Trade and food sectors lure most of foreign investments

ISTANBUL

Türkiye’s wholesale and retail trade claimed 16 percent of equity capital inflows or $46 million in August, according to data released by the Turkish International Investors Association (YASED).

The share of food, beverages, and tobacco manufacturing accounted for another 16 percent, performing above its past cumulative performance.

Chemical and basic pharmaceutical products made up 11 percent of the investment capital, while information and communications technologies accounted for 9 percent.

The shares of metals, construction and real estate sectors were 8 percent, 7 percent and 7 percent, respectively.

The automotive captured a 4 percent share in capital inflows.

Türkiye received $497 million in foreign direct investments (FDI) in August, showed YASED report, which compiled data from the Central Bank’s balance of payments statistics.

Some $238 million of the total FDI in August was recorded as investment capital, while $201 million was in real estate sales to foreigners in Türkiye.

Türkiye received the highest amount of international investments from Germany in August at 12 percent, followed by Switzerland at 11 percent and the Netherlands at 10 percent.

The U.S. and France both made up 9 percent of international investments to Türkiye, followed by Luxembourg with 9 percent and Taiwan with 7 percent.

European Union countries accounted for 54 percent in the same period.

In the first eight months of the year, Türkiye received $6.41 billion in FDI, 2 percent below the figure from the same period last year.

The top three countries investing in Türkiye were the Netherlands (20 percent), Germany (15 percent) and the U.S. (13 percent).

The FDI earnings garnered in the first eight months of 2024 corresponded to 66 percent of the current account deficit during the same period.

Real estate sales accounted for 32 percent of the total FDI inflows in the first eight months of 2024, YASED said.

The total foreign direct investments since 2002 amount to $270 billion, the data showed.

Türkiye's current account balance posted a surplus of $4.3 billion in August.

Excluding gold and energy, the current account balance indicated a net surplus of $9 billion, the Central Bank said.

The country’s current account deficit in January-August amounted to $9.7 billion, down from $38.9 billion in the same period of 2023.