International direct investments in Turkiye reached $14 billion in 2021 with an increase of 79%.
According to the “World Investment Report” of the United Nations Conference on Trade and Development (UNCTAD), by the Presidential Investment Office, it has been reported that FDI flows to Turkiye, which showed a much smaller decrease of 15% in 2020 compared to the 35% decline observed worldwide in average International Direct Investment (FDI) flows, reached $14 billion in 2021 with an increase of 79%.
In the statement made by the Presidential Investment Office, it was stated that UNCTAD’s annual report on FDI was published under the title of “World Investment Report 2022”.
In the statement, global FDI flows, which amounted to $963 billion with a decrease of 35% compared to the previous year in 2020, the year of the epidemic, and decreased compared to 2009, the year of the global financial crisis, showed a rapid recovery in 2021 and increased by 64% compared to 2020. Global FDI flows were realized as $58 trillion.
In the statement, it was stated that the rise in FDI flows showed significant differences according to countries and regions.
“Developed countries recorded a significant increase by receiving $746 billion of FDI with an increase of approximately 134% compared to 2020. On the other hand, total FDI flows to developing countries increased by 30% and amounted to $837 billion. The recovery in less developed countries, on the other hand, followed a more moderate course with an increase of 15%. FDI flows to Turkiye, which showed a much smaller decrease of 15% in 2020 compared to the 35% decline observed worldwide in average FDI flows, reached $14 billion in 2021 with an increase of 79%. Thus, Turkiye increased its share of global FDI flows, which was 0.6% in 2019, to 0.8% in 2020, and increased this rate to 0.9% in 2021, catching an increasing trend in the last two years.”
Since 2002, international direct investment flows to Turkiye have exceeded $240 billion
In the statement, looking at the components of FDI flows to Turkiye, capital inflows to the industry, service and agriculture sectors increased by 116% compared to the previous year and amounted to $8.4 billion. It was reported that the FDI for real estate purchases increased by 42.5% and reached $5.6 billion.
Pointing out that the wholesale and retail industry attracts $3.4 billion of international direct investment, especially as a result of investments in technology-oriented e-marketplace companies, it constitutes 44% of total capital investments. “When we look at the continent-based source of FDI to Turkiye, Europe took the lead with a share of 60%, while Asia and America followed Europe with a share of 23% and 16%, respectively. When we look at the source countries, the UK with 19%, the USA with 16% and the Netherlands with 13% made up the first three places. Switzerland, UAE, Germany, South Korea, Japan and Qatar took their places in the list as prominent countries.”
In the statement, it was reported that FDI flows to Turkiye have exceeded the level of $240 billion since 2002, with the strong performance displayed for the last 19 years, thus making significant contributions to Turkiye’s sustainable development and financing 41% of the total current account deficit.
Source: Trthaber / Translated by Irem Yildiz