Turkey has become a “net investor” with the exception of real estate

Turkey became a net foreign investor during the 10 months of the year, excluding real estate. It was notable that the sectors where outbound investment was more than inbound were sectors in which Turkey is relatively prominent, such as textiles, accommodation, agriculture and mining.

In the period from January to October of this year, foreign direct investments, excluding real estate, entering Turkey amounted to 4 billion 129 million dollars, and investments from Turkey abroad amounted to 4 billion 555 million dollars. An interesting picture emerged when looking at the sectors where outbound investment from Turkey was higher than inbound investment. The sectors where outbound investment from Turkey was the highest compared to inbound investment were those where Turkey was relatively prominent, such as agriculture, mining, textiles, financial services and accommodation. In textiles in particular, where orders have recently been lost and there are signs of moving abroad, inward investment in the January-October period was $34 million and outward investment was $74 million.

Türkiye TURNED INTO A PURE INVESTOR IN JANUARY AND OCTOBER

The outlook for the item “investment” of foreign capital in the industry and services sector has changed in 2023. While in the past the amounts have come close from time to time, this time the amount of direct investment in Turkey remained below the level of outbound investment. Although Turkey still has a surplus in net liability creation and asset acquisition items, including real estate in general, it has turned into a net investor when only the investment item is considered. Between January and October, net inflows to Turkey totaled $2.922 billion, including real estate. Excluding real estate purchased by foreigners in Turkey, there was an outflow of $171 million.

INVESTMENT ABROAD NET 426 MILLION DOLLARS

Mehmet Kay of Ekonomi reports that after excluding netting such as real estate and net asset acquisition and net asset creation, and looking only at the amount of investment made, Turkey appears to have invested more abroad in 2023, both in total and on a sectoral basis .

Without specifying and excluding real estate, direct investment in Turkey in terms of economic activity in the production of goods and services in January-October 2023 amounted to 4 billion 129 million dollars. Investments from Turkey abroad amounted to 4 billion 555 million dollars. Looking at it this way, investment from Turkey abroad was $426 million higher than inward investment. In the same period last year, investments coming into Turkey were 1.7 billion dollars higher.

MINING AND TEXTILE FIX ATTENTION

According to central bank data, the striking factors emerged when looking only at the inflows and outflows under the “investment” heading. While net investment was attracted to the industry group consisting of mining, energy and manufacturing, it was notable that 1.4 billion of investment was made abroad. Net foreign investment was generated in mining and the amount of investment reached 754 million dollars. There has been $74 million in foreign investment in textiles and clothing, which has recently been attracting attention for losing orders from abroad.

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