FDI in Turkey Up by 43% in Q1

Foreign direct investment in Turkey increased by 43% in the first three months of this year compared to the same period last year, reaching around $1.7 billion. according to data compiled from the balance of payments of the Central Bank of the Republic of Turkey.

In contrast, this amount was $1.188 billion in the same period last year, Anadolu Agency reported.

Moreover, domestic residents invested $832 million abroad in the first quarter of this year, while this amount was $816 million in the same period last year.

Spain made the highest foreign direct investment in Turkey in the January-March period, followed by Azerbaijan, the Netherlands, Austria and Germany, respectively.

In the January-March period this year, 55% ($939 million) of the $1.7 billion direct capital investments in Turkey of residents abroad was made by Spain. This capital inflow stemmed from the purchase of Garanti Bank by the BBVA (Banco Bilbao Vizcaya Argentaria), which is one of the largest banks in Spain.

Among the total direct investments by foreign investors in the first quarter of the year, 54% was made in the banking sector, 13.1% in mining and quarrying, 5.2% in electricity, gas, steam and air conditioning production and distribution sector, 4% in the wholesale and retail trade sector and 3.2% in paper and paper products manufacturing sector.

Moreover, 11.4% ($193 million) of the total investments in the first quarter was made by Azerbaijan, 6.2% ($106 million) by the Netherlands, 5.6% ($95 million) by Austria and 3.5% ($60 million) by Germany.

In the first quarter of this year, the Netherlands was the top destination for foreign direct investment of domestic residents, reaching $204 million (24.5%), followed by Germany with $88 million (10.6%) and the UK with $84 million (10.1%).