Istanbul — Net foreign direct investment (FDI) into Türkiye has fallen to its lowest level in two decades, highlighting a sharp slowdown in international capital inflows into the country.
According to recent data, net FDI dropped to $2.7 billion, marking the lowest level recorded in the past 20 years. The decline reflects weakening investor appetite and reduced cross-border investment activity in Türkiye.
The drop in foreign investment comes at a time when the Turkish economy is undergoing a policy shift aimed at stabilizing inflation and restoring macroeconomic balance. Analysts say that global economic uncertainty, tight financial conditions and domestic economic adjustments have all contributed to the slowdown in investment flows.
Decline in International Capital Flows
Foreign direct investment has historically been an important source of financing for Türkiye’s economy, supporting industrial expansion, employment and technology transfer. However, the latest figures suggest that international investors have become more cautious in recent years.
Economists note that factors such as high global interest rates, economic uncertainty and structural adjustments in Türkiye’s economic policies have influenced investment decisions.
Outlook
Despite the recent decline, business leaders and policymakers continue to emphasize that Türkiye remains an attractive destination for foreign investors due to its large domestic market, strategic geographic location and diversified industrial base.
Authorities are seeking to restore investor confidence through economic reforms and policies aimed at improving financial stability and strengthening long-term investment prospects.
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Source: Patronlar Dünyası/ Prepared by: İlayda Gök