Foreign direct investment (FDI) in Turkiye soared 79% year-over-year in 2021, a report by United Nations’ trade and development agency UNCTAD showed Thursday, as inflows rebounded around the world to pre-pandemic levels, Trend reports citing Daily Sabah.
Coming off a low base in 2020, global FDI flows rose 64% to $1.58 trillion last year, UNCTAD’s World Investment Report 2022 said, driven by a booming merger and acquisition activity and rapid growth in international project finance due to loose financing and major infrastructure stimulus packages.
The figure had slipped to around $963 billion in 2020, well below the low point reached after the global financial crisis a decade ago, amid a global economic fallout from the pandemic.
Turkiye saw the FDI inflow reach $14 billion, up from around $8 billion in 2020, when the country saw a relatively smaller drop of 15%, compared to 35% on a global level.
The inflows since 2002 have exceeded the level of $240 billion, a statement by Presidential Investment Office said Friday. It said the inflows had financed 41% of the country’s total current account deficit.
Turkiye’s share in global FDI flows has increased to 0.9%, up from 0.8% in 2021 and 0.6% in 2019. The country aims to lift this figure to 1.5%.
Manufacturing, service and agriculture topped the list among industries in Turkiye, accounting for $8.4 billion of the FDI inflow in 2021, an increase of 116% from a year ago, the Investment Office said.
Investments in real estate market soared by 42.5% to $5.6 billion, it added.
European countries accounted for 60% of the inflows in Turkiye, followed by Asia and the Americas with 23% and 16%, respectively.
The U.K. is the biggest investor among nations, accounting for 19%, followed by the U.S. and the Netherlands with 16% and 13%, respectively. Among other major investors were Switzerland, the United Arab Emirates, Germany, South Korea, Japan and Qatar, the statement said.
The top 10 economies for FDI inflows in 2021 were the United States, China, Hong Kong, Singapore, Canada, Brazil, India, South Africa, Russia and Mexico.
While the recovery benefited all regions, almost three-quarters of the growth was concentrated in developed economies, where FDI flows soared 134% to $746 billion, the report showed.
Flows to developing economies rose 30% to $837 billion – the highest level ever recorded – largely due to strength in Asia, a partial recovery in Latin America and the Caribbean and an upswing in Africa.
The share of developing countries in global flows remained just above 50%.
For structurally weak, vulnerable and small economies, FDI rose by 15% to 39 trillion.
Announced international project finance deals hit a record of 1,262 projects last year and more than doubled in value to $656 billion.