Turkey’s economy forecasts $12-14 bln in FDI inflows in 2008
Posted by meb at July 14th, 2008
Turkey’s state minister, Mehmet Simsek forecast on Monday around 12-14 billion dollars of foreign capital flow in Turkey in 2008.
Turkey’s economy forecasts $12-14 bln in FDI inflows in 2008.
“Turkey forecasts a net foreign capital inflow of $12-14 billion this year,” Simsek told an Anatolian Agency correspondent.
Turkey was planning to draw gross $18 billion of direct foreign capital in 2008.
Simsek said that foreign capital inflow was down 45.5 percent to $6.1 billion in the first five months of 2008, compared to the same period of 2007, and predicted that Turkey would draw less foreign capital in 2008 over 2007.
The amount of the foreign direct investment that flowed into Turkey reached a total $649 million in May.
The minister showed the reason of this decrease in foreign capital influx as global economic problems and the indefiniteness in Turkey since March when the country’s chief prosecutor filed a closure case against the ruling Justice and Development Party (AKP).
“I believe that Turkey will overcome this indefinite time soon and draw giant investments again,” Simsek quoted as saying. Simsek also said that Turkey would implement new reforms and initiatives to attract investors.
Analysts also estimate foreign direct investment to Turkey would fall in 2008 due to the fallout of the credit crunch in the global markets.
Direct foreign capital inflow in Turkey reached $22 billion in 2007.
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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