FDI in first two months surges 25 percent to $1.6 billion

Turkey received 25 percent more foreign direct investments (FDI) in the first two months of this year over the same period of last year, according to the latest official data from the Economy Ministry.FDI inflow to the fastest growing market in Europe and the Organization for Economic Cooperation and Development (OECD) reached $1.6 billion in the January-February period of 2012. This figure was $1.3 billion in January-February 2011. Capital inflow in Turkey also increased 14.7 percent, from $1.1 billion to $1.2 billion, in the same period. Foreign investments in Turkish manufacturing rose 97.7 percent, from $178 million to $352 million in the first eight weeks of the year, as compared to the same period from the preceding year. Investments in the construction sector dropped 60 percent from $62 million to $24 million over the same period. Meanwhile, FDI in the energy, natural gas and water supply industries suffered a drastic 73 percent drop in the first two months, down to $72 million. Foreign investors parted with $267 million in these sectors in the same months of last year. In related news, in February 2012, 80 international firms began operations in Turkey, in addition to 16 domestic firms that began partnering with foreign companies, totaling 96 new firms that started operations in February.