meb at July 11th, 2008
Turkey’s foreign direct investments (FDI) fell by 45.5 percent to 6 billion dollars in the first five months of 2008 compared to the same period of last year, the Treasury Undersecretariat announced in a statement on Friday.
A total of $649 million of foreign direct investment flowed into Turkey in May, the statement read.
The equity investment inflow component of the international direct investment inflows reached up $5 billion in the same period, with $2.8 billion of this amount flowing into the financial intermediation sector, according to the latest figures.
In the first five months of 2008, 1,239 companies and branch offices with international capital have been established and 280 international capital participations to the existing domestic companies incurred the statement also read.
According to the latest figures, FDI during the January-May term reached $11 billion in Turkey.
Foreign direct investment to Turkey is estimated to fall in 2008 due to the fallout of the credit crunch in the global markets. The additional political uncertainty that emerged after the closure case filed against Turkey’s ruling Justice and Development Party (AKP) is also seen as negative factor for foreign investors by analysts.
Turkey expects to attract $13 billion amount of foreign direct inflows in 2008, however earlier estimations were set at $25 billion.
Turkey needs FDI inflows to finance its huge current account deficit, which is expected to reach a record $50 billion in 2008.
source: Hurriyet daily
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