In November, Turkey experienced total equity capital inflows amounting to $642 million, according to a report from the International Investors’ Association (YASED). The financial and insurance activities sector led the inflows with $318 million, with banking investments contributing $300 million within this sector. Wholesale and retail trade accounted for a 14% share, while the manufacture of computers, electronic, electrical, and optical equipment represented 7% of the equity capital inflows.
Middle Eastern countries, notably Qatar with a 47% share, stood out in equity capital inflows to Turkey in November 2023. Germany followed with an 11% share, and the United Kingdom with a 7% share. The U.S., United Arab Emirates, Netherlands, and Ireland each had a 5% share. In the first 11 months of the previous year, European Union member countries held a 56% share, while Middle Eastern countries had an 18% share.
Turkey attracted a total of $1.26 billion in foreign direct investments (FDI) in November 2023, according to balance of payments data from the Central Bank. However, YASED’s report highlighted a 27% decline in FDI inflows over the first 11 months of 2023 compared to the same period the previous year, totaling $9.2 billion. The breakdown of FDI inflows in November included $642 million through equity capital flow, $256 million through the sale of real estate to foreign nationals, and $410 million through debt instruments.
Real estate sales constituted 36% of the total FDI inflows for the first 11 months of 2023. Turkey’s current account showed a deficit of $2.7 billion in November, ending two months of surpluses. Finance Minister Mehmet Şimşek noted that geopolitical tensions had contributed to weakening service revenues, impacting the current account deficit. While the foreign trade deficit in 2023 was projected to be $6 billion below the medium-term program forecast, the year-end current account deficit was expected to surpass the forecast, reaching $42.5 billion.
