EU FDI flows with Turkey

Inflows (red), outflows (green), balance (blue)

Source: Eurostat

A similar situation is found as far as European FDI stocks are concerned: Turkey is benefiting of a significant growth from 2014 to 2015.

Figure n°12: EU FDI stocks with Turkey: inflows (red), outflows (green), balance (blue)

Source: Eurostat

According to the most recent data released by the Ministry of the Economy, the trend is confirmed, after the political turmoil due to the attempted coup (global FDI flows to Turkey reduced by 44.3% from 2015 to 2016): the flow of European investments to Turkey is 2.7 billion dollars in the first half of 2017, showing a 66% growth over the same period in 2016. The composition of the stock is the following: services (4.1 billion dollars), real estate (3.8 billion), industrial sector (2.6 billion), manufacturing (1.7 billion), financial and insurance activities (1.7 billion).

The Customs Union has also been a key driver for FDIs coming from non-European countries, as many foreign companies (e.g.: Korean and Japanese automotive companies) have decided to invest in local production facilities in order to benefit from “tariff-free” exports to Europe.

@manu_scogna10